Abstract
Research on microfinance institutions (MFIs) has normally been focused on developing and emerging markets. However, an analysis of developed countries is also important for foreign MFIs wishing to take advantage of the growth potential of those markets. Therefore, the aim of this article is to determine whether MFIs working in the USA’s market should change or adapt their microcredit policies with respect to women. In effect, there are no studies in the USA supporting the argument that women are a better risk of microcredit than men, or that there are differences in microcredit repayment behavior between women and men. Additionally, it was investigated if the payment behavior of women and men is related to variables such as their age, ethnicity, academic level, marital status, or the characteristics of the microcredits, like purposes, amounts, and payment terms. In the USA, there are not—as in other countries—strong incentives, motivations, or external pressures, other than those that men also have, which influence women to pay their microloans better than men. Then, domestic and international MFIs attracted to enter the USA’s market should review their microcredit policies in relation to women. More research is needed about the microfinance market in the USA.
Highlights
The beginnings of microfinance, as currently known, originated simultaneously and independently in Asia and Latin America in the 1970s [1,2]
Microfinance institutions (MFIs), like any other business, have traditionally focused on quantifying the results of their programs and use impact measures to evaluate the effects of their products and policies [5]
It was possible to obtain a list of microfinance institutions (MFIs) from the Small Business Administration (SBA), which issued microcredit in addition to providing SBA loan services; 65 of these microfinance organizations were not included in the MicroTracker database
Summary
The beginnings of microfinance, as currently known, originated simultaneously and independently in Asia and Latin America in the 1970s [1,2]. Microfinance began with very remote initiatives, almost simultaneous and unknown amongst each other. A new industry was initiated which would lead to the United Nations declaring 2005 as the International Year of Microcredit, and in 2006, Muhammad Yunus and Grameen Bank received the Nobel Peace Prize for their efforts [1,2,3,4]. Microfinance institutions (MFIs), like any other business, have traditionally focused on quantifying the results of their programs and use impact measures to evaluate the effects of their products and policies [5]. The focus on and reach of poor clients and poor women has been one of the traditional impact measures of MFIs [5]. It was pointed out that 82.6% of the poorest clients served were women [6]
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
