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Bika, Zografia 
ORCID: https://orcid.org/0000-0002-2970-2941, Subalova, Madina and Locke, Catherine ORCID: https://orcid.org/0000-0003-1810-1902
(2022)
Microfinance and small business development in a transitional economy: Insights from borrowers’ relations with microfinance organisations in Kazakhstan.
Journal of Development Studies, 58 (1).
pp. 183-203.
ISSN 0022-0388
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Abstract
Microfinance is seen as an important vehicle for developing small businesses in developing and transitional economies despite the relative absence of supporting research. We use mixed methods to offer a nuanced empirical exploration of the relationship between microfinance and everyday entrepreneurial practice(s) in Kazakhstan. As in many transitional contexts, ‘unbankable’ borrowers here operate in a vibrant informal sector, face high degrees of uncertainty, and retain a strong distrust of a corrupt/predatory state. Our data-based methodology for analysing borrowers’ diverse relationships with microfinance organisations (MFOs) generates insights into their multiple pathways to business development. Both ‘outreach’ and ‘commercialised’ MFOs sustain micro-flows of resources that are critical for everyday entrepreneurs who need to finance ongoing consumption and contingencies whilst also (and by) building up their small businesses. Microfinance use did not promote formalisation or impersonalised banking relationships. Instead, MFOs focused primarily on repayment, clients’ businesses remained partially formalised or unregistered across all stages of growth and the lending relationships preferred by Private MFOs and borrowers were highly personalised. Consequently, we call for assumptions about how microfinance can (and should) drive small business development need to be rethought for transitional contexts.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | microfinance,entrepreneurial practice,transitional economy,kazakhstan,sdg 1 - no poverty,sdg 5 - gender equality,sdg 8 - decent work and economic growth,4* ,/dk/atira/pure/sustainabledevelopmentgoals/no_poverty |
| Faculty \ School: | Faculty of Social Sciences > Norwich Business School Faculty of Social Sciences > School of Global Development (formerly School of International Development) |
| UEA Research Groups: | Faculty of Social Sciences > Research Groups > Marketing Faculty of Social Sciences > Research Groups > Migration Research Network Faculty of Social Sciences > Research Groups > Strategy and Entrepreneurship |
| Related URLs: | |
| Depositing User: | LivePure Connector |
| Date Deposited: | 17 Aug 2021 00:18 |
| Last Modified: | 23 Oct 2022 02:54 |
| URI: | https://ueaeprints.uea.ac.uk/id/eprint/81117 |
| DOI: | 10.1080/00220388.2021.1956472 |
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