Institutional and interpersonal trust and entrepreneurship: insights from relationship banking and microfinance in Brazil
by Ana Cristina O. Siqueira; Sandra R.H. Mariano; Joysi Moraes; Larry W. Cox
International Journal of Business and Globalisation (IJBG), Vol. 14, No. 1, 2015

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.

Online publication date: Wed, 21-Jan-2015

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