A recent Gallup poll of adults living in 18 sub-Saharan African countries indicates that 42 percent of those surveyed would obtain a business loan from a family member. Banks and friends were selected with 16 percent and 15 percent, respectively, of responses. Regardless of income, education or location, family was repeatedly named as the most likely source of business capital, although respondents with higher education, who lived in urban locations or who had bank accounts were more likely to respond that they would consider using a bank for a business loan. Rural respondents were more likely to select family, friends or community savings groups.
Microfinance institutions consistently received low levels of preference across all demographic groups, with the poorest and least educated slightly less likely to consider them. The universally low levels of interest in microfinance institutions suggest that improved government regulation and greater access to banking and savings accounts may be needed to encourage growth in the microfinance industry. All demographic groups were least likely to consider traditional moneylenders, who often charge high interest rates.
For a complete data set you may contact SocialandEconomicAnalysis@gallup.com or call +1 202 715 3030.
By Jennifer Shevock, Research Associate
About Gallup:
Gallup studies human nature and behavior and delivers relevant, timely and visionary research on what people around the world think and feel. Gallup employs many of the scientists in management, economics, psychology and sociology and consultants identify and monitor behavioral economic indicators worldwide.
Sources and Additional Resources:
“Sub-Saharan Africans Bank on Family for Business Loans” June 11, 2010. http://www.syminvest.com/market/news/microfinance/subsaharan-africans-bank-on-family-for-business-loans/2010/6/11/2397
MicroCapital Universe: Gallup: https://www.microcapital.org/microfinanceuniverse/tiki-index.php?page=Gallup
Browse the MicroCapital Universe and add your entry to the wiki at: https://www.microcapital.org/microfinanceuniverse/
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