Paper
Lending to Micro Enterprises Through NGOs in The Philippines
How has lending to microenterprises through semi-formal institutions fared in the Philippines?
8 pages
Describes NGO lending programs for microenterprises in the The Philippines which are part of the attempt to reconstruct the country's financial landscape by using semi-formal institutions as intermediaries. Gives background on the programs, their historical context, the premises underlying them. Addresses questions of sustainability and research priorities.
Two approaches are examined:
- Qualitative change of a limited number of enterprises by offering a comprehensive range of services;
- Quantitative change by aiming to expand a large number of enterprises through provision of a minimum of services;
Raises research issues including:
- How profitable are micro-enterprises, what constrains their growth and what are complementary non-credit requirements?
- What are NGOs real current costs?
- What would be the costs if NGOs provided non-credit complementary inputs and should costs common to several activities like social preparation be apportioned as benefits?
- How can NGOs retain their essential informality?
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Published