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Unruly Entrepreneurs - Value Creation and Value Capture by Microfinance Clients in Rural Burundi

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  • Katarzyna Cieslik
  • Marek Hudon
  • Philip Verwimp

Abstract

This study explores the social entrepreneurial potential of the rule-breaking practices of microfinance programs’ beneficiaries. We empirically apply the positive theory of social entrepreneurship that views social entrepreneurship as a pursuit of neglected positive externalities. Using the storyboard methodology, the paper examines the strategies employed by the poor in Burundi to bypass institutional rules. We argue that illicit practices can in fact be interpreted as value-creating entrepreneurial acts and be symptomatic of an emergent social-entrepreneurial orientation. Our findings cast a spotlight on issues of agency and empowerment, questioning and contextualizing the definition of social value.

Suggested Citation

  • Katarzyna Cieslik & Marek Hudon & Philip Verwimp, 2015. "Unruly Entrepreneurs - Value Creation and Value Capture by Microfinance Clients in Rural Burundi," Working Papers CEB 15-013, ULB -- Universite Libre de Bruxelles.
  • Handle: RePEc:sol:wpaper:2013/198935
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    References listed on IDEAS

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    Cited by:

    1. Karaivanov, Alexander & Xing, Xiaochuan & Xue, Yi, 2020. "Bogus joint liability groups in microfinance," European Economic Review, Elsevier, vol. 122(C).

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    Keywords

    entrepreneurship; rule-breaking; social value; microfinance; Africa; Burundi;
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