Why Microfinancing is Important to Small Business? Microfiancé is just like microcredit for small businesses and provides access to the capital. It is often seen that the small entrepreneurs do not have the access to the traditional sources of financing and it is because of the risk associated with a new venture. In short, it is hard for new start-ups or small businesses to access finance or loan from financial institutions, hence they don’t get the required funds for growing their business. Microfinancing is access to the savings bank account, providing loans and credits to the small business owners and they should know the basics of small business loan to support their venture. As microfinance is financial assistance that is provided to the new start-ups to improvise their goals and business performance. It allows the entrepreneurs to avail of the loans at reasonable rates and is consistent with ethical business lending. We all know that finance is like blood for a business, if a venture gets adequate financial assistance then it can grow faster and establish itself effectively. So nurturing a new startup, there is a significant role of microfinancing.