This is in line with the government or any state funds that are being disbursed in aid of the small businesses growth and as a tool for poverty reduction in terms of support for women and youth in small enterprises and reducing unemployment levels.
Nation states, subnational governments and NGOs set up various kinds of micro finance programmes for the expressed purpose of poverty reduction. The development aid is usually used to capitalize the loan pool and the pool can remain self-sufficient on program income as the loans mature. With the advent of Kiva and other crowdfunding platforms, individual lenders may loan directly to entrepreneurs.
There is some evidence on poverty alleviation and economic growth, the main social interventions are primary education. There are unintended harmful consequences of the Grameen Bank model of lending to collectives as well as other microfinance schemes.
http://www.sciencedirect.com/science/article/pii/S0305750X98000217
http://isw.sagepub.com/content/51/4/467.short
http://www.sciencedirect.com/science/article/pii/S0305750X12000496
May find different approaches of an effort to make financial services measurement s and reporting on outcomes, drawing on experience with different approaches and tools at:
http://sptf.info/working-groups/outcomes.
the role of the state in economic development is a key role for growth and development of any country for that matter. micro finance is one such avenues in which the state can pitch in its potential and make a mark of its own.
Yes, so long the funding is done with full integrity and transparent. Most important of all is the delivery system is efficient and 'follow up' and structured program is on going
Yes, definitely state funding effectively help Micro small enterprises grow their businesses.
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