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Market opportunities for microfinance institutions

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  • Roy Mersland

Abstract

Taking a business scholar’s standpoint I assess the future of the microfinance industry. The basic question I try to answer is why the microfinance market continues to grow while public support for the industry is shrinking. I identify six underlying forces – demographic transition, reduced poverty, urbanization, economic growth, technological innovations, and shifts in microfinance paradigms – that drive the growth of the microfinance industry. Furthermore, I identify six non-traditional microfinance markets that may present interesting opportunities in the years to come: insurance, housing, small and medium enterprise lending, savings, micropensions, and microfinance in high-income countries. I conclude the article highlighting that policymakers, regulators, and international support organizations may encourage or hamper the future of microfinance as outlined in this article.

Suggested Citation

  • Roy Mersland, 2013. "Market opportunities for microfinance institutions," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 24(4), pages 282-294.
    • Handle: RePEc:zbw:espost:323994
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    References listed on IDEAS

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    1. Mersland, Roy & Strøm, R. Øystein, 2010. "Microfinance Mission Drift?," World Development, Elsevier, vol. 38(1), pages 28-36, January.
    2. Bert D'espallier & Isabelle Guerin & Roy Mersland, 2013. "Focus on Women in Microfinance Institutions," Journal of Development Studies, Taylor & Francis Journals, vol. 49(5), pages 589-608, May.
    3. D’Espallier, Bert & Guérin, Isabelle & Mersland, Roy, 2011. "Women and Repayment in Microfinance: A Global Analysis," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 39(5), pages 758-772.
    4. Zoltan Acs, 2008. "How is Entrepreneurship Good for Economic Growth?," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 21, pages 291-301, Edward Elgar Publishing.
    5. Meghana Ayyagari & Thorsten Beck & Asli Demirguc-Kunt, 2007. "Small and Medium Enterprises Across the Globe," Small Business Economics, Springer, vol. 29(4), pages 415-434, December.
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    Cited by:

    1. Leif Atle Beisland & Roy Mersland & Øystein Strøm, 2018. "Use of Big Four auditors and fund raising: evidence from developing and emerging markets," International Journal of Emerging Markets, Emerald Group Publishing Limited, vol. 13(2), pages 371-390, April.
    2. Djan, Kwame Ohene & Mersland, Roy, 2017. "Does Religious Affiliation Influence the Design of Corporate Governance? Evidence from the Global Microfinance Industry," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 26(2), pages 101-116.
    3. Dato, Muluneh Hideto & Mersland, Roy & Mori, Neema, 2018. "Board committees and performance in microfinance institutions: Evidence from Ethiopia," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 13(2), pages 350-370.
    4. Beisland, Leif Atle & Mersland, Roy & Randøy, Trond, 2014. "The Association between microfinance rating scores and corporate governance: a global survey," International Review of Financial Analysis, Elsevier, vol. 35(C), pages 268-280.
    5. Leif Atle Beisland & Bert D’Espallier & Roy Mersland, 2019. "The Commercialization of the Microfinance Industry: Is There a ‘Personal Mission Drift’ Among Credit Officers?," Journal of Business Ethics, Springer, vol. 158(1), pages 119-134, August.

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