Business Management Dynamics

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ISSN: 2047-7031

bmd Business and Management Dynamics bmd
ISSN: 2047-7031  
Volume  9   Issue 11  2020  
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Article Abstract
Microfinance delivery methods. A critical review.
Keywords:  Microfinance, Grameen method, microenterprises, microfinance delivery methods, MC2 method, Village banking method, poverty reduction
Dr. Alex Addae-Korankye
The study analysed and critically reviewed some microfinance delivery methodologies. The methodologies reviewed include Grameen method, Village banking method, MC2 method, and Latin America Solidarity method. The study explained how each of the methods works, and their limitations. Some of the criticisms of the delivery methods include high interest rates, cumbersome processes, and sustainability of the system, among others. The study or review recommended that the micro-entrepreneurs/microenterprises should form their own micro-bank or microfinance institution, grant loans to themselves at affordable interest rate, and offer business management training, investment advice and other non-financial services to themselves. By so doing, their enterprises (microenterprises) will grow or expand, profit margins will increase, employment will expand, and individuals' incomes will increase and as a result reduce poverty especially if assisted by the government and development partners like UNDP, USAID etc.
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