Experiences of Microfinance Institutions Serving Very Small to Small Enterprises in Latin America : Based on Case Studies in LAC
Very small enterprises (VSEs) in Latin America and the Caribbean (LAC) represent a broad and heterogeneous segment, often underserved by formal financial institutions. They are generally informal and often family businesses. The financial needs of these enterprises are typically overlooked by “do...
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| Format: | Report |
| Language: | English en_US |
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Washington, DC
2015
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| Online Access: | http://documents.worldbank.org/curated/en/2014/07/24164316/experiences-microfinance-institutions-serving-very-small-small-enterprises-latin-america-based-case-studies-lac http://hdl.handle.net/10986/21715 |
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okr-10986-21715 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCESS TO BANK ACCESS TO BANK LOANS ACCESS TO CREDIT ACCESS TO CREDIT BUREAU ACCESS TO DEBT FINANCING ACCESS TO FINANCE ACCESS TO FINANCIAL SERVICES ACCESS TO FINANCING ACCESS TO LOANS ACCESS TO SERVICES ACCOUNTABILITY ACQUISITION COSTS AFFILIATES ALTERNATIVE FUNDING ASSET BASE ASSET DIVERSIFICATION ATM NETWORK AUTONOMY BANK ALTERNATIVES BANK COMPETITION BANK GUARANTEES BANKING MARKET BANKING SYSTEMS BANKS BORROWING BRANCH BRANCHES BUSINESS ACTIVITIES BUSINESS CREDIT BUSINESS LOAN BUSINESS SEGMENT BUSINESS STRATEGY BUSINESS UNIT CAPITAL ALLOCATIONS CAPITAL LOANS CASH FLOW CASH FLOW ANALYSIS CASH FLOWS CDS CHAMBERS OF COMMERCE CHECKS COLLATERAL COLLATERAL REQUIREMENTS COMPANY COMPETITIVE MARKETS CORPORATION CREDIT ACCESS CREDIT ANALYSIS CREDIT BANKS CREDIT BUREAU CREDIT BUREAUS CREDIT CARDS CREDIT GAP CREDIT HISTORY CREDIT LINES CREDIT NEEDS CREDIT POLICIES CREDIT PRODUCT CREDIT PRODUCTS CREDIT RISK CREDIT RISK MANAGEMENT CREDIT SCORING CS CURRENT ACCOUNTS CUSTOMER PROFITABILITY CUSTOMER SATISFACTION CUSTOMER SERVICE DEBIT CARDS DEBT DEPOSIT DEPOSIT ACCOUNTS DEPOSIT PRODUCT DEPOSIT SERVICES DEPOSIT TAKING INSTITUTIONS DEPOSITS DEVELOPING COUNTRIES DISBURSEMENT DISBURSEMENTS DIVERSIFICATION DIVERSIFIED PORTFOLIO ECONOMIC GROWTH EMERGING MARKETS EMPLOYERS EMPLOYMENT ENTREPRENEURSHIP EQUIPMENT EXISTING BUSINESS EXPANSION FACTORING FAMILIES FAMILY BUSINESSES FINANCIAL COSTS FINANCIAL CRISIS FINANCIAL INFORMATION FINANCIAL INSTITUTION FINANCIAL MARKETS FINANCIAL NEEDS FINANCIAL PRODUCT FINANCIAL PRODUCTS FINANCIAL SERVICES FINANCIAL STATEMENTS FINANCIAL SYSTEM FINANCING COSTS FINANCING NEEDS FIRM SIZE FIRMS FIXED ASSET FIXED INVESTMENT FORMAL FINANCIAL INSTITUTIONS FORMAL FINANCIAL SECTOR FORMAL INDEBTEDNESS FUNDING SOURCES GOOD CREDIT GROUP LENDING GUARANTEE FUNDS GUARANTEE REQUIREMENTS HUMAN RESOURCES INFORMAL LOANS INFORMATION