Impact of micro lending to economies in Africa
Microlending has had tremendous impact on the local economies both positively and negatively. This article focus on the positive impacts of micro lending to the local economies in Africa as documented by Jisort from the SACCOs and Microfinance Institutions running on Jisort platform.
Growth of Micro enterprises
Microloans have been used to start many micro enterprises in business. Source of capital has always been a big hindrance to starting of micro enterprises. Microlending provides the much needed to start these small businesses.
Jisort has witnessed growth of micro lending through support inform of microloans as availed by financial institution to the entrepreneurs
Growth of Entrepreneurship
Availability of capital in an economy for starting new ventures and growing existing ventures is the most important catalyst in growth of entrepreneurship. Jisort partners offering microcredit in Africa and specifically in Kenya, Tanzania, Uganda, and Nigeria have played a central role in creation and sustenance of an entrepreneurial spirit in these countries.
Entrepreneurs in these economies are able to focus on their core businesses since access to some form of capital isn’t their biggest problem.
Business Growth
Small businesses have access to much needed capital for growth. Medium and large businesses enjoy the ripple effect of growing micro and small enterprises. Growth of micro and small businesses creates jobs in economy most importantly spur demand of goods and services. Increased demand of goods and services promote growth of all business and essentially grows a county’s GDP
Job opportunity creation
Easy access to microcredit creates access to capital for starting micro enterprises.
Growth of many microenterprises creates direct job opportunities for the entrepreneurs and their families. Further growth of microenterprises allow the enterprises to hire more people. A vibrant microenterprise sector drives growth for medium and large businesses and thus creating more job opportunities in an economy. Jisort has experienced this phenomena first hand with its microfinance and lending clients in Africa.
