The informal financial institutions constitute; village banks, cooperative credit unions, state owned banks, and social venture capital funds to help the poor. These institutions are those that provide savings and credit services for small and medium size enterprises. They mobilize rural savings and have simple and straight forward procedures that originate from local cultures and are easily understood by the population . The creation of small and medium size enterprises generates employment but these enterprises are short live and consequently are bound to die after a short while causing those who gained job positions to lose them and even go poorer than how they were.There fore, targeting thesmall and medium size enterprises is found to be the major instrument for poverty reduction by creating jobs for the poor. The book presents all topics inrelation to micro finance and development of small and medium size enterprises in attractive and interesting manner. It helps to understand the impact of micro finance on the development of small and medium size enterprises.