Microfinance for Small business owners and Entrepreneurship in Transition Countries

Microfinance is a type of economic Full Report that may be provided to small businesses and entrepreneurs exactly who don’t have entry to traditional financial resources. This includes financial loans, credit, use of saving accounts, insurance policies and funds transfers.

Micro finance corporations are key sources of financing for low income persons and small business owners that should not have access to traditional banking companies or have no collateral. These types of institutions provide you with loans and other financing products and services at reasonable rates.

The goal of this analysis is to learn how microfinance and entrepreneurship happen to be linked in Kazakhstan, a region undergoing transition to a market financial system. We seek to shed light on how microfinance hard drives small business expansion and formalisation in a transition context and also to explore borrowers’ relationships with MFOs at distinctive stages for the process.

The study plots on growing literature that critiques a teleological approach to microfinance (Ault & Spicer, 2014; Chliova, Brinckmann, & Rosenbusch, 2015) and implies a more disovery inquiry that asks even more open queries about how microfinance relates to pioneeringup-and-coming outcomes in transitional contexts. This requires using methodologies that are more empirically-informed, attuned for the agency of everyday entrepreneurs plus more contextually-situated.

We explored borrowers’ relationships with MFOs by using a field survey of 86 clients in Almaty and Almatinskaya zones in Kazakhstan, which are representative of both the Foreign MFOs that focus on group lending and MFOs that provide individual loans to clients. The analysis also looked at the relationship between borrowers and their MFOs, which has been influenced by a choice of factors which includes their history characteristics, organization characteristics and patterns of microfinance use.

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