New Economics Papers
on Microfinance
Issue of 2009‒09‒26
two papers chosen by
Aastha Pudasainee and Olivier Dagnelie

  1. Microcredit, labour, and poverty impacts in urban Mexico By Niño-Zarazúa, Miguel; Mosley, Paul
  2. Building social business models: lessons from the Grameen experience By Moingeon, Bertrand; Yunus, Muhammad; Lehmann-Ortega, Laurence

  1. By: Niño-Zarazúa, Miguel; Mosley, Paul
    Abstract: Improved household accessibility to credit is identified as a significant determinant of intra-household re-allocation of labour resources with important implications for productivity, income, and poverty status. However, credit accessibility could also have wider impacts on poverty if it leads to new hires outside the household. This paper contributes to the existing literature on microcredit in two important ways: first, it investigates the routes through which microcredit reaches those in poverty outside the household. We test whether, by lending to the vulnerable non-poor, microcredit programmes can indirectly benefit poor labourers through increased employment. Second, we conduct the study in the spatial dimension of urban poverty Mexico. This is relevant when considering that, unlike in rural areas, labour often represents the only source of livelihoods to the extreme poor. Our findings point to significant trickle-down effects of microcredit that benefit poor labourers; however, these effects are only observed after loan-supported enterprising households achieve earnings well above the poverty line. The paper concludes with reflections on the policy implications.
    Keywords: Mexico; microcredit; labour; poverty
    JEL: O18 J41 O16 C24 C31 C25
    Date: 2009–09–22
  2. By: Moingeon, Bertrand; Yunus, Muhammad; Lehmann-Ortega, Laurence
    Abstract: The social business idea borrows some concepts from the capitalist economy, and therefore the implementation of social businesses can likewise borrow some concepts from conventional business literature. As an illustration, the notion of business model, which is currently attracting much attention from researchers, can be revisited so as to enable the building of social businesses. Social business models are needed alongside conventional ones. After defining what a social business is, the authors will describe the first endeavors to create such businesses within the Grameen Group. This in turn will lead to a discussion of the social business model.
    Keywords: Social business; business model; social business model; Grameen; Danone
    JEL: E20
    Date: 2009–02–01

This issue is ©2009 by Aastha Pudasainee and Olivier Dagnelie. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.