Financing sustainable micro‐lending in London

Hannam, Mark; Cheng, Paul

doi:10.1002/jsc.1915

Cited by 4 publications

(4 citation statements)

References 5 publications

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“…Subsidized MFIs often charge lower interest rates (Tchuigoua, Durrieu, & Kouao, 2017). Researchers also investigate if equity can help balance the stress of microfinance organizations, notably private equity (Ashta & Hudon, 2012; Hannam & Cheng, 2012), public equity (Daher & Saout, 2017), and microequity that could be both offline (Estapé‐Dubreuil, Ashta, & Hédou, 2012) or online (Kim & Moor, 2017). Online crowdequity is a segment of the broader area of crowdfunding, which itself is a way of financing entrepreneurs directly (Royal & Windsor, 2014) or indirectly through brick‐and‐mortar institutions such as Kiva in the US or Rangde in India (Ashta, Assadi, & Marakkath, 2015).…”

Section: Research Directionsmentioning

confidence: 99%

Microfinance and financial inclusion: Challenges and opportunities

Milana

Ashta

2020

Strategic Change

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Lifting the poor from poverty through financial and social inclusion is the ultimate target and raison d'etre of microfinance. As the most recent literature has recognized, microfinance institutions have economically worked well in operating microcredit, but the aim of raising the living standard of their indigent clients has not been generally met. The expected encouragement of entrepreneurship from microcredit is still not detected in the empirical data, let alone women's social integration in working activities. The articles collected in this thematic issue bring new empirical elements of discussion pointing to many aspects of the social divides and the inequalities that plague the emerging countries. This overview article recalls the main questions that are still open and the framework of topics discussed in this thematic issue.

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Section: Research Directionsmentioning

confidence: 99%

Microfinance and financial inclusion: Challenges and opportunities

Milana

Ashta

2020

Strategic Change

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“…Achieving sustainability through the delivery of microcredit is difficult even in the Global South where markets are relatively much larger and have more unmet demand than in the Global North (Bourlès, and Cozarenco, 2014;Hannam and Cheng, 2012;Armendariz, and Morduch, 2010). In the UK, CDFIs have experienced difficulties meeting operational costs of expanding into new areas, overcoming information asymmetries and coping with high default rates (Lenton and Mosley, 2012;Dayson et al, 2010;Nicholson and Dayson, 2010).…”

Section: The Alterity Of Microcredit For Enterprisementioning

confidence: 99%

Microcredit for enterprise in the UK as an ‘alternative’ economic space

2019

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One response to the major societal challenge of financial exclusion in the United Kingdom (UK) is microcredit lending for enterprise. Typically delivered via Community Development Finance Institutions (CDFIs) in the UK, these lending institutions can be conceptualised as 'alternative' economic spaces. Yet the nature of their alterity is unclear as categorisations of alternative-oppositional or alternative-substitute institutions are possible and could also be influenced by complexities in the UK relating to the welfare system and sustainability.Alterity is rarely static, being influenced by policies and regulation, and the nature of institutions' alterity could have consequences for wellbeing, as different values and ideals underpin different conceptions of alterity which affect how these institutions operate. In this paper, the complexities of microcredit for enterprise lending within the UK are explored through in-depth interviews with UK 'supply-side' stakeholders. Conceptions of alterity are then used as an analytic lens to examine these results. Results suggest that these lenders remain in opposition to the mainstream as the needs of low-income individuals are embedded within their operating model. Microcredit lending is conceptualised in terms of responsible lenders offering fair credit to financially-excluded individuals using relationship banking practices. Such a conceptualisation provides a touchstone against which to assess shifts in lenders' alterity and a platform from which to introduce legislative and regulatory changes to protect these 'alternative-oppositional' economic spaces. This paper begins to outline these responses that could help to ensure and grow a more community-engaged and varied local financial infrastructure within the UK.

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“…A large number of special-issue articles in this journal have made the reader aware of many questions in microfi nance ( Dowla, 2012 ;Hannam and Cheng, 2012 ;Milana and Ashta, 2012 ). Th e sector is very profi table ( Daher and Le Saout, 2013 ), although crises occur in some countries from time to time ( Constantinou and Ashta, 2011 ).…”

Section: Challenges Of Fi Nancing a High-growth Sectormentioning

confidence: 99%