Poverty is a global issue that affects millions of people and often leads to a vicious cycle of lack of opportunities, health, and education.
Fighting poverty is the first of the 17 United Nations Sustainable Development Goals to achieve sustainable development and equality worldwide. But how do you begin fighting poverty? In this article, we will delve into what poverty is and how many people globally live in poverty. With that knowledge in hand, we will explore how we can work together to fight poverty, including through crowdfunding at Lendahand.
What is poverty, and how do we define it?
Poverty is often defined by international standards. The World Bank, for instance, defines extreme poverty as living on less than $2.15 per day. Anyone living below this threshold lacks sufficient income to meet basic needs like food, water, and shelter. However, poverty extends beyond income alone. Those living in poverty often face limited access to education, healthcare, and social security. Poverty means a lack of opportunities, making equality of opportunity impossible.
How many people live in poverty worldwide?
According to the latest figures from the World Bank, around 700 million people worldwide live in extreme poverty. However, this number is just the tip of the iceberg. In addition to those in extreme poverty, millions more live just above this line but still in precarious conditions. Global crises such as the COVID-19 pandemic, wars, and natural disasters have led to a rise in poverty numbers in recent years. Turning the tide and supporting people to break the cycle of poverty is essential to achieving greater equality worldwide.
What types of poverty alleviation exist?
Fortunately, there are several ways to fight poverty. Governments and international organizations focus on creating social safety nets and investing in education and healthcare to provide the fundamental conditions for a better life.
In many communities, people support each other through volunteer work and donations. Moreover, microfinance plays an important role in providing economic opportunities to those who typically do not have access to traditional banks. Various forms of microfinance exist, mainly to support entrepreneurs in the informal sector toward achieving a stable income. These entrepreneurs often lack formal accounting systems and, therefore, cannot apply for formal loans. Through Lendahand, you can invest in local microfinance institutions with a social mission to provide financing to these entrepreneurs. Innovative solutions like crowdfunding can also help alleviate poverty by directly making capital available to entrepreneurs in developing countries.
How can crowdfunding help fight poverty?
Crowdfunding offers a unique opportunity to make a direct impact on the lives of people living in poverty. By pooling small investments from many individuals, entrepreneurs and small businesses in developing countries can secure the financing they need to grow. This enables them to expand their business, create local jobs, and generate a more stable income. At Lendahand, we focus specifically on supporting entrepreneurs in emerging markets, contributing to poverty alleviation and equality of opportunity.
For entrepreneur Oliva from Mexico, her microloan means a world of difference. With a microloan from microfinance institution Sofipa, Oliva was able to invest in her family business: a sewing workshop for traditional Mexican clothing. She is using the money from her loan as working capital to purchase more fabrics so she can take more orders from customers and work ahead. Being able to sell more has increased her income, allowing her to hire workers. ‘Our family has much more breathing space now,’ Oliva testifies. ‘We are finally becoming the thriving family business we always dreamed of.’
How can you fight poverty at Lendahand?
Lendahand offers investors the opportunity to directly contribute to the fight against poverty by investing in businesses in emerging markets. Through our platform, individuals can invest in projects that promote employment and sustainable growth. These projects not only drive economic progress but also help break the vicious cycle of poverty by providing access to financing for those who need it most.
Start fighting poverty with Lendahand today
Fighting poverty starts with creating opportunities for people living in difficult circumstances. Through Lendahand, you can invest in projects that have a direct impact on the lives of people in poverty. By choosing impact investments via crowdfunding, you are not only contributing to economic growth but also to a better world where equality of opportunity and poverty alleviation are central.
Create your free account today and start helping to fight poverty!