IMPACT OF MICROCREDIT ON SUSTAINABLE DEVELOPMENT OF BUSINESS

Abstract

Microcredit emerged in the 1970s, in Bangladesh, as a tool for sustainable development. However, in Portugal, it only took its first steps in the late 1980’s and emerged as a response to unemployment. This paper provides an overview of micro credit system in Portugal and aims to identify the profile of the successful microentrepreneur and point out the reasons that most contribute to the sustainability of microcredit business initiatives. Although the paper is mainly exploratory, we combined different methodologic approaches. First, we conducted interviews with key informants, then, we applied a questionnaire to microentrepreneurs. The survey contained three sections, namely, socio-demographic characteristics; characteristics of project; attitude as an entrepreneur. A sample group consisting of 96 participants of microfinance programme participated in the research. The findings indicate that the profile of the successful microentrepreneur is an individual with a superior degree, already have been employed, with positive or very positive level for the innovation of the product/service, for the adjustment of the business to the environment, for prior planning and for the accompaniment by public/non-profit institution. In a less degree, a positive level for training/professional experience in the project area and a positive level for self-esteem/self-confidence have also some influence. The results point out that the attitude as a microentrepreneur is less important than the characteristics of the project to the outcome of the microenterprise