The Need For Microfinance In Bahrain

Microfinance in Bahrain is helping a lot of low income earners get into and sustain their business activities. Without this, it would be difficult for low income earners to enjoy many financial services. For example, things like insurance and saving plans are normally geared towards high income earners. Without intervention, the gap between the rich and the poor would continue to widen.

Take the case of credit, for instance. Many financial institutions insist on asking for collateral for those who require loans from them. In most cases, the low income earners do not have resources to put up as security. This automatically disqualifies them from accessing many types of loan products, something which stifles their growth. In fact, if unchecked, it represents a never ending circle of poverty.

Any serious government must give strong thought to the development of its citizens. That is why the Bahrain state has instituted a number of microfinance laws and regulations to ensure that this important sector is properly monitored. This way, the state ensures that the development of its citizens is as uniform as possible, and that as few people as possible are left behind.

Not only that, microfinance in Bahrain, and indeed elsewhere, is not only managed by the authorities. The private sector stands to gain a lot from their involvement in these activities. Considering the economies of scale, it would not be a wise move to ignore the masses, those who stand to gain the most from microfinance services. Considered individually, those who use microfinance services may not bring much in terms of revenue. However, since they are many in number, the combined revenue from the industry is quite enormous.

Indeed, it is not profit alone that should drive state as well as private organizations to do business. The need to help the society should be shared by everybody for the common good. After all, the so called corporate social responsibility initiatives are not always adequate. Engaging in microfinance offers everybody; businesses and customers, the opportunity to gain from the services of the other.

Take the case of helping an individual to start a business venture, for instance. When the business thrives, he will have more spending power. That means business will improve since he will be more likely to deal with the same institution which helped him start a business. In microfinance, everybody wins.

However, microfinance in Bahrain is not all about business. The sector is also concerned with improving the living standard of the people. Education, healthcare and other life support services may not always be affordable to all but with microfinance, everybody has a chance to enjoy them.

When discussing microfinance in Bahrain, there seems to be too much emphasis on credit facilities. This is not bad but it should be noted that the sector does not only deal with loan facilities. It also helps businesses as well as individuals to save. There are even course designed to help participants manage their businesses better. Thus, it is an all encompassing sector that benefits everybody.

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Micro Enterpreneurs in US

Micro Business is the small business which have an employee fewer than five employees and have startup costs of less than $30.000. The micro business owner known as micro enterpreneurs. There are 22 million micro enterpreneurs in the US. Owners of bakeries, beauty parlors, child care facility, repair shops, arts and crafts shops, small-scale restaurants are people known as micro enterpreneurs.

A lot of micro enterpreneurs sometimes lack the skills important to manage their finance business aspect. The result is, a lot of micro enterpreneurs can’t grow and develop their business beyond a micro enterprise. Presence of Micro Enterprise with their development program have helped micro enterpreneurs achieve great success and growth.

What kind of micro enterprise that could help? The answer is the micro finance company like Grameen Bank in Bangladesh which found by M Yunus. Is it exist in America? The answer is yes it is.

Yet Yunus believes that in just a few years Grameen America will be so successful that it turns a profit, thanks to 9 million U.S. households untouched by mainstream banks and another 21 million using the likes of payday loans and pawnshops for financing. Profit has long eluded U.S. microfinanciers. “If it’s not profitable, it’s not microlending — it’s charity,” Yunus said on a recent trip to the U.S. The question, then, is whether there is a role for a Third World lender in the world’s largest economy.
That was also true when Grameen first came to the U.S., in the late 1980s, and tripped up. Under Grameen’s tutelage, Southern Bancorp started making microloans to entrepreneurs in Arkansas. At first, the loss rate was a shocking 30%. Even after getting that under control, Southern found that what people really needed wasn’t seed capital but broader help developing work skills and finding jobs

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