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on Microfinance |
| By: | Nahla Dhib (Université Côte D'Azur, CNRS, LJAD (France)); Arvind Ashta |
| Abstract: | The microcredit literature indicates that progressive lending should reduce default rates but that it may lead to over-indebtedness. In this study, we show that progressive lending may be safe over a range of loan sizes, beyond which a rational borrower would indulge in a strategic default. This range of loan sizes may be dependent on borrower characteristics (risk-taking, self-confidence, productivity, interest rates, subsistence needs) as well as the Microfinance Institution's strategy. Many crowdfunding sites are using artificial intelligence to assess borrower risk through social ratings. We are arguing that production functions of the borrowers also need to be added. |
| Date: | 2020–11–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03001840&r=all |
| By: | Choda, Amreen; Schoofs, Annekathrin; Verrinder, Noel |
| Abstract: | We evaluate a non-governmental housing microfinance intervention that attempts to improve housing conditions for low income populations by simultaneously offering them a labelled loan and non-financial technical support. Using household survey data from Kenya and Uganda, we first show evidence for the successful targeting of our labelled loans because 95% of clients used the loan for the intended housing improvement. Second, our results suggest that access to small, short-term loans enables households to invest in housing upgrades that can significantly improve both the characteristics of their dwelling and their satisfaction with their dwelling. These effects are robust to four different estimation approaches (difference-in-differences, inverse probability weighting, matching, and ordinary least squares with postdouble selection Lasso). |
| Keywords: | Housing conditions,microfinance,health,Uganda,Kenya |
| JEL: | I15 I31 O18 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:878&r=all |
| By: | Jayasooriya, Sujith |
| Abstract: | Roles of technology, innovation and finance in Small and Medium Enterprise (SME) sector for economic development process is critical in emerging Asia. Growth, innovation, and productivity enhancement of the SME sector is always limited, and not up to its potential in Asia; Sri Lankan SME sector is not deviated from this dilemma. The paper discusses the case of project in economic enterprises development services and its approaches in supply-side management of SMEs in Sri Lanka. A baseline evaluation survey of 1200 SMEs was conducted to identify the potential and constrains for the supply side of the SMEs to promote technology adoption, innovation and financing in line with the national SME sector development policies. The results are discussed in three distinguished theses: (i) Enabling role of the technology and finance: creating enabling environment for the smooth procedures, capacity building, venture capital, financial development and banks, credit to the private sector and loans; (ii) Facilitative role of the finance and technology: application of technology and adaptation to the skill development and connections, information flow, and financial capacity; (iii) Innovative role of the finance and technology: microfinance, microinsurance, and transactions. The evidences show that lack of access to finance and technology demotes capacity building and skill training, information flow, business environment and networking of the SMEs. Hence, integrative solutions of finance and technology increase management of risks, adoption and enhanced networking for the enterprise development. These two pillars, technology and finance, become catalyst in the supply-side of the SMEs. Provoking business environment through technology adoption and financial sector development policies improving human capital, entrepreneurship and innovation enhance the performance of SMEs to thrive sustainable growth and development. |
| Keywords: | Business Environment, Finance, Innovation, SMEs, Technology |
| JEL: | L26 L53 O14 O31 O32 |
| Date: | 2020–11–28 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:104412&r=all |