Financing Businesses in Africa : The Role of Microfinance
This paper evaluates how microfinance performed in providing business financing in 27 Sub-Saharan African countries. It uses data from the 2009 and 2010 Gallup World Poll, a nationally-representative survey of at least 1,000 individuals per country...
| Main Authors: | , , |
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| Format: | Policy Research Working Paper |
| Language: | English |
| Published: |
2012
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| Subjects: | |
| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20120222133705 http://hdl.handle.net/10986/3261 |
| Summary: | This paper evaluates how microfinance
performed in providing business financing in 27 Sub-Saharan
African countries. It uses data from the 2009 and 2010
Gallup World Poll, a nationally-representative survey of at
least 1,000 individuals per country, conducted in up to 157
countries per year. The data, supported by rigorous
statistical evidence in related literature on the use of
microcredit around the world, demonstrate that economic
gains from microcredit have been more modest than what was
once believed. On the other hand, the analysis suggests that
the poor save in order to start new businesses and that the
introduction of formal products for small savings can be a
key financial innovation. The authors also analyze the
challenges the poor face in setting money aside to save, and
discuss what policymakers can do to promote savings. |
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