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Poverty alleviation and enterprise development: The need for a differentiated approach

Author

Listed:
  • Prabhu Ghate

    (A-71 Nizamuddin East, New Delhi, 110013 India)

  • Evelinda Ballon

    (A-71 Nizamuddin East, New Delhi, 110013 India)

  • Virginia Manalo

    (A-71 Nizamuddin East, New Delhi, 110013 India)

Abstract

In an exploration of two different types of microenterprises via 16 cases from the Philippines, the authors identify fundamental distinctions relevant to the provision of micro-credit services. Lower barriers to entry and intense competition prevent many 'livelihood' activities from becoming microenterprises. Livelihood enterprises are usually a source of secondary income, provide psychological as well as economic value to workers, exhibit evidence of savings, and benefit from growth via access to credit. As such, the main rationale for providing credit and other assistance to livelihood programmes is poverty reduction. The authors conclude that small and microenterprises do not live by credit alone.

Suggested Citation

  • Prabhu Ghate & Evelinda Ballon & Virginia Manalo, 1996. "Poverty alleviation and enterprise development: The need for a differentiated approach," Journal of International Development, John Wiley & Sons, Ltd., vol. 8(2), pages 163-178.
  • Handle: RePEc:wly:jintdv:v:8:y:1996:i:2:p:163-178
    DOI: 10.1002/(SICI)1099-1328(199603)8:2<163::AID-JID379>3.0.CO;2-L
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    Cited by:

    1. Shaw, Judith, 2004. "Microenterprise Occupation and Poverty Reduction in Microfinance Programs: Evidence from Sri Lanka," World Development, Elsevier, vol. 32(7), pages 1247-1264, July.
    2. Claudia MarĂ­a Vargas, 2000. "Community development and micro-enterprises: fostering sustainable development," Sustainable Development, John Wiley & Sons, Ltd., vol. 8(1), pages 11-26.
    3. Coetzee, Gerhard K., 1998. "Retail Rural Finance In South Africa: From Policies To Practice," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 37(4), December.
    4. Lynn Bennett & Carlos E. Cuevas, 1996. "Sustainable banking with the poor," Journal of International Development, John Wiley & Sons, Ltd., vol. 8(2), pages 145-152.

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