Why microfinance fails

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  • Опубликовано: 1 дек 2024

Комментарии • 37

  • @yashnigam6
    @yashnigam6 3 месяца назад +9

    Let’s be real, it’s because the people who micro finance targets are in no position to run a business, even a very simple one. The idea that a person from a third world village can keep track of balance sheets or income statements to know if their business is profitable is kind of ridiculous.

  • @4ninesofreliability779
    @4ninesofreliability779 4 года назад +15

    Education along with money will solve many failures

  • @MA-vw1pl
    @MA-vw1pl 5 лет назад +33

    Banking can be a casino to the financially illiterate. They are guaranteed to lose. Microbanking is just a microcasino. Same results

  • @hus390
    @hus390 4 года назад +15

    The title is misleading.

    • @nicfarrow
      @nicfarrow 2 месяца назад

      Yes. 100% negative.

  • @Cons4Zachy
    @Cons4Zachy 3 года назад +8

    I like the thought on why it fails but I believed this was from the lenders side but seems more for the borrower. Where I live, microlenders are almost a last resort because of the "infinite interest rate".

    • @gusdariel8171
      @gusdariel8171 3 года назад

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    • @titaneden7825
      @titaneden7825 3 года назад

      @Gus Dariel instablaster =)

    • @gusdariel8171
      @gusdariel8171 3 года назад

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    • @gusdariel8171
      @gusdariel8171 3 года назад

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    • @titaneden7825
      @titaneden7825 3 года назад

      @Gus Dariel happy to help :D

  • @mustangmike8515
    @mustangmike8515 4 года назад +15

    In order to open a successful business you have first plan a good strategy and make a complete market study, and all that costs money, otherwise you will open a random business (coffee shop, pizza restaurant, grocery store) and never find a target customer. I learned that when I opened my travel agency (with no money and no planning) and after 1 year i had to close because there was no travelers (there was too much offer and to enough demand). Not everyone are business people and not all business are successful (probably just 20% are in the real world). What Poor people really need is a steady job and good education, not loans for opening an unsuccessful business.

    • @ndenkuesson6823
      @ndenkuesson6823 3 года назад +6

      I agree with you. But what you forget is that microfinance loans initially was given to support people livelihoods (crop production and livestock keeping, off-farms businesses linked to specific communities) that these communities have been practicing for centuries.
      Saying that microfinance don't work is thinking that it's supposed to solely derive results yet everything is interrelated. No policy or program work on it own. Microfinance is integrated in systems (economic, political, social, farming,cultural ) so it might be good but one should always look at how well it integrate with other systems.

  • @ইরতিজাআহসান
    @ইরতিজাআহসান 3 месяца назад

    Not only loaned money is not micro-financing. It's the lack of support, you have to give the proper support system and lack of utilization, then you will be able to impact the micro financing.

  • @ndenkuesson6823
    @ndenkuesson6823 3 года назад +7

    So what's the alternative for providing financial services to the poor?
    Some economists suggest cash transfer s.

    • @Mimi-nr6jx
      @Mimi-nr6jx 2 года назад +1

      Exactly…cash transfers increase household welfare and boost local aggregate demand. But for productive SMEs, there should be long-term low-interest loans with other institutional support like access to markets, knowledge transfer, etc

  • @florianberger1932
    @florianberger1932 3 года назад +5

    so how do you explain Grameen bank and it‘s many copies around the world? Have you even red Banker to the poor?

    • @MrRaulstrnad
      @MrRaulstrnad 10 месяцев назад +5

      the situation is extremely complex Grameen bank itself, although beloved by the chattering ruling classes of the West, has some deep structural issues that some argue leads to the exploitation of the uneducated poor

  • @yttean98
    @yttean98 5 лет назад +9

    solving global poverty summaries in one phrase, solving the basic unfairness of global economy @ 7.50min. Also, why don't these researchers go and study how China solves the poverty problem, the problem is the Western ego.

    • @yttean98
      @yttean98 5 лет назад +1

      The problem is too many studies and not many implementers to proposed solutions.

    • @laxshooter15
      @laxshooter15 4 года назад

      China solved their poverty issues by have their extreme poor move to urban areas where they could find better paying jobs.

    • @yttean98
      @yttean98 4 года назад

      @@altseanburma3892 Inequality is everywhere, worse in the USA if there is so much inequality in China why are they so many poor people lifted out of poverty in China.

  • @اسلاميات-للنشر
    @اسلاميات-للنشر 4 года назад +1

    Thank you so much

  • @goldnutter412
    @goldnutter412 4 года назад +1

    How it is being talked about back then...
    What I wanna ask about MF world.. how short a period can be borrowed for at some stupid APY that is actually such a small debt because seconds or subsecond ? is this specialized area in SWIFT gpi public info anywhere yet ? when is TMP and how do self sovereign types like me who spent all my retirement on assets thanks to AU giving it to us under the situation

  • @sultanirfani007
    @sultanirfani007 2 года назад

    Right boss

  • @sohailalmani5514
    @sohailalmani5514 4 года назад

    I'm worker of microfinance foundation in Pakistani
    Any one job for my self in other countries

    • @kaal_har
      @kaal_har 3 года назад

      @@ENXJ 😂😂😂😂

    • @nicfarrow
      @nicfarrow 2 месяца назад

      Any meaning to this comment?

  • @tothemoon8465
    @tothemoon8465 3 года назад

    Bitcoin solves this. Look it up.

    • @nicfarrow
      @nicfarrow 2 месяца назад

      Thanks for the laugh.

    • @tothemoon8465
      @tothemoon8465 2 месяца назад

      @@nicfarrow omg 3y ago lol thanks man for your laugh. Still valid though 😎