Microenterprise development in Latin America – a view from the Inter-American Development Bank
There is a change going on in the way microenterprises are viewed. No longer are they the means by which poor people scrape a living; they can also be an integral part of the economy, providing jobs and contributing to economic growth. As such, there is a potential for them becoming valuable clients of the financial institutions who choose to specialize in microenterprise servicing. This article describes the variety of ways in which banks and NGOs are attempting to provide sustainable financial services as well as business support to the microenterprise sector in Latin America. It also examines how regional banks, such as the Inter-American Development Bank (IDB) can support and encourage new initiatives by banks and NGOs, as well as reforms to the banking regulations, which will ultimately benefit the development of microenterprises.