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Important discussions are taking place about the role of microfinance in poverty reduction. Does giving a small loan to a budding entrepreneur help them move out of poverty? Like any global challenge, the answer is a little more complex than yes or no. No one solution is going to end poverty.

But money, while not enough on its own, is still a good place to start.

Today, most people understand what a microloan is. But, when the concept of microfinance emerged in the 1970s, it was a bit revolutionary. Entrepreneurs who live below the poverty line now had access to financing that would have been impossible to receive before. Especially of note for us at Grameen Foundation USA (GFUSA) is that microfinance challenged the notion that women were not worthy of financial services. Women are not only inherently worthy of these services but if we are breaking it down to just loan repayment, women repay loans at rates of 99%, despite the fact that “de-risking” women is still required by some banks and institutions.

For millions of families, access to credit created opportunities to invest in businesses, manage financial shocks, and support their local economies. It gave women a chance to grow their businesses in a way that traditional banking had not or would not offer them previously.

A few months ago, I shared the story about my own experience as a student in Bangladesh, where the microfinance movement started under Nobel Peace Prize Laureate Muhammand Yunus. I witnessed a group of women celebrating. They had received a microloan to expand their small business. Like many women, they had spent their lives shut out of economic opportunity but a small loan gave them the chance to earn their own income, to support themselves and their families. It felt like I saw their confidence and determination grow in that moment and recognized the power of a loan.

What we’ve come to understand is that loans alone are not enough.

Poverty is complex. Entrepreneurs need more than capital to succeed. They need market access, business skills, trusted networks, and the confidence to navigate challenges and seize opportunities. Small businesses need strong governance, financial management, and operational support. Farmers need access to information, technology, and climate-smart practices. And they all need the right training in addition to just financial access to grow.

This understanding shaped most of our work for many years. While we were founded in 1997 with the encouragement of Muhammad Yunus to expand financial inclusion beyond Bangladesh, we are not affiliated with Grameen Bank and we do not operate as a microfinance lender. Our focus is helping rural entrepreneurs, smallholder farmers, and poor communities build the capacity needed to create lasting change. We have done this by providing a full range of support from digital literacy, market linkages, climate adaptation, household dynamics and digital innovations, complemented by our Bankers without Borders® volunteer network of 27,000 volunteers.

Across the financial inclusion sector, organizations have expanded their models to include education, peer support, savings, credit building, health services, because they recognize that access to capital alone does not produce the strongest outcome. For example, Grameen America pairs microloans with peer support networks, savings programs, and health navigation services for its members. This evolution reflects a broader shift in the field: the conversation is no longer about whether people need access to capital, but about what additional support helps individuals, families, and businesses turn that access into lasting economic opportunity.

We have also learned that financial inclusion must be accompanied by safety and protection. As financial services become increasingly digital, new risks emerge alongside those opportunities. Through Program SAFE, GFUSA works with financial institutions to recognize and respond to domestic financial abuse—a form of abuse that can limit a person's ability to control their finances, access resources, or benefit from financial services. Program SAFE reflects an important reality that inclusion is not simply about providing access. It is about ensuring that access is safe, equitable, and beneficial in practice.

This same thinking is guiding our future work. In 2025, GFUSA and Yunus Social Business entered into a strategic alliance built on a shared belief that capital and technical assistance must go hand in hand.

Together, we are working to strengthen support for small and growing businesses by integrating financing with mentorship, operational guidance, governance support, and business development services.

For me, this is not a departure from the vision that inspired the microfinance movement. It is the next chapter.