Martin Arturo Ramírez Urquidy
MFIs’ programmes in support of microenterprises in Mexico: a comparative analysis with commercial banking
Microfinance institutions (MFIs) constitute a support mechanism for microenterprises in Mexico by designing programmes that are accessible to this type of business. This article makes a comparative analysis of the financing programmes granted by MFIs and commercial banking and in turn, determines the impact of these supports on the results of the microenterprises. By applying non-parametric statistics, the results reveal that MFIs offer loans with smaller amounts, shorter terms, periodic payments, and higher interest rates compared with commercial banking products. Also, it was found that microenterprises that obtained financing from MFIs achieved lower profits than those that acquired resources from commercial banking.