Feasibility Study for the Development of the Microfinance Sector in Israel
This report presents details of a national feasibility study that PlaNet Finance Israel carried out to assess the potential of microfinance in Israel. It aims to provide interested local and international actors with information to help them decide if it is feasible to launch a microfinance initiative to support microenterprise and tackle poverty. The study discusses the extension of financial services to the bottom of the pyramid and the legal environment for the incorporation of MFIs. It assesses the demand for microfinance from small registered and unregistered businesses, and potential microentrepreneurs. The financial landscape of Israel would definitely benefit from the addition of specialized institutions that cater to populations lacking access to the formal financial sector. In order to develop the microfinance sector in Israel, the report recommends the following activities:
- Large scale awareness campaign;
- Microfinance pilot project;
- Improvement of loan guarantee funds.