Relationships between microfinance, solidarity groups, and informal lending in developing countries [electronic resource] : the importance of trust and social capital and the WishVast potential / Adam Brown
- In developing countries, prospective entrepreneurs have a very difficult time gaining access to capital. Formal lending sometimes works for solidarity groups of small business owners who approach microfinance institutions (MFIs) to access capital for expanding their businesses. However, MFIs are not lending money to entrepreneurs interested in starting new businesses. In order to create an environment where startup business and entrepreneurship thrives, it is crucial to meet the needs of the clients being marginalized. As a response to this trend, the informal lending and credit market in rural Kenya is growing fast and little research is available regarding the mechanics of this system. Instead of decomposing the microfinance industry into a binary relationship between MFIs and their clients, our research views the microfinance industry as a multi-actor system (MFIs, solidarity groups, and informal lenders) and how their success is mutually dependent. This paper will discuss the dynamics between these actors, the role of trust and social capital in these complex relationships, and the potential role of WishVast to help individuals gain better access to capital.
- Dissertation Note:
- B.S. Pennsylvania State University 2010.
- Mode of access: World Wide Web.
Thesis supervisor: James Miles, Khanjan Mehta.
- Reproduction Note:
- Library holds archival microfiche negative and service copy. 1 fiche. (PSU Management Services, 2010).
- Technical Details:
- The full text of the dissertation is available as a Adobe Acrobat .pdf file ; Adobe Acrobat Reader required to view the file.
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