Micro Enterprise Development and Micro Lending

Please peruse the following papers to learn more about the different programs within Micro Development Missions. All papers are in PDF format, with reasonable file sizes. You will need Adobe Acrobat Reader to read them.

What is Micro Enterprise Development?

Micro-enterprise development (MED) includes a wide array of programs designed to facilitate business startups and growth. MED programs often involve educating clients in entrepreneurship and business management principles, as well as provision of consulting or advisory services. Some MED programs may also assist in providing financing for the new business, although micro-lending is generally regarded as separate services and even those organizations that offer both services tend to separate them. Full paper - 2 pages.

What is Micro Lending?

Micro-loans are very small loans, usually ranging in amount from $25 to $100, although some may reach as high as $1,000. Most loans are short-term, from a short term of a few weeks to a longer term of six months to a year. They typically involve equal weekly payments such that the loan plus interest are repaid by these payments—no balance due at the end of the loan term. Most loans are for working capital investment—merchandise, supplies, fuels—and almost all are for the production of income.. Full paper - 4 pages.

Introduction to Microcredit

"Introduction to Microcredit" is the script for a presentation made at the Global Missions Conference at Dallas, Texas in July, 2005. It provides an overview of the motivation for micro-business development ministries, a brief description and history of micro-finance, and general advice on how churches and mission efforts can become involved in microcredit. Full paper - 22 pages.