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The Value Of Networks In Enterprise Development: Case Studies In Eastern Europe And Southeast Asia

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    (SKK Graduate School of Business, in collaboration with MIT Sloan School of Management, 53 Myungryun-dong 3-ga, Jongro-gu, Seoul, Korea)


    (Brigham Young University, Marriott School of Management, 786 Tanner Building, Provo, UT 84602, USA)


    (Cornell University, School of Industrial and Labor Relations, 164 East Ives Hall, Ithaca, NY 14853, USA)

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    This study proposes that cooperative efforts in microlending aid economic development and poverty alleviation in transitioning and developing countries by creating networking systems in which people can expand their businesses through working capital and community cooperation. Two field studies are used to validate the authors' claims. The first examines a microfinance cooperative structure in Bulgaria as a means to secure credit, savings, technical support and networking opportunities for cooperative members. The second looks at a cooperative microfinance institution in the Philippines that appears to create greater socio-economic growth for poor entrepreneurs as well as NGO financial viability. Both studies suggest that cooperative microlending leads to high survival rates and success of self-employed entrepreneurs by facilitating social capital through their organizational processes.

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    Article provided by World Scientific Publishing Co. Pte. Ltd. in its journal Journal of Developmental Entrepreneurship.

    Volume (Year): 11 (2006)
    Issue (Month): 04 ()
    Pages: 345-356

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    Handle: RePEc:wsi:jdexxx:v:11:y:2006:i:04:p:345-356
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