REQUIREMENTS INSTITUTIONAL CAPACITY INSTITUTIONAL LOANS INSURANCE INTEREST RATE INTEREST RATE CAPS INTEREST RATES INTEREST RATES ON LOANS INTERNATIONAL FINANCE INVENTORY INVESTING INVESTMENT CAPITAL INVESTMENT LOANS INVESTMENT PURPOSES LACK OF ACCESS LARGE CITIES LARGE ENTERPRISES LEASING LENDING REQUIREMENTS LETTERS OF CREDIT LIABILITY LIQUIDITY LIVING STANDARDS LOAN LOAN AMOUNT LOAN AMOUNTS LOAN ANALYSIS LOAN APPROVAL LOAN MATURITY LOAN OFFICER LOAN OFFICERS LOAN PRODUCTS LOAN SIZE LOAN SIZES LOAN STAFF LOAN TERMS LOANS FROM FRIENDS LOCAL GOVERNMENTS LONG-TERM INVESTMENT LOW MINIMUM BALANCES MARKET RISK MARKET SHARE MARKET SIZE MEDIUM ENTERPRISES MFI MFIS MICRO ENTERPRISES MICRO LOANS MICROCREDIT MICROENTERPRISES MICROFINANCE MICROFINANCE CLIENTS MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MICROFINANCE LOANS MICROFINANCE MARKETS MICROFINANCE SECTOR MONEY TRANSFERS MORTGAGE MORTGAGE LOANS MORTGAGES NEW BUSINESS NEW BUSINESSES NEW MARKET OPERATING COSTS OPERATIONAL COSTS OUTSTANDING LOANS OVERDRAFT OVERDRAFT FACILITIES PARTNER BANKS PAYMENTS SERVICES PEER REVIEW PERSONAL CREDIT PERSONAL CREDIT CARDS PORTFOLIO PORTFOLIO RISK PORTFOLIOS PROFITABILITY PUBLIC POLICY PUBLIC RECORDS RECEIPTS REGULATORY AUTHORITIES REGULATORY CONSTRAINTS REGULATORY FRAMEWORK REGULATORY POLICIES RETURNS RISK MANAGEMENT RISKY LOANS RURAL LOANS SAVINGS SAVINGS ACCOUNTS SAVINGS PRODUCTS SECURITIES SMALL BUSINESS SMALL BUSINESS LOANS SMALL BUSINESSES SMALL ENTERPRISE SMALL ENTERPRISES SME SME CLIENTS SME FINANCE SME FINANCING SME SECTOR SUBSIDIARY SUPPLIERS SUPPLY CHAIN SUPPLY CHAINS TAX TECHNICAL ASSISTANCE TRADE FINANCING TRANSACTION TRANSACTION COSTS VILLAGE WAGES WIRE TRANSFERS WORKING CAPITAL |
| spellingShingle |
ACCESS TO BANK ACCESS TO BANK LOANS ACCESS TO CREDIT ACCESS TO CREDIT BUREAU ACCESS TO DEBT FINANCING ACCESS TO FINANCE ACCESS TO FINANCIAL SERVICES ACCESS TO FINANCING ACCESS TO LOANS ACCESS TO SERVICES ACCOUNTABILITY ACQUISITION COSTS AFFILIATES ALTERNATIVE FUNDING ASSET BASE ASSET DIVERSIFICATION ATM NETWORK AUTONOMY BANK ALTERNATIVES BANK COMPETITION BANK GUARANTEES BANKING MARKET BANKING SYSTEMS BANKS BORROWING BRANCH BRANCHES BUSINESS ACTIVITIES BUSINESS CREDIT BUSINESS LOAN BUSINESS SEGMENT BUSINESS STRATEGY BUSINESS UNIT CAPITAL ALLOCATIONS CAPITAL LOANS CASH FLOW CASH FLOW ANALYSIS CASH FLOWS CDS CHAMBERS OF COMMERCE CHECKS COLLATERAL COLLATERAL REQUIREMENTS COMPANY COMPETITIVE MARKETS CORPORATION CREDIT ACCESS CREDIT ANALYSIS CREDIT BANKS CREDIT BUREAU CREDIT BUREAUS CREDIT CARDS CREDIT GAP CREDIT HISTORY CREDIT LINES CREDIT NEEDS CREDIT POLICIES CREDIT PRODUCT CREDIT PRODUCTS CREDIT RISK CREDIT RISK MANAGEMENT CREDIT SCORING CS CURRENT ACCOUNTS CUSTOMER PROFITABILITY CUSTOMER SATISFACTION CUSTOMER SERVICE DEBIT CARDS DEBT DEPOSIT DEPOSIT ACCOUNTS DEPOSIT PRODUCT DEPOSIT SERVICES DEPOSIT TAKING