Usually, microfinance is concentrated in areas where people’s poverty is particularly extreme, and where consequently, the health and education level is often alarming. Trying to break the poverty cycle, microfinance tends to improve their living conditions and the situation in these different sectors.

(III.1 MF and non financial services) 

Microfinance enables million of poor and dependant people to get financially independent. One example is often used to illustrate microfinance’s benefits: the willow basket weaver.

 “Before he had access to microfinance, this weaver used to work this way. He received the willow from someone, weaved the basket that he sold to the same person for a miserable amount of money. Thanks to microfinance, this micro-entrepreneur will be able to buy the willow by himself and then sell the basket at the price he chooses. Microfinance enables this entrepreneur to highlight his know-how. He will no longer be dependent. His self-esteem will increase too. Progressively, his financial situation will get better, which will allow him to have better living conditions, in particular concerning health and education.”