This article examines the development of microfinance in developed countries, where it emerged in the late 1980s but continues to represent a relatively small niche within the financial sector. It reviews the historical evolution of the industry and analyses the key factors influencing its growth from a supply-side perspective. In particular, it highlights how welfare systems, financial markets, and regulatory frameworks shape the ability of microfinance institutions to expand their operations and diversify their products. The chapter also identifies future research opportunities, including the relationship between microfinance and social finance, as well as the role of public subsidies in supporting the sustainability and development of microfinance in advanced economies.