Profit orientation of microfinance institutions and provision of financial capital to business start-ups
Data(s) |
01/06/2016
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Resumo |
This article examines whether the profit orientation of a microfinance institution (MFI) affects its decision to extend loans to business start-ups. Based on information from 198 MFIs in 65 countries, we show that for-profit MFIs are less likely to provide financial capital to business start-ups than their not-for-profit counterparts. This results from the adoption of a dominant ‘commercial’ logic by for-profit MFIs, which motivates them to maximize profit by extending loans to less risky ventures with mature projects. In contrast, a dominant ‘development’ logic motivates not-for-profit MFIs to alleviate poverty through supporting the creation of new ventures. The use of a propensity score matching technique to correct for any potential endogeneity problem provides us with greater confidence that the suggested association is not a spurious correlation. |
Identificador | |
Idioma(s) |
eng |
Publicador |
Sage Publications |
Relação |
http://dro.deakin.edu.au/eserv/DU:30084963/newman-profitorientation-2016.pdf http://www.dx.doi.org/10.1177/0266242615570401 |
Direitos |
2016, Sage |
Palavras-Chave | #Social Sciences #Business #Management #Business & Economics #business start-ups #institutional logics #microfinance #profit orientation #propensity score matching #ECONOMETRIC EVALUATION ESTIMATOR #EMERGING ECONOMIES #ORGANIZATIONAL LEGITIMACY #PERFORMANCE #OUTREACH #CREDIT #MARKET #ENTREPRENEURSHIP #DETERMINANTS #MICROCREDIT |
Tipo |
Journal Article |