Microfinance for Small enterprises and Entrepreneurship in Transitional Countries

Microfinance is known as a type of solutions that is provided to small businesses and entrepreneurs who all don’t have entry to traditional money. This includes loans, credit, access to saving accounts, insurance policies and money transfers.

Micro finance companies are main sources of financing for low income persons and small companies that terribly lack access to traditional banking services or have zero collateral. These kinds of institutions present loans and other financing products and services at competitive rates.

The aim of this analysis is to discover how microfinance and entrepreneurship will be linked in Kazakhstan, a nation undergoing transition to a market economic system. We keep pace with shed light on just how microfinance forces small business expansion and formalisation in a transitional context and explore borrowers’ relationships with MFOs at varied stages of this process.

Our study generates on emerging literature that https://laghuvit.net/2020/03/03/microfinance-organizations-choose-virtual-data-room-services/ critiques a teleological approach to microfinance (Ault & Spicer, 2014; Chliova, Brinckmann, & Rosenbusch, 2015) and suggests a more educational inquiry that asks more open problems about how microfinance relates to pioneeringup-and-coming outcomes in transitional contexts. This requires employing methodologies which might be more empirically-informed, attuned towards the agency every day entrepreneurs plus 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 which provide individual loans to clients. The analysis also examined the relationship among borrowers and their MFOs, which has been influenced by a choice of factors including their history characteristics, enterprise characteristics and habits of microfinance use.

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