MicroPlace.com - Small Loans Big Changes

In developing nations around the world, people with innovative ideas and keen skills are living in poverty with no foreseeable way out. In most of these situations, the lack of money and resources restricts any chance of growing a business – or even dreaming about it. But now, microfinancing has proved to be a great solution, and a feasible one too. Microfinance works by providing financial services such as loans to people living in poverty. With these small loans (often under US $100) people can start businesses or shops and begin to earn money and eventually pay back the loan. MicroPlace.com invites people in developed countries to invest in their company that in turns takes the money to local lending organizations. These organizations then give it out in the form of microloans for entrepreneurs in developing nations. The loans are usually between $30 and $200 and the entrepreneurs are responsible for paying interest on their loan (18 – 60%) within 3-6 months. MicroPlace.com and eBay have paired up for this venture and have big plans on the horizon to encourage stronger ties between capitalists and those who suffer under its thumb.

"Microfinance has emerged as an effective poverty alleviation tool because it is based on the fundamental principle that human beings are motivated to do whatever it takes to make themselves as well off as possible.

Consider the story of Puja Patel, a single mother who lives with her four children in a village in India. With a $50 loan, she bought a sewing machine. She made clothes, sold them for a profit, and repaid the loan with interest. She was also able to save some money to buy books and send her children to the local school. This is microfinance in action."

Helping people realize their dream of supporting their family with well-earned money is priceless. Microfinancing gets a lot of criticism but giving people the money they need to get the engines going on a project is a great way to help people climb out of their poverty. Single moms make up a huge percentage of people living in poverty and with simple purchases such as a sewing machine or baking supplies, they can start earning their money and gain power over their life and the future of their family.

How small can the investments be? Young people can get involved if they can invest $100 or less.