For some years now more and more initiatives are being created to help out poor women develop industries and help communities pull themselves out of poverty. The main belief behind this approach is that lending money to women will be spread out more evenly throughout the community; in general women tend to invest in three areas, health, their children, and their home, all areas that in the long term will benefit the community at large.

A lot of the business that poor women want to develop require relatively small amounts of money to get started, which usually means that banks are not likely to consider them for regular loans, or will do so with conditions that are very unfavorable to them,

This concept of microlending was made popular by Bangladeshi banker and economist Muhammad Yunus (his website), who in 2006, was awarded a Nobel Peace Price with Grameen Bank for helping finance the poor.

Today there are is a growing number of institutions which strive to help promote women headed businesses, some of these are Women’s World Banking, WAM international (Women Advancing Microfinancing), Financial Women’s Association, and the UN’s IFAD (International Fund for Agriculture and Development) among many others.

You can read more about microlending to women from an article in the BBC.

Image info here.