Specifically, microenterprise has the greatest impact on women, who have historically been discriminated against by commerical lenders. To date, more than four million families worldwide have benefited from microenterprise. Microenterprise is a program that encourages economic self-reliance through small loans, business training and mutual support. As a college professor 20 years ago he began arranging small loans for indigent people near the university where he taught economics. Versions of the Bangladesh experiment have succeeded in scores of nations around the world.
Many borrowers belong to membership groups.
Delinquent loans become the responsibility of the group. First time loans are low. New, higher loans depend on repayment of earlier loans. Clients get access to training and group support. Interest rates are the same as commercial bank rates.