31 research outputs found
Towards a Performance Measurement Framework for Community Development Finance Institutions in the UK
Community Development Finance Institutions (CDFIs) are publicly funded organisations that provide small loans to people in financially underserved areas of the UK. Policy makers have repeatedly sought to understand and measure the performance of CDFIs to ensure the efficient use of public funds, but have struggled to identify an appropriate way of doing so. In this article, we empirically derive a framework which measures the performance of CDFIs through an analysis of their stakeholder relationships. Based on qualitative data from 20 English CDFIs, we develop a typology of CDFIs according to three dimensions: organisational structure, type of lending, and type of market served. Following on from this, we derive several propositions that consider how these dimensions relate to the financial and social performance of CDFIs, and provide the basis for a performance measurement framework.Community Development Finance, Performance Measurement, Stakeholder Theory
Microlending: Is There Demand for Such Loans in Germany?
A lack of financial means is viewed as a key reason why small businesses fail. Therefore, also in Germany several institutions tried to establish microloans as a financing tool. A first empirical study, building a benchmark for similar studies in Western Europe, shows that about 15 percent of all self-employed individuals would be interested in getting access to microloans. The study also demonstrates that these financial needs exist in target groups different from what was previously expected at least in Germany. Rather than offering microloans to business founders, they should be offered to existing small business owners in specific sectors. In addition, in order to be accepted by entrepreneurs, access to microloans must be available rapidly, with short repayment periods.Entrepreneurship, Microlending, Market research
Funding Self-Employment: The Role of Consumer Credit
This paper investigates whether self-employed households use consumer loans â in particular instalment loans and overdrafts â to finance business activities. Controlling for financial and non-financial household variables we show that self-employed households particularly use personal overdrafts significantly more often than employee households. When analyzing the correlation between consumer loan take-ups and consumption of self-employed in comparison to employee households, we find first evidence that overdrafts are used by self-employed to finance their business as well. This indicates that intermingling constitutes a financing strategy when regular business loans might not be accessible.small business finance, consumer credit, financial intermingling
Funding Self-Employment - The Role of Consumer Credit
In this paper we investigate whether self-employed households use consumer loans to finance their business activities. In particular, it is shown that self-employed households use personal overdrafts significantly more often than employee households do. This difference remains when controlling for financial and non-financial household variables: a discrete change from wage employment to self-employment results in an average rise in overdraft usage of 14.1%. These findings are corroborated when analyzing the correlation between consumer loan take-ups and consumption of self-employed households. Intermingling of personal and business resources is more likely when the household is credit constrained; when the household head is younger; and when financial assets within the household are lower.Small Business Finance, Consumer Credit, Financial Intermingling
Microlending: Is There Demand for Such Loans in Germany?
A lack of financial means is viewed as a key reason why small businesses fail. Therefore, also in Germany several institutions tried to establish microloans as a financing tool. A first empirical study, building a benchmark for similar studies in Western Europe, shows that about 15 percent of all self-employed individuals would be interested in getting access to microloans. The study also demonstrates that these financial needs exist in target groups different from what was previously expected at least in Germany. Rather than offering microloans to business founders, they should be offered to existing small business owners in specific sectors. In addition, in order to be accepted by entrepreneurs, access to microloans must be available rapidly, with short repayment periods
Funding self-employment: The role of consumer credit
This paper investigates whether self-employed households use consumer loans - in particular instalment loans and overdrafts - to finance business activities. Controlling for financial and non-financial household variables we show that self-employed households particularly use personal overdrafts significantly more often than employee households. When analyzing the correlation between consumer loan take-ups and consumption of self-employed in comparison to employee households, we find first evidence that overdrafts are used by self-employed to finance their business as well. This indicates that intermingling constitutes a financing strategy when regular business loans might not be accessible
Toward a Performance Measurement Framework of Community Development Finance
Abstract Community Development Finance Institutions (CDFIs) are publicly funded organisations that provide small loans to people in financially underserved areas of the UK. Policy makers have repeatedly sought to understand and measure the performance of CDFIs to ensure the efficient use of public funds, but have struggled to identify an appropriate way of doing so. In this article, we empirically derive a framework which measures the performance of CDFIs through an analysis of their stakeholder relationships. Based on qualitative data from 20 English CDFIs, we develop a typology of CDFIs according to three dimensions: organisational structure, type of lending, and type of market served. Following on from this, we derive several propositions that consider how these dimensions relate to the financial and social performance of CDFIs, and provide the basis for a performance measurement framework
Demand Side Analysis of Microlending Markets in Germany
In developing and transition economies, microlending has become an effective instrument for providing micro businesses with the necessary financial resources to launch operations. In the industrialized countries, with their highly developed banking systems, however, there has been ongoing debate on the question of whether an uncovered demand for microlending services exists. The present pilot study explores customer preferences for microlending products in Germany. Among the interviewed business owners, 15% reported revolving funding needs and an interest in microloans. We find that potential recipients of microloan products are retail business owners, foreign business owners, and persons who had previously received private loans. Furthermore, financial products should feature rapid access to short-term loans.entrepreneurship, microlending, market research
Demand Side Analysis of Microlending Markets in Germany
In developing and transition economies, microlending has become an effective instrument for providing micro businesses with the necessary financial resources to launch operations. In the industrialized countries, with their highly developed banking systems, however, there has been ongoing debate on the question of whether an uncovered demand for microlending services exists. The present pilot study explores customer preferences for microlending products in Germany. Among the interviewed business owners, 15% reported revolving funding needs and an interest in microloans. We find that potential recipients of microloan products are retail business owners, foreign business owners, and persons who had previously received private loans. Furthermore, financial products should feature rapid access to short-term loans.Entrepreneurship, Microlending, Market Research
Mikrokredite: Bedarf auch in Deutschland
Fehlende Finanzierung wird als ein zentraler Grund angesehen, warum kleine Unternehmen scheitern. Seit einigen Jahren wird daher versucht, das Instrument der Mikrokredite auch in Deutschland zu etablieren. Eine erste empirische Studie zeigt, dass rund 15 Prozent aller SelbstĂ€ndigen Interesse an Mikrokrediten Ă€uĂern. Allerdings macht diese Studie auch deutlich, dass der Bedarf woanders liegt als bisher vermutet. Statt ExistenzgrĂŒnder sollten bereits aktive Kleinunternehmer bestimmter Branchen angesprochen werden. AuĂerdem mĂŒssen Mikrokredite bei kurzer Laufzeit schnell verfĂŒgbar sein, damit sie von Unternehmern angenommen werden