L’objectif de cette thèse est de contribuer, d’un point de vue théorique, à la compréhension des raisons du succès très médiatisé du microcrédit dans les pays du Sud afin d’analyser les conditions de son efficacité pour les pays du Nord. Dans le premier chapitre, nous cherchons à identifier les facteurs clés du succès constaté des prêts de groupe, pratique dominante dans les pays du Sud, pour démontrer que ces conditions spécifiques sont difficilement réunies dans les pays du Sud eux-mêmes, et sans doute encore moins dans les pays du Nord. Pour y arriver, nous procédons à une présentation descriptive des principales modalités de prêts de groupe, suivie d’une analyse théorique de leurs mécanismes incitatifs en mobilisant notamment les travaux de Ghatak (1999), Ghatak et Guinnane (1999) et Guttman (2008). Dans le deuxième chapitre, nous nous intéressons à la pratique alternative de microcrédit de type « entrepreneurial », plus adaptée à l’environnement socio-économique assez complexe des pays industrialisés et utilisée dans une perspective de promotion du travail indépendant. Il s’agit d’une pratique qui consiste à coupler le microcrédit avec un encadrement des clients financés. Après avoir précisé les enjeux et les spécificités de cette pratique, nous proposons un modèle analytique qui rend compte de divers effets induits par l’encadrement inclus dans l’offre de microcrédit. Nous montrons finalement que fournir un encadrement aux clients financés pour soutenir l’offre de microcrédit, ce n’est pas la panacée. L’efficacité de cet encadrement est liée en particulier à celle des mécanismes de contrôle des institutions de microfinance (IMFs) pour la sélection des projets financés, sinon l’encadrement peut être porteur d’un biais négatif (ou effets pervers). L’intervention des autorités publiques se justifie alors, via notamment trois mesures de subventions que nous spécifions, afin d’agir sur les incitations des acteurs et améliorer l’efficacité globale du dispositif. / The objective of this thesis is to contribute, from a theoretical viewpoint, in the understanding of the reasons of the highly publicized success of microcredit in developing countries in order to analyze its efficiency conditions in developed countries. In the first chapter, we seek to identify the key factors of the observed success of group loans, a prevailing practice in developing countries, to demonstrate that they themselves hardly meet these specific conditions and that developed countries satisfy such conditions with even more difficulties. For that, we conduct a descriptive presentation of the main terms in group lending, followed by a theoretical analysis of the incitative mechanisms based on the work of Ghatak (1999), Ghatak and Guinnane (1999) and Guttman (2008). In the second chapter, we focus on an alternative microcredit practice, which is entrepreneurial-like, more appropriate to the rather complex socioeconomic climate of industrialized countries and used in the intent of promoting self-employment. It is a practice that involves matching a microcredit with mentoring funded clients. After pinpointing the stakes and the specificities of this practice, we suggest an analytical model that takes into account the various effects induced by the mentoring included in microcredit supply. Finally, we show that providing mentoring to funded clients in order to sustain microcredit supply is no panacea. The efficiency of this mentoring is specifically linked with the efficiency of the control mechanisms of the microfinance institutions (MFIs) in the selection of the funded projects; otherwise, mentoring may generate a negative bias (or perverse effects). Government intervention is then justified, mainly via three subsidy measures that we put forth, so as to act on the incentives of the participants and to improve the overall efficiency of the mechanism.

