Microfinance is playing major roles in reducing poverty in developing countries by providing access to finance to low-income individuals and small businesses.
Microfinance institutions provide loans to small businesses that would otherwise not have access to finance, which creates job opportunities and contributes to the growth of the economy. Microfinance institutions also provide financial education and business training to small businesses, which helps them manage their finances and grow their businesses.
Microfinance institutions also empower women entrepreneurs, who are often excluded from traditional financing institutions.