This paper examines how microfinance remains viable even when loans are used for household needs rather than strictly entrepreneurial purposes. Drawing on an embedded case study of a South African microfinance organization, the paper shows how loan officers and recipients sustain “loan-use ambiguity” through three harmonizing practices: reverence for repayment, empathic financial support, and entrepreneurial discretion.
Authors and affiliations:
• Jacob Vermeire (Ghent University)
• Miguel Meuleman (Ghent University; Vlerick Business School; Imperial College Business School)
• Jan Lepoutre (ESSEC Business School)
