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Illustration of an increase in the capital availability lowers the lending rates.

Illustration of an increase in the capital availability lowers the lending rates.

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In the mid-1970s, microfinance began a new era of growth, pioneered by the work of Professor Muhammad Yunus and the Grameen Bank, with a mission to eradicate poverty from the face of the earth. VIdeo: Presently, more than 200 million individuals globally have a microfinance loan, compared to 13 million in 1997 (Reed,...

Contexts in source publication

Context 1
... the one hand, we have the capital providers (supply), and on the other hand, we have the microentrepreneurs (demand). An increase in capital availability shifts the supply curve to the right (see Figure 2, where P is the cost of capital and Q is the capital availability of, for instance, microloans). The effect is a lower cost of capital, which thereby increases the odds of creating entrepreneurial profits. ...
Context 2
... subsidized funding has the same effect as increasing the supply (as when the donors request less in return)-the capital availability is increased. Research shows indeed that the demand curve is downward sloping and quite steep , though perhaps slightly flatter than I have illustrated in Figure 2, below. A flat demand curve could exist, for instance, if the clients are not well versed in financial terminology. ...
Context 3
... we did not find a significant association between microenterprise size and growth. Lastly, our fifth hypothesis is partly supported in that the relationship between leverage and performance is positively moderated with an increasing number of employees, see Figure 2. ...