Macro reforms in financial systems need to be complemented by measures that encourage the institutions, instruments, relationships and financing arrangements geared to providing sound, responsive financial services to the majority of enterprises that have not had access. Experience around the world has shown that microentrepreneurs do not need subsidies and that microlenders cannot afford to subsidize borrowers. Low income entrepreneurs want rapid and continued access to financial services, rather than subsidies. That's where microfinance, or microcredit, agencies, come in. These are non-profit organizations dedicated to reaching the poor with small loans that enable borrowers to work their way out of poverty.
Some charity organizations feature microcredit as one of their services.
Microfinance is so successful in reducing poverty that even the World Bank and other major international institutions have increased their commitment to microlending, and there are new organizations engaging in microlending every day. All these elements are tied together with an ecommerce program that provides a base of income for the community to continuously improve basic services for families. Each element is delivered to the community by a world-class organization specializing in its field, with a proven track record. On this foundation, productive microcredit programs can be built, which call on the power of family initiative to fire the entrepreneurial engine.