Microfinance for Small Businesses and Entrepreneurship in Transition Countries

Microfinance is mostly a type of financial that may be provided to small businesses and entrepreneurs exactly who don’t have usage of traditional financial resources. This includes loans, credit, usage of saving accounts, insurance policies and money transfers.

Mini finance establishments are major sources of funding for low income people and small enterprises that you do not have access to traditional banking products and services or have zero collateral. These types of institutions provide you with loans and also other financing products and services at competitive rates.

The purpose of this analysis is to learn how microfinance and entrepreneurship are linked in Kazakhstan, a region undergoing changover to some market economic climate. We strive to shed light on how microfinance hard drives small business development and formalisation in a transition context also to explore borrowers’ relationships with MFOs at unique stages from the process.

The study creates on growing literature that evaluations a teleological approach to microfinance (Ault & Spicer, 2014; Chliova, Brinckmann, & Rosenbusch, 2015) and advises a more exploratory inquiry that asks even more open inquiries about how microfinance relates to entrepreneurial outcomes in transitional situations. This requires by using methodologies which have been more empirically-informed, attuned to the agency every day entrepreneurs and more contextually-situated.

We explored borrowers’ relationships with MFOs through a field survey of 86 clients in Almaty and Almatinskaya zones in Kazakhstan, which are representative of both the Overseas MFOs that focus on group lending and MFOs offering individual loans to clients. The analysis also analyzed the relationship among borrowers and their MFOs, that has been influenced laghuvit.net by a range of factors which include their track record characteristics, business characteristics and patterns of microfinance use.