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Savings mobilization and microenterprise programmes
01.03.1991
Microenterprise programmes can be excellent vehicles to foster savings among poor populations, with considerable benefits both for those saving and for the programmes themselves. The purpose of this article is to explore issues related to savings mobilization from the vantage point of projects that seek to reach poor people who are self-employed in productive activities. Microenterprise development projects in particular are the focus of this study.The first section provides background for the discussion, asking why people save, and what sort of savings schemes prevail among poor populations. The second section turns to examples of savings mobilization in microenterprise programmes to identify the factors that contribute to success.Finally, the article identifies the circumstances under which mobilizing savings makes economic sense, and provides some approaches for future microenterprise lending programmes.