Rather than send aid overseas in hopes that the benefits trickle down, microfinance takes a bottom-up approach, seeking to directly support and meet the needs of families living at the bottom of the economic pyramid. For this reason, it's one of the only methods of international development that people in the developing world are actually asking for.

Microfinance directly addresses one of the primary root causes of chronic poverty: underemployment. The cumulative impact of this job creation strategy is compelling. First, microfinance helps create or expand a single job. The training and income from this employment improves housing, education, and health care for a whole family. A typical first microloan – just $138 for Opportunity International – impacts five people.

Better still, the repayment rate on our loans is around 95%, meaning that a single loan is recycled and multiplies into the community for years to come. Savings accounts create additional stability against future crises and help entrepreneurs save for longer-term goals. We've repeatedly seen that a single $100 loan can increase a family's income by 40%!

Read a study of our microfinance services by the Kellogg School of Management