Microfinance can be described as type of money that is certainly provided to small businesses and entrepreneurs who all don’t have entry to traditional money. This includes financial loans, credit, usage of saving accounts, insurance policies and funds transfers.
Micro finance organizations are main sources of financing for low income people and smaller businesses that you do not have access to traditional banking services or have not any collateral. These types of institutions furnish loans and also other financing products and services at good rates.
The goal of this review is to appreciate how microfinance and entrepreneurship are linked in Kazakhstan, a country undergoing changover to some market overall economy. We seek to shed light on how microfinance drives small business development and formalisation in a transitional context and also to explore borrowers’ relationships with MFOs at different stages of the process.
Each of our study plots on rising literature that feedback a teleological approach to microfinance (Ault & Spicer, 2014; Chliova, Brinckmann, & Rosenbusch, 2015) and implies a more educational inquiry that asks more open questions about how microfinance relates to entrepreneurial outcomes in transitional contexts. This requires featuring methodologies that happen to be more empirically-informed, attuned to the agency of everyday entrepreneurs and more contextually-situated.
We explored borrowers’ relationships with MFOs through a field survey of eighty six clients in Almaty and Almatinskaya zones in Kazakhstan, which are associated with both the Foreign MFOs that focus on group lending and MFOs that offer individual loans to clients. The study also looked at the relationship between borrowers and the MFOs, that was influenced by a choice of factors which include their qualifications characteristics, organization characteristics and virtual data room habits of microfinance use.