Revenue Essay Example | Topics and Well Written Essays - 1250 words

Revenue - Essay Example Income encompasses both revenue and gains.† (ec.europa.eu, p. 2) Revenue: â€Å"IAS 18 defines revenue as ‘the gross inflow of economic benefits during the period arising in the course of the ordinary activities of an entity when those inflows result in increases in equity, other than increases relating to contributions from equity participants† (ACCA, 2013.) Gain: â€Å"An increase in the value of an asset or property. A gain arises if the selling or disposition price of the asset is higher than the original purchase or acquisition price† (Investopedia, n.d.) Normally the word ‘profit’ is used in business context in the place of gain. It is also very important that that revenue and the related expenses should be matched with the accounting period, and this is called matching principle. â€Å"When the selling price of a product includes an identifiable amount for subsequent servicing that amount is deferred and recognised as revenue over the pe riod during which the service is performed. The amount deferred is that which will cover the expected costs of the services, together with a reasonable profit on those services† (ACCA 2013). ... sale and repurchase should be dealt with together. Section 14 of IAS 18 stipulates the conditions for revenue recognition in respect of sale of goods. These following two conditions are relevant for discussion in respect of accounting of transaction related to Witney. (a) the entity has transferred to the buyer the significant risks and rewards of ownership of the goods; (b) the entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; Section 20 states â€Å"When the outcome of a transaction involving the rendering of services can be estimated reliably, revenue associated with the transaction shall be recognised by reference to the stage of completion of the transaction at the end of the reporting period.† This principle is relevant for discussion in respect of support services to PC4U. Case Study Sale of electrical goods When sale has been accounted properly, the goods covered should no t be treated as stock; and the sale is not treated as stock by the company. Snowfall and delay in delivery cannot alter the position. Once the goods are despatched to the buyer, the seller has no control over the same. The following conditions u/s 18 are important in this respect (a) the entity has transferred to the buyer the significant risks and rewards of ownership of the goods and (b) the entity retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold. Therefore, no adjustment is required on account of this transaction. Contract with Witney The total amount owing to Ibi Ryan from Witney is ?600,000 at 31st March. It is assumed that includes the sum

Strong Interest Inventory Essay Example | Topics and Well Written Essays - 1000 words

Strong Interest Inventory - Essay Example s which matches the interests as well as the personal styles in relation to issues such as leadership qualities and risk taking abilities of the individuals is very important for the students as there is a strong relationship between the interests, preferences and personality. The school counselor also interacts with the students who are experiencing social or personal problems, and after identifying the issues aids them by providing counseling for achieving their academic and career goals. Due to legislative compulsions, the schools are required to update their testing programs and design new assessment methods. There are standardized tests developed by the test publishers. In the recent years new editions of the Tests of Achievement and Proficiency Batteries have been released by the reputed test publishers. They also publish interest inventory tests which broadly measure the students’ vocational or academic interests. Attitude and personality scales used for measurement cover various parameters. For example the results of the  Myers-Briggs Type Indicator  (MBTI) assessment (CPP Inc., 2004) include: Scores on the level of interest on each of the six  Holland Codes  or General Occupational Themes.  Holland Code Themes  include – Realistic, Investigative, Artistic, Social, Enterprising, and Conventional. Standardization: A standardized test conducted under standard conditions and vigilance, with specified time limits and scores are either norm or criterion referenced, and interpreted as per standards consistently. The standardized tests are useful in the assessment of academic success or achievement, and could also be effectively used for diagnostic testing in counseling for identifying weaknesses such as reading and writing skills as well. ACT, SATII, GRE, MAT, GMAT, MCAT and LSAT are some of the good examples of standardized tests. Norming: Norm refers to average level of achievement or performance in relation to a group. Norm-referenced tests

Turkey's membership of EU Essay Example | Topics and Well Written Essays - 750 words

