Microfinance and microinsurance : building scalable business models for growth and poverty alleviation | |
| Author | Yadav, Rajiv |
| Call Number | AIT Diss. no.DBA-SOM-20-02 |
| Subject(s) | Microfinance Microinsurance |
| Note | A dissertation submitted in partial fulfillment of the requirements for the degree of Doctor of Business Administration |
| Publisher | Asian Institute of Technology |
| Series Statement | Dissertation ; no. DBA-SOM-20-02 |
| Abstract | Microfinance has been instrumental in aiding the poor as the loans help in revenue generating activities so as to help them come out of poverty. South Asia has half the poor population but the loan amount is less than ten percent of the overall global microfinance industry as the ticket size is small. The industry is relatively new as it was built after the success achieved by Bangladesh’s Grameen model which focusses on lending to the woman living in poverty and earning less than $ 2 per day. This research provides a chronicle of a major disaster in the Indian microfinance sector, the Andhra Pradesh crisis of 2010, and attempts to derive some key lessons. Based on literature review on microfinance business characteristics, a framework was developed to demonstrate the relationship of outreach, products, habits, risk, and role of regulator, had on the scalability of the business so as to alleviate poverty. Further five research questions were developed to find out the role, regulations played in aiding the growth and scalability of the microfinance business. To address the research questions we looked at the Andhra Pradesh (India) crisis in microfinance as the case study. The study helped in ascertaining that the scalability of the microfinance industry was significantly dependent on regulations, which drove the factors contributing to the overall growth of the business. A lack of regulatory oversight and political opportunism lead to the tragic events in Andhra Pradesh. Subsequent regulations introduced by the Reserve Bank of India, including caps on the size and number of loans to an individual, and restrictions on loan use resulted in greater outreach by the lenders and better portfolio performances. |
| Year | 2020 |
| Corresponding Series Added Entry | Asian Institute of Technology.Dissertation ;no. DBA-SOM-20-02 |
| Type | Dissertation |
| School | School of Management |
| Department | Other Field of Studies (No Department) |
| Academic Program/FoS | Doctor of Philosophy in Business Administration (Publication code = DBA-SM, SM) |
| Chairperson(s) | Winai Wongsurawat (Co-Chairperson);Badir, Yuosre F. M. (Co-Chairperson); |
| Examination Committee(s) | Huynh Trung Luong;Vimolwan Yukongdi; |
| Degree | Thesis (Ph.D.) - Asian Institute of Technology, 2020 |