Economics Microfinance Questions
Microenterprise refers to small-scale businesses or self-employment activities that operate in the informal sector of the economy. In the context of microfinance, microenterprise refers to the target clients or borrowers who are engaged in these small businesses. These microenterprises typically have a limited number of employees, low capital investment, and operate in sectors such as agriculture, retail, services, or manufacturing. Microfinance institutions provide financial services, such as small loans, savings accounts, and insurance, to support and empower these microenterprises. The aim is to alleviate poverty, promote economic development, and improve the livelihoods of individuals and communities by providing access to financial resources and services that are otherwise unavailable from traditional banking institutions.