Turkey's membership of EU - Essay Example This of course leaves the very prominent case of the nation of Turkey. Although not technically a part of â€Å"Europe† proper, Turkey has been highly desirous of EU membership for quite some time now and has been a valuable trading partner as well as maintaining a definitively close political and economic connection with both France and Germany; arguably the two most prominent members of the European Union. Within this context and considering this particular reality, this analysis will seek to discuss some of the major issues that currently serve as an impediment to this taking place as well as analyzing some of the key factors that serve to encourage the inclusion of Turkey as a future member of the European Union. Firstly, from the geographic standpoint, those that argue against Turkish inclusion in the European Union would be quick to point out that 97% of the entire nation of Turkey is not within the continent of Europe (Simpson, 2013). However, as history has noted time and again, Turkey serves as a valuable bridge between Europe and Asia/Mid-East and the inclusion of such a partner would definitively strengthen the ties that these regions could express in terms of trade and economic resilience. Secondly, from the perspective of economics, those that are against Turkish inclusion in the European Union might point to the fact that the GDP of the average Turkish citizen is nearly ? of what the GDP of the average EU citizen enjoys (Jameson, 2013). However, the fact of the matter is that Turkey’s economy has experienced stellar and rapid growth over the past few decades and stands in a very good position to overtake some of the EU’s weaker members in terms of GDP output per citizen within the next several years. Thirdly, from the political standpoint, naysayers would argue that the politics of Turkey are not advanced enough as compared to the mature European style democracies that are invariably evidenced within the other member states of the EU (Hancock, 2012). Although it is true that the nation of Turkey does not have a long history of democratic process as compared to the nations of Europe, it has managed to strike a pluralistic balance between elements of Islamic forces, the military, and a league of social democrats; exhibiting the very epitome of what a democracy should promote – understandings and cooperation between disparate groups of people. Ultimately, if given the chance to decide whether or not Turkey should be admitted into the European Union, it would be the decision of this author that this should indeed take place. The rational for this is nuanced. Firstly, it is clear that Europe has lost a great deal of skilled and unskilled manufacturing jobs over the past several decades to the developing nations in Asia and elsewhere. As a result of this, inclusion of a nation that is currently rapidly industrializing will bolster the overall economic strength that Europe can bring to bear on the intern ational level. Secondly, whereas the population of â€Å"old Europe† has continued to decline, and is on course for even further decline in the future, Turkey’s influx of 140 million people could help remedy the coming collapse of European productivity with regards to gaps in the labor market that are certain to take place. Finally, with regards to the political ramifications of

Gated Communities and Segregation in The Tortilla Curtain by T.C.Boyle Essay

Gated Communities and Segregation in The Tortilla Curtain by T.C.Boyle - Essay Example Though segregation based on race, ethnicity, religion, etc., is now illegal, there are still some practices among the citizens like the existence of gated communities that cause segregation and racism. Although, one section of people views gated communities as a feasible and practical way of living, other sections view it as ‘islands’ which promote segregation. This issue of gated communities forms a subtle but a key part of the novel, The Tortilla Curtain written by T.C. Boyle and published by Viking Press in 1995. Boyle is a ‘Distinguished Professor’ of English at the University of Southern California and lives in the Santa Barbara. He has written over 12 novels as well as more than 100 short stories winning, with many of his works reflecting the issues and lifestyle of people living in California including The Tortilla Curtain. â€Å"The Southern California writer T. C. Boyle captures the separation that marks daily life in Los Angeles.† (Fuller, B ridges and Pai 145). Boyle sets his novel in the Topanga Canyon where the lives of two couples, who live an entirely different lifestyles, cross each other with tragic and at the same thought-provoking results. The main protagonist couple, Delaney, a sensitive writer about nature and Kyra Mossbacher, an obsessive real estate agent, move in to a newly gated community nestled among the natural surroundings called Arroyo Blanco. The other couple is the Mexican illegal immigrants, Candido and his pregnant wife America Rincon, who enter the American borders illegally wanting to achieve the American Dream of a prosperous life, but live in an awful condition in a makeshift camp deep in the Topanga Canyon. When a freak car accident involving Delaney and Candido happens, it leads to further interactions between the couples with their opposing worlds intersecting in a problematic and tragic manner. The interactions between the couples mainly arise due the setting of the gated community. Boyle paints the picture of a strictly conforming gated community, where all the houses were white with orange roofs. â€Å"†¦lay the massed orange tile rooftops of Arroyo Blanco† (Boyle 74). The private community gives a sense of exclusivity. The concept of a gated community, with a homeowners association, is to provide a safe neighborhood with all the facilities. However, when viewed from another perspective, by facilitating families of similar races and class to live closer together, while ‘ignoring’ other sections of the people, it is leading to segregation. Part 2: Gated community is the term given to the residential neighborhoods which have a surrounding wall and a main gate for entry. This form of residential living has become a key part of the new housing market, particularly in the urban areas. It is viewed as a new form of urbanism, under which public spaces in various geographical territories are being privatized. They have thus become a â€Å"symbol of metropolitan fragmentation and social segregation†, with segregation happening mainly along economic and racial lines (Le Goix 76a). Le Goix (9) further states that â€Å"gated communities are located within every kind of middle class and upper-class neighborhoods, with half of them are located within the rich, upper-scale and mostly white neighborhoods, and one third are located within

