Why Should Microfinance Organizations Invest in Clients’ Business Training? Empirical Results from the Haitian Microfinance Industry

International Journal of Management Science, 2(4):191-202, 2014

12 Pages Posted: 26 Apr 2014

See all articles by Bénédique Paul

Bénédique Paul

Centre de Recherche en Gestion et Economie du Développement - CREGED

Date Written: April 15, 2014

Abstract

Despite many critics and mitigated effects, microfinance continues to grow all over the world, and equally in Haiti. Beyond rapid expansion, to really contribute to local economic development, microfinance organizations (MFOs) need to help micro entrepreneurs to better manage their businesses. However, practitioners consider investment in training activities as non-productive. With a national sample, we study, in this article, some supportive reasons why MFO’s should provide business training to borrowers, particularly in low-educated context like Haiti. According to our empirical findings, implementation of business training sessions reduces negative perception of interest rate, and improves borrowers’ satisfaction. Such induced socioeconomic change reduced clients drop out and foster MFOs sustainability.

Keywords: Clients’ perception, Business training, Microfinance organizations, Haiti

JEL Classification: B52, D01, G21, N26

Suggested Citation

Paul, Bénédique, Why Should Microfinance Organizations Invest in Clients’ Business Training? Empirical Results from the Haitian Microfinance Industry (April 15, 2014). International Journal of Management Science, 2(4):191-202, 2014, Available at SSRN: https://ssrn.com/abstract=2429109

Bénédique Paul (Contact Author)

Centre de Recherche en Gestion et Economie du Développement - CREGED ( email )

Quisqueya University
Haut Turgeau
Port au Prince, HT6114
Haiti

HOME PAGE: http://www.benediquepaul.com

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