Where traditional development aid often has considered the poor as passive and needy, microfinance highlights the poor`s resourcefulness and creativity. Microfinance has proved to be an efficient and resilient tool for leveraging the potential of economically poor but innovative people.

Access to capital and business knowledge is the most important entry barrier for people who want a way out of poverty. The greatest asset of developing countries is the entrepreneurial flair of their people.

Microfinance may alleviate poverty by providing capital for small businesses, giving access to reliable savings, financial intermediation, and by reducing the negative impact of shocks.

What microfinance is and is not

Microfinance is not a panacea for world poverty, but it is a useful tool to be used in conjunction with others. For this reason Alliance Microfinance works closely with the non-financial activities of Mission Alliance to provide a range of services to holistically assist in development.