Modern microcredit is generally considered to have originated with the Grameen Bank founded in Bangladesh in 1983s. In fact, it is often said to provide a solution which enables small business people to borrow capital to purchase fruit, livestock and materials without being exposed to unscrupulous or violent lenders. However to fully understand this concept, some independent research on the microcredit concept is needed; following this address the following:
(1) How does the microcredit concept contribute to the economy?
(2) Are there any drawbacks to the idea of microcredit?
(3) Are you in favor of it? Why or why not?
(1) The microcredit concept helps lower income groups to set up and grow small businesses and create employment in the country. People who were living in poverty and not contributing much to the economy become active with small businesses and add value to the GDP of the country. Also, governments across the world spend more on the ...
This solution outlines the advantages and drawbacks of modern microcredit. Additionally, the expert provides an opinion on the subject.