Business Studies

Business Studies

Growth of Microfinance Industry: A Critical Global Review

Pages: 17  ,  Volume: 51  ,  Issue: 1 , April   2020
Received: 01 May 2020  ,  Published: 04 May 2020
Views: 89  ,  Download: 40

Authors

# Author Name
1 Dr. Chepkwei Ambrose Kipruto, PhD

Abstract

The ideas of microfinance dates back to the 15th century when pawn shops were established in Europe as alternatives to usurious money lending. In the 1700’s the Irish loan funds system was established in Ireland. Almost 30 years after the start of the first micro finance institutions were founded the micro finance market is still in evolution. Microfinance is the provision of savings accounts, loans, insurance, and other banking services to customers that lack access to conventional financial services due to poverty. Interest in microfinance has grown over the years due to the industry’s ability to improve livelihood of low-income people, however, most microfinance institutions still find challenge in copying with customer needs that require establishment of viable strategies. The objective of the study was to establish growth of microfinance industry globally. The study utilizes resource-based view theory. The research method adopted in this study is the review of literature. The researcher randomly sampled and critically examined existing research on growth of microfinance institutions in 17 countries of the world. Microfinance is no longer an experiment or a wish, it has proven success. It has worked successfully in many parts of the world – Africa, Asia, Latin America, Europe, and North America. The benefits of microfinance industry lie on government policy formulation allowing reasonable freedom towards smooth development. It is required that microfinance institutions provide training to their clients, to support their microenterprises. Microfinance is considered an innovative tool for enabling the low-income people to reap the benefits of microfinance growth.

Keywords

  • group
  • financial
  • institutions
  • growth
  • microfinance
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