Home Profiles Finance expert Sharone Perlstein about the role of Microfinancing in the growth...

Finance expert Sharone Perlstein about the role of Microfinancing in the growth of new businesses

By
William Feins
-
4465
197
Microfinance in the world

On a truly global level, but especially in developing regions, Microfinance is allowing creative people with limited financial means of their own to turn their business ideas into living realities. Microfinancing is therefore providing an excellent solution to the all-too-well-known problem of how someone who has an excellent idea for a business but lacks funding can act on that idea. In the past, such budding wealth creators often faced an insurmountable obstacle when they found themselves denied access to conventional business loans and lacked sufficient capital of their own. This problem affected not only these individuals and their families but also their entire communities, which were in these cases deprived of badly needed commercial growth and opportunity. This is where Microfinancing can step in and enable visions that would otherwise be lost to become thriving enterprises with widespread social and economic benefits.

How Microfinance underpins business creation

The stimulation and nurturing of more business enterprise in developing nations is urgent imperative in the world today. Quite simply, new business must be fostered in places that need it. The importance of engendering new business is the reason why Microfinancing has become such a pivotal concern. Do we understand the nature and functioning of Microfinancing, though? As a leading expert on the topic, Sharone Perlstein is an ideal guide to the world of Microfinance. Indeed, he is now at the forefront of a concerted effort to bring about greater levels of Microfinancing in Indonesia. We asked Mr Perlstein to lead us in a brief but insightful tour of this highly important approach to start-up fundraising.

Sharone perlsteinMicrofinancing and start-ups in developing countries

Would-be business founders who lack other sources of start-up funding can avail of microfinancing to get small loans at reasonable interest rates. These loans make it possible to cover all of the expenses that establishing a new enterprise entails. Naturally, the size of the loan offered in each case and the conditions attached to it will be determined in large measure by the location involved and by business conditions there. As Sharone Perlstein shrewdly observes, though, the smaller loan to which borrowers in more remote locations may be restricted will be offset by the considerably lower cost of doing business in such places.

Repayment percentages for microloans

Looking at this question from the lenders’ perspective, the welcome answer is that, compared to other sorts of widely available loans, microloans have an extremely high rate of full repayment. According to Sharone Perlstein’s own website, the percentage of microloans fully repaid is no less than 98.9%. In other words, available data confirms that Microfinance is highly effective and rewarding both for the start-up borrower and for the lender.

The evolving world of Microfinance

Our ever-changing technological environment naturally means that Microfinance is constantly adapting and improving in terms of both product range and quality of service. Among the changes taking place are additional services, including business insurance, that allow microlenders to support new enterprises even more thoroughly in their crucial early days. No wonder Sharone Perlstein’s enthusiasm for the fresh possibilities of Microfinance is so infectious. As we look ahead to see how the story unfolds, we have every reason to believe that Microfinance will be a key player in the emergence of new start-ups around the world.

 

RELATED ARTICLESMORE FROM AUTHOR

197 COMMENTS

  2. This is very informative and well described. It’s easy to understand all the points being made about finance. I enjoyed it a lot and will share what I learned with all my friends.

     

  4. Nice, thanks for the article. found this similar interview CEOworld magazine did with Sharone Perlstein: http://ceoworld.biz/2018/01/22/sharone-perlstein-changing-the-world-of-finance-one-mobile-phone-at-a-time-profile/

    Thanks!

     

  8. Organizations around the world are showing how microfinance methods can help lift poor people out of poverty. This article shows that understanding is not like some substance that gets transmitted from explanation to what is.
    @SharonePerlstein

     

  11. More people have access to the tools only bank would wield a few decades ago. I had hoped micro-financing would have had a bigger impact by now. This article shows its progress. I still believe the future of finance will soon become unlike anything of the past. My experience as a lender is similar to this article’s 99% repayment rate. Hope for the future.

     

  14. yes, microfinancing should play an important role in development…i will definitely agree and appreciate this.good work.

     

  18. Interesting article on Microfinancing . Sharone Perlstein brings up some very good points regarding
    all the possibilities that Microfinancing offers.

     

  19. Great article. The number of people in South Africa living on less than $1.25 a day is shocking. We buy beverages that cost more than 2 days of their income.

     

  20. Excellent article. Microfinance is a great strategy for developing nations. Since money is in short supply in these nations, microfinancing allows individuals to attain small loans with reasonable interest rates. This allows businesses to have lower operating costs.

     

  21. Microfinancing is definitely going to be growing in the near future. I’ll look forward to more information. Thanks for the article!

     

  23. Aw this is cool! Keep on helping the humanities. We are here on earth to do God’s work. We are workers of God and he channeled his wealth through people who can be entrusted in taking care of other people. Great work!

     

  28. Micro financing has been one such platform that has shown enormous success in the developing countries and is continuing to do so. Nice article.

     

  38. I think this is a great idea! We should be helping out our fellow humans.Nice article thanks for sharing……The article has genuinely peaks my interest.

