Micro-Finance and Entrepreneurship in Developing Countries

Abstract

The concept of micro-finance has been around since the 1800’s and has been more widely used as a tool to encourage entrepreneurship in developing economies as early as the 1970’s with the inception of the Grameen bank in Bangladesh. The success of micro-financing however, does have some shortfalls, especially in helping women who often face social, cultural, and educational challenges different from their male counterparts. These social structures often stand in the way for women limiting their ability to become financially independent and empowered. This paper will look at two programs, Ciudad Mujer (CM) from El Salvador and Farmers of the Future (FOF) from Niger Africa to show how micro-financing, coupled with educational/training programs and other comprehensive social programs can help women entrepreneurs thrive in developing economies to overcome the unique challenges that they face.