Microfinance for Small companies and Entrepreneurship in Transitional Countries

Microfinance is mostly a type of solutions that may be provided to small businesses and entrepreneurs who all don’t have usage of traditional financial resources. This includes loans, credit, use of saving accounts, insurance policies and funds transfers.

Tiny finance institutions are most important sources of money for low income persons and small companies that don’t have access more helpful hints to traditional banking services or have simply no collateral. These institutions furnish loans and also other financing offerings at decent rates.

The aim of this review is to appreciate how microfinance and entrepreneurship will be linked in Kazakhstan, a country undergoing transition to a market economic system. We strive to shed light on just how microfinance memory sticks small business production and formalisation in a transitional context and also to explore borrowers’ relationships with MFOs at completely different stages from the process.

The study develops on growing literature that opinions a teleological approach to microfinance (Ault & Spicer, 2014; Chliova, Brinckmann, & Rosenbusch, 2015) and implies a more exploratory inquiry that asks more open concerns about how microfinance relates to entrepreneurial outcomes in transitional situations. This requires making use of methodologies which have been more empirically-informed, attuned towards the agency every day entrepreneurs and more contextually-situated.

We explored borrowers’ relationships with MFOs through a field study of eighty six clients in Almaty and Almatinskaya zones in Kazakhstan, which are representative of both the International MFOs that focus on group lending and MFOs that offer individual loans to clients. The analysis also looked at the relationship between borrowers and the MFOs, that was influenced by a array of factors including their qualifications characteristics, organization characteristics and patterns of microfinance use.