Micro-Entrepreneurs: A Creative Group Striving to Move From Rags to Riches

Vol. 4 No. 2

Year : 2009

Issue : Sep-Nov

Title  : Micro-Entrepreneurs: A Creative Group Striving to Move From Rags to Riches 

Author Name  : Bella L. Galperin 

Synopsis  : 

The concept of micro-credit or micro-loan, pioneered by the Grameen Bank in Bangladesh, involves credit of approximately $100 to economically disadvantaged entrepreneurs--typically creative women in developing countries. The micro-loan movement has created a global network of tens of millions of women entrepreneurs. Although micro-credit has been in existence approximately three decades, there has been little theoretical work on micro-entrepreneurs. This paper reviews the literature and poses questions regarding the micro-entrepreneurship literature. Specifically, the paper poses the following questions: Are micro-entrepreneurs being helped or hurt by micro-finance institutions? Are micro-entrepreneurs receiving a micro-credit or micro-debt? Do micro-finance efforts help micro-entrepreneurs in both developing and developed countries? What are the long-term effects of micro-credit? First, a brief history of the microfinance movement is discussed and questions are then presented. Finally, possible directions for future research are outlined.