As a poverty alleviation tool, microfinance is sustainable and becoming more widely used and commercialised. Why is microfinance important for the poor?" Microfinance provides the poor with capital and a safe place to store money Microfinance allows the poor to manage risk and smooth consumption Microfinance enables the poor to pursue alternate livelihood options Microfinance allows the poor to run businesses and live a consumptive lifestyle Microfinance can increase the incomes of the poor Microfinance allows the poor to neglect professional capital

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