The community service work of Muhammad Yunus significantly impacted microfinance by demonstrating that small loans could empower the poor, particularly women. His founding of the Grameen Bank in Bangladesh in 1983 pioneered a new approach to banking, emphasizing accessibility and social responsibility. This model has inspired global efforts to alleviate poverty through financial inclusion, earning Yunus the Nobel Peace Prize in 2006 and sparking widespread recognition for the importance of social entrepreneurship.