Thesis (MSD (EAP))--Universiteit van Pretoria, 2003.

Thesis (MBA)--Stellenbosch University, 2002. / ENGLISH ABSTRACT: Start-ups, especially those established out of unemployment, and existing micro businesses experience major difficulties in obtaining funds, both in the start-up or expanding process, around the world. Most entrepreneurs in start-up organisations do not have a credit history, do not possess capital or traditional collateral and lack managerial experience and qualifications. Because mainstream banks perceive them as being too small, new and risky, the required capital amounts are insufficient to cover the banks expenditures and the loan cannot be granted. The end result is that the entrepreneurs remain unemployed and cannot receive investment, which forces them to close their businesses. The banks are unable to prove their creditworthiness in the traditional way and cannot comprehend the entrepreneurs' intentions. In order to create securities and overcome this information gap microlending plays an increasingly significant role. It focuses on people with financial difficulties who are excluded from the traditional capital market. With its innovative methods of creditworthiness assessment, like peer lending, staggered loans and decreasing interest rates, an incentive system is implemented which substitutes collateral and motivates the borrower to repay the loan as scheduled. The borrowers are enabled to invest and start or expand their businesses. The living, income and education standards of people who live in South Africa, particularly in townships, are equal to conditions of a developing country. The existing infrastructure, economical and political situation, on the other hand, would rather classify South Africa as a developed country. Because of this ambivalence it is questionable whether the innovative creditworthiness assessment methods applied in developed countries like those in Europe are applicable in such an environment. In order to evaluate the applicability, the study explains what microlending is and shows its origin, characteristics, creditworthiness assessment methods, differences to traditional banks and other peculiarities. An assessment follows of how three different European microlending organisations, the so-called Microfinance Institutions, work in detail. The self-sufficient and best-practice performing Fundusz Micro in Poland, the French socially aligned Association pour Ie droit a I' initiative Economique and the German as an incubator performing Siebte Saule have been chosen. Results of a survey across Europe will provide further information on how the majority of European Microfinance Institutions have implemented their creditworthiness assessment methods before presenting the South African microlending sector. In conclusion, the applied methods in Europe are discussed in the framework of South African market; considering social, cultural and economical conditions. As assumed, the methods are applicable in general but have to be adjusted in order to be able to provide opportunities to the poorest people. / AFRIKAANSE OPSOMMING: 'Start Ups', veral die wat gestig is waar daar groot werkloosheid heers, asook bestaande mikro besighede ondervind groot probleme in die verkryging van fondse, beide in die 'start-up en uitbreidingsfase. Dit is 'n verskynsel wat dwars oor die wêreld voorkom. Meeste entrepreneurs in 'start up' organisasies het nie die kredietgeskiedenis, nodige kapitaal, tradisionele sekuriteit en/of bestuurservaring en kwalifikasies nie. Kommersiële banke beskou sulke firmas as te klein, en nuut met 'n te hoë risiko aan hulle verbonde omdat die benodigde kapitaal te min is om selfs die bank se uitgawes of die lening te dek, wat beteken dat die entrepeneurs dan werkloos bly of nie kan investeer nie. As gevolg daarvan moet hulle dan hulle besighede sluit. Die Banke kan nie die kredietwaardigheid van die entrepeneurs met tradisionele metodes bewys nie, en kan ook nie die intensies van die entrepeneur bepaal nie. Ten einde die gaping in die mark te vul vir sekuriteite en om die informasiegaping te oorkom, het mikrofinansiering 'n groter rol om te speel. Dit