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Demand Side Analysis of Microlending Markets in Germany

Author

Listed:
  • Kritikos, Alexander S.

    (DIW Berlin)

  • Kneiding, Christoph

    (LFS Financial Systems)

  • Germelmann, Claas Christian

    (Saarland University)

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 the 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 for microlending 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 S. & Kneiding, Christoph & Germelmann, Claas Christian, 2009. "Demand Side Analysis of Microlending Markets in Germany," IZA Discussion Papers 4292, Institute of Labor Economics (IZA).
  • Handle: RePEc:iza:izadps:dp4292
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    References listed on IDEAS

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    Cited by:

    1. Al-Jarhi, Mabid, 2010. "Reviving the Ethics of Islamic Finance," MPRA Paper 66732, University Library of Munich, Germany, revised 2011.
    2. Kraemer-Eis, Helmut & Conforti, Alessio, 2009. "Microfinance in Europe – A market overview," EIF Working Paper Series 2009/01, European Investment Fund (EIF).
    3. 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.
    4. 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.

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    More about this item

    Keywords

    entrepreneurship; microlending; market research;
    All these keywords.

    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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