Teenagers sometimes complain Essay Example for Free

Teenagers sometimes complain Essay Teenagers first come into this world as a bundle of joy, but some object. As children grow and become teenagers, the problems start. Problems such as relationships, school and even monetary are rampant. So what do children do when they run into trouble? They go to their parents; so do teenagers. Teenagers in Singapore go through lots of education. From young in primary school till university for many. Education can therefore be said to be very formal and very fast paced and competitive. Teachers and parents already at this stage have their students or childrens lives planned out, but teenagers may think differently. Our elders think that teenagers need help and are always wrong. Certainly there are numerous occasions when we simply cannot do without our parents. But for the many others, we need to take a stand and speak out for whats right. Let me give you this example. There is a boy. He goes to school. Then he goes to secondary school. He is now a teenager. The O level examination is approaching, and all he does is try to study. That is good. Then the adult steps in. A responsible one would say this: How are you doing? Do you need help? Just ask me. Dont be shy. Then on the other hand an adult with fish mongering experience would say this: Aiyah! Whole day study study. You know last time My parents worked day and night, and I started working when I was your age! Now all you can do is sit here and read your book. So this is the main reason behind teenagers being treated like children. Sometimes its not the teenagers fault but instead it is the adults fault. You have just seen how family backgrounds affect how people view children. Now I shall let you see what happens when it is the teenagers fault. A good teenager would do what he or she is supposed to do to become a good person. Like so: Teacher, can I ask you a question? What topics are coming out for the tests? Then the bad one would say: Aiyah! Tests are always coming, but they never come, study wastes time, study for what? You see the good teenager has a sort of worry for his future, whereas the bad one does not. It is this mere worry that sets us about our lives. Without it, our lives would be as meaningless as the aimless punks. Adults also think about our future. Because we dont. They care incessantly about the smallest things in life, probably because when they were young, they faced the same demands of society. So it is because of this care and concern for responsibility that motivates us to behave like children, so the adults can guide us toward the right path. Now I know, what you qualify determines whether you are a child or an adult.

