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  • June 2009 (Revised July 2010)
  • Case
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Microfin

By: Michael Chu and Enrique Kramer
  • Format:Print
  • | Pages:30
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Abstract

The case presents the management dilemmas of a new institution in an undeveloped microfinance market in Latin America. Supported by a globally recognized industry player, it is the result of the efforts of two fledgling local entrepreneurs with a business model they believe can achieve a substantial and profitable share of a potential $150 million market. With the backdrop of the 2002 banking crisis, the governing leftist coalition is promoting microfinance as a means to reduce poverty, but banking authorities have so far issued no regulation to promote it. Another competitor with similar characteristics to Microfin started doing business a few months earlier, and there are rumors that the largest bank in the country is studying the possibility of a fully owned subsidiary exclusively dedicated to microfinance.

Keywords

Business Model; Developing Countries and Economies; Social Entrepreneurship; Microfinance; Governing Rules, Regulations, and Reforms; Industry Structures; Competitive Strategy; Financial Services Industry; Latin America

Citation

Chu, Michael, and Enrique Kramer. "Microfin." Harvard Business School Case 309-126, June 2009. (Revised July 2010.)
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About The Author

Michael Chu

General Management
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  • 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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