DEVELOPMENT OF MICROFINANCE IN LESS DEVELOPED COUNTRIES: MEASURING THE IMPACT OF MICROFINANCE

Abstract

This research study is an attempt to understand the activities of microfinance in the less developed countries and it measures the impact that microfinance has on the economies of the less developed countries. Microfinance is defined as the small scale financial services offered to the poorest populations, often in areas where banking options may be limited or not available at all. MFls can be banks, cooperatives, credit unions, non-governmental organizations (NGOs), or non-bank financial institutions. This research study has adopted both a secondary research analysis, as well as it has adopted a qualitative analysis has been carried out. Interviews were conducted in order to obtain the responses of the interviewees. This has provided a clear understanding of the impact that microfinance on the less developed countries.