How to Reduce Poverty and Make Money?

Everyone might be saying, simple, open a business. However, it may not be as easy as it sounds.

Microcredit business is also not necessarily the best option because many of the poor people are more vulnerable to paying the loan back. In fact, it not uncommon that many borrowers, perhaps due to limited knowledge, are using the borrowed money to fund private consumption. Additionally, some of them are just defaulting, leaving the creditor in a disadvantaged condition.

I read a study about financial empowerment in Egypt, and I like that the author proposes a formation of an enterprise that consists of farmers, SMEs, or other low income informal workers. That way, this formal entity can ask for larger amount of credit, insurance, and marketing, monitor the performance of the borrower and also provide documentation and permits such that in the future these people can earn easier access to government entities.


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s