Social capital in microfinance: measures, methods and outcomes

Niels Hermes

Chapter 4 in A Research Agenda for Social Capital in Economic Development, 2025, pp 69-94 from Edward Elgar Publishing

Abstract: This chapter evaluates the importance of social capital for the success of microfinance as an instrument to help the poor in improving their well-being. An important part of microfinance consists of so-called group lending. Social capital is a crucial element of the success of group lending. The chapter starts with a brief introduction to microfinance as a concept and discusses the role of social capital. Next, it focuses on how social capital in microfinance is measured and analyzed, followed by a review of research evaluating how microfinance may affect the lives of poor families in emerging economies and how social capital may play a role in this. In addition, it provides a short discussion of the main results of the research on social capital in microfinance. The chapter ends with an overview of potential future research challenges.

Keywords: Social capital; Microfinance; Group lending; Repayment (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035315819
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