TY - JOUR
T1 - How does microfinance enhance entrepreneurial outcomes in emerging economies? The mediating mechanisms of psychological and social capital
AU - Newman, Alexander Harry
AU - Schwarz, Susan
AU - Borgia, Daniel
PY - 2014
Y1 - 2014
N2 - In this article, a conceptual framework and research propositions are developed to explain how microfinance provision can translate into new venture creation and existing venture growth in an emerging economy context by engendering higher levels of psychological and social capital in clients. In doing this, the extent to which microfinance institutions provide business support and opportunities for social interaction are identified as factors which may strengthen the impact of microfinance provision on psychological and social capital, especially for poor entrepreneurs in resource-constrained settings. The conceptual framework and research propositions developed will be of use to academics in designing an agenda for future empirical research. In addition, they will help policymakers and microfinance providers to better design microfinance initiatives that enhance the well-being of clients and maximise their entrepreneurial outcomes.
AB - In this article, a conceptual framework and research propositions are developed to explain how microfinance provision can translate into new venture creation and existing venture growth in an emerging economy context by engendering higher levels of psychological and social capital in clients. In doing this, the extent to which microfinance institutions provide business support and opportunities for social interaction are identified as factors which may strengthen the impact of microfinance provision on psychological and social capital, especially for poor entrepreneurs in resource-constrained settings. The conceptual framework and research propositions developed will be of use to academics in designing an agenda for future empirical research. In addition, they will help policymakers and microfinance providers to better design microfinance initiatives that enhance the well-being of clients and maximise their entrepreneurial outcomes.
U2 - 10.1177/0266242613485611
DO - 10.1177/0266242613485611
M3 - Article
SN - 0266-2426
VL - 32
SP - 158
EP - 179
JO - International Small Business Journal
JF - International Small Business Journal
IS - 2
ER -