Why is MicroPlace about financial investments and not donations?
Many in the microfinance industry believe that there is insufficient donation capital available to fund the growth of microfinance. Many microfinance institutions recognize that accessing investment capital is key to their growth. With this investment capital, these institutions can grow more quickly and serve more of the working poor. Furthermore, investments have a positive impact on the efficiency of the microfinance industry. To access commercial capital, microfinance institutions have to be attractive investments. This means that they have to operate efficiently to grow and expand their services. Efficient operations result in more borrowers which results in an increase in the overall demand for microfinance services. This virtuous cycle benefits all participants in the chain and results in healthier microfinance organizations and fewer people in poverty.
