EconPapers    
Economics at your fingertips  
 

FRENCH LEGISLATION AND THE DEVELOPMENT OF CREDIT AVAILABILITY FOR MICROENTERPRISE

Laurence Attuel-Mendes and Arvind Ashta ()

Global Journal of Business Research, 2008, vol. 2, issue 2, 123-137

Abstract: The failures of the socialist model, evidenced by high unemployment, have led France to reorient itself towards more enterprise creation. These entrepreneurial ventures require financing. However, bankers do not want to assume the high risk of newly created enterprises. Moreover, small entrepreneurs who do manage to get financing may find themselves rationed at the margin if the rate of credit is capped by the legislature. Concurrently, the growth of microfinance in the world has shown that innovative techniques can increase credit availability, without unduly high risk. However, such increased credit availability may not materialize if credit rates are capped by usury laws, as it was in France. This paper traces out a number of legislative changes that took place in France in the last five years, focusing especially on usury laws and other barriers to credit. It places these legislative changes in a perspective of Western Europe’s socialist model, comparing legislation on credit and usury in a number of developed countries. It also examines if these legislative changes have been accompanied by the desired impact. Finally, it examines alternative future legislative evolution possibilities.

JEL-codes: D45 D53 E22 E4 G18 I38 K20 K29 N10 N20 (search for similar items in EconPapers)
Date: 2008
References: Add references at CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
http://www.theibfr2.com/RePEc/ibf/gjbres/GJBR-V2N2-2008/GJBR-V2N2-2008-10.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ibf:gjbres:v:2:y:2008:i:2:p:123-137

Access Statistics for this article

Global Journal of Business Research is currently edited by Terrance Jalbert

More articles in Global Journal of Business Research from The Institute for Business and Finance Research
Bibliographic data for series maintained by Mercedes Jalbert ().

 
Page updated 2021-07-03
Handle: RePEc:ibf:gjbres:v:2:y:2008:i:2:p:123-137