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What Next For Microfinance? How The Broader Financial Context Matters For Effective Microfinance Outreach

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  • KRISTEN HUDAK

    (Eastern Connecticut State University Willimantic, Connecticut 06226, USA)

Abstract

This paper explores how the overall development of the financial sector and the regulatory framework impact national levels of microfinance outreach. It finds that microfinance tends to serve more clients in less developed, less competitive financial systems. However, it also finds that the microfinance sector is able to reach more clients where government policy is conducive to business development. These seemingly contradictory findings have important implications for the future of microfinance. On the one hand, the success of microfinance can be strengthened by broader business-oriented reforms. On the other hand, it may lose relevance as the formal financial sector develops and reaches more of the population.

Suggested Citation

  • Kristen Hudak, 2012. "What Next For Microfinance? How The Broader Financial Context Matters For Effective Microfinance Outreach," Journal of Developmental Entrepreneurship (JDE), World Scientific Publishing Co. Pte. Ltd., vol. 17(04), pages 1-18.
    • Handle: RePEc:wsi:jdexxx:v:17:y:2012:i:04:n:s1084946712500239
    DOI: 10.1142/S1084946712500239
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    References listed on IDEAS

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    1. Cull, Robert & Demirgüç-Kunt, Asli & Morduch, Jonathan, 2011. "Does Regulatory Supervision Curtail Microfinance Profitability and Outreach?," World Development, Elsevier, vol. 39(6), pages 949-965, June.
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    6. Odd-Helge Fjeldstad & Ivar Kolstad & Knut Nygaard, 2006. "Bribes, taxes and regulations: Business constraints for micro enterprises in Tanzania," CMI Working Papers WP 2006: 2, CMI (Chr. Michelsen Institute), Bergen, Norway.
    7. World Bank, 2011. "World Development Indicators 2011," World Bank Publications - Books, The World Bank Group, number 2315.
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    Cited by:

    1. Steffi Sandra Singhe & Céline Louche, 2020. "The development of microfinance in Cameroon: Focus on regulation," Post-Print hal-02562588, HAL.
    2. Dilruba Khanam & Muhammad Mohiuddin & Asadul Hoque & Olaf Weber, 2018. "Financing micro-entrepreneurs for poverty alleviation: a performance analysis of microfinance services offered by BRAC, ASA, and Proshika from Bangladesh," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 8(1), pages 1-17, December.

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