What Benefits The Media Brings

What Benefits The Media Brings Mass communication, like anything, has its pros and cons; however mass media has far more advantages to offer the world than it does to harm it. They can take us to a distant land or teach us about the intricacies of the animal kingdom and in todays world, surfing the Internet for anything from business to pleasure, we experience information in a way unlike ever before in history. I hope to shed light on the benefits of Media on the world, the opinion of the public on Media, how media can be educational and lastly how the Internet is now a new Mass Medium. The general populous has an interesting alliance with Media in that it is the populous that gives life to the mass media machine. Early on in human history, mass media was communicated through word of mouth, and it was that very link that gave way to small town gossip in the middle ages , where information like what the local officials were up to and who was having relations with who and etc would circulate around. Word of mouth would remain the largest Mass Media until the invention of the printing press in 1436 when the news of the town could be told and recorded forever. So with that being said, let me begin my paper. I first looked at what the people thought of Mass Media through the eyes of a poll taken about what the publics view on the media was. The information was reported in a Article by Joe Saltzman and states that the publics use and view of its media, shows that word of mouth is less trusted than CNN, public television news, local television news, and prime-time TV news magazines. News anchors Americans see on television are considered more reliable as sources of accurate information than personal acquaintances (par 3). That appears to suggest that after the set off of the press, people find that a recognized news source rather than a personal contact is to be trusted. People feel that they can trust a Anchor as long as he/she remains credible and they feel optimistic because of that fact. Another benefit we modern people have as opposed to our ancient counterparts is that we are citizens who get our information from trusted sources such as CNN, local news casts, public television news, and as a result we tend to usually end up better informed and more accurately informed than those ancient immigrants and our forefathers from their word of mouth reporting. The advantages of Media continue in an area you might not expect: education. Not just education in the form of reading and arithmetic but life education. From the article, Media Education by Marjorie Hogan we find that if the public is media literate in how to break-down the content of the media and read what messages each presentation and advertisement is telling us, rather than taking something at its face value, then the public will be able to make better choices and educate their children about the messages of all media, and thereby control their childrens exposure to potentially harmful media (Hogan, par 7). There are also enormous amounts of educational programming such as, Sesame Street, Nickelodeon, and for the older kids, documentaries from public TV, channels like AE and The History Channel. In an article by Aletha C. Huston and John C. Wright, called Television and the Informational and Educational Needs of Children, we see that the television medium seems to of had a positive effect on childrens education process. In 1990 the article says that the Childrens Television Act was passed mandating all broadcast stations to provide programming that, meets the educational and informational needs of children and youths (Huston, par 2). This meant that during the daytime stations had to play a minimum of three hours of educational media a day (Huston, par 2). Sesame street helped to educate the urban poor in the inner cities that normally wouldnt have the opportunity to gain a quality education like their suburban counterparts who have better access to quality schools. Since the passing of the Childrens Television Act the number of educational programming has increased ten-fold. These programs have led to children having, according to Huston and Wright, social skills, (for example, cooperation, conflict resolution, knowledge about different cultures), emotional development (for example, understanding feelings), creativity, language and literacy, positive attitudes about learning, critical thinking, problem solving, quantitative skills, cognitive skills (for example, inference, concept formation), and knowledge about the arts, history, social science, and natural science (Neapolitan and Huston 1994) (par 11). Oddly enough these are all things, together with books read while young, that gave me an upper edge on my classmates in reading and critical thinking as well as giving me a curiosity and longing for a lifelong quest of knowledge. The electronic age is one filled with uncertainty because so much lies within our reach that at times its overwhelming. Presently most colleges and universities are filled with computer systems and the new reference librarians have it easier than their ancient counterparts, they can locate info at a faster rate and keep it more readily available, which all help advance, reference service immensely. This is one aspect of this new Internet age. It is filled with life elevating and turbulent times ahead. In an article, The Net-Setters, Neal Gabler goes on to explain how the net-savvy people of today rival the early Jet-Setters of the 1960s. Gabler says, what they live is the cyberlifemore thrilling to many than the old high life of the jet-setters because it has more variety. In cyberspace, there are virtually no limits to what you can purport to do (par 3). The thing is with the Internet there is so much locked away potential that no one can avoid hearing of it. Its recognized that the Internet is the future yet there is much ambiguity to where it will truly go and how it will be used. The Internet is a force to be dealt with, but it is sure to serve humanity much as its precursors of media have, to learn from and aid the greater distribution of information to all in this new fast-paced information super age. All things discussed, public perception of mass media is high by having and making our lives more comfortable and more informed, the educational value of media by helping our children to grasp concepts and skills, and the computer/Internet revolution by expanding our minds to boundless possibilities have all made impacts on who we are as humans and what we will become in the future as we progress through the ages. Hopefully mass media will last several more hundred years being that mass media is only relatively young in the scheme of all of human history is considered.

