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Demand Side Analysis of Microlending Markets in Germany

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Author Info

  • Alexander Kritikos

    ()
    (DIW Berlin)

  • Christoph Kneiding

    ()
    (The World Bank, Washington)

  • Claas Christian Germelmann

    ()
    (Saarland University)

Abstract

In developing and transition economies, microlending has become an effective instrument for providing micro businesses with the necessary financial resources to launch operations. In industrialized countries, with their highly developed banking systems, however, there has been ongoing debate on the question of whether an uncovered demand for microlending services exists. The present pilot study explores customer preferences formicrolending products in Germany. Among the interviewed business owners, 15%reported revolving funding needs and an interest in microloans. We find that potential recipients of microloan products are retail business owners, foreign business owners, and persons who had previously received private loans. Furthermore, financial products should feature rapid access to short-term loans.

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Bibliographic Info

Article provided by Justus-Liebig University Giessen, Department of Statistics and Economics in its journal Journal of Economics and Statistics.

Volume (Year): 229 (2009)
Issue (Month): 5 (October)
Pages: 523-543

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Handle: RePEc:jns:jbstat:v:229:y:2009:i:5:p:523-543

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Keywords: Entrepreneurship; microlending; market research;

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References

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  2. Block, Jörn & Brockmann, Heiner & Klandt, Heinz & Kohn, Karsten, 2008. "Gründungshemmnisse in Marktmechanismen und Marktumfeld: Facetten empirischer Evidenz
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  3. Audretsch, David B. & Elston, Julie Ann, 2000. "Does firm size matter? Evidence on the impact of liquidity constraint on firm investment behavior in Germany," HWWA Discussion Papers 113, Hamburg Institute of International Economics (HWWA).
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Cited by:
  1. Kneiding, Christoph & Kritikos, Alexander S., 2011. "Funding Self-Employment: The Role of Consumer Credit," IZA Discussion Papers 6093, Institute for the Study of Labor (IZA).
  2. Alexander S. Kritikos & Christoph Kneiding & Claas Christian Germelmann, 2009. "Demand Side Analysis of Microlending Markets in Germany," Discussion Papers of DIW Berlin 903, DIW Berlin, German Institute for Economic Research.

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