Microfinance experts call for policy support to drive social mobility

Experts in the microfinance sector are calling for comprehensive public policies to transform micro-businesses from subsistence-level activities into engines of social mobility. In the Dominican Republic, data from 2025 indicates that while poverty affects approximately 17% of the population, a much larger 33% live in a state of vulnerability, susceptible to falling into poverty due to external shocks like climate events.

To address this, specialists suggest that credit access must be paired with financial accompaniment, asset building, and resilience training. In Colombia, leaders from Interactuar have highlighted the challenges facing small businesses, including high interest rates and the costs associated with formalization. They advocate for a gradual approach to business formalization that considers the specific size and capacity of each enterprise, rather than an all-or-nothing regulatory framework.