INSTITUTIONS DEPOSITS DEVELOPING COUNTRIES DISBURSEMENT DISBURSEMENTS DIVERSIFICATION DIVERSIFIED PORTFOLIO ECONOMIC GROWTH EMERGING MARKETS EMPLOYERS EMPLOYMENT ENTREPRENEURSHIP EQUIPMENT EXISTING BUSINESS EXPANSION FACTORING FAMILIES FAMILY BUSINESSES FINANCIAL COSTS FINANCIAL CRISIS FINANCIAL INFORMATION FINANCIAL INSTITUTION FINANCIAL MARKETS FINANCIAL NEEDS FINANCIAL PRODUCT FINANCIAL PRODUCTS FINANCIAL SERVICES FINANCIAL STATEMENTS FINANCIAL SYSTEM FINANCING COSTS FINANCING NEEDS FIRM SIZE FIRMS FIXED ASSET FIXED INVESTMENT FORMAL FINANCIAL INSTITUTIONS FORMAL FINANCIAL SECTOR FORMAL INDEBTEDNESS FUNDING SOURCES GOOD CREDIT GROUP LENDING GUARANTEE FUNDS GUARANTEE REQUIREMENTS HUMAN RESOURCES INFORMAL LOANS INFORMATION REQUIREMENTS INSTITUTIONAL CAPACITY INSTITUTIONAL LOANS INSURANCE INTEREST RATE INTEREST RATE CAPS INTEREST RATES INTEREST RATES ON LOANS INTERNATIONAL FINANCE INVENTORY INVESTING INVESTMENT CAPITAL INVESTMENT LOANS INVESTMENT PURPOSES LACK OF ACCESS LARGE CITIES LARGE ENTERPRISES LEASING LENDING REQUIREMENTS LETTERS OF CREDIT LIABILITY LIQUIDITY LIVING STANDARDS LOAN LOAN AMOUNT LOAN AMOUNTS LOAN ANALYSIS LOAN APPROVAL LOAN MATURITY LOAN OFFICER LOAN OFFICERS LOAN PRODUCTS LOAN SIZE LOAN SIZES LOAN STAFF LOAN TERMS LOANS FROM FRIENDS LOCAL GOVERNMENTS LONG-TERM INVESTMENT LOW MINIMUM BALANCES MARKET RISK MARKET SHARE MARKET SIZE MEDIUM ENTERPRISES MFI MFIS MICRO ENTERPRISES MICRO LOANS MICROCREDIT MICROENTERPRISES MICROFINANCE MICROFINANCE CLIENTS MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MICROFINANCE LOANS MICROFINANCE MARKETS MICROFINANCE SECTOR MONEY TRANSFERS MORTGAGE MORTGAGE LOANS MORTGAGES NEW BUSINESS NEW BUSINESSES NEW MARKET OPERATING COSTS OPERATIONAL COSTS OUTSTANDING LOANS OVERDRAFT OVERDRAFT FACILITIES PARTNER BANKS PAYMENTS SERVICES PEER REVIEW PERSONAL CREDIT PERSONAL CREDIT CARDS PORTFOLIO PORTFOLIO RISK PORTFOLIOS PROFITABILITY PUBLIC POLICY PUBLIC RECORDS RECEIPTS REGULATORY AUTHORITIES REGULATORY CONSTRAINTS REGULATORY FRAMEWORK REGULATORY POLICIES RETURNS RISK MANAGEMENT RISKY LOANS RURAL LOANS SAVINGS SAVINGS ACCOUNTS SAVINGS PRODUCTS SECURITIES SMALL BUSINESS SMALL BUSINESS LOANS SMALL BUSINESSES SMALL ENTERPRISE SMALL ENTERPRISES SME SME CLIENTS SME FINANCE SME FINANCING SME SECTOR SUBSIDIARY SUPPLIERS SUPPLY CHAIN SUPPLY CHAINS TAX TECHNICAL ASSISTANCE TRADE FINANCING TRANSACTION TRANSACTION COSTS VILLAGE WAGES WIRE TRANSFERS WORKING CAPITAL International Finance Corporation Experiences of Microfinance Institutions Serving Very Small to Small Enterprises in Latin America : Based on Case Studies in LAC |
| geographic_facet |
Latin America & Caribbean Caribbean Latin America |
| description |
Very small enterprises (VSEs) in Latin America and the Caribbean (LAC) represent a
broad and heterogeneous segment, often underserved by formal financial institutions.