El aumento de cartera pesada de clientes es un problema que se presenta en las empresas del sector microfinanciero, considerándose como una de las razones por las cuales muchas microfinancieras pequeñas entran en bancarrota y terminan traspasando sus deudas a otras con mayor poder adquisitivo. Existen algunas soluciones para el problema de cartera pesada, pero en su mayoría usan términos y conceptos de Economía, que no toman en cuenta la interacción o integración de los procesos principales de las microfinancieras, como la colocación de productos crediticios, iniciando por el diseño y elaboración de estos hasta la cobranza. Este trabajo propone una arquitectura empresarial como respuesta al aumento de cartera pesada. Es por ello por lo que se usarán los artefactos del marco de trabajo TOGAF, siguiendo su metodología ADM para el desarrollo de la arquitectura. Asimismo, se considerará el modelo de procesos presentes en el estándar BIAN para verificar su aplicabilidad en las microfinancieras al momento de establecer los procesos base. Como resultado final se obtuvo que la venta de cartera pesada se reduzca significativamente, debido a un mayor control del proceso y el uso de sistemas que permiten gestionar y conocer mejor a las personas que solicitan créditos, evitando futuros endeudamientos. / The increase in the heavy portfolio of clients is a problem that occurs in companies in the microfinance sector, considered as one of the reasons why many small microfinance institutions go bankrupt and end up transferring their debts to other institutions with greater purchasing power. There are some solutions for the heavy portfolio problem, but they deal more with the economic issue than the technological or business processes, not taking into account the interaction or integration of the main processes of the microfinance, such as the placement of credit products, starting with the design and elaboration of these until collection. This paper proposes a business architecture in response to the heavy portfolio increase. It is for this reason that the TOGAF frameworks will be used, following its ADM methodology for the development of architecture. Likewise, the model of processes present in the BIAN standard will be considered to verify its applicability in microfinance institutions when establishing the starting processes. The final result was that the sale of the heavy portfolio was significantly reduced, due to a greater control of the process and the use of systems that allow managing and getting to know the people who apply for loans, avoiding future indebtedness. / Tesis

Thesis (Ph.D.)--University of the Witwatersrand, Faculty of Commerce, Law and Management, Wits Business School, 2017. / The study is aimed at empirically investigating the dynamic interaction between the demand and supply factors affecting SMME access to credit in the Eastern Cape. The study is also aimed at conducting a comparative evaluation of lending criteria used by development finance institutions (DFIs) and commercial banks in evaluating SMME funding applications. The study is geared towards proposing a funding framework aligned to the characteristics of SMMEs which can be used by both DFIs and commercial banks to assess applications for SMME funding. In order to meet the objectives of the study, a sample of 80 SMMEs from the manufacturing, construction, services, agriculture, automotive, mining, security, merchandising and retail sectors was, through proportionate stratified sampling, selected from the population of all the SMMEs from the eight metropolitan and district municipalities (Nelson Mandela, Buffalo City, Joe Gqabi, Chris Hani, OR Tambo, Cacadu, Alfred Nzo and Amathole) constituting the Eastern Cape Province. Three separate structured open and closed-ended questionnaires were used to collect data from the 80 SMMEs owner/managers, 8 DFIs’ regional/branch managers and 5 major commercial banks branch managers in the province. The design of both questionnaires was underpinned by the credit rationing theoretical framework as well as the 5C’s of credit (capacity, collateral, capital, condition and character). A response rate of 100% was achieved. Content analysis and Relative Importance Index (RII) were used to analyse data. The results of the dynamic interaction between the supply and demand factors affecting SMME access to credit show that generally, there is an alignment between the SMME and the funding institutions survey results. This shows that the lending criteria of funding institutions are transparent. On the other hand, it is evident that there is poor awareness of the funding institutions criteria by SMMEs. SMMEs seem not to know what funding institutions are looking for when they evaluate funding applications. The results also pointed out that the characteristics of SMMEs in the study are representative of those of SMMEs countrywide. SMMEs in the study are characterised by poor/no business plans, lack of financial statements, lack of collateral, tax clearance certificates, poor cash flow, lack of owners’ contribution and lack of previous industry experience. The results also indicate that funding institutions’ lending criteria do not take into account the unique characteristics of SMMEs in the Eastern Cape. The results of the comparative evaluation of the lending criteria of DFIs and commercial banks show