Microfinance and financial regulations

  • Microfinance and rural non-farm employment in developing countries

    Expansion of microfinance to rural areas may reduce credit constraints, helping non-farm sector growth, employment, and development

    Shyamal Chowdhury, April 2017
    The rural non-farm sector plays an important role in diversifying income for rural households in developing countries and has the potential to emerge as a major source of employment. In some cases it has outgrown the agricultural sector, in part due to the expansion of credit through microfinance institutions that are supported by governments, donor agencies, and businesses. However, future expansion of the rural non-farm sector requires increased flexibility in credit contracts, as well as decreasing the cost of credit and the delivery of complementary inputs, e.g. skills training.
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  • Entrepreneurship for the poor in developing countries

    Well-designed entrepreneurship programs show promise for improving earnings and livelihoods of poor workers

    Yoonyoung Cho, July 2015
    Can entrepreneurship programs be successful labor market policies for the poor? A large share of workers in developing countries are self-employed in low-paying work or engage in low-return entrepreneurial activities that keep these workers in poverty. Entrepreneurship programs provide business training and access to finance, advisory, and networking services with the aim of boosting workers’ earnings and reducing poverty. Programs vary in design, which can affect their impact on outcomes. Recent studies have identified some promising approaches that are yielding positive results, such as combining training and financial support.
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