The global financial crisis has made cost management the biggest priority for most organizations. However, decisions to cut costs can be made too quickly and end up destabilizing the business in the long term, making it unable to meet strategic objectives. The organizations that get it right are those that try to strike a balance between having a competitive cost structure, implementing an effective strategy and investing in the future.
Businesses are constantly looking for ways to improve efficiencies, avoiding unnecessary costs; doing more with less, and ultimately improve the bottom line. Stakeholders on the other hand are becoming more impatient and expectations are forever increasing. The business competitive environment is becoming fiercer and revenue growth is becoming a difficult hurdle to achieve during these trying times. As the business environment evolves and businesses attempt to adapt, dependency on technology has become more and more important. Technology has become an integral part of decision making initiatives and both business and government have realised that investment into information technology has become a necessity.
The idea of micro finance is quite simple: to provide financial services to the poor. It is an instrument for alleviating poverty and providing the poor access to financial services. It makes a range of financial services products accessible to the lower income segments of the population who do not meet the requirements of traditional financing.
Micro lending in developing countries is not banking as usual. It is a unique process that relies on social relationships in order to overcome moral hazard, monitoring and enforcement problems. Micro lending has historically served customers in low-growth, informal economies with weak property rights and tight social control.