Social Media and How It Shapes the Microfinance Industry

by | Apr 27, 2018 | Technology Featured

The good thing about microfinance is that it provides people with opportunities to start their business. Given the availability of this loan option and the lower interest rate, they become more confident to take the loan out and make the most of it.

A lot of people especially from developing countries have maximized the opportunity by using the loans to start a business. They have even opted for a field they are already familiar with. For instance, a lot of women who are experts when it comes to handicrafts have used the loans received to pursue a business in this area.

Now that they already have the skills in creating the products and the money to get the business started, the only thing left is reaching out to a lot of people to advertise these products. This is where social media enters the picture.

Social media is already an essential part of our lives. Despite the negative impact of social media as has been reported recently, we can’t deny that it is already an integral part of our lives. Millions of people are on Facebook around the world.

Small business owners have made use of this opportunity to let many people know about their business. Since social media can reach a lot of people, simply creating a page and posting information can have a major impact. Those who were totally unaware of the existence of the business before have been reached and clients have started coming in.

Through social media, small business owners who have started their business with the help of microfinance have become more competitive. They have been able to advertise locally and even expand internationally in some cases.

Social media is also now being introduced even to the most remote areas around the world. People who have no easy access to the Internet are now exposed to the technology. This is extremely helpful for small business owners operating in those areas as they now have a means to connect with their target audience. Social media sites have also become more aggressive in pushing for internet connections in various places around the world. This encourages a lot of Internet service providers to offer their services at a more affordable price while improving speed.

Customers also benefit

Even if the impact of social media on business owners is emphasized, we should not take for granted just how huge the impact is among customers. Now, they have options regarding which products to buy or services to use. They can find cheaper sources that are more suitable given their financial situation.

Microfinance has definitely changed a lot of people’s lives and with the help of social media, poorer people are now more confident in achieving their financial goals. You can learn more about microfinance and other finance-related issues from Sharone Perlstein who is an expert himself when it comes to this field.


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