Loans to microenterprises, of which there are around 550 million worldwide. In many cases, these companies are excluded from normal financial services and are often at the mercy of usury. To the extent that banks serve this market – in many emerging markets with backing from state authorities or even guarantees – almost all loans have been repaid on time. – The granting of loans to start-ups, and here again especially to sideline start-ups. For the banks, such loans require a considerable administrative workload in the face of tight interest margins; they also require a broad, sustained ongoing servicing and at the same time create a high credit risk for the bank. For this reason, such loans have shifted in favor of – venture capital funds, – (semi-)state-owned special institutions and – corporate venture capital companies. – See bootstrapping, burn rate, business angel, third-phase financing, founder bank, incubator, innovation fund, love money, private equity financing, Qard al-Hasan, seed capital, sweat equity. – Cf. ECB Monthly Report of October 2009, p. 105 et seq. (financing problems in emerging markets), BaFin Annual Report 2011, p. 158 (strong upswing in microfinance from Germany; BaFin grants banking license to an internationally active German microfinance provider), ECB Monthly Report of March 2014, p. 11 et seq. (impact of the financial crisis on emerging markets; overviews).
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/