Among the reasons for financial exclusion is the fact that the poor, being largely illiterate and unemployed, are traditionally perceived as ‘bad credit risks’. This is the dominant perception of the poor in the formal credit markets – a perception that also exists in the microcredit sector. In other words, while information asymmetry is a recognized problem in lender-borrower relationships, lenders consider the problem particularly severe when they contemplate doing business with the poor. A contrasting paradigm, such as the one adopted by Grameen Bank of Bangladesh, views the poor as possessing economic potentials that have not been tapped – that is, as ‘good credit risks’. Grameen Bank’s microcredit features appear to have successfully mitigated the problems of information asymmetry and, to a large extent, made it possible for the poor to access microenterprise credit. Using the Grameen Bank model as a benchmark, this study examined the lending features of private sector microlenders in South Africa and those of KhulaStart (credit) scheme. The aim was to identify how the lending features affect microenterprise credit access. Primary data were obtained through interviews, while relevant secondary data were also used in the study. A key finding of the study was that while the Khulastart scheme was, like Grameencredit, targeted at the poor, the method of its delivery appeared diluted or unduly influenced by the conventional (private sector) paradigm that pre-classifies people as ‘good’ or ‘bad’ credit risks. As a result, the scheme was not robust enough to support microenterprise credit access. This has consequences for job-creation and poverty reduction. Based on the findings, the study maintains that a realistic broadening of microenterprise credit access will not occur unless there is a fundamental paradigm shift in microcredit practices, and unless measures designed to mitigate information asymmetries are sensitive to the historical, economic and sociocultural realities of the South African poor.

The Thesis "The Change of Development Aid's Paradigm on the Microfinance Example" deals with the issue of microfinance from the point of view of development theories. Microfinance as a form of development aid is a relatively new phenomenon. It is a form of a direct financial support of small entrepreneurs in developing countries. Since the 90s commercial institutions have become increasingly involved in the process of microfinancing and projects and financing have gone beyond borders of individual states. After 2000 microfinance has become a part of the agenda of international organizations. In the last century, there was a dynamic development in the area of development theories. The change of development aid's paradigm, which took place during the 90s, marked a culmination of this process. Since the 90s the term Comprehensive Development Framework is being used. This thesis verifies validity of the subsequent hypothesis, interest in microfinancing is in accordance with the change of development theories paradigm. The incorporation of microfinance into the development aid's agenda is assessed by concepts the new paradigm works with; the human potential (individual as an active player of development), role of the institutional environment, multidisciplinarity and sustainable development.

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In course of time the role of the individual being has become increasingly important in the fight against poverty. Through its microcredit programmes, the organization Grameen Bank offers “aid to self-help” to poor women on the countryside in Bangladesh. The purpose of this essay is to investigate how participation in Grameen’s microcredit programmes can affect these women’s social situation and working situation. In order to achieve the purpose the following questions have been formulated: How does microcredit affect women’s self-esteem, influence in the household, and exposure to domestic violence? How does microcredit affect women’s occupational situation, to what extent do they have control over their loans, and how is microcredit regarded in comparison with permanent jobs, as a way to reduce poverty? The research, which has been carried out as a qualitative text analysis, shows that Grameen plays an important role when it comes to improving women’s living conditions. The access to microcredit helps women increasing their working activity as well as their self-esteem and influence in the household. However, microcredit does not merely create positive consequences. There are cases where microcredit increases the risk of domestic violence. Often the loans are transferred within the household, and then controlled by men. In addition, women’s use of microcredit is still confined to activities traditionally performed by women. These factors are important to consider when evaluating Grameen’s programmes, since they counteract Grameen’s vision of creating development for women.