A New Paradigm to Include: Increasing Formal Credit Access for MSEs in Peru ---Katia Huayta & Julio Flores ---
The challenge:
Findings: Main factors
• MSEs are key for Peru,s development,
• Not enough credit supply in some regions and economic sectors. • Lack of information increase credit cost. • People,s perceptions lead MSEs to self-exclusion. • Low technology usage reduces the capacity to reach MSEs.
but their productivity is low. • Credit access is one of, the top three constraints for MSE s productivity. • Ironically, just 6% have access to formal credit. • The target population is more than 2 million MSEs.
, Findings: MSE s profile
Recommendations
Four Clusters: • Cluster 1: Most vulnerable microenterprises (30%) • Cluster 2: Financially sound and self-excluded microenterprises (33%) • Cluster 3: Highly informally indebted microenterprises (MSE:19%) • Cluster 4: Mostly banked small enterprises (MSE: 28%)
• An informational wallet to collect MSEs, data to be shared with formal financial providers. • A behavioral game to address self-exclusion biases and connect demand with supply. • A regulatory space and funds to promote fintechs’ development.
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Julio Flores Salvatierra julioflores@hks.harvard.edu Katia Huayta Zapata khuaytazapata@hks.harvard.edu
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