Not So Risky, Not So Micro
For many of the rural poor and socially-disadvantaged in developing countries, microfinancing is a key source of capital. With loans of just hundreds or even tens of dollars, this group, commonly known as “the under-banked”, has been able to jump-start small businesses of their own and achieve a certain level of economic success. As such, more lenders – both public and private – have been willing to accept the risks of working with this stratum of borrowers. However, with the global economy looking bleak and financial regulations tightening across the board, microfinancing activities have been sharply reduced.