that there are no substantive differences between how commercial banks and DFIs evaluate the credit applications made by SMMEs. Both groups of lenders place significance on the business plans, financial statements, cash flows, owners’ contribution, collateral and experience of owner/managers. Moreover, the study also found that there is significant discrepancy between what the lending documentation of DFIs and commercial banks indicates as key requirements and what the survey results indicate. This means that what funding institutions practice is not congruent with what is enshrined in their lending criteria/policy. If we proxy lend in practice with what the key informants indicated as critical variables, the results show that both groups are more stringent in practice in key areas of their lending criteria. The review of the characteristics of SMMEs in South Africa showed that they lack collateral, are low on savings and experience. Furthermore, they have little capacity for writing business plans and cash flow management. The results here indicate that these are the very same areas which the financial institutions place significant importance on. The findings indicate that the lending criteria used by both groups tend to favour large and well established firms which have the required capacities. Based on the above findings, it is evident that in order to address the SMME access to credit constraint, a new framework that can be used by DFIs to lend to SMMEs needs to be developed. The framework must take into account the peculiar nature of SMME characteristics. Without such an approach, the funding gap for SMMEs in SA will continue. In response to the above findings, the study proposes that government must incentivise funding institutions to innovatively provide capacity building and training programmes targeted at improving the skills and expertise of their staff. It is proposed that DFIs should simplify their loan application forms to cater for the historically low literacy levels of SMMEs in the Eastern Cape. In addition, DFIs should adopt a more streamlined loan application process as well as a shared due diligence process. Credit application forms as well as key lending documents should be standardised. DFIs should conduct road shows to take their potential SMME customers through their application form, how they must be completed and the documents to accompany the form. SMMEs must be personally involved in the gathering of the relevant business plan information as well as in the writing up of their business plans. DFIs must organise quarterly workshops aimed at taking their potential clients through their lending criteria. The SEFA Credit Guarantee Scheme must be reviewed. Government must provide support to its venture capital industry by creating a good investment climate. The study proposes that a knowledge portal that will enable the sharing of knowledge and learning among SMMEs in the Eastern Cape be established. DFIs must set up SMME divisions or units to provide specialised credit services to their SMME customers. DFIs should evaluate SMME credit applications based on alternative risk evaluation methodologies such as the psychometric screening developed by the Harvard University’s Entrepreneurial Finance Laboratory. DFIs should explore alternative means of financing that do not require collateral. To increase SMME access to credit, government should establish specialised banks that can exclusively cater for the needs of the SMME sector. Government could consider granting certain incentives to funding institutions that actively promote SMME financing and have achieved a sizeable SMME loan book. / MT 2017

A research report submitted to the Faculty of Management, University of the Witwatersrand, in 25% fulfilment of the requirements for the degree of Masters of Management (in the field of Public and Development Management), 2016 / Financial inclusion has taken centre stage in the development agenda in the 21st century. This was widely noticed after the global economic meltdown in 2008 where multinational companies faced bankruptcy and many people were negatively impacted. Financial inclusion is defined as being the state in which all people have access to appropriate and desired financial products and services. It is believed to be a key component of the financial sector and has been hailed by its proponents to be a positive driver of economic growth and poverty reduction. Financial inclusion is anchored on one pivotal concept which is financial literacy, or the ability of individuals to use knowledge and skills gained from financial education for betterment of their lives. The significance of financial inclusion has been acknowledged by many countries and Lesotho is no exception. The Support to Financial Inclusion in Lesotho (SUFIL) project was implemented with the aim of improving financial inclusion in Lesotho. This research was undertaken to ascertain the extent to which the SUFIL has achieved its aims and objectives. Overall, while there are some areas that require review or improvement, the project has had a positive impact in improving financial inclusion in Lesotho. / XL2018