Issues and Challenges of Micro Finance in India

Issues and Challenges of Micro Finance in India Micro-finance refers to small savings, credit and insurance services extended to socially and economically disadvantaged segments of society. Indian context terms like Small and Marginal Farmers, Economically weaker sections have been used to broadly define micro-finance customer. Large part of micro finance activities is confined to credit. Large size and population of around 1000 million, Indias GDP ranks among top 15 economies of world.Around300 million people or about 60 million households are living below the poverty line. Group of micro finance practitioners estimated the annualize credit usages of all poor families about Rs45000crores of which some 80 percent is met by informal sources. Credit on reasonable terms to poor can bring a significant reduction in poverty. About 60 million households below or just above the austerely defined poverty line and with more than 80 percent unable to access credit at reasonable rate. There are certain issues and problems which have prevented reach of microfinance to needy. MICRO FINANCE AND POVERTY ALLEVIATION: Micro finance institution have expanded frontiers of institutional finance and have brought the poor, especially poor women into formal finance system and enabled them to access credit and fight poverty. Some significant strides have made in upscalling the large quantities of microfinance, observed that microfinance had an asymmetric growth across country with diverse rate of interest being charge to member which are area of concern. The lack of access to credit for the poor is attributable to practical difficulties arising from the discrepancy between the mode of operation followed by financial institution and the economic characteristics and financing needs of low-income household. The income of many self-employed households is not stable, regardless of it size. Large numbers of small loans are needed to serve the poor, but lenders prefer dealing with large loans in small numbers to minimize administration costs. They also look collateral with a clear title which many low-income households do not have. To the extent that Microfinance Institution becomes financially viable, self sustaining and integral to the communities in which they operate, they have the potential to attract more resources and expand services to clients. Despite the success of microfinance institutions only about 2% of worlds roughly 500 million small entrepreneurs is estimated to have access to financial services. Microfinance institution can broaden their resource base by mobilizing savings, accessing capital markets, loan funds and effective institutional development support. Saving facilities to tap small saving in a flexible manner. Microfinance institution are engaged in deposit taking in order to mobilize household saving, they became financial intermediaries. Consequently financial regulations become necessary to ensure the solvency and financial soundness of institution and to protect the depositors. Excessive regulations that do not consider the nature of microfinance institution and their operation can hamper their viability. In view of small loan size, microfinance institution should be subjected to minimum capital requirement which is lower than the applicable to commercial banks. More stringent capital adequacy rate should be maintained because microfinance institution provide uncollateralized loan. Microfinance institution could also serve as intermediaries between borrowers and formal financial sector and on lend funds backed by public sector guarantee. Business like NGOs can offer commercial banks ways of funding micro entrepreneur at low cost and risk. There are many on-going researches on this line but context specific research is needed to identify the meet appropriate model. FORMAL AND INFORMAL SECTOR IN INDIA FORMAL SECTOR INSTITUTIONS: The formal sector banking institution in India have been serving only the needs of commercial sector and providing loans for middle and upper income groups. For housing the HFIs primarily because of the perceived risk of lending to this sector . Risks generally perceived by formal sector Financial Institution are credit risk, High transaction and services cost, Irregular flow of income due to seasonality, Lack of tangible proof of assessment of income, Absence of land tenure of financing housing. Formal Financial Institution are concerned are Commercial Banks, Housing Finance Institution(HFI),NABARD, Rural Development Banks(RDB),Land Development Banks and Cooperative Banks(CBs). The government has taken several initiatives to strengthen the institution rural credit system. The rural branch network of commercial banks have been expanded and certain policy prescriptions imposed, in order to ensure great flow of credit to agriculture and other preferred sectors. The commercial banks are required to ensure that 40% of total credit is provided to priority sectors out of which 18% in the form of direct finance to agriculture and 25% to priority sector in favor of weaker sections besides maintaining a credit deposit ratio of 60% in