One such program is giving women small loans to help them start their own businesses. These loans are called microfinance loans. This chance to borrow money to start a business is important because there are many instances where women must provide for their families.

Poor women tend to be uneducated, and don't have many chances to find well-paying jobs. Usually, they also have children and other family members to take care of. But women often have skills which they can turn into home-based jobs. For example, raising and selling fruits and vegetables at a local market, raising goats or cows for milk and cheese, or knitting sweaters.

To start these projects, they need a little bit of money to buy materials. For example, they may need to buy seeds and fertilizer to raise vegetables, or buy yarn to knit sweaters.

Unfortunately, most banks in developing countries don’t want to give women money because the banks aren’t sure if they will be able to repay the loans.

Development organizations realized there is a way to help these women through microfinancing projects. Microfinancing allows women to get small loans, just a few hundred dollars or less to help them start their business.

Once the business starts to succeed, the women pay back their loans so that other women can borrow money to start their own small businesses. Microfinancing has helped many women improve their lives and the lives of their families. There are many successful examples of microfinancing from around the world.

Click here to read a true microfinancing story.

What does it mean?

Microfinance: Small loans that help poor people who wish to start or expand their small businesses but, are not able to get banks to lend to them.

Related Links
www.gpac.org/youth