     

  40. What a wonderful way to lift people out of poverty with dignity. Micro finance is a true hand up! I can’t wait to learn more.

     

  42. This is a great fund raising scheme is designed by Sharone Perlstein. Microfinance fundraising scheme is designed with small loans at reasonable interest rates. Sharone Perlsteinis an ideal guide to the world of Microfinance.

     

  44. Finally, bringing hope to those who are suffering from poverty by giving them a helping hand through micro financing!

     

  46. This is a very helpful and infomation filled article, I definitely have to look into microloans.i like this article very much.

     

  59. Fantastic article with a lot of information about the role of microfinancing in the business. Really appreciate that. Thumbs up for these innovative ideas!!

     

  60. Microfinance is a great strategy for developing nations. Since money is in short supply in these nations, microfinancing allows individuals to attain small loans with reasonable interest rates

     

  63. Very informative article about Microfinance . As Microfinance is constantly adapting and improving in terms of both product range and quality of service , it is future of our business.

     

  67. One of the Best article I have came across, this is really wonderful, I am gonna definitely share this article now.

     

  69. Microfinancing is providing solutions for people especially with new businesses. Sharone Perlstein is an expert and a good guide to understanding Microfinance. Microfinance is very effective for the start-up borrower and the lender.

     

  70. Sharone Perlstein is an expert of Microfincanicng . He has designed this strategy to solve the problems that is accrued during starting new business. Now you can attain loan with reasonable interest and you can start your new business with out any problem.

     

  73. Thanks for a good quality honest article! I’ve never been extremely familiar on a global level.

    Thanks again!

     

  75. I like this article. it’s very helpful for this articles. Finance expert Sharone Perlstein about the role of Microfinancing in the growth of new businesses. Thanks for posting this articles.

     

  80. He has a lots of insights about finance. It’s a pretty interesting fact of the ratio between women and men that hold bank account in South Asia.

     

  87. Nice Article, Since money, is in short supply in these nations, microfinancing allows individuals to attain small loans with reasonable interest rates

     

  90. This entire read on Microfinancing was very informative until today I was completely unaware of what any of this is. The writer seems to be very well informed, and educated on this topic as well. Overall a good read.

     

  92. Microfinance is allowing creative people with limited financial means of their own to turn their business ideas into living realities.

     

  96. Very informative and well written article about Micro Finance.Sharone Perlstein is an idol of micro finance

     

  99. Yay!!! Keep on helping the humanities. We are here on earth to do God’s work. We are workers of God and he channeled his wealth through people who can be entrusted in taking care of other people. Great work!

     

  103. This was truly great information about microfinancing. This was very useful too me I can bring this topic at my job as a resource

     

  104. this was a very great article. it was very informative of microfinancing I can recommend this article to friends

     

  107. Great article. The number of people in South Africa living on less than $1.25 a day is shocking. We buy beverages that cost more than 2 days of their income.

     

  111. If it weren’t for you expertise and knowledge we would all be so blind. Your insights and experience give us inspiration. Thank you for this article. One of the best I have read in a long time!.

     

  112. Yeah, microfinancing really do help people with great ideas but lack of money to start a business. This is such a nice and positive article.

     

  117. I find this article to be very informative and helpful. I definitely took notes and will look to improve my business.

     

  118. wow Great,It’s a very informative and very helpful article for me.It’s easy to understand all the points being made about finance. thank you very much for awesome article.

     

  121. Great Idea is shared in this article by Sharone Perlstein for poor people to support their business with Microfinance.

     

  123. First of all, I would like to say how great and well written this article was, and I learned a lot about him and his job, company, and team. Loved the article!

     

  124. Great article, I really appreciated your take on the microfinance sector as a whole. Something I’ve never been exposed to or given much thought to previously. Good work.

     

  129. reat article, I really appreciated your take on the microfinance sector as a whole. Something I’ve never been exposed to or given much thought to previously. Good work.

     

  130. Micro-finance has become very important for businesses. It is crucial that business personnel begins t consider for their business. This article provides very useful information for those who want to start a business.

     

  144. I certainly agree with the idea that microfinance has turned out to be the way out that has allowed many entrepreneurs to take off in developing countries. Excellent approach!

     

  155. A very informative article! I was not only able to learn what microfinance is, but its importance in the global economy.

     

  168. Well todays challenge in micro-financing is a absolute for investing and earning interest. Small micro business are growing together to challenge large valued banks and their investments. the article clearly illustrates all of those facts.

     

  169. Interesting information about micro financing. I believe it could be very beneficial to many companies if used correctly.

     

  176. Micro finance is one of the most solution for development.
    I’m searching for a details article like this and at last found here.
    Thanks for sharing with us. It’s really helpful content on WWW.

     

  185. I am really happy to say it is an interesting post I ever read . It is very helpful. I learn new information from your article , you are doing a great job. Your post is helpful to avoid the mistakes. Thank you so much for sharing us this awesome post . Keep it up.

     

LEAVE A REPLY

Please enter your comment!
Please enter your name here

CAPTCHA

*