rural and semi urban branches. Further IRDP introduction in 1979 ensure supply of credit and subsidies to weaker section beneficiaries. INFORMAL FINANCIAL SOURCES: Informal financial sources generally include funds available from family sources or local money lender. Local money lenders charge exorbitant rates, generally ranging from 36% to 60% interest due to their monopoly in the absences of any other source of credit for non-conventional needs. NGOs engaged in activities related to community mobilization for their socio-economic development have initiated saving and credit program for their target groups. Community based financial system (CBFS) can be categorized into two models. Group base financial intermediary and NGO linked financial intermediary. NGOs like SHARAN in Delhi, FEDERATION of THRIFT AND CREDIT ASSOCIATION (FICA) or SPARC have adopted first model where they initiate groups and provide necessary management support.SEWA pertain to second model. Experience of these informal intermediaries shows that although saving of group members, small in nature do not attract high returns, it is skill practiced due to security reasons. Most of loans are unsecured. Personal or group guarantees or other collaterals like jewellery is offered as security. There are some agencies which provide bulk funds to system through NGO. Organization engaged in micro finance activities in India may be categorized as wholesaler, NGOs supporting SHG and NGOs directly retailing credit borrowers or group of borrower. Wholesalers will includes agencies like NABARD, Rashtriya Mahila Kosh, New Delhi and Womens world Banking,ASA in Trichy, RDO Layalam Bank in Manipur. TARGETING PROGRAMMES FOR LOW INCOME GROUPS: GRAMEEN BANK IN BANGLADESH: Grameen Bank lending system is simple but effective. To obtain loans, potential borrowers must form a group of five; gather once a week for loan repayment meetings and to start with learn the bond rules and 16 Decision, which they chant at start of their weekly session. There decision incorporate code of conduct that members are encourage to follow in their daily life, e.g.: production of fruits and vegetables in kitchen gardens, investment of improvement of housing and education for children, safe drinking water for health,etc.For this physical training are held at meeting. Key-unit in credit program is first necessary step to receive credit. Initially loans are providing to individuals in group, there were under pressure from other members to repay the loan. Credibility of group members and benefits in term of new loan will be stopped if any one default to repay and the group members are fined or expelled a member if they fail to attend the meeting. FINANCIAL MODELING SELF-HELP GROUPS: SHG-MGI System: Typical SHG consist of 12 or 30 member. It is not only saving and loan association but serves as affinity group that provides platform for issues. SHG is system raises funds from individual and also from MCI. MCI arise fund from three sources: Capital, SHG saving and borrowing from outside and MCI have regulatory restriction on assets, liabilities and interest rates. Some of the principles underlying that were issued to implementing: SHG use almost 60% for lending to their members and rest for depositing. Joint liability of members is to serves as substitute for physical collateral and saving are to come first. Interest rates on saving and credit for members are market rates to determine locally by participating institutions. All NGOs and SHGs will charge an interest margin to cover their costs. SHGs may levy an extra charge to interest rate of internal fund generation which will force saving. MECHANISMS FOR CREDIT FUNDING LOW INCOME GROUP BENEFICIARIES BY HDFC . HDFC making sub-stained efforts to reach the lower income groups of society, especially the weaker section, thus enabling them to realize their dreams of possessing own house. HDFCs response to need for housing and living environment for poor both in rural and urban sectors materialized in collaboration with German Development Bank. It also ensures newly constructed houses are within the affordability of beneficiaries and promotes the usage of innovative low cost technologies and locally available material for constructing house. Purpose of implementation of low cost having projects, HDFC collaborate with Government and Non-Government. Security for loan is mortgage of property being financed. Construction work is regularly monitored by coordinating agencies and HDFC. The loan is disbursed depending upon the stages of construction. Microfinance operation experience poor repay their loans, saving and loan facilities. It also contribution to solving problem of inadequate housing. It has hot to contribute to this by building financial discipline and educating borrower about repayment requirements. CHALLENGES OF MICROFINANCE: The importance of microfinance in the process of poverty eradication is realized, it faces multiple problems. Offering financial services to poor individual and in itself leads to various challenges. Challenges are divided into challenges faced by Micro Entrepreneurs and challenges faced by Microfinance