This case focuses on one of the largest and most successful such microlenders, Mexico’s Compartamos (“we share”) organization, and raises questions about the most effective business model and scope of microlenders. Specifically, the case tells the story of how Compartamos, the great success making small loans in villages and rural areas was found, fared when it was looking to expand in Mexico City. A series of reverses – higher failure rates, personnel problems and unexpected competition and r … Read more »

This case focuses on one of the largest and most successful such microlenders, Mexico’s Compartamos (“we share”) organization, and raises questions about the most effective business model and scope of microlenders. Specifically, the case tells the story of how Compartamos, the great success making small loans in villages and rural areas was found, fared when it was looking to expand in Mexico City. A series of reverses – higher failure rates, personnel problems and unexpected competition and regulatory issues – implicitly raise the question of whether and Compartamos microlenders its kind to have left in the past, peer group pressure, the repayment of the otherwise unsecured loans to ensure , small start-up companies can expand and adapt to an urban environment. HKS case number 1761.1
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from
Jonathan Schlefer,
Guy Stuart
2 pages.
Release date: 01 June 2004. Prod #: HKS360-PDF-ENG
Corporate Values ​​and Transformation: Sequel HBR case solution

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