By Tom Eggert, Founder and President, WorldWise Microfinance

As we mark Worldwide Microfinance Month, we celebrate not just a financial tool, but a profound act of empowerment. 

Microfinance is the act of providing small loans and financial services to those traditionally excluded from the formal banking sector. It has proven again and again that given the chance, people will seize the opportunity to transform their lives.

The roots of modern microfinance stretch back to the 1970s, when a young Bangladeshi economist named Muhammad Yunus began lending small amounts of money to women in rural villages without collateral, without contracts, and with nothing but trust. What he found was revolutionary: not only were the loans repaid, they sparked lasting change. Families ate better. Children stayed in school. Small businesses grew. What began as a modest experiment soon became a global movement, and in 2006, Yunus and the Grameen Bank were awarded the Nobel Peace Prize for their work.

At WorldWise Microfinance, we see that same spirit every day. We work alongside partners, not to impose solutions, but to listen, learn, and lend in ways that make sense for their communities. We believe in the ingenuity of the poor and the power of trust. That belief has helped almost 3,000 entrepreneurs, most of them women, build livelihoods, support their families, and strengthen their communities.

But today, this work is under threat. In the past year, we’ve seen a troubling trend: international support for microfinance and grassroots economic development has waned. Major donors are shifting focus, governments are tightening foreign aid budgets, and inflation has stretched operating costs across the globe. 

These changes have real consequences. A reduction in support means fewer loans disbursed, fewer businesses launched, and fewer families lifted out of poverty. The irony is striking: at a time when global inequality is rising, and when communities are still reeling from the aftershocks of a pandemic and climate disruptions, we are pulling back from one of the most effective tools we have to promote resilience and independence.

Now is the time to double down, not scale back.

Microfinance is not a silver bullet. It won’t solve every structural challenge. But it is a critical piece of the puzzle. It is local, it is sustainable, and it works. Studies consistently show that access to small loans, savings, and financial literacy not only boosts income but also improves children’s education, nutrition, and health outcomes.

In recognition of Worldwise Microfinance Month, we call on governments, foundations, and private donors to reaffirm their commitment to microfinance.  And we invite individuals everywhere to support the efforts of WorldWise Microfinance. Whether through investment, advocacy, or simply spreading the word, your support can help ensure that access to opportunity is not determined by where someone is born.

At WorldWise Microfinance, we stand with the world’s entrepreneurs: those who rise before dawn, who make a dollar stretch ten ways, and who dream bigger every day. 

Let’s keep the promise of microfinance alive.