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Capability building combined with microcredit: the loan alone is insufficient

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  • György Molnár

Abstract

The article analyses the specific features of a social innovation aimed at assisting a social group, which is not simply marginalized, but also socially excluded at least for decades. It focuses on the activities of a non-profit corporation providing microcredit, mentoring and other social services to undereducated, unemployed and socially excluded Roma people in Hungary. The paper relies on the capability approach developed by Sen and Nussbaum. The main conclusion is that providing loans without capability building can lead to a mission drift towards less disadvantaged groups, and consequently the exclusion of the most disadvantaged may even increase.

Suggested Citation

  • György Molnár, 2017. "Capability building combined with microcredit: the loan alone is insufficient," Journal of Social Entrepreneurship, Taylor & Francis Journals, vol. 8(3), pages 354-374, September.
    • Handle: RePEc:taf:jsocen:v:8:y:2017:i:3:p:354-374
    DOI: 10.1080/19420676.2017.1371632
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    Cited by:

    1. Simone Schotte & Rachel M. Gisselquist & Tharcisio Leone, 2023. "Does affirmative action address ethnic inequality?: A systematic review of the literature," WIDER Working Paper Series wp-2023-14, World Institute for Development Economic Research (UNU-WIDER).
    2. Gyorgy Molnar & Attila Havas, 2019. "Escaping from the poverty trap with social innovation: a social microcredit programme in Hungary," CERS-IE WORKING PAPERS 1912, Institute of Economics, Centre for Economic and Regional Studies.
    3. Ziegler, Rafael, 2020. "Paludiculture as a critical sustainability innovation mission," Research Policy, Elsevier, vol. 49(5).

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