Impact of Microcredit on Clients in Bosnia and Herzegovina

Date Published: 
May 2005
Dunn, E.

The impacts of microcredit on entrepreneurs, their households, and their microenterprises

This report is the culmination of a three-year research effort to document the impacts of a sustainable microfinance sector in Bosnia and Herzegovina (BiH).It describes the findings from a two-round survey of 2,561 microentrepreneurs. The purpose is to explain the results of a statistical analysis of the impacts of microcredit on household welfare, business development and post-conflict transition.To answer these questions, the evaluation relied on a mixed-method approach, combining a longitudinal survey and case study interviews. The evaluation was conducted in several phases and included both quantitative and qualitative components. The report provides details on study participants:

  • How were they selected?
  • Who are they?
  • How do they use microcredit?

The report details the statistically significant findings in terms of the impacts of microcredit on:

  • Income;
  • Employment;
  • Investment;
  • Business registration;
  • The post-war transition.

The results from the two rounds of the survey indicate that microcredit had numerous positive impacts between the years 2002 and 2004. It concludes by stating the:

  • Limitations of the study;
  • Implications of the findings:
    • Microcredit increases investment, productivity and incomes;
    • Microcredit strengthens the formal economy;
    • Microcredit assists displaced entrepreneurs.