Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 1 of 1
Full-Text Articles in Business
A Different Perspective On The Debate Between Nonprofit And For-Profit Microfinance Organizations, Hane E. De Oliveira Crevelari
A Different Perspective On The Debate Between Nonprofit And For-Profit Microfinance Organizations, Hane E. De Oliveira Crevelari
Undergraduate Honors Capstone Projects
Microfinance for-profit organizations flooded the market in the early 2000's when microcredit demonstrated profitability. Ever since, an intense debate arose contesting the morality of profiting from the poor. Many for-profit microfinance institutions were accused of predatory lending through high interest rates and aggressive marketing and payment collection. In this paper, I examine the validity of the arguments for and against for-profits by extensively comparing the different target audiences of the charity sector and the private sector and the main arguments of each side. I conclude that, although the ability to serve the poor is compromised by profit motives, for-profit microfinance …