It is one of the most interesting generalizations to emerge from the micro finance and
poverty literature that the poorest of the chronic poor (the core poor) will borrow
essentially for protectional purposes given both the low and irregular nature of their
income. This group, it is suggested, will be too risk averse to borrow for promotional
measures (that is for investment in the future) and will therefore be only a very limited
beneficiary of microfinance schemes