Thesis (M.M. (Finance & Investment))--University of the Witwatersrand, Faculty of Commerce, Law and Management, Wits Business School, 2017. / Microfinance Institutions (MFIs) are proving to be a pivotal asset in providing essential access to financial services to the urban and rural poor who are traditionally shunned by the mainstream blue-chip financial service providers in developing countries. However, in the literature, MFIs providing entrepreneurial assistance have been lumped together with MFIs providing a more exploitative and consumption loan offering. This then masks the value or the poverty reducing effect of MFIs that have financial products geared to assist the creation of small businesses for the poor. The aim of this study is to examine South Africa’s microfinance institutions and their impact on poverty reduction in urban and rural areas. To this end the research question is as follows: what is the impact of the MFI on poverty reduction around eThekwini region? This study was conducted among microfinance institutions and the beneficiaries of MFIs in eThekwini region. In order to gain better insights and in order to better understand the real depth and knowledge of this topic, the researcher needed a view of both the service provider and their customers. A structured close ended survey questionnaire was designed for MFI managers and borrowers. The responses received show that Microfinance institutions are a useful means to reduce poverty among the poor. On this basis, it is recommended that the government must play an active role to regulate MFIs but more importantly to find innovate ways to help fund or subsidize their activities among the poor. / MT 2017

This thesis is submitted in fulfilment of the requirement for the degree, Masters of Arts in Sociology in the Faculty of Humanities (School of Social Sciences) at the University of Witwatersrand, 2016 / During the apartheid era, black women were forced into the rural areas to live off the land, without opportunities and choices to allow them to build decent lives for themselves. After many decades of apartheid, South Africa finally became a democratic country in 1994. Following the establishment of democracy in 1994, the South African society experienced quite a number of changes on the economic, social, and political level. Amongst those changes was the rectification of the constitution which recognized all citizens (men and women, black and white) as equal. Numerous acts were put in place to promote equality in all spheres of life. However, to this day, poverty and inequality remain evident on many black women in the country. Microfinance is embraced by many development organizations, states and agencies around the world as the main and efficient form of women’s empowerment. South Africa is also one of the states which have joined the bandwagon, with its Department of Trade and Industry (dti) having various microfinance programmes aimed at empowering women. However, with all the programmes, there seems to be no changes in the situations of black women, especially rural poor women in the country as illustrated by statistics. This paper, therefore, attempts to find out the reason behind the low status of women in post-apartheid South Africa by reviewing critical literature on empowerment and microfinance as an empowerment strategy to understand their impact on women’s lives. The study also analyse the dti’s policy documents on empowerment as one of the state’s institutions which promotes women’s empowerment through microfinance. Furthermore, this study argues that the current women’s empowerment strategy (microfinance) is not for the benefit of poor black women, but for that of the institutions offering these programmes. This argument is supported by an analysis conducted on dti’s women’s empowerment strategic documents and programmes, which was used as a case study for this paper. This study suggests that changes in the designing and implementation of the policies are required. / GR2017

O objetivo desta dissertação é proceder a uma avaliação comparativa das políticas de microfinanças no Brasil e na Colômbia, tendo como base a atuação das cooperativas de crédito nos países em estudo. Foram selecionados dois programas públicos de microfinanças que contemplam a atuação das cooperativas em suas estratégias de atuação, o Programa de Microcrédito Produtivo Orientado, no caso brasileiro, e o Banca de las Oportunidades, no caso colombiano. A avaliação foi realizada mediante a proposição e aplicação de um indicador capaz de sistematizar a atuação dos respectivos programas em cada país. Os critérios que permitiram a avaliação foram embasados na capacidade que os programas analisados têm de atingir os objetivos propostos, à luz da teoria sobre cooperativismo de crédito e microfinanças. / The aim of this dissertation is to proceed a comparative evaluation from politics of microfinances in Brazil and Columbia, basing the performance of the credit unions in the countries in study. Two public programs of microfinances had been selected that contemplate the performance of the cooperatives in its strategies of action, the PNMPO, in Brazil, and the Banca de las Oportunidades, in Colombia. The evaluation was carried through by means of applications of a pointer capable systemize the performance of the respective programs in each country. The criterion that had allowed the evaluation had been based in the capacity that the analyzed programs have to reach the considered objectives, to the light of the theory on credit unions and microfinances.

