Is Micro too Small? Microcredit vs. SME Finance

B-Tier
Journal: World Development
Year: 2013
Volume: 43
Issue: C
Pages: 288-297

Authors (2)

Bauchet, Jonathan (not in RePEc) Morduch, Jonathan (New York University (NYU))

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Microcredit and small and medium enterprise (SME) finance are often pitched as alternative strategies to create employment opportunities in low-income communities. So far, though, little is known about how employment patterns compare. We integrate evidence from three surveys to show that, compared to Bangladeshi microcredit customers, typical SME employees in Bangladesh have more education and professional skills, and live in households that are notably less poor. SME jobs also require long work weeks, clashing with family responsibilities. The evidence from Bangladesh rejects the idea that SME finance more efficiently creates jobs for the population currently served by microcredit.

Technical Details

RePEc Handle
repec:eee:wdevel:v:43:y:2013:i:c:p:288-297
Journal Field
Development
Author Count
2
Added to Database
2026-01-26