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Contextualizing Microcredit in Bosnia-Herzegovina and Hungary: A Focus Group Exploration

Author

Listed:
  • Domenica Federico
  • Andrea Calzolari
  • Antonella Notte
  • Lucia Poletti
  • Matteo Solivo
  • Giulio Tagliavini

Abstract

Microfinance is gaining importance as a toolto reduce poverty and promote financial and social inclusion. The main goal ofthe paper is to analyze the role of microcredit to solve the problem of the creditaccess to vulnerable people. The paper focuses on the direct experience ofpeople who have used microcredit living in Bosnia-Herzegovina and Hungary toanalyze the use of microcredit in these areas. From the methodological point ofview, the research uses focus groups to investigate on customer relations withthe banking system, microcredit, social and financial exclusion, and possiblealternatives to microcredit. In this way, it is possible to analyze mechanismsthrough which the involvement in microcredit operations results in positive(and negative) effects on people's lives. Results show that microcredit is agreat opportunity to facilitate employment, create jobs, increase productivity,improve living conditions promote social integration. Results show that servicesof mentoring and coaching improve entrepreneurship skills or vocational(technical) know-how. These services help to improve access to finance forvulnerable individuals and to support better living conditions. We identifycurrent good practices among microfinance services to understand thefuture potential role of microcredit propose concrete in particular areas.

Suggested Citation

  • Domenica Federico & Andrea Calzolari & Antonella Notte & Lucia Poletti & Matteo Solivo & Giulio Tagliavini, 2022. "Contextualizing Microcredit in Bosnia-Herzegovina and Hungary: A Focus Group Exploration," American Journal of Economics and Business Administration, Science Publications, vol. 14(1), pages 31-43, August.
    • Handle: RePEc:abk:jajeba:ajebasp.2022.31.43
    DOI: 10.3844/ajebasp.2022.31.43
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    References listed on IDEAS

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    3. Gyorgy Molnar & Attila Havas, 2019. "Escaping from the poverty trap with social innovation: a social microcredit programme in Hungary," CERS-IE WORKING PAPERS 1912, Institute of Economics, Centre for Economic and Regional Studies.
    4. Michal Matul & Caroline Tsilikounas, 2004. "Role of microfinance in the household reconstruction process in Bosnia and Herzegovina," Journal of International Development, John Wiley & Sons, Ltd., vol. 16(3), pages 429-466.
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    7. Rachael Meager, 2015. "Understanding the Impact of Microcredit Expansions: A Bayesian Hierarchical Analysis of 7 Randomised Experiments," Papers 1506.06669, arXiv.org, revised Jul 2016.
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