Based on qualitative field research carried out in Bangladesh and Pakistan, and by focussing on a specific segment of the poor - people vulnerable to bondage or just released from bondage - this article highlights the conditions under which the poorest segments of the population can effectively become entrepreneurs. Social capital appears to be a critical factor of success, while at the same time being a source of extreme vulnerability. And innovation is required to provide a successful integrated package of financial and non-financial services to extremely vulnerable populations. Microfinance outreach to the poorest is a realistic objective under four conditions: (a) economic empowerment should be inseparable from social empowerment; (b) microfinance should be complemented by safety nets and should also be flexible; (c) microfinance should include innovative savings products; and (d) instead of building upon pre-existing social capital, microfinance should help the people to build their own social relations while attempting to challenge their unequal dimension.

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microfinance working conditions social capital empowerment economic conditions labor