In fact, the creation of micro/cottage enterprises is considered as an effective tool for sustainable livelihood, poverty alleviation and employment generation. Similarly, the economics of microfinance makes it a compelling anti-poverty strategy. With a small amount, rural youth can establish a small business, repay the loan and still own the productive assets. 30 years of experience of IISD in addressing both the market and empowerment approaches to micro-enterprise and microfinance development has yielded positive results. It can be seen as a substitute for welfare programmes. The IISD model is a step towards a solution to a wide range of development problems with the main focus on wider strategy for poverty alleviation.