The Potential Demand for Microcredit in Argentina
This paper, which is a part of a series of working papers published by the Pontificia Universidad Católica Argentina, aims to estimate the potential demand of microcredit in Argentina based on socioeconomic and demographic attributes of the country. The research used data of the Social Debt Survey of Argentina conducted in 2010. The paper states that in Argentina microfinance equals microcredit and the industry is at an infant stage and the demand is small compared to other peer countries in Latin America. After analyzing socioeconomic and demographic factors, it suggests that the potential consumers of microcredit in Argentina are mostly employees, followed by the self-employed population, and almost half of them are within the age group of 30 to 49 years. The paper covers the following sections in detail:
- Background literature on the potential demand for microcredit in Argentina with a focus on the advantages and disadvantages of microcredit;
- Methodology of the study with a discussion on the financial inclusiveness questionnaire that was used for the research;
- Estimation of the potential demand for microcredit in Argentina with a focus on defining microcredit, potential demand, and identification of potential demand;
- Characterization and analysis of the demand according to employment type, place of residence, level of financial inclusiveness, and age of respondents;
- Results of the study and a summary of the findings.