Work

Dialectic evolution through the social innovation process: from microcredit to microfinance

Year: 2014

Type: article

Abstract: Microfinance is the provision of financial services to the financially excluded, usually the poor. We use literature reviews and descriptive research to present different aspects of the relationship of the microfinancial services to microenterprise. The first thrust in this field had been from microcredit and group lending to encourage business initiatives among the poor. The hope that these services would lift them out of poverty had largely built the brand image of the sector. However, the spread of consumer microcredit and uncontrolled growth of microfinance led to over-lending without adequate checks and balances, leading to over-indebtedness and associated stress, and critique of microcredit. To restore balance, other financial products, such as microequity, microsavings, microinsurance, microguarantees, and microremittances, have been suggested. We place these developments in a social innovation process perspective by showing that microfinance, through its wide range of innovatively distributed products, can be a key factor to foster entrepreneurship. L26, O16, O17, O30

Source: Journal of Innovation and Entrepreneurship

DOI: 10.1186/2192-5372-3-4

Authors: Arvind Ashta, Mawuli Couchoro, Abu Saleh Musa

Institutions: Banque Populaire, ESC Dijon Bourgogne, École supérieure de commerce de Dijon-Bourgogne, University of Lomé

Language: English

Topic: Microfinance and Financial Inclusion

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: gold

Estimated APC paid: $1,790