Title: Institutional and interpersonal trust and entrepreneurship: insights from relationship banking and microfinance in Brazil

Authors: Ana Cristina O. Siqueira; Sandra R.H. Mariano; Joysi Moraes; Larry W. Cox

Addresses: Palumbo Donahue School of Business, Duquesne University, 600 Forbes Avenue, Pittsburgh, PA 1528, USA ' Entrepreneurship and Management Department, Universidade Federal Fluminense, Rio de Janeiro, Brazil ' Entrepreneurship and Management Department, Universidade Federal Fluminense, Rio de Janeiro, Brazil ' Graziadio School of Business and Management, Pepperdine University, USA

Abstract: We examine the value of trust in entrepreneurship by addressing the context of microfinance. We investigate the cases of three community banks providing microfinance in bottom-of-the-pyramid communities in Brazil. Using qualitative methods, we find that institutional trust seems to facilitate the operation of microfinance organisations that support entrepreneurship, while stimulating consumption within a community and the development of local small businesses. Additionally, interpersonal trust seems to facilitate the development of formal and informal businesses.

Keywords: interpersonal trust; entrepreneurship; microfinance; institutional trust; Brazil; relationship banking; community banks; bottom-of-the-pyramid communities; BoP.

DOI: 10.1504/IJBG.2015.066097

International Journal of Business and Globalisation, 2015 Vol.14 No.1, pp.58 - 74

Published online: 19 Nov 2014 *

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