Business Commons^™

Management Accounting And Control: Lessons For And From The World's Tiniest Businesses, Srikant M. Datar, Marc J. Epstein, Kristi Jane Yuthas

Business Faculty Publications and Presentations

Microbusiness owners often lack the knowledge and skills--the human capital--necessary to make effective use of financial capital. They lack even the basic knowledge about how a loan is obtained and repaid and how debt can be used for business development.Most microfinance institutions have developed training that teaches clients about the timing and amount of repayment, the need for financial discipline to meet the repayment schedule, and the importance of investing the loan in working capital or productive assets rather than using it for household consumption. Although this training is essential for successful loan management from the institution's perspective, it often …