IS MICROLOAN A PATH TO DEVELOP-MENT OR BANKRUPTCY?

Abstract

Microfinance is one of the discussed topics in modern financial intermediation. After the introduction of regulation of this activity by the Bank of Russia, the microfinance market acquired the characteristics of an orderly system, and the vector of heated discus-sions from issues of infringement of the rights of borrowers, mis selling and fraud changed direction towards more scientific and constructive topics: relevance of rates, influence on the development of industries and areas of activity, competition in financial intermediation, etc. The presented article is devoted to the study of the role of micro-finance for small and medium-sized busi-nesses as a promising area that works to increase the accessibility of financial ser-vices. The work examines the volumes of the domestic microfinance market, identifies the trend of their changes, and presents an approach that helps an entrepreneur, before turning to a financial intermediary, determine which source of financing he should turn to so as not to lead the business to insolvency. The publication will be of interest to both specialists in the field of financial literacy and entrepreneurs who are faced with choosing sources of financing their activities.