People want to participate and not remain on the side-lines. Most people have good ideas for how to participate, but making those ideas a reality requires money, as well as knowledge, information and an enabling environment. There are, in fact, people amongst the lesser fortunate in society who want to be able to borrow money, take out insurance, transfer money and set aside money as savings at affordable prices and ideally as close as possible. An increasing number of people seized such opportunities empowered by microfinance. Today, a network of microfinance institutions is providing all kinds of services in many countries, ranging from micro loans (microcredit), micro insurance, micro savings to micro pensions. All of those services are offered in a way different to that which banks were used to. A new way of handling money and bringing people and finance together has developed. A network of new organisations has emerged that has gained attention. The success of microcredit has been given the attention it deserved, yet microfinance is now facing criticism. Does the money reach the right people? Why are the interest rates so high? Who actually benefits from it? Why are private investors interested to join? And why are microfinance organisations once set up with clear, social goals sold to private parties on the market? The question is rightly tabled whether financial inclusion is still being pursued. In order to contribute to that discussion, one needs to know what microcredit or microfinance actually is all about. What do we understand by these terms?
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After microfinance, the missing middle is the new buzzword for SME development experts. And again finance is supposed to be the number one solution to support enterpreneurs. Klaas Molenaar recommends to take a look into the history of microfinance to question the hype.
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Financial constraints and risk taking are two well-established determinants of firm performance, however, no research analyzes how these variables are connected in the context of a high risk environment. Using data from microfinance clients in Tanzania, we derive a novel financial constraints measure and incorporate a psychometric risk taking scale. Results confirm the importance of access to finance and risk attitudes for business development. Also, we provide preliminary evidence for an interaction between financial constraints and risk taking. Financial constraints “throw sand in the wheels” and protect risk taking entrepreneurs from the negative impact of risk taking on microenterprise performance.
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Mensen willen meedoen en niet aan de kant blijven staan. Velen hebben best ideeën om mee te doen. Om die ideeën te verwezenlijken is naast kennis, informatie enruimte om te ondernemen ook geld nodig. Juist aan de onderkant van de samenleving wil men kunnen lenen, verzekeringen kunnen afsluiten, de mogelijkheid hebben om geld over te maken en om spaargeld weg te kunnen zetten. Tegen redelijke prijzen en graag vlakbij. Steeds meer mensen grijpen die kansen om mee te doen die door microfinancieringsinstellingen mogelijk gemaakt worden. Een netwerk van gespecialiseerde organisaties verstrekt heden ten dagen in veel landen allerlei diensten, variërend van microleningen (microkrediet), microverzekeringen, microsparen tot micropensioenen. Al die diensten worden op een andere manier aangeboden dan banken gewend waren te doen. Een nieuwe manier is ontstaan om met geld om te gaan en mensen met geld in aanraking te brengen. Een netwerk van nieuwe organisaties is tot ontwikkeling gekomen en dat stelsel is zichtbaar geworden. Die zichtbaarheid leidt ook tot vragen. Eerst werd alleen het succes van microkrediet en microfinanciering belicht, maar de kritiek volgde snel. Worden de juiste mensen wel bereikt? Waarom zijn de rentes zo hoog? Wie profiteert eigenlijk? Waarom worden private investeerders door de programma's aangetrokken? En waarom worden ideële organisaties verkocht aan privé-investeerders? Het succes van microkrediet kreeg de aandacht die zij verdiende. Microfinanciering komt nu onder kritiek. En er wordt nu over financial inclusion gesproken. Om mee te praten en een mening te vormen, moet men wel weten wat microkrediet of microfinanciering nu eigenlijk inhoudt. Wat wordt eronder verstaan? Waar heeft men het over? Dit boek is een vervolg op "Microfinanciering dat kennen...". Het maakt 'de wereld van microfinanciering' toegankelijk en kan tot verrassende inzichten leiden. Het is bedoeld voor iedereen die mee wil praten over microkrediet, microfinanciering en financial inclusion. En voor iedereen die bereid is vragen te stellen en naar antwoorden op zoek te gaan. Wij behandelen in dit boek onderwerpen die vaak aan de orde komen in het debat, maar geven geen pasklare antwoorden. Wij hopen dat het boek uitdaagt om actief naar antwoorden op zoek te gaan. En dat de gebruiker antwoorden vindt die tot een nog effectievere inzet van microfinanciering leiden. De mensen die van microfinanciering gebruik maken en zo mee kunnen doen in de samenleving hebben daar recht op.
