Why Microfinance in RICH Developed Countries?

This research deals with microfinance. Microcredit means giving people access to financial resources to borrow a small amount of money to invest in income generating context related to business activities. The study analyzes how microfinance is structured and its influence on business development in Sweden. A multiple case study is applied for data collection. Qualitative data have been collected in form of semi-structured interviews. Direct observation and documents have also been used as data source. The study shows that microfinance contributes to development of sustainable enterprises and innovative product and services development. It is argued that microfinance leads to sharing risk and financing projects in social enterprises, cooperative businesses and associations. It provides people with social networks, enhances their independence, empowers them and improves the quality of their life by generating economic resources. We suggest future comparative studies on the influence of microfinance on business development and women empowerment in emerging economies and developed countries.