Wednesday, January 7, 2009

How many Micro-entrepreneurs can there really be?

It is a interesting question considering that the main goal of many microfinance organizations is to alleviate poverty by inspiring a generation of entrepreneurs.  Does everyone want to be an entrepreneur? I don’t think so.  In the US, where a person certainly has more opportunities to become an entrepreneur because of the ease of obtaining credit, lack of bureaucracy and market friendly policies, is there a strong urge for entrepreneurship?  A small cursory search of google revealed that there were only 22,659,000 small businesses in the US. That is only 7.5% of the entire population. Are developing countries better cauldrons for future entrepreneurs than the US? I understand the issue is much more complex, but does every Joe or Jane in X developing countries have a burning aspiration to become an entrepreneur?  Microfinance certainly provides tremendous opportunities for those willing to take the risk to start or operate their own business; however, I don’t think those individuals should be the sole focus.  It is very promising to see that microfinance is expanding into other financial sectors such as mortgages, agricultural and medical loans.

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