IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this article

Microfinance for Micro Enterprise Development: An Inquiry for a New Paradigm

Listed author(s):
  • Naveen K Shetty
Registered author(s):

    Microfinance is relatively a recent experiment against poverty alleviation in developing countries. Originally it started as a new institutional strategy to fill the gap between supply and demand for credit by the poor. The delivering of credit services to the poor either for smoothening of consumption or for the income generating activities, is called a ‘minimalist approach’ in microfinance. The major objective of this approach is to solve the problem of unemployment in general and micro enterprise development in particular by supplying financial products. But, over the years it has been realized that this approach has failed in unleashing the micro entrepreneurship among the poor. Hence, as an alternative, the microfinance sector should be redesigned in such a way that it delivers both financial and non-financial services to the poor. In this line of thought the current paper attempts to present the new paradigm for the development of micro enterprises through microfinance within the framework of ‘maximalist approach’. The empirical study of maximalist approach shows that microfinance will be a true lubricant for micro enterprise development only when the finance flows with the non-financial services, which have a greater positive impact on the livelihood of the poor.

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below under "Related research" whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Article provided by IUP Publications in its journal The IUP Journal of Financial Economics.

    Volume (Year): VI (2008)
    Issue (Month): 1 (March)
    Pages: 88-98

    in new window

    Handle: RePEc:icf:icfjfe:v:06:y:2008:i:1:p:88-98
    Contact details of provider:

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:icf:icfjfe:v:06:y:2008:i:1:p:88-98. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (G R K Murty)

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.