Microfinance and Inclusive Business in Latin America
A comparison of their contribution to poverty alleviation
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Poverty continues to be one of the most significant problems in Latin America. Since the contribution of market-based solutions to alleviate poverty has recently been discussed, this thesis compares microfinance as an established service to inclusive business as an emerging business model. This comparison examines how each business model specifically contributes to poverty alleviation and what their respective strengths and weaknesses are. Although the direct impact of both models on the poverty alleviation of individuals is positive, particularly for the inclusive business model, the overall ...
Poverty continues to be one of the most significant problems in Latin America. Since the contribution of market-based solutions to alleviate poverty has recently been discussed, this thesis compares microfinance as an established service to inclusive business as an emerging business model. This comparison examines how each business model specifically contributes to poverty alleviation and what their respective strengths and weaknesses are. Although the direct impact of both models on the poverty alleviation of individuals is positive, particularly for the inclusive business model, the overall concept is facing increasing viability and effectiveness problems.
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