Preview

Literature of Journal Entrepreneurial

Powerful Essays
Open Document
Open Document
12634 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Literature of Journal Entrepreneurial
econstor
Brau, James C.; Woller, Gary M.

www.econstor.eu

Der Open-Access-Publikationsserver der ZBW – Leibniz-Informationszentrum Wirtschaft The Open Access Publication Server of the ZBW – Leibniz Information Centre for Economics

Article

Microfinance: A comprehensive review of the existing literature
Journal of Entrepreneurial Finance, JEF Provided in cooperation with: Academy of Entrepreneurial Finance (AEF), Montrose, CA

Suggested citation: Brau, James C.; Woller, Gary M. (2004) : Microfinance: A comprehensive review of the existing literature, Journal of Entrepreneurial Finance, JEF, ISSN 1551-9570, Vol. 9, Iss. 1, pp. 1-27, http://hdl.handle.net/10419/55971

Nutzungsbedingungen: Die ZBW räumt Ihnen als Nutzerin/Nutzer das unentgeltliche, räumlich unbeschränkte und zeitlich auf die Dauer des Schutzrechts beschränkte einfache Recht ein, das ausgewählte Werk im Rahmen der unter → http://www.econstor.eu/dspace/Nutzungsbedingungen nachzulesenden vollständigen Nutzungsbedingungen zu vervielfältigen, mit denen die Nutzerin/der Nutzer sich durch die erste Nutzung einverstanden erklärt.

Terms of use: The ZBW grants you, the user, the non-exclusive right to use the selected work free of charge, territorially unrestricted and within the time limit of the term of the property rights according to the terms specified at → http://www.econstor.eu/dspace/Nutzungsbedingungen By the first use of the selected work the user agrees and declares to comply with these terms of use.

zbw

Leibniz-Informationszentrum Wirtschaft Leibniz Information Centre for Economics

Microfinance: A Comprehensive Review of the Existing Literature

James C. Brau+ Brigham Young University

and Gary M. Woller++ Brigham Young University

Although the word finance is in the term microfinance, and the core elements of microfinance are those of the finance discipline, microfinance has yet to break into the mainstream or entrepreneurial finance literature. The purpose of this



References: 21 Goldmark, Lara, 2001, Microenterprise development in Latin America: Towards a new flexibility, Journal of Socio – Economics 30, 145-149

You May Also Find These Documents Helpful

  • Satisfactory Essays

    Busn 319 Marketing Plan

    • 4204 Words
    • 17 Pages

    Cited: Adelman, P.J., & Marks, A.M. (2007). Entrepreneurial Finance: Chapter 5 tables. Upper Saddle River, N. J.: Prentice Hall…

    • 4204 Words
    • 17 Pages
    Satisfactory Essays
  • Better Essays

    The first feature of microfinance that comes to one’s mind is its huge growth potential. As stated in the case, only 20% of overall demand for microfinancing is being met. 420 million people don’t have access to microfinance according to Exhibit 5. Microfinance is believed to be rather helpful in improving people’s lives. Using the small credits, clients start their small businesses improve and their living standards which should lead to increase of life conditions in the whole country. The experience can also attract international companies to open plants and fabrics there as lack of skilled working power is one of the main constrain in FDI. However there is no clear evidence on the real impact of microfinancing on macro level. Moreover MFIs are not transparent at all, which is a huge disadvantage from investor’s point of view. Investors want to know the business they are investing in.…

    • 1246 Words
    • 5 Pages
    Better Essays
  • Good Essays

    The MicroLoan is a very small loan to start-up a small business and certain not-for-profit childcare centers. The SBA makes funds available to nonprofit community based lenders (third party), which each have their own lending and credit requirements, which, consequently, makes loans available to eligible borrowers in amounts up to $50,000. Applications are submitted locally and all credit decisions are made locally. Third party lenders require collateral, and the personal guarantee of the business owner. Loan terms vary according to size, anticipated use of funds, requirements of lender, and the needs of the borrower. Interest rates vary, contingent upon the lender and costs from the…

    • 106 Words
    • 1 Page
    Good Essays
  • Powerful Essays

    Banco Adaptamos Case

    • 1615 Words
    • 7 Pages

    Commercialization of microfinance is seen as an opportunity to expand access of the poor to financial services. The high profit margins will attract more investment into microfinance, thereby availing more money to extend to people to help them out of poverty. Additionally, it is felt that if other microfinance players shift to commercialization, the profit maximizing behavior will further take advantage of the poor. This would worsen the existing gap between the rich and the poor, profiting the rich and sending the poor into more poverty. Initiatives of the past two decades to make businesses socially responsible will also have been a waste. Communities and socially-responsible investors may shy away from initiatives aimed at addressing serious social issues. Microfinance faces a danger of turning into how well investors are doing of how profitable microfinance institutions are instead of actively focusing on ending…

