What is microfinance is one of the things people are wondering these days because it has become very popular. What you need to know is that there are lots of businessmen who have small companies that provide services in the industrial and agricultural fields that generally have between two and nine employees and have possessions of up to seventy million dollars. These businessmen are the driving force of microfinance.
A prestigious finance magazine has recently published the results of study carried out by several successful companies in the Philippines to find out what is microfinance and which are those small companies that are worth considering by as possible partners any new businessman in the field.
The first company mentioned in the list is Sari-Sari Stores, which is actually a retail company. This company certainly knows what is microfinance and asks for very little skills to be part of their working staff. However, even when this is a small business we need to say that it is increasing steadily and that it is becoming more and more popular.
Mini groceries also know what is microfinance. Even when they are bigger and a lot more experienced than the previous company, we have to say that they are completely different to traditional groceries. Their area of business is likely to grow bigger in the near future and it will certainly impact the areas in which the mini groceries are placed.
Ready to Wear Trading is the third company in this group. These kinds of companies don’t need to purchase many things but they sell a lot. You can actually see what is microfinance and how it works if you got to local public markets, where the owners of these stores get together to sell more and help one another.
Carinderias are also part of the group. These are small restaurants you can find right next to roads. They are certainly a good business because people have the chance to choose what they want to eat. They are unlike restaurants in that they don’t have the same facilities but they offer mouth-watering, homemade food.
Little bakeries are the last in the group. No matter how small the bakeshop is, it will certainly have monthly sales of up to two million dollars.
This should give you an idea of what is microfinance and it should also allow you to evaluate the chances of getting in any of these businesses and make use of the resources you have at hand to earn some money. Micro enterprises help the economy of a country and they encourage innovation.