The Microfinance Revolution: Sustainable Finance for the Poor

Varghese, Adel

doi:10.1016/s1049-0078(01)00116-6

Cited by 3 publications

(3 citation statements)

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“…Thus, what appears problematic in the parallel functioning of formal and informal credit markets is related to the farmers' need for fast and flexible credit and the additional costs to the lender of screening, incentivising and enforcing payments. In addition, an empirical study in Indonesia [50] shows that 40% of those considered unbanked are creditworthy (according to BRI criteria), suggesting that the problem is not so much in the ability of borrowers to service loans [51]. Instead, it is the business model of the lending institutions themselves that is unable to cover the costs of lending.…”

Section: Articulation Between the Credit Schemesmentioning

confidence: 99%

“…It was a vertical dependency, with capital leaving the community (formal credit schemes) The second was schematised by formal credit and centralised with field branches, flexibility in collateral and repayment, having a vertical structure, with technical assistance, savings and flexibility (BRI [39], Costa Rica [43]). The third had no collateral, relied on trust, group lending, peer-pressure on borrowers, loan-for-business or microenterprise, the use of loans for both consumption and production, the closeness of bank staff with the borrowers, cooperative principles and a horizontal structure (Raiffeisen [37], Grameen Bank [51], CFPA [40]). The fourth was characterised by capital accumulation for self-financing, combining four components: savings, lending, investment in infrastructure and solidarity, plus the possibility to transfer funds from one fund to another in case of need (Homeland Coffers [38]).…”

Section: The Fifth Business Modelmentioning

confidence: 99%

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The Alfredo Namitete Agroecology Credit System: A New Business Model That Supports Small-Scale Lending

Hilmi

2019

Sustainability

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A major obstruction in the development of sustainable agriculture is the weakness of the financial and banking sectors in supporting smallholder farming. While farmers need to invest in their farms, they struggle to find credit schemes adapted to their specific needs. This study explores the literature on a range of credit systems applied in different geographical and historical contexts to analyse the underlying drivers of their successes or otherwise. In light of this review, the study investigates a farmers’ association, Alfredo Namitete (AN), in Mozambique, offering a range of agroecology credit modalities. It is then assessed as to whether a new business model initiated with seed funding could be self-managed by the association itself and lead to greater autonomy. The AN pilot tested three schemes between 2015 and 2019. Based on the findings, i.e., better production, increased revenue and greater self-determination, the study combines elements for a new business model for small-scale lending. It concludes that to be effective, a credit scheme needs to meet several conditions simultaneously: believe in the genuine will to repay, abolish the lender–borrower distance, ensure a role for women in decision making, add a savings mechanism, combine individual and collective investments and, finally, reserve funds for solidarity and climate issues.

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Section: Articulation Between the Credit Schemesmentioning

confidence: 99%

Section: The Fifth Business Modelmentioning

confidence: 99%

The Alfredo Namitete Agroecology Credit System: A New Business Model That Supports Small-Scale Lending

Hilmi

2019

Sustainability

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“…A ratio can be expressed as a percentage, as a fraction, or a stated comparison between two amounts. The financial ratios do not add any information not already existing in the amount (Wahid, 2014).The recommended measures for financial analysis that determine a firm's financial performance are grouped into five broad categories: liquidity, and solvency (Maria, Florica and Catalina, 2012).…”

Section: Introductionmentioning

confidence: 99%

Moderating Role of Government Policies in the Relationship Between Micro Finance Services and Financial Performance of Small and Medium Enterprises in Kisii Town, Kisii County, Kenya

MOSETI,

CHESOLI (Ph.D),

MUYA (Ph.D)

2020

strategicjournals.com

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The purpose of the study was to investigate the role of government policies on the relationship between microfinance services and the financial performance of small and medium enterprisesin Kisii Town. The specific objectives of the study were to: establish the influence of entrepreneurial training on financial performance and to determine the influence of saving mobilization on financial performance. The study targeted 575 registered small and medium enterprises in Kisii Town. The sample of 236 respondents was used by stratified sampling technique. The study sought to determine the effect of entrepreneurial training as moderated by the role of government policy on financial performance. The regression analysis showed that there was a negative association between entrepreneurship training and financial performance. From correlation analysis, there was an insignificant positive relationship between saving mobilization and financial performance. The study implied that there was a significant effect relationship between government policies and financial performance. The study recommended that small and medium enterprises should attend entrepreneurship training for them to improve financial performance.

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Islamic Banking Sustainability: A Review of Literature and Directions for Future Research

Aliyu

Hassan

Yusof

et al. 2016

Emerging Markets Finance and Trade

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The Microfinance Revolution: Sustainable Finance for the Poor

Cited by 3 publications

References 0 publications

The Alfredo Namitete Agroecology Credit System: A New Business Model That Supports Small-Scale Lending

The Alfredo Namitete Agroecology Credit System: A New Business Model That Supports Small-Scale Lending

Moderating Role of Government Policies in the Relationship Between Micro Finance Services and Financial Performance of Small and Medium Enterprises in Kisii Town, Kisii County, Kenya

Islamic Banking Sustainability: A Review of Literature and Directions for Future Research

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