How does microfinance enhance entrepreneurial outcomes in emerging economies? The mediating mechanisms of psychological and social capital

By Alexander Newman, Susan Schwarz, Dan Borgia. 2014

126 citations recorded by the source corpus.

In this article, a conceptual framework and research propositions are developed to explain how microfinance provision can translate into new venture creation and existing venture growth in an emerging economy context by engendering higher levels of psychological and social capital in clients. In doing this, the extent to which microfinance institutions provide business support and opportunities for social interaction are identified as factors which may strengthen the impact of microfinance provision on psychological and social capital, especially for poor entrepreneurs in resource-constrained settings. The conceptual framework and research propositions developed will be of use to academics in designing an agenda for future empirical research. In addition, they will help policymakers and microfinance providers to better design microfinance initiatives that enhance the well-being of clients and maximise their entrepreneurial outcomes.

Subfields: Business and International Management, Economics and Econometrics, Management of Technology and Innovation

View Paper: https://www.semanticscholar.org/paper/d690b1081c8cfa159053645ddf75517cc3a2a49e

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Citations in the corpus

What is challenging renewable energy entrepreneurs in developing countries (2016, background): “Microfinancing and microlending, in particular, have been championed as examples of business model innovations that improve end-users’ ability to afford renewable energy technologies [82,96].”
Perceived public support and entrepreneurship attitudes: A little reciprocity can go a long way! (2020, background): “Also, access to (or lack of) financial funds (Hoque, Awang, Muda, & Salleh, 2018) including microfinance (Newman, Schwarz & Borgia, 2014), bank loans and venture capital (Tang, 2008) was found to affect the level of entrepreneurial self - efficacy.”
Psychological capital and the startup capital–entrepreneurial success relationship (2016, background): “In an entrepreneurial sense, self-efficacy is the confidence that inspires individuals to accomplish the challenging tasks (Boyd and Vozikis 1994; Luthans, Youssef, and Avolio 2007; Luthans et al. 2007; Newman et al. 2014) involved in entrepreneurship.”