Microfinance is the activity which is aimed to provide the novice businessmen with the financial services which can become an effective piece of help with starting and development of their business. It is obvious that many people who have brainstormed an effective idea suitable for business can not start their own firm because of the lack of finance. It is really difficult to find the required sum of money which would be enough to start business from the very beginning. The governments of the developed countries realize the importance of the existence of the small and middle business for the normal functioning of the country, so they have created the service of microfinance to enable smart and creative people start their own business which can bring profit for the country.
Microfinance is a certain type of crediting which is practised by banks in order to receive profit assisting the novice businessman in the creation of their firm. Microfinance is convenient for the people who do not possess capital to start a business but are conscious that their idea s worthy and the firm would bring profit to them. As a result microfinance is useful for common people, financial institutions (banks) and the whole country (every business pays taxes into the national budget). There are many institutions which provide programmes of microfinance: specialized financial institutions, credit unions, agricultural credit cooperatives and special funds which support entrepreneurs.
Microfinance is an important and interesting topic for the research, because this practice has become quite popular in the world and everyone who wants to become a businessman should know everything about it. When a student is asked to complete a good term paper on microfinance, he should work out vast sources (the Internet, encyclopaedias, periodicals, textbooks) in order to deepen his outlook and learn many new facts about the topic. One is supposed to explain the topic from all possible sides and describe the principles of microfinance, its origin, role and value for business and economics. It is smart to study the structure and the institutions which conduct the service of microfinance in order to catch the idea of this process profoundly and define its strong and weak sides.
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