Demand Side Analysis of Microlending Markets in Germany
Europa-Universitaet Viadrina - Fakultat fur Wirtschaftswissenschaften; German Institute for Economic Research (DIW Berlin); Institute for the Study of Labor (IZA)
World Bank - Consultative Group to Assist the Poor (CGAP); German Institute for Economic Research (DIW Berlin)
Claas Christian Germelmann
IZA Discussion Paper No. 4292
In developing and transition economies, microlending has become an effective instrument for providing micro businesses with the necessary financial resources to launch operations. In the industrialized countries, with their highly developed banking systems, however, there has been ongoing debate on the question of whether an uncovered demand for microlending services exists. The present pilot study explores customer preferences for microlending products in Germany. Among the interviewed business owners, 15% reported revolving funding needs and an interest in microloans. We find that potential recipients of microloan products are retail business owners, foreign business owners, and persons who had previously received private loans. Furthermore, financial products should feature rapid access to short-term loans.
Number of Pages in PDF File: 30
Keywords: entrepreneurship, microlending, market research
JEL Classification: G21, D12, M31working papers series
Date posted: July 21, 2009
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