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Measuring Microfinance

Microfinance institutions target driven, spirited entrepreneurs. Their clients do not sit around waiting for handoutsthe old style of development-but rather seek opportunities to better themselves and their families. Before entering a microfinance program, many clients are below the poverty level, and afterward many are above the poverty level.

But did microfinance cause these clients to rise out of poverty? Not necessarily. Because people who enter microfinance programs, by design, are entrepreneurial, they very well could have found some other way besides microfinance to better their lots. In other words, microentrepreneurs' ability to stitch together social networks, to weather market ...

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