Enhancing Human Capital Through Microfinance

Enhancing Human Capital Through Microfinance |
Microfinance: Theories and Principal Eco:4343 |
Naureen Jahan   121091031 |
12/31/2011 |

C [ - 1 - ] | Pageontents
Objective - 2 -
Introduction - 3 -
The concept of microfinance - 4 -
The concept of Human Capital: - 5 -
Development of human capital concept - 5 -
Measurement of Human Capital: - 6 -
Element of Human Capital: - 6 -
MFIs in Enhancing Human Capital: - 6 -
Enhancing Human Capital through Health Services: - 6 -
Enhancing Human Capital through Education and Literacy: - 7 -
Enhancing Human Capital through Business Development Training: - 7 -
A few cross country policies taken by Microfinance institutions: - 7 -
Conclusion: - 9 -
References: - 10 -

Enhancing Human Capital through Microfinance
The main objective of this paper is to understand the concept of human capital in context of microfinance and to understand the importance of human capital in microfinance institutions microcredit programs.

“…Microcredit views each person as a potential entrepreneur, and turns on the tiny economic engines of a rejected portion of a society.”
(M. Yunus, November 1999. The Grameen Bank, Scientific American. 281 (5)).
Microfinance works for poor, their objective is to serve poor by giving them loans (microcredit). Where formal institutions like banks cannot reach these poor microfinance institutions have been serving them from the beginning. There are many factors or elements that are related behind this micro credit system to work successfully. And one of the key elements is Human capital. Human capital plays an important role in poverty reduction. The main reason for microcredit is to start a small business or expand their business as an income generating activity to improve their condition. Success in such a business depends on skill and entrepreneurship which is human capital. Many poor participants may lack such skills and may benefit very...