Microfinance is known as a type of funding that may be provided to small businesses and entrepreneurs who all don’t have use of traditional financial resources. This includes financial loans, credit, use of saving accounts, insurance policies and cash transfers.
Micro finance schools are primary sources of money for low income individuals and small enterprises that should not have access to classic banking services or have simply no collateral. These kinds of institutions provide loans and other financing services at good rates.
The goal of this analyze is to discover how microfinance and entrepreneurship are linked in Kazakhstan, a country undergoing changover to some market economic climate. We keep pace with shed light on how microfinance hard disks small business development and formalisation in a transition context and also to explore borrowers’ relationships with MFOs at distinctive stages with the process.
Our study develops on coming through literature that feedback a teleological approach to microfinance (Ault & Spicer, 2014; Chliova, Brinckmann, & Rosenbusch, 2015) and advises a more exploratory inquiry that asks more open concerns about how microfinance relates to entrepreneurial outcomes in transitional situations. This requires featuring methodologies which might be more empirically-informed, attuned for the agency of everyday entrepreneurs plus more contextually-situated.
We explored borrowers’ relationships with MFOs through a field review of 86 clients in Almaty and Almatinskaya canton in Kazakhstan, which are associated with both the Foreign MFOs that focus on group lending and Private MFOs that offer individual loans to clients. The study also inspected the relationship between borrowers and their MFOs, that has been influenced by a selection of factors which include their history characteristics, enterprise characteristics and websites patterns of microfinance use.