The Business Case for Microfinance Investment

This paper argues that microfinance as an industry presents a 'business' case for investment, even where profit is not the greatest motivation.

It presents a business 'formula' for microfinance where the product of the financial and social achievements of microfinance, and the sum of insufficient funding sources and opportunity which lies in the world financial markets, provides the solution. The paper suggests that microfinance offers a solution - from both market and development approaches.

The paper concludes that:

• Microfinance industry should tap new sources of capital to be sustainable;
• Microfinance requires new thinking and understanding of the financial audience to approach the capital markets.