Topic > Microfinance and microfranchising: a solution to poverty

As the morning sun rises, most of us wake up to a day of possibility, but for those in extreme poverty, the dawn brings only anxiety and desperation as they try to survive with little to nothing. Over a billion people currently live in extreme poverty, unable to imagine a future free from hunger, disease and oppression. Extreme poverty, defined as living on $1.25 a day or less, traps generations in an arduous existence with few opportunities for escape. Helping to eliminate extreme poverty means first understanding that it is possible to offer people a way out and, if possible, we therefore have a responsibility to do so. Millions of people die every year due to extreme poverty. While few would argue that we should avoid saving the lives of millions of people, many would argue that the situation is hopeless. Debunking this myth is critical to making the public understand that we have the tools at our disposal to end extreme poverty within the next 30 years. According to the 2010 Millennium Development Goals Report, the percentage of people living in extreme poverty in East Asia fell from 60 percent in 1990 to a staggering 16 percent in 2005. This represents a remarkable achievement in such a span of time. short and should serve as proof that with focused effort we can eliminate extreme poverty. The path to eliminating extreme poverty will not be easy, but through innovation, ingenuity and engagement we can achieve this goal. Involvement should include both the community and, when possible, existing government agencies. Having an established framework in place can accelerate the process of stabilizing a community in crisis and build the foundation for growth. Government agency...... middle of paper ...... opportunity to purchase the basic supplies needed to start their own business ventures and begin their journey to self-sufficiency. Along the same lines is the creation of franchising kiosks to provide the missing but necessary services. Funding is provided to help people in poverty purchase a franchise where they function as a business owner using established protocols. Franchising helps minimize risks because the advertising and supplies, as well as the startup capital and business plan, are provided, so the money is spent more effectively. VisionSpring is a brilliant example of this idea. Community members purchase their own VisionSpring franchise and sell glasses to surrounding low-income communities that would otherwise have no source of vision-correcting glasses. This provides the salesperson with a living wage and the community with a valuable service.