They are generally informal and often family businesses. The financial needs of these
enterprises are typically overlooked by “downscaling” banks, which find larger and
often more formal small and medium enterprises (SMEs) to be a more natural market
for their products and services. Microfinance Institutions (MFIs) are starting to move
upmarket to serve SMEs, and in particular, VSEs within this segment. However, they
use varying definitions, methodologies and products to do so and to date there has been
little research or documentation of their experiences. This report highlights the results
of a recent study of the existing practices in Latin America of MFIs serving VSEs,
where VSEs are considered to be those businesses with financing needs of between
US$7,000 and US$30,000. It is a starting point for an institution considering entering
the segment, or for one that finds itself having grown into the segment “organically” but
with a view to strengthen its position. It includes several checklists for MFIs interested
in expanding upmarket into the VSE space, as well as more detailed discussions and
examples of the most relevant points. |
| format |
Report |
| author |
International Finance Corporation |
| author_facet |
International Finance Corporation |
| author_sort |
International Finance Corporation |
| title |
Experiences of Microfinance Institutions Serving Very Small to Small Enterprises in Latin America : Based on Case Studies in LAC |
| title_short |
Experiences of Microfinance Institutions Serving Very Small to Small Enterprises in Latin America : Based on Case Studies in LAC |
| title_full |
Experiences of Microfinance Institutions Serving Very Small to Small Enterprises in Latin America : Based on Case Studies in LAC |
| title_fullStr |
Experiences of Microfinance Institutions Serving Very Small to Small Enterprises in Latin America : Based on Case Studies in LAC |
| title_full_unstemmed |
Experiences of Microfinance Institutions Serving Very Small to Small Enterprises in Latin America : Based on Case Studies in LAC |
| title_sort |
experiences of microfinance institutions serving very small to small enterprises in latin america : based on case studies in lac |
| publisher |
Washington, DC |
| publishDate |
2015 |
| url |
http://documents.worldbank.org/curated/en/2014/07/24164316/experiences-microfinance-institutions-serving-very-small-small-enterprises-latin-america-based-case-studies-lac http://hdl.handle.net/10986/21715 |
| _version_ |
1764449149054353408 |
| spelling |
okr-10986-217152021-04-23T14:04:04Z Experiences of Microfinance Institutions Serving Very Small to Small Enterprises in Latin America : Based on Case Studies in LAC International Finance Corporation ACCESS TO BANK ACCESS TO BANK LOANS ACCESS TO CREDIT ACCESS TO CREDIT BUREAU ACCESS TO DEBT FINANCING ACCESS TO FINANCE ACCESS TO FINANCIAL SERVICES ACCESS TO FINANCING ACCESS TO LOANS ACCESS TO SERVICES ACCOUNTABILITY ACQUISITION COSTS AFFILIATES ALTERNATIVE FUNDING ASSET BASE ASSET DIVERSIFICATION ATM NETWORK AUTONOMY BANK ALTERNATIVES BANK COMPETITION BANK GUARANTEES BANKING MARKET BANKING SYSTEMS BANKS BORROWING BRANCH BRANCHES BUSINESS ACTIVITIES BUSINESS CREDIT BUSINESS LOAN BUSINESS SEGMENT BUSINESS STRATEGY BUSINESS UNIT CAPITAL ALLOCATIONS CAPITAL LOANS CASH FLOW CASH FLOW ANALYSIS CASH FLOWS CDS CHAMBERS OF COMMERCE CHECKS COLLATERAL COLLATERAL REQUIREMENTS COMPANY COMPETITIVE MARKETS CORPORATION CREDIT ACCESS CREDIT ANALYSIS CREDIT BANKS CREDIT BUREAU CREDIT BUREAUS CREDIT CARDS CREDIT GAP CREDIT HISTORY CREDIT LINES CREDIT NEEDS CREDIT POLICIES CREDIT PRODUCT CREDIT PRODUCTS CREDIT RISK CREDIT RISK MANAGEMENT CREDIT SCORING CS CURRENT ACCOUNTS CUSTOMER PROFITABILITY CUSTOMER SATISFACTION CUSTOMER SERVICE DEBIT CARDS DEBT DEPOSIT DEPOSIT ACCOUNTS DEPOSIT PRODUCT DEPOSIT SERVICES DEPOSIT TAKING INSTITUTIONS DEPOSITS DEVELOPING COUNTRIES DISBURSEMENT DISBURSEMENTS DIVERSIFICATION DIVERSIFIED PORTFOLIO ECONOMIC GROWTH EMERGING MARKETS EMPLOYERS EMPLOYMENT ENTREPRENEURSHIP EQUIPMENT EXISTING BUSINESS