Microfinance Institution in Europe

Topics: Europe, European Union, Eastern Europe Pages: 42 (13836 words) Published: May 25, 2012
Dissertation on



Fabiha Enam Id: 1001666

Submitted in partial fulfilment of the requirements for the Degree of Masters in Social Science

Major Subject: International Business & Entrepreneurship


University of Glasgow Glasgow, United Kingdom August, 2011

Words: 12300

1|P ag e

This thesis came to be largely through the friendly cooperation received from microfinance institutions across Europe. I am grateful to the European Microfinance Network and its members for their open hearts and their eagerness to see the fruits of their collaboration with me. My supervisor, Dr. Duncan Ross, has seen this project develop from its very beginnings to its very end. His enthusiasm about the topic I chose to research and his support of the conclusions I began to draw motivated and comforted me throughout the thesis writing process. In our meetings, he helped me to refine my thinking about the topic, to find the right questions to ask, and to produce the best dissertation I could. I also extend my gratitude to the following people who kindly assisted me on my research journey: Daniel SORROSAL European Microfinance Network Ian BEST Community Development Finance Association Lars HEKTOEN Cultura Bank Martin FERRY Prince‘s Scottish Youth Business Trust Maria DOICIU Eurom Consultancy Eva FARAGÓ Fejer Enterprise Agency Pauline IRWIN O’TOOLE First Step Vedrana FERRI LOKMIKRA Joyce Kimwaga LUNDIN NEEM - Network for Entrepreneurs from Ethnic Minorities David SCHURJIN ACAF (The Association for Communities) Self-Financed

Gill MUSK The International Association for Community Development

I learned an immense amount from them through interviews. My dissertation aims to represent the information I collected in order to paint an accurate picture of the microfinance industry in several countries. Lastly, I would like to show my gratitude to my family and friends for their constant motivation and support throughout the process.

2|P ag e

LIST OF ABBREVIATION ACAF: The Association for Self-Financed Communities BRAC: Bangladesh Rural Advancement Committee CDFA: Community Development Finance Association CDFIs: Community Development Finance Institutions CEE: Central and Eastern Europe CGAP: Consultative Group to Assist Poor EIF: European Investment Fund EMN: European Microfinance Network EU: European Union IACD: The International Association for Community Development JASMINE: Joint Action to support microfinance institutions in Europe JEREMIE: Joint European Resources for Micro to Medium Enterprises MFIs: Microfinance Institutions NBFI: Non Bank Financial Institution NEEM: Network for Entrepreneurs of Ethnic Minorities NGO: Non Government Organisation PSYBT: Prince‘s Scottish Youth Business Trust UK: United Kingdom

3|P ag e

ABSTRACT This study explores the traits of microfinance industry in Europe. It emphasizes on the differences within the industry between Western and Eastern Europe along with the current challenges and issues that it is facing currently. It entered the European market in late 1980s but the industry experienced a remarkable growth from 1997 till now. Still in many countries microfinance is struggling with its own identity. The paper discusses the microfinance as a whole and also within the countries. There are several key issues have been identified through the study such as perception of the business within the regions, government involvement, competitiveness, threats and challenges etc. The industry is analysed through secondary and primary research in the paper. One of the major research findings is - Western Europe microfinance institutions (MFIs) are more engaged in social development whereas financial development is the main agenda for Eastern European MFIs. Sustainability is still the biggest challenge for the industry, next to the good social performance. Social investors are the main sources of funding in Western region while...

