The Role of Entrepreneurial Motivation and Repayment Performance on Microcredit Terms

• Type: Chapter or Part of a Book
• Date: 2024

Authors

Nogueira, S (Author) Other; Duarte, F (Author) FEP; Gama, APM (Author) Other

Book

Title: Accounting, Finance, Sustainability, Governance and Fraud

Pages: 349-374

ISBN: 2509-7873

Electronic ISBN: 2509-7881

Indexing

Scopus - 0 Citations

Other information

Authenticus ID: P-017-MJV

DOI: 10.1007/978-981-97-5388-8_15

Abstract (EN): Since its modern form, microcredit has been deemed as a viable instrument to alleviate poverty. Popularized in poor countries, its value has grown worldwide, and it is being applied in developing and developed countries. Our research investigates the role of entrepreneurial motivation and repayment performance on credit terms in the context of the Portuguese microcredit industry. Using a 2,060-microcredit loan between 1999 and 2015, our results show that the Portuguese microcredit industry tends to lend higher amounts of credit with longer maturities to entrepreneurs with a lower likelihood of repayment (entrepreneurs moved by necessity). The focus on these riskier entrepreneurs led us to confirm the argument that MC is a prosocial instrument, following its initial belief. © The Author(s).

Language: English

Type (Professor's evaluation): Scientific

No. of pages: 25