Microfinance and Micro-entrepreneurs

By: Julia
Julia is a participant in Allowance for Good's Fall 2015 Emerging Leaders in Philanthropy class in the Elmhurst location.

"I am a Catalyst for Good because...
I can be the change I want to see in the world."

Micro finance is a form of philanthropy, that is also a bit like charity. Micro finance has to do with giving money to someone in need. That person is called a micro-entrepreneur. They may want to start a business or keep theirs running. Giving them this money will help boost them up. But, the interesting part about micro finance is that the entrepreneur pays you back. This creates a connection between you and this other person all the way across the world. You communicate to keep checking up on them, and once they pay you back, you can use that same amount of money to loan to someone else. It's a very self sustaining system. I really like micro finance for that reason.

I think this is a very good idea. It's self sustaining, and easy to give too. You don't need to give a large amount of money to make a huge impact. It also creates a connection between two people from different parts of the world. This helps create awareness and a sense of oneness. It impacts not only the person receiving the money, but the giver as well.

Since the money is paid back after the entrepreneur is able too, you can keep on giving that same donation. It also helps make it seem like the entrepreneur is a business partner, rather than a helpless victim. I believe this will help people not be so scared or feel so disconnected from people in need of financial aid.