Can microfinance have a macro impact on the Georgian banking sector?

Abstract

“Microfinance” garners a great deal of attention in the press today. Much of it centers on how loans as small as a few hundred dollars can improve the lives of the self-employed poor. For example, a working capital loan can help a Bolivian fruit vendor to improve the quality and selection of her
produce, thereby increasing turnover and profit. Similarly, a fixed asset loan can enable an Indian furniture maker to purchase equipment that not only increases his productivity but also the variety of goods he manufactures, thus helping his business grow.