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This paper aims to analyse a simultaneous role of micro-credit in intensive farming to improve rural prosperity and to determine factors affecting farmers to access micro-credit and to adopt technologies.

This paper uses a concept of technological change as the underlying theory. The analysis is conducted using structural equation modelling based on data compiled from a survey that interviewed 220 of farm-households. Samples of the study were randomly selected from chili farming community in three regions of Java in 2013-2014.

The results show that micro-credit provides positive direct and indirect impacts on rural prosperity. The indirect effect of micro-credit was due to a mediation of technology adoption. Farmers’ personalities and agribusiness environment determined farmers’ decision to access micro-credit and to adopt the technology.

Policymakers should introduce more advanced technology and provide credit facilities at the same time to ensure technology adoption and welfare improvement of the community.

Using structural equation modelling enables analysis of simultaneous regression models. Along with technology here, micro-credit played roles as catalyst and reagent in improving rural livelihood.

This paper aims to investigate the role of demographics and sector type in determining consumer preferences of Islamic micro-credit products, namely, Musharka and Murabha, versus conventional micro-credit financing in Egypt.

This research is a quantitative study that uses surveys on 1,125 current micro-credit consumers in Cairo and Upper Egypt using multi-staged cluster sampling technique. Descriptive and inferential analyses were used to explain results.

The study revealed the potential of Musharka mode of financing among micro-credit borrowers in Egypt, specifically in the manufacturing sector, followed by the trade sector. Although previous researches showed correlations between income, age and other demographic factors with consumer financing choices, the current research indicated no significance for consumer demographics in determining preferences of Islamic micro-credit contracts in Egypt. However, the sector type showed high potential in determining consumer choices of Islamic micro-credit contracts.

This paper advances knowledge in the domain of consumer behavior, specifically in bottom of the pyramid and subsistence markets that are under researched.

The results highlighted are important for micro-finance institutions, NGOs and policy makers, as they delve deeper into the consumer preferences for Islamic financial products and attempt to present innovative solutions toward poverty eradication.

This research is one of the few attempts to study and explain consumer preferences toward Islamic micro-credit products in Egypt, and the role of sectors in determining consumer choices for specific Islamic micro-credit contracts.

The purpose of this paper is to examine the effects of access to credit through micro‐credit institutions on entrepreneurial performance and assesses the loan performance of public credit schemes in Nigeria in order to determine the sustainability of such schemes.

The study employed qualitative approach and exploratory perspective, using primary and secondary data obtained at beneficiary and institutional levels.

The loan repayment rates were generally low for many of the schemes, and this confirms the problems of public sector lending, with implications for the sustainability of the schemes. Many reasons were given for the low repayment rates, among which were poor credit culture of the schemes managed by public sector and the attitudinal nature of Nigerians towards public funds.

There is a need for policy makers, researchers and entrepreneurs to improve on the designing of micro‐credit schemes in order to be sustainable.

This paper makes a first step towards comparing the performance of public and private micro‐credit schemes in Nigeria.

Throughout the twentieth century, nations defined their responses to the heaves of the market's boom‐and‐bust cycles through the interplay between people's demands and their governments. The variations of that struggle were reflected in the variations among national policies; but, across virtually all industrialized nations, there gradually emerged a consensus around the necessity for greater security to be built into the institutions of society. In hindsight, the emergence of the welfare state appears as a rational response to this pattern of economic development, indeed as a precondition of its continuance.

This paper aims to examine the factors that are responsible for the poor credit recovery among micro‐finance institutions (MFIs) that disbursed a United Nations Development Programme's micro credit in Anambra State, Nigeria.

A total of 97 MFIs were surveyed out of a total of 129 MFIs in Anambra State in 2007. A ten‐item researcher developed questionnaire on a four‐point Likert scale was used to measure MFIs' staff assessment of factors that were responsible for poor credit recovery. Descriptive statistics were used to analyse the data, and conclusions and implications of the findings are presented.

