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Microfinance In Cultures Of Non-Repayment

Author

Listed:
  • MARC J. EPSTEIN

    (Jesse H Jones Graduate School of Business, Rice University, 6100 Main Street, MS-531, Houston, TX 77005, USA)

  • KRISTI YUTHAS

    (School of Business Administration, Portland State University, SBA 560, PO Box 751, Portland, OR 97207, USA)

Abstract

The microfinance industry seeks to alleviate poverty by providing business loans and related financial services to clients who are too small to be served profitably through the formal financial sector. Microbusiness lending is considered to be among the most powerful tools available for promoting entrepreneurial activity and economic development. However, a significant number of current and potential entrepreneurs remain untouched by microfinance. They live in regions considered to have cultures of non-repayment, which render them "unbankable." By better understanding non-repayment cultures and developing management strategies attuned to the unique attributes of these regions, the microfinance industry can effectively and profitably support these underserved entrepreneurs.

Suggested Citation

  • Marc J. Epstein & Kristi Yuthas, 2010. "Microfinance In Cultures Of Non-Repayment," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 15(01), pages 35-54.
    • Handle: RePEc:wsi:jdexxx:v:15:y:2010:i:01:n:s1084946710001440
    DOI: 10.1142/S1084946710001440
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    Cited by:

    1. Drori, Israel & Manos, Ronny & Santacreu-Vasut, Estefania & Shoham, Amir, 2020. "How does the global microfinance industry determine its targeting strategy across cultures with differing gender values?," Journal of World Business, Elsevier, vol. 55(5).

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