Financiamiento para las micro y pequeña empresas: Algunas líneas de acción

Publication Date: 1999
Published by: St. Louis, USA: Microfinance.com

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Financing small and medium enterprises - what issues need to be addressed?

Discusses three major issues for microfinance institutions (MFIs):

• an appropriate environment: the economic context can either be an incentive or an obstacle to the MFI's development. An MFI's competitiveness is affected by national and global economic policies, and government regulations, amongst others
• self-sustainability: the dilemma is that in moving towards sustainability, MFIs may charge higher fees which will reduce each client's benefits. However over the long term the increase in client numbers should compensate these imbalances
• product innovation to meet client demand: financial product design should take into account their end use by microenterprises and should contribute towards the MFI's sustainability