An Introduction to Microfinance: Intervention in Challenging Contexts

This book emerges within the context of the project “The role of microcreditMicrocredit in promoting financial and social inclusionSocial inclusion” (funded by FCT-Fundação para a Ciência e a Tecnologia, I.P., Project PTDC/EGE-OGE/31246/2017), with the purpose to shed light on the microfinanceMicrofinance and entrepreneurial finance puzzle, particularly on the outcomes of microfinance (and microcredit in particular) for its clients and the access to credit conditions they face, without overlooking the need to evaluate the financial sustainabilityFinancial sustainability of microfinance institutions (MFIs)Microfinance institutions (Mfls) and their social mission. This book brings new insights into the effectiveness of microcreditMicrocredit as a tool for promoting entrepreneurial activities that may in turn empower individuals living in extreme poverty and vulnerable conditions across several dimensions of human development in the challenging times faced by both individuals and the microfinance industry. The book is organized in three parts, encompassing eighteen chapters. Part I “Financial system and Institutionalist approach” with seven chapters focuses the supply side of microfinance, namely the economic efficiencyEconomic efficiency, financial performanceFinancial performance, and sustainabilitySustainability of the market and MFIsMicrofinance institutions (Mfls). Part II “Poverty lending and welfarism approach” with five chapters emphasizes the analysis of the demand side of microfinanceMicrofinance, that is, on the microfinance effects on individuals, assessing microfinance outcomes in challenging contexts, namely their social outreachSocial outreach, and their impact assessment, mainly through qualitative approaches. Finally, Part III “Generalists studies” encapsulates five chapters offering a financial perspective on microfinanceMicrofinance access, credit conditions of financial intermediation, and microcredit performancePerformance. This book in turn contributes to academic research by stimulating investigations into new borders between microfinance and entrepreneurial finance and social entrepreneurshipEntrepreneurship, which remain rather scarce. In terms of societal impact, this book briefs a set of contributions that address the specific Sustainable Development GoalsSustainable Development Goals (SDG) in the microfinance market of eliminating extreme poverty (SDG1), promoting shared economic growthEconomic growth (SDG8), and reducing the inequalitiesInequality among countries (SDG10).