Providers. Challenges Faced by Micro Entrepreneurs: Inability to offer marketable collateral for loans: They are either small businesses or poor individual who have few assets and low income. These clients have cannot offer any collateral for loans. Due to this microfinance providers may raise their interest rate or turn down hundreds of application. Poor institutional viability of micro enterprises. Business ideas with a lack of consideration of demand and cost render the micro venture unsustainable and microfinance may incorrectly get blame for it. For instance, In the case of micro crop farming farmer often fail to account for their personal consumption between the sowing and harvesting periods and realize they face shortage of more. Due to this they often end up using the micro loan for personal matter and problem arises when its time to pay back the loan, farmer are forced to take another loan. Knowledge regarding sources of microfinance is lack. Many micro entrepreneurs live in remote villages, so they have no access to microfinance service offered by MFIs. Misallocation or shortage of finance. Lack of fund, which can solve if MFIs build up their capital base by accessing various sources of funds without fund micro ventures, cannot grow. Inability to exploit growth opportunities. Shortage of finance is a contributor to this problem, because lack of access to funds means micro entrepreneurs cannot inject money into their business to grow. They may have little information pertaining to their market such as customer needs and competitor strengths and weakness, this may result May critics. Lack of organizational resources and governance. They may have limited skill, qualification and exposure to handling business. They need to be trained through capacity building initiative by MFIs; many micro entrepreneurs may not grow because of this problem. Low bargaining power. Micro entrepreneurs operates in competitive markets, their individual bargaining power is diminished. There still isnt any respite because micro entrepreneurs deal with MFIs on individual basis, which also erode their bargaining power. Most problems faced by micro entrepreneurs are caused by small size, improper skill, and location. When venture secures loan and begins to grow these problems will eventually. Challenges faced by microfinance providers. The importance of microfinance in the process of process of poverty eradication is realized, it faces multiple problems. The challenges faced by microfinance providers are High risk of micro entrepreneurship and small business. Micro entrepreneur usually no collateral to offer microfinance providers, no alternate source of income. Micro entrepreneurs are considered high risk ventures and micro finance providers are forced to compensate for this by changing interest rate. High costs for Micro Lending. Small micro enterprises increase the transaction cost for MFIs, because they cannot process micro loan in bulk. In study conducted by Asian Development Bank, Microfinance providers change interest rate ranging from 30 to 70% per year. Fund shortage. There are plenty of financial options available for MFIs there is an emerging shortage of money. This is due to lack of awareness of funding source by MFI managers. Difficulty in measuring the social performance of MFIs. Micro finance is delivering the economic returns its proponents promised but there are only a handful of tools available that measure the social return of microfinance. Mixing of charity with business. If microfinance providers fail to protect themselves against loan delinquency, they will in effect, prioritize social at expenses of financial sustainability. Improper delinquency management is result of inadequate implementation of corporate governance principle. As result loses control over microfinance deals will lead to higher default rates. Lack of solution for poor. Targeting of poor households by microfinance programs is common problem because MFIs fail to understand the various needs of micro entrepreneurs. MFI must spend time to develop microfinance tools for each micro entrepreneur. Lack of microfinance training for MFIs. Micro finance sector is different when compare to traditional financial sector, microfinance providers need special training to ensure they avoid problem such as under-serving clients. Poor distribution system of MFIs and lack of information about microfinance investment opportunities. CONCLUSION: All these problems can broadly fall into either financial or operational in nature, they should not be impossible to solve as microfinance sector move towards its optimal performance level in next several years. Microfinance can contribute to solving the problem of inadequate housing and urban service as an integral part of poverty alleviation programs. Microfinance institutions have a lot of contribution to this by building financial discipline and educating borrowers about repayment requirements. Micro Finance have more opportunity if the state Reduced direct involvement, increased outlays, Structuring of outlays and finding right outlets, Creating incentives and regulatory environment for implementation.