Collective Loans for Bulgaria's Self-Employed: A Field Study of Collective Loans for Bulgaria's Self-Employed: A Field Study of Social and Financial Capital on Enterprise Growth

Keywords

social capital, microfinance, firm performance

Abstract

The purpose of this paper is to increase understanding of how collective lending strategies leverage social capital to improve firm performance. Drawing on economic and sociological perspectives and fieldwork in Bulgaria, I argue that social capital may enhance the effects of financial capital on firm performance in microenterprises. Findings show that a collective lending strategy facilitates greater firm performance than individual lending--due partially to the increased social capital it creates for the entrepreneur. These findings come from a multi-method field study conducted in Bulgaria, where qualitative data were collected from over 40 business owner interviews. The findings have implications for the theoretical and practical application within the field of microfinance.

Original Publication Citation

"Morris, S. S. 2003. Collective Loans for Bulgaria’s Self-Employed: A Field Study of Social and Financial Capital on Enterprise Growth. Journal of Entrepreneurial Finance and Business Ventures, 8: 57-76."

Document Type

Peer-Reviewed Article

Publication Date

2003

Publisher

Journal of Entrepreneurial Finance and Business Ventures

Language

English

College

Marriott School of Business

Department

Marketing

University Standing at Time of Publication

Full Professor

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