EXPANSION FACTORING FAMILIES FAMILY BUSINESSES FINANCIAL COSTS FINANCIAL CRISIS FINANCIAL INFORMATION FINANCIAL INSTITUTION FINANCIAL MARKETS FINANCIAL NEEDS FINANCIAL PRODUCT FINANCIAL PRODUCTS FINANCIAL SERVICES FINANCIAL STATEMENTS FINANCIAL SYSTEM FINANCING COSTS FINANCING NEEDS FIRM SIZE FIRMS FIXED ASSET FIXED INVESTMENT FORMAL FINANCIAL INSTITUTIONS FORMAL FINANCIAL SECTOR FORMAL INDEBTEDNESS FUNDING SOURCES GOOD CREDIT GROUP LENDING GUARANTEE FUNDS GUARANTEE REQUIREMENTS HUMAN RESOURCES INFORMAL LOANS INFORMATION REQUIREMENTS INSTITUTIONAL CAPACITY INSTITUTIONAL LOANS INSURANCE INTEREST RATE INTEREST RATE CAPS INTEREST RATES INTEREST RATES ON LOANS INTERNATIONAL FINANCE INVENTORY INVESTING INVESTMENT CAPITAL INVESTMENT LOANS INVESTMENT PURPOSES LACK OF ACCESS LARGE CITIES LARGE ENTERPRISES LEASING LENDING REQUIREMENTS LETTERS OF CREDIT LIABILITY LIQUIDITY LIVING STANDARDS LOAN LOAN AMOUNT LOAN AMOUNTS LOAN ANALYSIS LOAN APPROVAL LOAN MATURITY LOAN OFFICER LOAN OFFICERS LOAN PRODUCTS LOAN SIZE LOAN SIZES LOAN STAFF LOAN TERMS LOANS FROM FRIENDS LOCAL GOVERNMENTS LONG-TERM INVESTMENT LOW MINIMUM BALANCES MARKET RISK MARKET SHARE MARKET SIZE MEDIUM ENTERPRISES MFI MFIS MICRO ENTERPRISES MICRO LOANS MICROCREDIT MICROENTERPRISES MICROFINANCE MICROFINANCE CLIENTS MICROFINANCE INSTITUTION MICROFINANCE INSTITUTIONS MICROFINANCE LOANS MICROFINANCE MARKETS MICROFINANCE SECTOR MONEY TRANSFERS MORTGAGE MORTGAGE LOANS MORTGAGES NEW BUSINESS NEW BUSINESSES NEW MARKET OPERATING COSTS OPERATIONAL COSTS OUTSTANDING LOANS OVERDRAFT OVERDRAFT FACILITIES PARTNER BANKS PAYMENTS SERVICES PEER REVIEW PERSONAL CREDIT PERSONAL CREDIT CARDS PORTFOLIO PORTFOLIO RISK PORTFOLIOS PROFITABILITY PUBLIC POLICY PUBLIC RECORDS RECEIPTS REGULATORY AUTHORITIES REGULATORY CONSTRAINTS REGULATORY FRAMEWORK REGULATORY POLICIES RETURNS RISK MANAGEMENT RISKY LOANS RURAL LOANS SAVINGS SAVINGS ACCOUNTS SAVINGS PRODUCTS SECURITIES SMALL BUSINESS SMALL BUSINESS LOANS SMALL BUSINESSES SMALL ENTERPRISE SMALL ENTERPRISES SME SME CLIENTS SME FINANCE SME FINANCING SME SECTOR SUBSIDIARY SUPPLIERS SUPPLY CHAIN SUPPLY CHAINS TAX TECHNICAL ASSISTANCE TRADE FINANCING TRANSACTION TRANSACTION COSTS VILLAGE WAGES WIRE TRANSFERS WORKING CAPITAL Very small enterprises (VSEs) in Latin America and the Caribbean (LAC) represent a broad and heterogeneous segment, often underserved by formal financial institutions. They are generally informal and often family businesses. The financial needs of these enterprises are typically overlooked by “downscaling” banks, which find larger and often more formal small and medium enterprises (SMEs) to be a more natural market for their products and services. Microfinance Institutions (MFIs) are starting to move upmarket to serve SMEs, and in particular, VSEs within this segment. However, they use varying definitions, methodologies and products to do so and to date there has been little research or documentation of their experiences. This report highlights the results of a recent study of the existing practices in Latin America of MFIs serving VSEs, where VSEs are considered to be those businesses with financing needs of between US$7,000 and US$30,000. It is a starting point for an institution considering entering the segment, or for one that finds itself having grown into the segment “organically” but with a view to strengthen its position. It includes several checklists for MFIs interested in expanding upmarket into the VSE space, as well as more detailed discussions and examples of the most relevant points. 2015-04-08T22:09:20Z 2015-04-08T22:09:20Z 2014-07 Report http://documents.worldbank.org/curated/en/2014/07/24164316/experiences-microfinance-institutions-serving-very-small-small-enterprises-latin-america-based-case-studies-lac http://hdl.handle.net/10986/21715 English en_US CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo/ International Finance Corporation Washington, DC Publications & Research Publications & Research :: Working Paper Latin America & Caribbean Caribbean Latin America |