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Market value analysis of entrepreneurs? microcredit and personal loans

Author

Listed:
  • Mauricio Moura

    (320 S.West apt 208, Alexandria, VA, 22314)

  • Maurício José Serpa Barros de Moura

    (Faculdades Metropolitanas Unidas, Brazil / George Washington University. 150 Taguá St, Liberdade, São Paulo-SP, Zip code 01508-010)

  • Rodrigo De Losso da Silveira Bueno

    (University of São Paulo, Brazil. 908, Prof. Luciano Gualberto Ave. Sao Paulo-SP. Zip Code: 05508-010)

  • Maurício Sérgio Nunes Muritiba

    (Faculdades Metropolitanas Unidas, Brazil / George Washington University. 150 Taguá St, Liberdade, São Paulo-SP, Zip code 01508-010)

  • Patricia Morilha Muritiba

    (Faculdades Metropolitanas Unidas, Brazil / George Washington University. 150 Taguá St, Liberdade, São Paulo-SP, Zip code 01508-010)

  • Sergio Luiz do Amaral Moretti

    (Escola Superior de Propaganda e Marketing, Brazil 1240, Joaquim Távora, São Paulo, Zip code 04015-013)

Abstract

This paper compares the market value of microcredit and personal loans to entrepreneurs. Based on primary data collected on a database of loans for entrepreneurs in Brazil, this work used the model of Blattber and Deighton (1996) – a marketing strategy model that applies financial evaluation techniques and clients statistics, with the purpose of optimizing the processes of acquisition, retention and capitalization of clients. Results show that traditional personal loan has a lower value compared to the micro-credit operation, even though microcredit clients have a history of informality, low income and lack of credit history.

Suggested Citation

  • Mauricio Moura & Maurício José Serpa Barros de Moura & Rodrigo De Losso da Silveira Bueno & Maurício Sérgio Nunes Muritiba & Patricia Morilha Muritiba & Sergio Luiz do Amaral Moretti, 2014. "Market value analysis of entrepreneurs? microcredit and personal loans," E3 Journal of Business Management and Economics., E3 Journals, vol. 5(5), pages 120-130.
    • Handle: RePEc:etr:series:v:5:y:2014:i:05:p:120-130
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    References listed on IDEAS

    as
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    2. Anthony Kyereboah‐Coleman & Kofi A. Osei, 2008. "Outreach and profitability of microfinance institutions: the role of governance," Journal of Economic Studies, Emerald Group Publishing Limited, vol. 35(3), pages 236-248, August.
    3. Marguerite S. Robinson, 2001. "The Microfinance Revolution," World Bank Publications - Books, The World Bank Group, number 28956.
    4. George A. Akerlof, 1970. "The Market for "Lemons": Quality Uncertainty and the Market Mechanism," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 84(3), pages 488-500.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Micro credit; client value; entrepreneurs; developing countries.;
    All these keywords.

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