The world body said microcredit could help the poor move beyond day-to-day survival, plan for the future and invest in better nutrition, health, housing and education.
Capping a week of ceremonies, UN officials on Thursday launched a year of special focus on microcredit hoping to make entrepreneurship a reality for as many people around the globe as possible.
"Microfinance is in no way a charity. Rather, it offered the same rights and services to low-income households as everyone else and recognised that they were the solution, not the problem," UN Secretary General Kofi Annan said.
Microfinance, he said, helps the communities to prosper. "The challenge before us is to address the constraints that exclude people from full participation in the financial sector."
"Together, we can and we must build inclusive financial sectors that help people improve their lives," Annan added.