Micro-finance and small and medium-sized enterprises: the social, economic and environmental impacts of community development finance institutions in the UK

Rowe-Haynes, Maxwell David (2017). Micro-finance and small and medium-sized enterprises: the social, economic and environmental impacts of community development finance institutions in the UK. University of Birmingham. M.Phil.

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Abstract

This thesis explores how CDFIs create impacts through their lending activities to SMEs. It aims to understand the organisational behaviour and performance of CDFIs as micro-lenders to financially marginalised enterprises and consider the role that different expectations of impact have on lending performance. The research responds to calls for CDFIs to improve the measurement of impact to demonstrate value. Tensions in the CDFI business model, means they will only ever provide a partial solution to the finance gap. As a sector they will struggle to become fully sustainable and will be instead be reliant on periodic injections of Government capital. The research is based on a survey of the loan portfolios of four West Midland based CDFIs. It explores impacts through an analysis of data gathered from interviews with CDFI CEOs, the loan files, borrower interviews, and lending officer questionnaires. This research involved developing a conceptual framework of impacts to identify wider additional impacts. These could in future be used to undertake an economic multiplier analysis of CDFIs that includes wider impacts. The research identifies that whilst CDFIs generate a broad range of impacts from a variety of different types of enterprise, they presently undercount their full benefit to society.

Type of Work:

Thesis (Masters by Research > M.Phil.)

Award Type:

Masters by Research > M.Phil.

Supervisor(s):