Microcredit is designed to support entrepreneurship and alleviate poverty, but recent research from across seven countries has shown that giving poor people access to microcredit does not lead to a substantial increase in household income. There also appear to be no significant benefits in terms of education or female empowerment. However, what microcredit does do is allow low-income households to better cope with risk and to enjoy greater flexibility in how they earn and spend money. In short, microcredit is a useful financial tool but not a powerful anti-poverty strategy.
