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Demand Side Analysis of Microlending Markets in Germany

Author

Listed:
  • Kritikos Alexander

    () (Abteilung Innovation, Industrie, Dienstleistung, DIW Berlin, 10108 Berlin, Germany, and GfA, Berlin)

  • Kneiding Christoph

    () (CGAP / The World Bank, 900 19th St, 3rd Floor, Washington, DC 20006, USA and GfA, Berlin, Germany)

  • Germelmann Claas Christian

    () (Institute for Consumer and Behavioural Research, Saarland University, Campus A5 4, 66123 Saarbruecken, Germany)

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.

Suggested Citation

  • Kritikos Alexander & Kneiding Christoph & Germelmann Claas Christian, 2009. "Demand Side Analysis of Microlending Markets in Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 229(5), pages 523-543, October.
  • Handle: RePEc:jns:jbstat:v:229:y:2009:i:5:p:523-543
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    References listed on IDEAS

    as
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    Cited by:

    1. Christoph Kneiding & Alexander S. Kritikos, 2013. "Funding self-employment -- the role of consumer credit," Applied Economics, Taylor & Francis Journals, vol. 45(13), pages 1741-1749, May.
    2. Kritikos Alexander & Kneiding Christoph & Germelmann Claas Christian, 2009. "Demand Side Analysis of Microlending Markets in Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 229(5), pages 523-543, October.

    More about this item

    Keywords

    Entrepreneurship; microlending; market research;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • D12 - Microeconomics - - Household Behavior - - - Consumer Economics: Empirical Analysis
    • M31 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Marketing and Advertising - - - Marketing

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