Microfinance is known as a type of financial that may be provided to small businesses and entrepreneurs whom don’t have entry to traditional money. This includes loans, credit, usage of saving accounts, insurance policies and cash transfers.
Mini finance institutions are major sources of money for low income persons and small businesses that you do not have access to classic banking solutions or have zero collateral. These types of institutions offer loans and also other financing products at sensible rates.
The purpose of this review is to know how microfinance and entrepreneurship are linked in Kazakhstan, a country undergoing changover to some market economic climate. We seek to shed light on how microfinance drives small business expansion and formalisation in a transition context also to explore borrowers’ relationships role of microfinance institutions with MFOs at numerous stages within the process.
Each of our study creates on emerging literature that reviews a teleological approach to microfinance (Ault & Spicer, 2014; Chliova, Brinckmann, & Rosenbusch, 2015) and suggests a more educational inquiry that asks even more open queries about how microfinance relates to gumptiouspioneering, up-and-coming outcomes in transitional situations. This requires making use of methodologies which might be more empirically-informed, attuned for the agency every day entrepreneurs and even more contextually-situated.
All of us explored borrowers’ relationships with MFOs through a field study of 86 clients in Almaty and Almatinskaya canton in Kazakhstan, which are representative of both the Overseas MFOs that focus on group lending and Private MFOs that offer individual loans to clients. The analysis also analyzed the relationship between borrowers and the MFOs, that has been influenced by a collection of factors including their track record characteristics, enterprise characteristics and patterns of microfinance use.
