Frequently Asked Questions about the GMA
Programme
What is a microentrepreneur?
Microentrepreneurs are low-income persons who
own small-scale businesses, a common form
of employment in many developing countries.
Microentrepreneurs often provide the sole
source of income to their family and may
employ a small number of people in their
local community.
What is microfinance?
Microfinance is the provision of a broad range
of financial services such as: savings, small loans,
payment services, money transfers and insurance
to poor and low-income households and their
microenterprises.
How can microfinance be used as a development
tool?
Microfinance can be a powerful tool for poverty
reduction. Accessing financing allows the poor
to bolster their household income and economic
stability, build assets, and reduce vulnerability.
Microfinance can also stimulate the local economy
through job creation, as well as the creation
of demand for goods and services.
What is the International Year of Microcredit?
Since 1959, the UN has designated International
Years in order to draw attention to major
issues and to encourage international action
to address concerns that have global importance
and ramifications. The UN also designates
International decades and days.
In December 1998, the UN General Assembly designated
the year 2005 as the International Year of Microcredit
(resolution
53/197) stating that the Year will be an
important opportunity to give impetus to microfinance
programmes throughout the world. The Year of
Microcredit 2005 calls for building inclusive
financial sectors, strengthening the powerful,
but often untapped, entrepreneurial spirit existing
in communities around the world and achieving
the Millennium
Development Goals (MDGs).
Who is supporting the GMA Programme?
The Citigroup
Foundation and the United Nations Capital
Development Fund (UNCDF)
are jointly funding the GMA Programme. In addition
to their financial support, the UNCDF is mobilizing
the UN's human and intellectual capital to advance
the microfinance industry, while the Citigroup
Foundation is coordinating with employee volunteers
in 25 countries to leverage their expertise in
building local awareness of this important initiative
among the public and the media.
Will there be a 2006 GMA Programme?
Yes, one of the goals of the GMA Programme is
to establish a fair and inclusive Global
Microentrepreneurship Awards Programme in
the majority of developing countries throughout
the world by the close of 2007.
Can any country host a similar awards
Programme?
In conjunction with the UN's International Year
of Microcredit in 2005, the goal of the GMA Programme
is to increase awareness of microfinance as a
tool for alleviating poverty around the world
and build up the next generation of global microfinance
networks. In light of these goals, if you are
interested in conducting your own GMA contest
in a country without an official GMA presence,
we encourage you to do so. We have provided a Handbook
and Guidelines for Implementation and Management of
the GMA just for that purpose. Due to budget
limitations, we regret that we cannot provide
any funding or resources beyond the handbook
and information on this website to support those
efforts. We are pleased that you share our passion
for microentrepreneurship and applaud your commitment
to this important issue.
I would like to learn more about microfinance.
Is there a course where this is offered?
The United Nations Capital Development Fund has
developed a distance-learning course intended
to make basic knowledge of microfinance accessible
around the globe. The Microfinance Distance Learning
Course explores why and how microfinance operations
grow to provide financial services to poor and
low-income people on a sustainable basis. The
course brings together advice and best practices
from successful practitioners and institutions
around the world, including Latin America, Africa,
Asia and the Arab States.
The course is taught through an interactive CD-ROM
with accompanying workbook, reading material
and an instructor's manual. Please check the
UNCDF website at www.uncdf.org/english/microfinance/MFcourse.php for
more information.
To learn more about microfinance click
here.
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