From the findings of this study, it is evident that multidimensional factors contribute to low credit recovering by the MFIs. These factors can be summarised under borrowers' wrong attitude to credit repayment, MFIs' staff weak skill and corrupt tendency, and poor infrastructural provision by the government. Arguably, these factors have direct effect in encumbering genuine effort at alleviating poverty in Nigeria through the instrumentality of micro credit. This calls for a change in strategy especially on the part of the MFIs in reducing the incidence of low credit recovery.

The paper offers fresh insight that would offer better understanding of the informal sector of the financial system in Nigeria that has hitherto received limited research attention.

This paper is informative in terms of the imperativeness for public policy adjustment and firm‐level competencies required for better operation of the MFIs in Nigeria. This would translate into creating viable micro‐credit sector to support current plans to eradicate poverty and foster the development of the “bottom‐of‐the‐pyramid”.

Addresses issues related to micro credit in a highly challenged and isolated context.

The purpose of this study is to examine the impact of interest free micro credit loans on the lives and business of the female borrowers.

Both primary and secondary data have been used. Case studies of four different female entrepreneurs have been included as part of the research. The observation was conducted over an extended period of time. Subsequently, interviews were conducted with four beneficiaries to know the role played by interest free micro credit loans in improving (or not!) their lives and businesses.

Interest free micro credit loans played a significant role in bringing a positive change in the lives of the borrowers. Clients mentioned that “zero interest rate” and “flexible repayment schedules” were the main reason for obtaining loans from this source. Further, they suggested that there is a need for training/workshops, feedback/monitoring, networking and online repayment system to make interest free micro credit loans more successful.

The focus of the study is limited to only four female borrowers in Karachi. Future studies can include other cities and cross-gender comparisons for better understating.

This study will help microfinance organizations to assess the problems faced by the borrowers; it will also shed light on the motivations of borrowers.

Interest free micro credit loans were provided to women entrepreneurs in a social experiment and implications were observed.

The purpose of this paper is to examine the factors that constrain women petty traders' access to microcredit, and the innovative measures they have initiated in order to counter these constraints.

The paper is based on in‐depth interviews with women micro‐entrepreneurs drawn from a convenience sample of 20 petty traders in the market town of Awka – the capital of a state in Eastern Nigeria.

The paper identifies three main constraints – internal, socio‐cultural and policy induced – as the key moderating influences on women petty traders' ability access to micro‐credit.

Considering the sample size and research context, the generalisation of the findings may need to be interpreted with caution. However, the paper finds evidence of most of these findings in other studies on other contexts.

This paper posits that the lack of access to credit promotes market exclusion, and deepens the socioeconomic and political vulnerability of women as a consequence. Such vulnerability has prompted these microenterpreneurs into venturing to alternative sources of credit in the form of “Women August Meetings”. The paper has far reaching implications for public policy support geared towards “leveraging” and mainstreaming these initiatives for maximum outreach.

Previous research in the area of micro‐credit access seem to have paid limited attention to the peculiar challenges of this segment of society, i.e. petty traders, who incidentally also form the bulk of occupants at the bottom‐of‐the‐pyramid.

The purpose of this study was to, using a case study research design informed by organizational economics theory, to examine the prospects for micro-insurance in promoting micro-credit in a low-income Anglophone country in sub-Saharan Africa – The Gambia. Two main research questions are addressed: first, what is the most appropriate micro-finance institution (MFI) organizational structure to maximize the economic benefits of micro-insurance? Second, what are the financial management and wider economic benefits of the use of micro-insurance by MFIs?

To address our two research questions, we used a semi-structured interview protocol, informed by the organizational economics literature, to interpret the data collected from our field cases. We believe that these intrinsic qualities of case study methodology are particularly apt in the present study, given the complex and emergent nature of micro-finance and micro-insurance in low-income countries such The Gambia. By focusing on case studies in a single country, we also to some extent help control for variations in business environment that could confound interpretations of field data obtained from different jurisdictions.

