Role of micro financing in boosting SME's?

Question

Role of micro financing in boosting SME's?

Answer 1

Microfinancing opens the door to many individuals to start a small enterprise that would have had no other way to raise capital.  In many countries it is harder for the poor and females to be given loans (even of the small amounts that microfinancing offers).  If for no other reason microfinancing boosts small enterprises because there is no other alternative for those people to raise the money.

In addition to that microfinancing commonly also offers weekly meetings which provides business guidance and mentoring which helps improve the chances of these new businesses surviving.