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Why is it that we know and still act as if we do not know? SMEs are considered engines of job creation and therefore growth and generation of income but is it really true that the solo self-employed and micro entrepreneurs will become small or medium entrepreneurs, e.g. graduate? We knew in the 80’s that this assumption needed to be looked at critically. Research revealed that graduation hardly existed. Practitioners in MSME support and development programmes entertain few illusions about their programmes actually leading to graduation, while NGO and Government policy officers, from behind their desks, often presume that graduation occurs frequently. Actual graduation rates and the extent to which they can be attributed to interventions remain an unresolved and important issue. After more than three decades it is justified to the question whether it is still true that graduation hardly exists? If that is the case one needs to take a critical look into prevailing policies and programs in support of the SME sector.
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This paper provides insights into the operational features of community-based financing mechanisms. These include CAF groups, which are self-financed communities where people save and lend money to each other. The implementation of such self-financed communities in the Netherlands is supported by Participatory Action Research (PAR). This paper discusses the first results of this research by exploring whether and how participation of group members can improve their well-being with regard to social networks, financial household management and entrepreneurial positioning based on the capability approach of Amartya Sen, a well-known economist. For this PAR, three groups were formed, guided, observed, analysed and compared. This paper demonstrates how solidarity economy processes at the grassroots level can contribute to the general well-being of vulnerable people in the Netherlands. For the particular context of overconsumption, inequality and overindebtedness, Sen’s notion of freedom will be reconsidered and adjusted.
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This feasibility report aims to create a solid background for Savings Groups programming in Italy, Spain, Germany, Poland and the Netherlands where partner organisations of the LETS SAVEE1 project are based. This Erasmus+ funded project aims at exploring the potential of saving groups in the European countries’ context, by improving entrepreneurial skills and access to financial services and social networks of diverse target groups. This particular report provides the partner organisation as well as other interested implementing organisations with a better understanding of how the different contexts influences the setting up and/or scale up of saving groups. This report is set up as follows: The market potential is based on literature of societal developments and how they can be linked to the emergence of saving groups in the respective countries and what kind of target groups have potential for benefitting the services offered by savings groups. By mapping partner organisations, the feasibility study identifies present and potential partners and stakeholders which could play an essential role reaching out to target groups. Then, the study will inform partner organisations and other implementers about the legal framework in each country that allows them to set up Savings Groups accordingly and identify issues that might need advocacy actions. Finally, this report provides a mapping of risk factors and ways to mitigate risks for savings groups members that were applicable for all partner organizations.
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Purpose: Small and medium-sized entities (SMEs) operating in the alternative financing sector are typically heterogenous in nature making them differ greatly from traditional banks. Where traditional banks must comply with strict banking regulations, developing uniform regulations for the alternative financing sector remains a challenge. This paper examines the current challenges and solutions from a sociological and institutional perspective in developing standards for SMEs operating in the alternative financing sector in the Netherlands. Adopting minimum quality standards should lead to increased transparency and public trust in the non-banking sector.
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Na een korte inleiding over Yunus, één van de grondleggers van microfinanciering voor armen, wordt de opkomst van de microfinanciering besproken. De toenemende rendementen in de sector zorgen er voor dat private beleggers hierin gaan deelnemen. De veranderende dynamiek die hiermee gepaard gaat komt uitgebreid aan de orde. De kritische houding van klanten zorgt voor De Client Protection Principles, die voor meer bescherming moet zorgen. De klanten weten wat ze willen of niet willen en zij doen in grote getalen mee. Dat hoeven we toch niet eng te vinden?
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