Microfinance is a relatively new form of financing that typically targets lower income entrepreneurs.
When someone with a good credit score needs to take out a big loan to start their business, they’re able to go to a good bank and take out the loan with relative ease. Microfinance was founded in education. Most microfinance organizations have an aspect that teaches business skills to the people receiving these loans.

LaunchDetroit is a project of Rotary members in Michigan that provides microloans and free business education to local entrepreneurs—an approach to economic development that has been effective in developing countries. In addition to microloans, LaunchDetroit participants receive a mentor from the community, networking opportunities and up to thirty hours of free small business training. On this service-learning trip, we assisted multiple entrepreneurs as they tackled their business venture with the money loaned from LaunchDetroit.