The Small Business Administration is one of the first resources that come to mind for many small business owners looking for guidance or help. And for good reason, since the promise of government-backed loans and free advice sounds like a pretty good deal. Having run multiple startups and grown them to become multi-million dollar entities, however, I can tell you that the guidance provided by the SBA just barely scratches the surface of what business owners and entrepreneurs need to know to be successful. To add insult to injury, most small businesses are denied SBA loans, and according to data published earlier this month, the SBA is continuing to cut back on their government-backed loans to small businesses. In other words, the SBA means well, but the resources they provide leave much to be desired.
Class association in Guyana delays the development of this country because those that are rich and better educated feel that they are entitled to live the good life while the poor/working class continues to suffer. Some of them who were born poor, but were lucky enough to become successful and elevate to an higher class association tend to forget where they came from. As of today, the gap between the rich and the poor keeps on widening while both political parties are nothing to stop it. As a third world caribbean nation, of course corruption plays a huge role in politics and the economy. The poor and working class play a significant role in the development of Guyana.
Many countries still live in poverty so it is fair to have the more developed nations raise aid to help them become more developed. Another way they can help them come out of their poverty is by reducing or even canceling the debts that these countries have. This is due to the fact that most of the time they follow a poverty cycle - that is they take loans from richer nations to help pay off other debts but this plunges them further into debt. This is because the interest on the debt increases over time which becomes too much for the country to pay off. As a result, these countries are unable to provide basic services such as sufficient nutritional provisions, healthcare, education, housing developments etc.
It allows the poor to participate in services such as, credit, venture capital, savings, and insurance. The provision of financial services to the poor helps to increase household income and economic security, build assets and reduce vulnerability, creates demand for other goods and services for example education and health care; and stimulates local economies. 1.1 Definition. In the previous study of David Sloan (2013), Microfinance is providing small loans, primarily to women in poverty, and to who without collateral are unable to receive services from the formal financial sector. Generally, without access to capital, people cannot invest in activities such as existing businesses or new microenterprises, and it significantly reduces the chances of many to emerge from poverty.
Investors are an important factor to consider because without investment the economy will decline. To sum up, investment solves vital economic problems and is a nourishing factor to the economy. Investors desire to invest in a capitalist economy because they make their own decisions not like communist economy and they set their own prices and they are not restricted to minimum wages. It is clear that capitalism is more advantageous than communism in every aspect in the economy. All stakeholders such as common people, state, government, banks, and investors will benefit more in a capitalist economy.
Another reason, is she wanted to level the playing field; friendly competition is good for business and income. She emphasized the importance of small businesses working together. They are usually located together in a community, and if one is trying to promote his business the others will be recognized as well. Starting a small business and working together increases the property value, and decreases the crime rate. When people purchase items at ... ... middle of paper ... ...e economy, and everyone needs to help to make it better.
Microcredit offers loans to poor people without requesting any financial history from them. These loans help to improve the quality of life of individuals and communities through commitment. In recent years, the idea of giving small loans to poor people became the darling of the development world, giving a way to propel even the poorest people into better lives (Jolis, 2011). Since its emergence, microcredit has been viewed as a very important tool for development. Many around the world believe microcredit is the antidote for global poverty.
If Micro-finance institutions construct themselves successfully enough to offer more services to the low income client market, and have the financial comfort to offer the appropriate interest per client income, it may be one of the strongest forces in alleviating poverty. If the institutions are constructed well enough to break even, or make a small profit, they become a huge beneficial investment of wealthy businesses and investors. When run as a sister company to other businesses, or by outside lenders on an online site, micro-finance institutions can provide opportunities, education, and a healthy flow of income to poverty stricken individuals for the rest of their lives, and slowly help alleviate poverty.
They instead tend to put their trust in more informal systems of financial management. This is a problem, and finding a solution to the problem would go a long way to helping increase the livelihoods of the impoverished inhabitants of the world. The poor already have a minimal amount of financial tools available to them, as many formal financial groups do not trust the poor, worried they will not be paid what they lend. In... ... middle of paper ... ...ny value (158)”. Also offered in Grameen II were improved rates of interest, over longer time periods, and the availability of more savings opportunities.
This has been successful structure by providing the necessary measures to create a supportive environment where borrowing and repayment was not unachievable. Grameen Bank made it possible for the poor to get involved in banking (borrowing), which was unheard of before. Grameen Bank was as a whole run by these not wealthy communities and for the most part women. Research has proven that higher incomes was prevelant for Grameen mem... ... middle of paper ... ...” (Abedin, 1996). The microcredit system provided the foundation for the poor to help themselves.