Transformation Lending: Helping Microenterprises Become Small Businesses

摘要

This paper examines how small enterprise credit institutions can support the transformation of microenterprises into small enterprises. It first examines the needs of enterprises undergoing this transformation. These enterprises experience changes in markets, personnel, production, and source of supply. In addition, many of these enterprises face expanding needs for credit. Second, it reviews five lending institutions that provide loans, and in some cases training, to support microenterprise transformation, analyzing their program design, lending methodology, financial performance, and impact. Finally, the paper summarizes the key lessons that come out of this review.