Microenterprise credit programs: Déja vu

Abstract

Microenterprises in low-income countries are the target of an increasing number of credit programs. These efforts resemble earlier problematic attempts to assist operators of small farms with credit. Similarities discussed include target group definition, assumptions, policies, and project justifications. Authors go on to list a dozen lessons from the experience with small- farmer credit that might apply to microenterprise credit efforts. Authors then conclude that debt is not an effective tool for helping most poor people to enchance their economic conditions, be they operators of small farms or microenterprises.