Read the following passage and answer the questions based on the passage:
Microfinance institutions (MFIs) have become crucial agents for advancing financial inclusion in rural areas. Through extending small loans and savings accounts to people who don't have access to conventional banks, MFIs empower entrepreneurs -most often women - to initiate or scale up microenterprises. In most villages, these loans support poultry farming, handloom weaving, or tiny retailing outlets. MFIs go beyond credit by regularly offering financial education training, teaching borrowers to cope with cash flows and interest charges. Critics warn, however, that excessive interest rates and repayment pressure can result in over-indebtedness. To avoid such risks, some MFIs limit interest rates and spread repayment terms. Research indicates that when complemented by market linkages - such as guaranteed buyers for fruits and vegetables-microfinance can trigger sustainable economic growth and poverty reduction.
In the context of the above passage, “microenterprises” most nearly means:
Show answer & explanation
Correct answer: B
Explanation
The passage describes microenterprises as ventures initiated by entrepreneurs in rural areas, specifically mentioning activities like poultry farming, handloom weaving, and tiny retailing outlets.
The prefix "micro-" refers to something very small. In an economic context, a microenterprise is a business operating on a very small scale with a small number of employees and minimal capital.