| Author | Sao Pisey |
| Call Number | AIT RSPR no.SM-07-72 |
| Subject(s) | Microfinance--Cambodia
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| Note | A research study submitted in partial fulfillment of the requirement for the degree of Master of Business Administration in International Business |
| Publisher | Asian Institute of Technology |
| Abstract | In Cambodia, microfinance have developed very quickly, until now, there are 16 licensed MFIs, 23 rural operators and other 60 NGOs, are providing the microfinance services to the poor. However, the informal financial sources still play an important role in this microfinance sector, especially in the rural areas. As it is generally known that, bon-owing money from the informal institution is very costly. Commonly, the poor has to pay between 5-10% of the loan amount per month for the interest rate at flat rate. As a result, there is no doubt in saying that the informal financial sources do not contribute to alleviate the poverty in the country but to aggravate. Hence, the main objective of this research is mainly to find out the issues related in the microfinance sector, the perception of the poor toward the formal financial institutions. In order to reach this objective, both primary and secondary data are needed. This research concludes that the limited capacity (network, image, resources) of the formal financial institutions is the main issue as evidenced from the interview with MFIs' representatives. Most of the borrowers sometimes do not know how to use the loan effectively; they have very low level of education and skill to improve either their productivity in farm production or their business. The majority of the unpaid loan borrowers fail to run their business. Recommendations are to strengthen the capacity and the image (marketing activities) of the formal institutions. Moreover, the royal government of Cambodia is also needed to play a role as a facilitator in this sector. |
| Year | 2007 |
| Type | Research Study Project Report (RSPR) |
| School | School of Management (SOM) |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Master of Business Administration (MBA) (Publication code=SM) |
| Chairperson(s) | Tang, John C. S.; |
| Examination Committee(s) | Sununta Siengthai;Do Ba Khang; |
| Scholarship Donor(s) | French Government;AIT Fellowship; |
| Degree | Research Studies Project Report (M.B.A.) - Asian Institute of Technology, 2007 |