    • 1615 Words
    • 7 Pages
    Powerful Essays
  • Best Essays

    References: Ashta, A. (2010). Advanced Technologies for Microfinance: Solutions and Challenges: Solutions and Challenges. Idea Group Inc (IGI), 2010.…

    • 1988 Words
    • 6 Pages
    Best Essays
  • Good Essays

    Kiva, a nonprofit microfinance company situated under the website “www.kiva.org”, functions as an intermediate body between a large global infrastructered network of microfinance institutions. Ideally, Kiva provides small loans towards entrepreneurs in developing countries worldwide. Kiva works on a sustainable peer-to-peer microcredit model marketplace that provides loans to borrowers who need it most in order to allow them a better chance of creating a better life. These loans given out are paid back under the assumption that the borrower will repay the loan under “goodwill and faith”. This can be seen as the primary agenda and aim for the company Kiva.…

    • 690 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Finance and Mini Case

    • 438 Words
    • 2 Pages

    Course: Entrepreneurial Finance. Chapter 11 PROFESSIONAL VENTURE CAPITAL FOCUS In this chapter, we consider the highest profile segment of the ...…

    • 438 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    This paper gives an introduction to Microfinance Institutions (MFIs) informal financial service delivery mechanism which are not under any regulatory framework like the formal sector. So, there is a necessity to internalize a built-in internal control system through self-regulation to mitigate exposure to risk in MFI. In 2.0 sound and reliable management system for MFIs through self-regulation are discussed. Section 3.0 discussed under internal control its basic criteria: appropriateness, consistency and cost effectiveness. In section 4.0 an overview of risk management of MFIs are discussed under different dimensions: governance risk, management risk which are split into operating risk and financial risk. Financial risk is again sub-divided under portfolio risk, liquidity risk and interest risk. Under section 5.0 tools for effective internal control in MFI are discussed. Section 6.0 portrays steps for designing internal controls for MFI. In section 7.0 conclusion has been drawn that the internal control can be expected to provide only reasonable assurance.…

    • 1042 Words
    • 5 Pages
    Powerful Essays
  • Powerful Essays

    The original principle of micro lending is to provide start-up or expansion business loans to people living in less advantaged or impoverished countries who are unable to apply for traditional loans due to lack of credit history and/or collateral. Micro-financing is a great tool to create venture capital for those who would have no other means to secure it. The primary goal of micro lending, as established by Muhammad Yunus, the godfather of microcredit, is to eliminate poverty by means of giving all the opportunity to be self-sustaining with long term solutions.…

    • 2204 Words
    • 9 Pages
    Powerful Essays
  • Best Essays

    Abstract: This article examines which types of finance are more suitable for the SMEs, also analysing the disadvantages on them when raising finance. Unlike the large companies, SMEs have difficulties in getting enough money to develop. SMEs are more likely focused on the Venture Capital and some informal finance, such as Business Angel Financing and relationship lending. Also the special tools, like leasing and factoring, are quite useful when they suffering financial troubles. Difficulties in raising finance are numerous, for instance, the policy of the government and legal protections, but sometimes ownership might be a barrier, as well as the credit information sharing.…

    • 2502 Words
    • 8 Pages
    Best Essays
  • Powerful Essays

    Micro financing is not a new concept. Small microcredit operations have existed since the mid 1700s. Although most modern microfinance institutions operate in developing countries, the rate of payment default for loans is surprisingly low - more than 90% of loans are repaid.…

    • 7288 Words
    • 30 Pages
    Powerful Essays
  • Powerful Essays

    Finanial Systems in Rwanda

    • 3013 Words
    • 13 Pages

    The microfinance sector is composed of 11 limited companies microfinance institutions and 486 SACCOs. The sector continued to demonstrate good performance during the period under review mainly driven by the growth of UMURENGE SACCOs. Some of the other financial players in the Rwandan market are listed below:…

    • 3013 Words
    • 13 Pages
    Powerful Essays
  • Satisfactory Essays

    I humbly seek to get your opinion about the issues in the questionnaire to facilitate my study about microfinance institutions and the growth of the private sector. Your opinion will be kept highly confidential and used specifically for academic purpose. I will be grateful for your assistance.…

    • 1670 Words
    • 7 Pages
    Satisfactory Essays
  • Better Essays

    This paper challenges leaders in the microfinance field to look beyond these debates and trends and consider adopting new ‘participatory approaches’ to empowerment that will allow MFIs to…

    • 18155 Words
    • 73 Pages
    Better Essays
  • Powerful Essays

    Microfinance in India

    • 2038 Words
    • 9 Pages

    Microfinance institutions” (MFIs) commonly tend to use new methods developed over the past few decades to provide small loans to unsalaried borrowers, taking little or no collateral. These methods include group lending and liability, pre-loan savings requirements, gradually increasing loan sizes, and an implicit guarantee of ready access to future loans if present loans are repaid fully and promptly. Micro finance thus seeks to fill the gap between high income and low income borrowers.…

    • 2038 Words
    • 9 Pages
    Powerful Essays

Related Topics