Does Solidarity Pay? The Case of the Small Enterprise Foundation, South Africa
Bibliographic Data
| ID | 3884671 |
|---|---|
| Authors | Jens Reinke (0009-0004-7474-1351, London School of Economics and Political Science, corresponding author) |
| Year | 1998 |
| Volume | 29 |
| Issue | 3 |
| Pages | 553-576 |
| Publication date | 1998-07-01 |
| Peer Reviewed | Yes |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Development and Change (JOURNAL) |
| Journal identifiers | ISSN: 0012-155X • E-ISSN: 1467-7660 |
| Publisher | Wiley (PUBLISHER • GB) |
| DOI | 10.1111/1467-7660.00089 |
| OpenAlex | W2001587607 |
| Language | EN |
| Citations received | 6 |
This article argues that the costs of lending through solidarity groups are high. This is explained by the nature of groups: groups are not a forum for contractual exchange, but are costly institutions built on social capital. The costs of group formation and interaction outweigh the benefits of high repayment rates associated with group control. Supposedly sustainable group-lenders often depend on large injections of subsidized loans or capital from donors. This is usually ignored in mainstream literature which does not pay sufficient attention to the operational costs of credit extension. The argument is illustrated with a study of the Small Enterprise Foundation, South Africa, which shows a contradiction between staff-intensive, personalized lending technology and sufficient cost-recovery
Argument (complex analysis) · Business · Capital (architecture) · Contradiction · Economics · Foundation (evidence) · Law and economics · Mainstream · Market economy · Political science · Politics · Public economics · Solidarity · Subsidy · Community Development and Social Impact · Law · Microfinance and Financial Inclusion · Public-Private Partnership Projects
| Unique citing works | 6 |
|---|---|
| Citations per year | 0,21 |
| Citation span | 1998 - 2009 (12) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 5 |