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The limitations of group-based microfinance and ways to overcome them

The limitations of group-based microfinance and ways to overcome them

Marr, Ana ORCID: 0000-0002-8764-5682 (2006) The limitations of group-based microfinance and ways to overcome them. Small Enterprise Development, 17 (3). pp. 28-40. ISSN 0957-1329 (doi:https://doi.org/10.3362/0957-1329.2006.029)

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Abstract

In group-based microfinance, success in attaining the goals of financial sustainability and poverty reduction is crucially dependent on the sustainability of groups as organizations. This article argues that as mounting tensions arise between financial sustainability and organizational sustainability, this produces fundamental instability within groups and a tendency for the system to collapse. What is more, tensions tend to lead to the fracturing of groups and greater exclusion of the poor, creating negative impacts on well-being. The article discusses how tensions between financial and organizational sustainability can be minimized, and suggests that incentives should be put in place to strengthen groups.

Item Type: Article
Additional Information: [1] The journal, Small Enterprise Development, is now published as Enterprise Development and Microfinance (ISSN 1755-1978).
Uncontrolled Keywords: group dynamics, microfinance, impacts, poverty reduction
Subjects: H Social Sciences > HG Finance
Faculty / School / Research Centre / Research Group: Faculty of Business > Department of International Business & Economics
Faculty of Engineering & Science > Natural Resources Institute
Faculty of Engineering & Science > Natural Resources Institute > Food & Markets Department
Faculty of Business
Related URLs:
Last Modified: 22 Oct 2020 17:09
URI: http://gala.gre.ac.uk/id/eprint/3264

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