O Microcrédito ganhou notoriedade a partir da experiência do Banco Grameen, em Bangladesh, nos anos 70. A expansão e o crescimento das microfinanças, nas últimas décadas, atraiu a atenção de pesquisadores e governos, tornando-se um instrumento de políticas públicas para o combate à pobreza, e trouxe com elas a necessidade de maior transparência e de padronização das informações sobre o desempenho financeiro para alcançar dois objetivos: a atração de recursos financeiros de organismos internacionais de auxílio e fomento, bancos de desenvolvimento e investidores, para funding das operações; permitir a comparação dos resultados Instituições Microfinanceiras. No Brasil, o Microcrédito surgiu nos anos 70, e ganhou maior impulso no final da década de 90, quando se criou a regulamentação específica para o setor. Este trabalho teve por objetivo definir um modelo de medição de performance para as instituições financeiras não bancárias autorizadas a trabalhar neste segmento, as Sociedades de Crédito ao Microempreendedor, avaliar seu desempenho quanto à qualidade dos ativos, eficiência operacional, gestão financeira e lucratividade, no período de dezembro de 2000 a dezembro de 2004, e compará-lo ao de Instituições Microfinanceiras atuando na América Latina. Partindo de uma extensa pesquisa bibliográfica, identificou indicadores de performance usados internacionalmente, cujos conceitos foram amplamente discutidos e consensados. Eles foram adaptados ao Plano Contábil das Instituições Financeiras e aplicados aos dados de balanço e demonstrativo de resultados fornecidos pelo Banco Central do Brasil, permitindo traçar um painel da evolução do segmento de microcrédito atendido pelas Sociedades de Credito ao Microempreendedor. A avaliação do comportamento dos indicadores indicou um segmento em desenvolvimento; um processo de crescimento baseado em capital próprio, com baixa utilização de recursos de terceiros; resultados financeiros elevados que, quando combinados com despesas altas, geram resultados modestos. A comparação com as operações em outros países latino-americanos mostrou que as Sociedades de Crédito ao Microempreendedor possuem ativos de maior risco, menor eficiência operacional, nível de endividamento muito mais baixo e índices de lucratividade menos significativos que os de suas pares internacionais. Mostrou, também, que as instituições locais são muito menores e mais jovens. Para o desenvolvimento do microcrédito no Brasil, é fundamental que o governo aumente a atratividade do setor, e atue para resolver uma falha de mercado, onde as instituições privadas não estão totalmente à vontade para atuar, criando condições para a expansão das entidades privadas e para a entrada de instituições internacionais, trazendo o conhecimento e a experiência de outros mercados. / The Grameen Bank experience of lending small money to poor people, in Bangladesh, during the seventies, made microcredit famous all over the world. Microfinance growing and expansion in the last two decades attracted attention of researchers and governments, becoming a new public policy tool in order to combat poverty, and demanded more transparent and standardized performance information not only to support investment decisions for donors, development banks and investors, but also to make international benchmarking possible. In Brazil, microcredit appeared in the 1970s, but started to grow rapidly in the 1990s, when a specific legal framework was established. The present study aimed to: define a performance model for brazilian non banking finance institutions handling microcredit, Sociedades de Crédito ao Microempreendedor; create performance indicators to evaluate asset quality, operational efficiency, financial management, and profitability, over a period of 5 yeras, 2000-2004; make a benchmark with latin american microfinance institutions. A bibliographic research identified internationally adopted performance indicators, whose concepts and definitions were fully discussed and consensed. They were adapted according to the Accounting Chart for Institutions of the National Financial System, COSIF, and applied to institutions balance sheet data furnished by brazilian Central Bank, providing an overview of the microcredit segment operated by Sociedades de Crédito ao Microempreendedor. Indicators evaluation showed that brazilian microfinance instituitions operate in a development market, have low debt-equity ratios, and achieve good financial results that are offset by high expenses. The benchmark with other latin american microfinance institutions showed that brazilian ones have poorer asset quality, lower operational efficiency and debt-equity ratio, and worse financial results. They are also smaller and younger than their latin american peers. In order to incentive microcredit expansion and development, brazilian government policies must fix a market failure, that private institutions and commercial banks are not fully supportive of microcredit. This could make brazilian market more attractive for national and international institutions, bringing more investments and estimulating consulting services, which would aggregate knowledge and experience from other markets.

