Faculty of Economics and Business Administration Publications Database

Critical Issues in Small and Microbusiness Financing

Authors:
Zeitinger, Claus- Peter
Abstract:

This paper highlights the difficulties involved in putting these convincing theories into practice. It observes that such problems originate from the impression given by some of the literature that designing and implementing development projects emphasising institution building aspects, a commercial orientation, and a financial sector perspective, is simple and straightforward. In the perception of their credit customers and of their potential savings customers, target group-oriented financial institutions which grant loans are operating in a risky field. It explains the three basic elements to the new approach to microfinance: Focus on institution building; Commercial approach; Financial systems orientation.

The paper strongly recommends that development aid practitioners in the field of small and micro business lending make maximum use of these 'new' principles in their project work.

Keywords: Microcredit; Providers
Year: 1997
Link External Source: Online Version
Volume: IPC-Working Paper No.1
Adress: Frankfurt am Main
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