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  • 2007
  • Chapter
  • Business Solutions for the Global Poor: Creating Social and Economic Value

Microfinance: Business, Profitability, and the Creation of Social Value

By: Michael Chu
  • Format:Print
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Abstract

The chapter examines the development of microfinance from its NGO origins to the present stage in which it is characterized by regulated commercial institutions capable of superior financial returns. It then looks at the creation of social value under these circumstances, advancing a role for profit in the generation of social value. In the process, it sets forth the conditions under which profit is positive and when it is negative from a societal perspective, and why business at the base of the pyramid may matter.

Keywords

Microfinance; Investment Return; Profit; Governing Rules, Regulations, and Reforms; Social Enterprise; Non-Governmental Organizations; Perspective; Value Creation

Citation

Chu, Michael. "Microfinance: Business, Profitability, and the Creation of Social Value." Chap. 28 in Business Solutions for the Global Poor: Creating Social and Economic Value, by V. Kasturi Rangan, John A. Quelch, Gustavo Herrero, and Brooke Barton, 309–320. John Wiley & Sons, 2007.

About The Author

Michael Chu

General Management
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More from the Author

    • October 2022
    • Faculty Research

    Ceibal: Sustaining and Scaling Educational Innovation in Uruguay

    By: John J-H Kim, Michael Chu and Mariana Cal
    • September 2022
    • Faculty Research

    BancoSol: Financial Inclusion in the Perfect Storm

    By: Michael Chu and Carla Larangeira
    • August 2022 (Revised October 2022)
    • Faculty Research

    Katitas: Home Ownership for the Majority of Japan

    By: Michael Chu, Akiko Kanno and Nobuo Sato
More from the Author
  • Ceibal: Sustaining and Scaling Educational Innovation in Uruguay By: John J-H Kim, Michael Chu and Mariana Cal
  • BancoSol: Financial Inclusion in the Perfect Storm By: Michael Chu and Carla Larangeira
  • Katitas: Home Ownership for the Majority of Japan By: Michael Chu, Akiko Kanno and Nobuo Sato
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