A regulação das microfinanças deve ser compreendida como parte do arcabouço institucional e legal das políticas para o setor. Nesse sentido, houve uma recente aceleração do setor de microfinanças no Brasil desde o final dos anos 90, em consonância com novos paradigmas que ensejaram diversas mudanças legais e regulatórias tendentes a promover sua expansão. Novas iniciativas regulatórias e políticas governamentais têm sido adotadas desde então, muitas delas positivas: políticas relacionadas ao papel das instituições financeiras públicas e privadas, outras relacionadas a renda e educação. Neste estudo, baseado fortemente em dados do Banco Central do Brasil, os seguintes temas são examinados com alguma profundidade: acesso a serviços financeiros, a importância do microcrédito para pequenos empreendedores alijados do mercado de trabalho formal, princípios e boas práticas das microfinanças, arcabouço institucional e legal, os diferentes enquadramentos normativos das Organizações Civis de Interesse Público e das Sociedades de Crédito ao Microempreendedor, o papel central das autoridades reguladoras, do Banco do Nordeste do Brasil BNB e do Banco Nacional de Desenvolvimento Econômico BNDES. / Microfinance regulation should be understood as an integral part of a microfinance policy framework. In this sense, there was a recent acceleration in Brazils microfinance sector from the end of the 1990s, due to a new political paradigms leading to a series of legal and regulatory changes favoring the expansion of microfinance. New regulatory initiatives and government policies have been adopted, many positive: policies related to the role of public and private financial institutions, and others related to income and education. In this study, based largely on Banco Central do Brasil BCB (Central Bank of Brazil) data, the following areas are examined in some depth: access to financial services, the importance of microcredit for the self-employed and for small entrepreneurs, the principles of good microfinance practice, institutional and legal framework, the multiple regulatory windows of Organizações da Sociedade Civil de Intereresse Público OSCIPs (Public Interest Civil Societes) and Sociedades de Crédito ao Microempreendedor SCMs (Microfinance Credit Societes), the substantial role of the regulatory authorities and of the public banks Banco do Nordeste do Brasil - BNB (North-east Bank) and Banco Nacional de Desenvolvimento Econômico e Social BNDES (National Bank for Economic and Social Development).

Financial Non-Governmental Organisations (FNGOs) are regulated microfinance institutions (MFIs) that operate with the social welfare logic in the delivery of Microcredit (MC) and Entrepreneurship Training (ET) to the poor in Ghana. The provision of these two capitals (MC and ET) is aimed at supporting the poor to create sustainable Micro and Small Enterprises (MSEs) which is aimed at generating both skilled and unskilled employment. The major aim of this study is to investigate the impact of MC and ET delivered by FNGOs on the performance of MSEs in Ghana. Theoretically, the study adopts both the Institutional Theory and the Resource-Based View theory as the underlying theoretical frameworks, assuming that institutional and resource factors have a great influence on FNGOs in their delivery of MC and ET to MSEs in Ghana. The research design adopted in undertaking this study is based on the pragmatic research philosophy. Specifically, the mixed strategy with an explanatory triangulation method has been used. The mixed method has been adopted purposely for model testing as well as for exploring various issues on FNGOs and their role in the performance of MSEs. Primary data were collected through a quantitative method using a survey as well as through qualitative interviews. Adopting a stratified random sampling method, a total of 720 self-administered questionnaires were sent out in March 2017 to MSEs in the Volta Region of Ghana to collect primary data. Out of the number sent, 506 questionnaires were retrieved generating a response rate of 70.2%. Also, interviews were conducted with 10 MSEs. A multiple regression model was applied in measuring the impact of MC and ET on the performance of MSEs. The findings suggest that firm characteristics such as gender, managers educational level, industry category and business age correlate positively with employment sales and profitability growth which are statistically significant at 1% level. Secondly, the study also found that both MC and ET factors have a significant impact on MSE performance in the areas of employment, sales and profitability at 1% significant level. The qualitative findings also support the model tested in this study in the sense that the combined approach of both MC and ET have a significant impact on MSE performance in Ghana. This study has made two main contributions. Firstly, the provision of MC by FNGOs can only have the desired impact on the performance of MSEs if it is combined with entrepreneurship training, thereby leading to a sustainable employment, sales and profitability growth. Therefore, by using the 506 MSEs financed by FNGOs in the Volta region of Ghana, this study has for the first time in the Ghanaian microfinance landscape tested an empirical model and came out with meaningful findings for effective integration of ET into microfinance to improve the delivery of financial services to MSEs in Ghana by FNGOs and other socially oriented MFIs. The study has therefore developed a practical framework for ensuring that ET is provided alongside the delivery of MC in order to have the desired impact on the performance of MSEs. The study provided implications for policy and practice for making MC and ET more accessible to MSEs to achieve the desired goal of creating employment. Secondly, even though FNGOs play a very important role in providing entrepreneurial finance to MSEs particularly in developing countries, it has received insufficient research attention. This study has, therefore, added to the scanty research available about FNGOs and their contribution to entrepreneurship development and poverty reduction in developing countries.