For-Profit Versus Nonprofit Microfinance: How are the poor affected?

Description:

This paper discusses research on the microfinance industry, for-profit versus nonprofit models, and the efficacy of microfinance in alleviating poverty.

Creator(s):
Creation Date: April 3, 2008
Partner(s):
UNT Honors College
Collection(s):
UNT Scholarly Works
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Creator (Author):
Weinberg, Brian R.

University of North Texas

Creator (Contributor):
Cox, Gloria C.

University of North Texas; Faculty Mentor

Creator (Contributor):
McPherson, Michael

University of North Texas; Faculty Mentor

Date(s):
  • Creation: April 3, 2008
Description:

This paper discusses research on the microfinance industry, for-profit versus nonprofit models, and the efficacy of microfinance in alleviating poverty.

Degree:
Department: Political Science
Department: Honors College
Note:

Abstract: Of the world's 6.5 billion people, 2.8 billion are living in poverty on less than $2 per day. After a general discussion of poverty among several perspectives, this research will focus on the microfinance industry. Microfinance has proven itself an effective poverty alleviation tool. Traditionally, the microfinance industry has been nonprofit, geared toward helping the poor rise from poverty through the provision of small loans to create or expand businesses. The need for additional funding capital and the growing popularity of the industry have spurred an industry-wide debate between the traditional nonprofit model and newer for-profit microfinance model ideals. Many social and economic trade-offs occur on the spectrum that shifts between these two models. As this industry continues to transform itself rapidly, this study works to explain the major points of the debate within the context of two microfinance institutions from both models (i.e., Alternativa Solidaria and Compartamos). Although there were several limitations such as time and funding, this paper offers ideas of how each might overcome their inadequacies in the future to find a stronger balance between funding, satisfying the market demand for microfinance services, and effectively alleviating poverty.

Physical Description:

37 p.

Language(s):
Subject(s):
Keyword(s): microfinance | poverty | nonprofit | for-profit
Source: Fifth Annual University Scholars Day, 2008, Denton, Texas, United States
Contributor(s):
Series Title: University Scholars Day
Partner:
UNT Honors College
Collection:
UNT Scholarly Works
Relation (Is Version Of): For-Profit Versus Nonprofit Microfinance; How are the poor affected?, ark:/67531/metadc86928
Identifier:
  • ARK: ark:/67531/metadc86952
Resource Type: Paper
Format: Text
Rights:
Access: Public