A methodology for the assessment of potential demand and optimal supply of entrepreneurial microcredit
Ayi Gavriel AyayiFinancial Economics, Université du Québec à Trois Rivières, 3351 Boulevard des Forges C.P 500, Trois Rivières, Québec G9A 5H7, CanadaNurmukhammad YusupovEconomics, Westminster, International University in Tashkent, Uzbekistan
ABI
Abstract
We propose a methodology for the assessment of potential demand and optimal supply for microcredit. We show that the total demand is a combination of the demand that stems from the active poor plus the demand generated by a motivator agent among the entrepreneurial non-motivated poor. We use French data to provide an illustration of the assessment of potential demand for microcredit. We also show that the proportion of the potential demand satisfied by a microfinance institution depends on its objective i.e. either it is socially oriented or a profit maximizer.
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