Search results for "Microfinance"
showing 10 items of 95 documents
Motivations for Business Start-up: Are There any Differences Between Disabled and Non-disabled Microfinance Clients?
2015
We use an Ecuadorian sample to investigate if there are differences in motivations for business start-up between persons with and without disabilities. Generally, we do not document significant differences. The reason might be that we use a sample selected among customers of the microfinance bank Banco D-MIRO. Without targeted incentives, disabled microfinance customers must resemble non-disabled customers. Copyright © 2015 John Wiley & Sons, Ltd.
Another "French paradox": explaining why interest rates to microenterprises dit not increase with the change in French usury legislation
2015
Conventional wisdom indicates that the growth of credit may not materialize if credit rates remain capped by usury laws, as had long been the case in France. France therefore abolished usury ceilings on loans to microenterprise in an effort to increase financing for microentrepreneurs. This should have led to an increase in interest rates and increase in microcredit. However, we do not find any increase in interest rates and this is therefore a paradox. The paper provides a brief literature review and the salient features of the legislative changes in France. It follows this up with a presentation of interest rate movements. The discussion of possible explanations of the paradox includes cl…
Religion and governance in microfinance institutions: evidence from the global microfinance industry
2014
Masteroppgave i økonomi og administrasjon – Universitetet i Agder 2014 This thesis sought to study the influence of religion on corporate governance in Microfinance Institutions. The study uses secondary data on a sample of rated Christian and secular MFIs compiled in rating reports by rating agencies to compare the governance differences and similarities between Christian and secular MFIs. The research uses the random effects General Least Squares and logistic regression models alongside other univariate statistical methods to test for the effect of religious affiliation on corporate governance. The overall findings indicate that Christian MFIs are significantly less-regulated by banking a…
Microfinance
2013
This chapter gives the reader an introduction to microfinance and reports how the industry has moved from generally being praised to increasingly being criticized. Particularly, the chapter addresses the concern that microfinance institutions chase profits and are moving away from the poor-customer segments. The authors' findings indicate that rather than being an industry with high profits, the industry struggles with high costs and low earnings. They also find that the focus on serving poor customers did not change over time. Thus, the ‘mission drift’ claim cannot be confirmed.
The Past and Future of Innovations in Microfinance
2012
The microfinance industry carries every sign of an innovation in its take-off phase. The various aspects of the microfinance innovation were developed in the 1980’s, twenty years later the industry experiences a phenomenal growth rate, and it has diffused to most developing countries in the world. This review paper looks at microfinance as an entrepreneurial activity in its own right, contributing to the development of small and medium-sized firms in developing countries. We trace the innovations in microfinance, for instance group lending, loans to women, and their financing, and we ask whether the business model implied is sustainable once diffusion has gone far, competition enters, and c…
Suitability of the ASA Model in Nigeria
2010
This paper looks at the lending methodology adopted by ASA International in Nigeria and how the model is suited for operations within the Nigerian microfinance sector. It begins by examining the critical success factors that contribute towards ASA having a lean operations, how it manages operations efficiencies, and finally makes a set of recommendations that Nigerian Microfinance Institutions could adopt.
Do microfinance rating assessments make sense? An analysis of the drivers of the MFI ratings
2011
Rating assessments of microfinance institutions are claimed to measure a combination of creditworthiness, trustworthiness and excellence in microfinance. Using a global dataset covering reports from 324 microfinance institutions, this study suggests that these ratings are mainly driven by size, profitability, and risk. The ratings do not seem to capture the double bottom-line objective of microfinance institutions, as our analyses are unable to prove any statistical relationship between microfinance ratings and the social objectives of these institutions. Moreover, the association between operational efficiency and microfinance ratings appears weak. Although there are some minor differences…
Entrepreneurship Training and Self-Employment among University Graduates
2012
In economies characterized by low labor demand and high rates of youth unemployment, entrepreneurship training has the potential to enable youth to gain skills and create their own jobs. This paper presents experimental evidence on a new entrepreneurship track that provides business training and personalized coaching to university students in Tunisia. Undergraduates in the final year of licence appliquee were given the opportunity to graduate with a business plan instead of following the standard curriculum. This paper relies on randomized assignment of the entrepreneurship track to identify impacts on labor market outcomes one year after graduation. The analysis finds that the entrepreneur…
Why do financial inclusion policies fail in mobilizing savings from the poor ? Lessons from rural south India
2017
© The Authors 2017. Development Policy Review © 2017 Overseas Development Institute Combining multivariate and qualitative analyses, this micro-level study suggests an explanation for the persistence of informal savings in rural south India despite publicly run large-scale programmes to promote bank savings. Gold, in particular, but also Rotating Saving and Credit Associations (ROSCAs) and private lending, remain the dominant forms of savings. We argue that cultural norms and social institutions, such as social class and caste, shape the nature of savings, and also the propensity and opportunities to save. Gold serves multiple purposes, financial, economic, socio-cultural and political. Fur…
Focus on Women in Microfinance Institutions
2013
Abstract We provide empirical evidence on focusing on women in microfinance and its consequences for microfinance institutions (MFIs). Based on a global dataset, the results indicate that a focus on women is associated with group-lending methods, international orientation, smaller loans, and non-commercial legal status. We find that a focus on women significantly improves repayment but does not enhance overall financial performance because of higher relative costs. Moreover, the higher relative costs do not stem from servicing women per se but from the smaller loans offered to women and the group-lending methodology practised by MFIs focusing on women.