Demand Side Analysis of Microlending Markets in Germany

31 Pages Posted: 22 Oct 2009

See all articles by Alexander Kritikos

Alexander Kritikos

Europa-Universitaet Viadrina - Fakultat fur Wirtschaftswissenschaften; German Institute for Economic Research (DIW Berlin); IZA Institute of Labor Economics

Christoph Kneiding

World Bank - Consultative Group to Assist the Poor (CGAP); German Institute for Economic Research (DIW Berlin)

Claas Christian Germelmann

Saarland University

Multiple version iconThere are 2 versions of this paper

Date Written: June 2009

Abstract

In developing and transition economies, microlending has become an effective instrument for providing micro businesses with the necessary financial resources to launch operations. In the industrialized countries, with their highly developed banking systems, however, there has been ongoing debate on the question of whether an uncovered demand for microlending services exists. The present pilot study explores customer preferences for microlending products in Germany. Among the interviewed business owners, 15% reported revolving funding needs and an interest in microloans. We find that potential recipients of microloan products are retail business owners, foreign business owners, and persons who had previously received private loans. Furthermore, financial products should feature rapid access to short-term loans.

Keywords: Entrepreneurship, Microlending, Market Research

JEL Classification: G21, D12, M31

Suggested Citation

Kritikos, Alexander S. and Kneiding, Christoph and Germelmann, Claas Christian, Demand Side Analysis of Microlending Markets in Germany (June 2009). DIW Berlin Discussion Paper No. 903, Available at SSRN: https://ssrn.com/abstract=1491048 or http://dx.doi.org/10.2139/ssrn.1491048

Alexander S. Kritikos (Contact Author)

Europa-Universitaet Viadrina - Fakultat fur Wirtschaftswissenschaften ( email )

15230 Frankfurt (Oder)
Germany

German Institute for Economic Research (DIW Berlin) ( email )

Mohrenstraße 58
Berlin, 10117
Germany

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Christoph Kneiding

World Bank - Consultative Group to Assist the Poor (CGAP) ( email )

1818 H St NW
Washington, DC
United States

German Institute for Economic Research (DIW Berlin)

Mohrenstraße 58
Berlin, 10117
Germany

Claas Christian Germelmann

Saarland University ( email )

Stadtwald
Saarbrucken, Saarland D-66123
Germany

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