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<p>DFID continually reviews emerging evidence in order to ensure that its programmes
maximise value for money for UK taxpayers. The “Profiting from Parity” report indicates
that early studies on the impact of microcredit have found mixed results on income
growth and consumption levels, including for women entrepreneurs. However, other research
provides strong evidence that under particular circumstances, when products are suitably
tailored for the specific needs of the borrower, microcredit can have a positive impact
on development by enabling individuals to help themselves out of poverty. Responsible
microfinance can help people build personal resilience against economic shocks, smooth
their incomes over time, and explore business growth opportunities, as well as facilitating
broader developmental outcomes, such as access to affordable and reliable water, electricity,
healthcare and education. This is especially true for women, who typically access
more microfinance than men. The UK is committed to supporting financial inclusion
as a key enabler to achieving the SDGs, and particularly on tackling the persistent
gender gap in access to finance which is crucial for building women’s economic empowerment.</p>
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