Microfinance
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Helping small enterprises without sufficient collateral to obtain credit.
Improving local access to micro-credit is essential to enhance private sector involvement. Requires good regulatory framework because there is a large difference in the performance of micro-credit organizations. (http://www.microcreditsummit.org/papers/fundspaperfinal.htm#4.7). High potential as opportunities for private sector involvement in sector are growing.
Limited access to venture capital often restricts small private sector to expand.
Risk capital needed for further experiments; quality insurance. Often paid through local NGOs. Since the 1980s over 7,500 different types of small family businesses have received credit from the Orangi project in Karachi, with good repayment (http://www.oppinstitutions.org). In Bangladesh, Burkina Faso, Ghana, Peru and Senegal the private sector supply of latrine parts, construction and sale of soap has been supported, not by micro-credit but by social mobilization programs that increase the demand for the products. These programs are funded by governments and external agencies (http://www.wsscc.org/pdf/publication/Sanitationisabusiness.pdf). Potential exists in removing a barrier for private sector to grow.