References: Brau, J.C and Woller, G.M, 2004, Microfinance: A comprehensive literature review 9 (1), p 1-26 Dell, G. 2004, Microfinance in Europe, (November) Evers, J, Lahn, S. Nowak, M, 2007, Microfinance in Germany and Europe: Market Overview and best practices examples, Europe (April) Evers, J. and Jung, M, 2007, Status of microfinance in Western Europe- an academic review, EMN Issue paper, p 1-36 Ehmke, C., Fulton, J and Akridge, J unknown, Industry Analysis: Five forces Fenger, H.J.M, 2007, Welfare regimes in Central and Eastern Europe : Incorporating postcommunist countries in a welfare regime typology, (August), p 1-30 Forster, S., Greene, J. and Pytkowska, J., unknown, in Central and Eastern Europe and the New Independent States Hartarska, V, 2004, Governance and Performance of Microfinance Institutions in Central and Eastern Europe and the newly independent states, (April), p 1-34 Jackson, A. M., Ortega, D. V. S., Karp, N., unknown, A Portrait of Older Underbanked and Unbanked Consumers A Portrait of Older Underbanked and Unbanked Consumers : Findings from a National Survey Jayo, B, Gonzalvez, A and Conzett, C. 2010, An overview of microcredit sector in Europe 2008-2009 Jayo, B., Rico, S.,Lacalle, M., Lum, F.N., 2008, Overview of microcredit sector in European Union 2006-2007, EMN working paper, p 1-68 Karlan, D. and Goldberg, N, 2007, Impact Evaluation for Microfinance: Review of Methodological Issues, p 1-37 Kneidling, C. and Kritikos, A, unknown, Microfinance in Eastern and Western Europe: A comparative Analysis, (09) p 1-19
49 | P a g e
Loncar, D and Novak, C, 2009, Global recession and sustainable development: The case of microfinance industry in Eastern Europe, World Nef, 2007, Overview of microfinance sector in Western Europe, EMN working Paper Unknown, Sustainability of Microfinance in Europe, Europe, 2009 Unknown, report 1: Social and Financial exclusion map, European Investment Fund p 1-87 Unknown, report 2: key constraints, challenges and policy recommendations, European Investment Fund, p 1-62 Unknown, report 3: Benchmark and performance measurements, European Investment Fund, p 1-36 Unknown, report 4: Innovative approaches and products for combating financial exclusions, European Investment Fund, p 1-113 Unknown, 1994, Porter‘s 5 forces revisited, Scandinavian Journal of Management, 10 (4), p 1-8 Unknown, 2009, Microfinance Sector in ECA in 2009, 48(22), p 1-22 Unknown, 2007, Overview of microfinance sector in Western Europe Valadez, R. and Buskirk. B, unknown, From microcredit to microfinance: a business perspective, p 1-17 Werker, E. and Ahmed, F, 2008, What do non governmental organizations do, (2), p 73-92 Wydick, B., 2002, Microfinance among the Maya: Tracking the Progress of Borrowers, 33(3), p 489-509
50 | P a g e
Websites: Brain Based Knowledge, MicroCredit Enterprises Modernizes Microfinance Inst itut ion Lending Policies, Available at http://www.brainbasedbusiness.com/PressReleases/release6987.php [Accessed on August 02, 2011] CGAP Advancing financial advances to world‘s poor, 2011, Available at http://www.cgap.org/p/site/c/home/ [Accessed on July 15, 2011] Community Development Finance Association, 2010, Available at http://www.cdfa.org.uk/ [Accessed on July 15, 2011] European Microfinance Network, 2007, Available at http://www.europeanmicrofinance.org/index2_en.php [Accessed on July 01, 2011] Microfinance Information Exchange, unknown, Available at http://www.mixmarket.org/ [Accessed on July 5, 2011] Nuwire Investor, 2006, Microfinance Institutions Review, Available at http://www.nuwireinvestor.com/articles/microfinance-institution-reviews-51486.aspx [Accessed on July 20, 2011] Power payday loan, 2011, What is usury law, Available at http://www.powerpaydayloan.com/whats-a-usury-law.aspx [Accessed on August 20, 2011] TheManager, Available at http://faculty.msb.edu/homak/homahelpsite/webhelp/Five_Forces_-_Porter_-Critique.htm [Accessed on August 10, 2011]
51 | P a g e
Books Balkenhol, B. 2007, Microfinance and Public Policy, 1 st edition, Hampshire, Palgrave Macmillan Johnson, G., Scholes, K. and Whittington, R. 2008, Exploring Corporate Strategy, 8 th edition, Prentice Hall Malhotra, K.N. and Briks, E. D, 1999, Marketing Research: an applied approach, 3 rd edition, England, Pearson Education Ltd
52 | P a g e
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Microfinance Research Paper
  • Microfinance Institution Essay
  • Essay on Microfinance
  • The Role of Microfinance Institutions to the National Economic Growt Essay
  • Microfinance Essay
  • Essay about Microfinance
  • Essay on Microfinance
  • Microfinance Essay

Become a StudyMode Member

Sign Up - It's Free