Microfinance can be described as type of finance https://laghuvit.net/ that is certainly provided to small businesses and entrepreneurs who also don’t have usage of traditional money. This includes loans, credit, usage of saving accounts, insurance policies and funds transfers.

Micro finance companies are major sources of financing for low income individuals and small businesses that shouldn’t have access to classic banking services or have not any collateral. These types of institutions provide loans and also other financing products and services at affordable rates.

The purpose of this analysis is to understand how microfinance and entrepreneurship are linked in Kazakhstan, a country undergoing transition to a market financial system. We seek to shed light on just how microfinance drives small business production and formalisation in a transition context and also to explore borrowers’ relationships with MFOs at varied stages in the process.

The study plots on emerging literature that reviews a teleological approach to microfinance (Ault & Spicer, 2014; Chliova, Brinckmann, & Rosenbusch, 2015) and implies a more educational inquiry that asks even more open concerns about how microfinance relates to pioneeringup-and-coming outcomes in transitional situations. This requires utilizing methodologies that are more empirically-informed, attuned to the agency every day entrepreneurs and even more contextually-situated.

We explored borrowers’ relationships with MFOs through a field review of eighty six clients in Almaty and Almatinskaya canton in Kazakhstan, which are associated with both the International MFOs that focus on group lending and Private MFOs that offer individual loans to clients. The analysis also inspected the relationship among borrowers and the MFOs, which was influenced by a choice of factors which include their record characteristics, business characteristics and habits of microfinance use.