What is the primary goal of microfinance programs?

The primary goal of microfinance programs is to assist low-income individuals in starting or expanding businesses. Microfinance provides financial services such as small loans, savings accounts, and insurance to those who are typically underserved by traditional banking systems. The focus is on empowering individuals, particularly women and marginalized groups, to engage in entrepreneurial activities, generate income, and improve their living standards.

This approach not only helps individuals become financially independent but also contributes to broader economic development by fostering diverse local economies. By promoting entrepreneurship at the grassroots level, microfinance can lead to job creation, increased household income, and enhanced community resilience.

In comparison, providing loans to large corporations or promoting multinational corporations does not align with the foundational principles of microfinance, which targets small-scale economic activities. Enhancing government funding is also outside the scope of microfinance, as the objective is primarily to provide financial support directly to individual entrepreneurs rather than to bolster government resources.