Title: Micro-credit programmes, social capital and micro-enterprise performance

Authors: Jasmine Tata, Sameer Prasad

Addresses: School of Business Administration, Loyola University Chicago, 820 North Michigan Avenue, Chicago, IL 60611, USA. ' Department of Management, College of Business and Economics, University of Wisconsin-Whitewater, Whitewater, WI 53190, USA

Abstract: Micro-credit programmes (generally considered to be initiated by the 2006 Nobel Prize winner Mohammed Yunus of the Grameen Bank in Bangladesh) are a form of social (global) entrepreneurship that work with low-income micro-enterprise owners and construct alternate means of approving, disbursing and monitoring loans for micro-enterprises. In this paper, we develop a conceptual model that identifies several characteristics of group-based micro-credit programmes that are necessary to incubate the development of borrowers| social capital and increase the performance of their micro-enterprises.

Keywords: microenterprises; microcredit programmes; social capital; group processes; increased performance; Mohammed Yunus; low incomes; loans; loan approval; disbursement; monitoring procedures; globalisation; global entrepreneurship; entrepreneurs.

DOI: 10.1504/IJBG.2010.034019

International Journal of Business and Globalisation, 2010 Vol.5 No.1, pp.31 - 45

Published online: 06 Jul 2010 *

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