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Institutional and interpersonal trust and entrepreneurship: insights from relationship banking and microfinance in Brazil

Author

Listed:
  • Ana Cristina O. Siqueira
  • Sandra R.H. Mariano
  • Joysi Moraes
  • Larry W. Cox

Abstract

We examine the value of trust in entrepreneurship by addressing the context of microfinance. We investigate the cases of three community banks providing microfinance in bottom-of-the-pyramid communities in Brazil. Using qualitative methods, we find that institutional trust seems to facilitate the operation of microfinance organisations that support entrepreneurship, while stimulating consumption within a community and the development of local small businesses. Additionally, interpersonal trust seems to facilitate the development of formal and informal businesses.

Suggested Citation

  • Ana Cristina O. Siqueira & Sandra R.H. Mariano & Joysi Moraes & Larry W. Cox, 2015. "Institutional and interpersonal trust and entrepreneurship: insights from relationship banking and microfinance in Brazil," International Journal of Business and Globalisation, Inderscience Enterprises Ltd, vol. 14(1), pages 58-74.
    • Handle: RePEc:ids:ijbglo:v:14:y:2015:i:1:p:58-74
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