The results of our study suggest that the mutual (cooperative) structure of credit unions is likely to be the most cost-efficient and effective organizational form for reducing information asymmetries, agency problems and transaction costs. We also observe that micro-insurance can help reduce the risk of loan defaults, thereby increasing returns on savings and lowering the costs of debt. As such, micro-insurance stimulates the demand–supply of financial intermediation in less developed countries and so helps promote economic development. In addition to contributing new insights, our findings have potentially important commercial and public policy implications.

We acknowledge that our research is subject to inherent limitations such as the focus on three interviews in three different types of MFI organization while excluding other structural forms of organization such as government-owned/sponsored organizations. Nonetheless, the organizational characteristics of the cases examined in the present study are representative of most MFIs in developing countries. Given the prevalent hierarchical nature of corporate systems in sub-Saharan Africa, the views of the interviewees are also deemed to reflect those of other board members. Nonetheless, we acknowledge that the conclusions from our research may need to be tempered in line with these inherent limitations with the research approach adopted.

The insights obtained from our Gambia-based research could be generalized to developing countries elsewhere in sub-Saharan Africa, and indeed, other parts of the developing world. Consequently, the study could be of interest and relevance to international financiers (e.g. the World Bank), aid agencies, governments and other development organizations.

Despite its evident business and development potential, academic management research on micro-insurance, and in particular, its role in supporting micro-finance initiatives, is still very much at an embryonic stage. Our study thus seeks to fill this knowledge gap.

This paper aims to clarify the relationship between wealth and trustworthiness with the goal of understanding why micro‐lending institutions grant loans to poor individuals countering well‐known models of credit markets and credit rationing, such as those proposed by Stiglitz and Weiss. Micro‐credit markets appear to be based on two conjectures: the poor are trustworthy, and their willingness to pay for credit is relatively high.

The paper simulates trust‐based lending in an experimental setting to determine whether the conjecture that the poor are trustworthy is plausible. By conducting the experiments in the USA, a wealthy developed country, and China, a developing country where formal micro‐finance institutions have not established a visible presence, it is possible to test the conjecture and draw cross‐cultural comparisons.

The paper finds that while the absolute level of family income had no significant effect on repayment behavior, US borrowers that perceived themselves as having a family income that was relatively lower than other US households repaid at higher rates. Therefore, evidence was found that trustworthiness might be a function of perceived relative wealth or social status rather than the absolute level of wealth or income.

The research results may be difficult to generalize because of the experimental approach and use of students as participants.

The paper includes implications for the administration of micro‐credit loans in China and other developing nations.

This paper experimentally tests a conjecture which appears to be the foundation of micro‐credit markets.

The philosophy of Grameen (rural) banking system was invented by a maverick economist (Dr Yunus) in a tiny village of Bangladesh in 1976, with the aim to eliminate poverty and improve the socio‐economic condition of the rural poor. The bank provides loans to poor people who are unable to provide collateral and indoctrinated in Grameen social values, known as the “sixteen decisions”. Grameen borrowers also vow to observe the bank’s “four basic principles”, and they are the owners (92 per cent) of the bank. Grameen bank began its operations by giving a small amount of money ($30) to 40 people. Today, it employs 14,000 staff and has disbursed more than $1 billion dollars of loan among two million rural people in Bangladesh of which 95 per cent are women, and the rate of its loan repayment is 98 per cent. The Grameen is functioning not only in Bangladesh but also in 50 countries across Asia, Europe, Africa, Oceania, and in the USA. Moving onto the implementation of Grameen‐type micro‐credit systems in Europe, or elsewhere, the differences in socio‐culture, economics and politics (between Bangladesh and the region concerned) should be considered. Thus, this paper is an attempt to investigate the prospects of the implementation of Grameen/micro‐credit banking system in European socio‐economic and cultural contexts.