nep-mfd New Economics Papers
on Microfinance
Issue of 2018‒08‒27
five papers chosen by
Olivier Dagnelie
Université de Caen

  1. Can agricultural credit scoring for microfinance institutions be implemented and improved by weather data? By Römer, Ulf; Mußhoff, Oliver
  2. Truth and consequences: Bogus pipeline experiment in informal small business lending By Römer, Ulf; Mußhoff, Oliver; Weber, Ron; Turvey, Calum G.
  3. Fortalecimiento institucional y expansión del crédito mediante el uso de TICs en Entidades Financieras Comunales en Bolivia By Boris Branisa; Carlos Gustavo; Mario Arduz
  4. Rural Women Entrepreneurship in Uganda : A Synthesis Report On Policies, Evidence, and Stakeholders By Guloba, Madina; Sarah Ssewanyana; Elizabeth Birabwa
  5. Fostering rural women nonfarm household enterprises financing through local groups By Guloba, Madina; Sarah Ssewanyana; Elizabeth Birabwa

  1. By: Römer, Ulf; Mußhoff, Oliver
    Abstract: In recent years, the application of credit scoring in urban microfinance institutions became popular, while rural microfinance institutions, which mainly lend to agricultural clients, are hesitating to adopt credit scoring. The present study aims to explore whether microfinance credit scoring models are suitable for agricultural clients, and if such models can be improved for agricultural clients by accounting for precipitation.
    Keywords: Agricultural Finance, Farm Management
    Date: 2017
  2. By: Römer, Ulf; Mußhoff, Oliver; Weber, Ron; Turvey, Calum G.
    Abstract: The prevention of asymmetric information plays a major role in successful small business lending. The purpose of this research is to determine if small business applicants report their income information correctly when requesting a loan. Therefore, a randomized controlled trial bogus pipeline experiment was set up during a typical cash-flow analysis of a bank for small businesses in the Philippines. Results indicate that loan applicants of the treatment group reported a lower income, an effect which is most pronounced in the lowest income percentile. Moreover, our analyses reveal higher loan delinquencies in the control group.
    Keywords: Agribusiness, Agricultural Finance, Financial Economics
    Date: 2017
  3. By: Boris Branisa (Institute for Advanced Development Studies); Carlos Gustavo (Institute for Advanced Development Studies); Mario Arduz (Institute for Advanced Development Studies)
    Abstract: Este documento analiza la implementación de un sistema financiero (software) para las Entidades Financieras Comunales (EFC) que se realizó entre los años 2011 y 2012, el cual fue un conjunto de módulos financieros que facilitaban la administración de información y prácticas operativas en cada una de estas entidades. La utilización del sistema pretendía mejorar su institucionalidad, además de expandir sus créditos e incrementar los ingresos de sus prestatarios. Empleando métodos cualitativos (entrevistas) y datos cuantitativos (Data Mart), se pudo concluir que el sistema tuvo beneficios dentro del manejo operativo de las instituciones financieras, pero no se pudo demostrar un impacto evidente en el incremento de los créditos y tampoco sobre los ingresos de los prestatarios.
    Keywords: Cambio tecnológico, instituciones microfinancieras, organización
    JEL: O23 G21 D20
    Date: 2018–03
  4. By: Guloba, Madina; Sarah Ssewanyana; Elizabeth Birabwa
    Abstract: There is growing emphasis in the policy debate on rural women’s entrepreneurship as a poverty alleviation strategy and a preferred tactic to spur economic development. To this end, this synthesis report puts into perspective the nature of Uganda’s rural woman entrepreneurs, paying close attention to the women targeted by the Uganda Women Entrepreneurship Programme (UWEP). This report focuses on rural women’s entrepreneurship. However, challenges identified may not be limited to this category alone but also extend to the poorest urban entrepreneurs with similar characteristics. Using qualitative and quantitative data from the Uganda Bureau of Statistics (UBoS), findings indicate that: Most rural women are illiterate (about 75 percent) and run informal non-farm enterprises that are micro and seasonal in nature. Accessing finance through local groups such as Rotating Savings and Credit Associations was most common for rural women in business. Thus, training materials particularly the financial component, mentoring and an early warning system for these entrepreneurs should be established together with effective management and leadership of these groups. For growth to occur, it is important for groups to take bigger loans as an indication of business expansion and growth. The government needs to resume adult literacy programmes within the UWEP.
    Date: 2017–05–31
  5. By: Guloba, Madina; Sarah Ssewanyana; Elizabeth Birabwa
    Abstract: Rural women entrepreneurs in Uganda continue to face multiple challenges that impede their enterprise growth and expansion, despite pragmatic interventions from government and non-state actors to enhance entrepreneurship. Uganda’s female managed nonfarm household enterprises continue to be micro, informal and face bottlenecks to access high credit to grow their business as they do not have the necessary collateral that formal credit institutions demand. Hence, many resort to borrowing from locally managed community or village credit associations to start or grow their businesses and yet, these financing mechanisms are limited. The Uganda Women Entrepreneurship Programme (UWEP) should therefore ensure that the distribution of funds is equitable taking into consideration the heterogeneities across spatial areas, region, education level and size of business enterprise.
    Date: 2017–04–28

This nep-mfd issue is ©2018 by 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.
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