- H. Kane (1996). World Watch, 10-18
- Abstract: Begun in Bolivia 12 years ago FINCA (Foundation for International Community Assistance) aims to provide financial assistance to people unable to obtain it through conventional channels. In contrast to the world's 500 largest corporations controlling 25% of the world's economic output but employing only a fraction of 1% of the global population, microenterprises can be supported without excessive risk of default or heavy reliance on charity. The type of economic activity that can be undertaken by small enterprises is described. Examples of benefits derived from giving credit without collateral are quoted, and the ways in which small-scale credit agencies evolved are discussed. Schemes are not limited to the Third World for success has also been achieved in inner cities of industrialised countries. Whereas some cultures (eg China) favour this type of credit support not all activities are suited to it. The future prospects for microcredit are examined and its advantages are stressed.
- Theme: Policy/support programmes
- Keywords: capital raising, credit access, developing country, future prospect, industrial development, microcredit, microenterprise, Bolivia
- Reference type: Journal Article
- Geographic location: Bolivia, South America, Global South