Economics Microfinance Questions
The relationship between microfinance and poverty reduction is that microfinance aims to provide financial services, such as small loans and savings accounts, to low-income individuals who lack access to traditional banking services. By providing these financial resources, microfinance institutions empower individuals to start or expand their own businesses, generate income, and improve their living conditions. This access to credit and financial services can help alleviate poverty by enabling individuals to invest in education, healthcare, and other essential needs, ultimately leading to increased economic opportunities and improved living standards.