fokus op mense in moeilikheid, wat uitgesluit is van die tradisionele kapitaalmark. Met nuwe innoverende metodes van kredietwaardigheid opsomming, soos 'peer lending', 'staggered loans' en verminderende kredietkoers, is daar 'n sisteem geimplementeer wat sekuriteit vervang en die kredietopnemer motiveer om sy lenings terug te betaal soos geskeduleer. Die kredietopnemer kan dan begin investeer of sy besigheid vergroot. Die lewens en opvoedkundige standaard, inkomste en die armoede van die mense wat in Suid Afrika leef, veral in plakkersdorpe, is soortgelyk aan die omstandighede in ontwikkelende lande. Die huidige ekonomiese infrastruktuur en die politieke situasie aan die ander kant laat Suid Afrika weer kwalifiseer as 'n ontwikkelde land. Weens hierdie ambivalensie is dit te bevraagteken of die nuwe innoverende kredietwaardigheid evalueringsmetodes van toepassing is op ontwikkelende lande in vergeleke met Europese lande waar dit wel onder sulke omstandighede toepaslik is. Om te bepaal of dit van toepassing gemaak kan word op SA omstandighede, verduidelik die studie onder andere wat mikrofinansiering is, asook die oprigting, eienskappe, kredietwaardigheid evalueringsmetodes, en hoe dit van tradisionele banke verskil. Vervolgens word daar dan gekyk hoe drie verskillende Europese mikro banke, die sogenaamde Mikrofinansierders Instansies te werk gaan. Die 'self - sufficient' en beste praktyk word getoets met Fundusz Micro in Pole, die Franse sosialistiese Association pour le droit a I' initiative Economique en die Duitse Siebte Saute. Die resultate van 'n sensus oor Europa sal meer informasie verskaf oor hoe die meerderheid van Europese Mikrofinansierders hulle kredietwaardigheidstoetse implementeer het voor die Suid Afrikaanse sektor voorgestel word. Ten slotte word die toegepaste metodes in Europa bespreek as uitgangspunt vir die Suid-Afrikaanse mark, en daarmee word ook sosiale, kulturele faktore en ekonomiese omstandighede in ag geneem. Daar word ook aangeneem dat die metodes aangepas sal moet word om kanse aan die armste mense in Suid-Afrika te verskaf.

Critics argue that there has been a trend among Microfinance Institutions (MFI) to focus on profitability in order to stay financially sustainable. This made some institutions neglect the social mission of microfinancing. In this paper I intend to examine if empirical evidence supports this so called mission drift hypothesis as well as other claims in this context. Using the global panel data set of the MIX (Microfinance Information Exchange), which gathers from 1995 to 2010 and contains up to 1400 institutions with a high variety of organizational forms, I was able to identify a world-wide mission drift effect in their social goal of reaching out the poorest part of the population. Furthermore, I find that, on average, the outreach of an MFI has a significant negative influence on its short and long term financial performance. Despite that, I eventually proved that the probability that an MFI worsens its social performance substantially increases if its profitability has decreased in the previous years. / Das Konzept der Mikrofinanzierung wurde, insbesondere im Zuge der Mikrofinanzkrisen in Asien und Südamerika zunehmend kritisiert. Dabei stand vor allem die Kommerzialisierung der Branche im Zentrum der Kritik. In dieser Studie soll daher unter anderem die sogenannte „Mission Drifts”-These also dass das eigentliche Ziel des Mikrokreditwesen aus den Augen verloren wurde, empirisch überprüft werden. Mit Hilfe des Microfinance Information Exchange (MIX) Datensatzes, wurden Paneldaten von bis zu 1.400 Kreditinstitutionen, mit unterschiedlichen (Rechts-)formen, aus den Jahren 1995 bis 2010 ausgewertet. Die Regressionsanalyse hat gezeigt, dass Profitablität in der Tat einen negativen Einfluss auf das Ziel hat, möglichst arme Menschen zu erreichen. Auch der Trade-off zwischen der Reichweite von Mikrokrediten und kurzfristiger sowie langfristiger Profitabilität konnte nachgewiesen werden. Die Daten zeigten aber auch, dass Mikrofinanzinstitution dazu tendieren soziale Ziele zu vernachlässigen, wenn es im vergangenen Geschäftsjahr finanziell bergab ging.