Micro-credit dispute between profit and social responsibility
international mainstream view is that, no matter what form of microfinance should include two basic levels of meaning: first, it must be provided for a large number of low and middle income groups and small business credit services (social objectives) and second, ensure the survival and development of the microfinance institutions (economic objective). These two interrelated and mutually contradictory aspects, constitute the complete elements of microfinance, both lack a cannot be called perfect or specification of microcredit. Public and business advocates of microcredit should be sustainable for the poor, but the service and attitude, there are major differences in the way, is reflected in the following aspects.
dual objective differences in processing order. Public, the idea that micro-credit can create value for investors, but the premise must be to create value for customers, must be based on the premise of social objectives. Poverty alleviation was the first, profit second-place, in the process of poverty alleviation efforts to achieve financial self-sufficiency and sustainable development. Yet business is different, it is concerned about the institution of first self-financed and profitable, sustainable institutions in the first place, followed by poverty alleviation.
earnings on microcredit and microfinance debate social responsibility for a long time. Micro-credit is a tax on the poor and low-income households, micro-enterprises providing financial services, from the history of its development, there are two main factions. A is represented by the Grameen Bank, Yunus, Professor of public school (also known as the "welfare"), its starting point is the poverty relief and improve people's livelihood, while arguing for financial losses to the pursuit of broadening the coverage of and the cause of sustainable development. Another is a for-profit business (or "system"), which is the product of financial deepening and markets penetrate to the lower end, the purpose of which is to develop the lower end of the blue ocean market, access to new growth and profits, while objectively for the low-end customers with traditional financial institutions cannot be covered by the financial services they need.
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