Social entrepreneurship in supporting HD with microfinance organisations

social entrepreneurship

refers to the innovative approaches that use business models to solve social problems

what do they aim to do

• reduce poverty

• promote financial inclusion

• empower marginalised groups

• support sustainable development

what is one of the most powerful tools in this method 

microfinance

what does microfinance involve

helping people access small loans to start businesses, invest in education, or improve their homes 

what is the Grameen Bank and where did it start

a microfinance social enterprise from Bangladesh that provides small, collateral-free loans to the poorest

how does the Grameen Bank microfinance model work

group lending for peer accountability, frequent small repayments and a focus on trust, training and community support 

who are Grameen;s primary clients and wy

low-income women. Lending to women boosts household welfare, children’s education/health, and communitry stability 

what human development outcomes are linked to Grameen

expanded financial inclusion, reduced inequalities, economic growth and long-term poverty reduction 

what are some main limitations to remember

scalability issues in urban/high-cost settings; repayment pressure concerns

how does group lending support repayment and impact

Peer monitoring and mutual support reduce default risk, spread best practices, and create accountability, enabling lower-interest collateral-free loans