Entrepreneurial microcredit support: the silver bullet for microenterprises success. The case of funds Mauricie in Quebec

Abstract

PurposeThis study aims to propose a model of entrepreneurial microcredit support that could address the problem of entrepreneurial support provided by microfinance institutions. This objective is justified by the need to produce scientific knowledge that could be of use to practitioners and political decision-makers who formulate and implement strategies of social inclusion and poverty reduction.Design/methodology/approachThe study adopts a socio-constructivist research perspective. Social constructivism is a theoretical approach that posits that all social reality is constructed. In other words, individuals construct their knowledge of reality relative to their social setting. This justifies the use of the focus group to supplement and validate the data gathered in an individual interview. The socio-constructivist perspective allows us to better understand and develop knowledge based on the meaning that interviewees attribute to their experience. This perspective also justifies the choice of qualitative data collection method. The data were collected during semi-structured interviews.FindingsEntrepreneurial microcredit support is distinguished from classic entrepreneurial support because it places the individual at the center of the process by emphasizing soft skills in the development of the entrepreneurial spirit. This approach engenders an efficient support process that comprises three main steps: determination of entrepreneurial potential, empowerment and reinforcement of autonomy and acquisition of managerial skills. The efficiency stems from the fact that the time factor is not a constraint in the entrepreneurial microcredit support process and from the relationship of proximity and trust between the credit agent and the micro-entrepreneur.Originality/valueTo the best of authors’ knowledge, this is the first paper to deal with the entrepreneurial microcredit support, which is completely different from the classical entrepreneurial support because of the uniqueness of microfinance and micro-entrepreneurs. The model clearly reveals that the support for the development of the skills required to successfully run a microenterprise is provided based on a socio-constructivist approach in which the micro-entrepreneur is the main actor in the construction of “mobilized knowledge” required to nurture promoters’ entrepreneurial spirit. Consideration of soft skills in a socio-constructivist perspective is, therefore, indispensable for entrepreneurial development.