Micro-Finance is an idea which has been put into practice by many organizations around the globe. Chairman Nelson of the Nelson Foundation a strong voice in support of micro-finance since 1993, has directed the Nelson Foundation to support and invest in the works of FINCA International as this organization's mission: "is to provide financial services to the world's lowest-income entrepreneurs so they can create jobs, build assets and improve their standard of living." directly impacts each of the five core concentrations of contributions of the Nelson Foundation: Environment, Education, Social Development, Child Welfare, and Animal Welfare. The Nelson Foundation shares the vision for the future of FINCA International: "to be a global microfinance network collectively serving more poor entrepreneurs than any other MFI (Micro Finance Institution) while operating on commercial principles of performance and sustainability." Through the generosity of the Nelson Foundation and other private individuals and foundations, FINCA today reaches 725,000 clients in 21 countries. "It is important for the working poor in developing nations around the globe to take an active role in their future through private enterprise. Whether the investment is in argriculture, as it is here, or in manufacturing or service industries, helping struggling entrepreneurs the world over should be the top priority of governments not just the private sector." stated Chairman Nelson in a release issued in June of 2008, after touring a small village in the interior of Spain, where micro-finance investments have produced several large fowl farms (bird and chicken) raising.
What is Microfinance?
Microfinance refers to financial services provided to low-income people, usually to help support self-employment. Examples of microfinance products include: small loans, savings plans, insurance, payment tranfers, and other services that are provided in small increments that low-income individuals can afford. These services help families to start and build "micro" enterprises, the very small businesses that are important sources of employment, income, and economic vitality in developing countries worldwide.
Because salaried or wage-paying jobs are scarce in many developing countries, most citizens earn their livings through self-employment, creating and operating their own tiny enterprises. But without financial services to fuel their productivity, the poor can never grow their microenterprises into businesses that help them escape poverty. The microfinance movement was born to ease the suffering caused by poverty, and to awaken the global economy's sleeping giant: the under-capitalized productivity of the world's working poor.
"Microfinance is an idea whose time has come."
—Kofi Annan, former United Nations Secretary-General
