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The Microfinance Contagion Scenario

Harvard Business Review

So far, the Andhra Pradesh (AP) microfinance crisis has largely been viewed as a local issue, with relatively little impact beyond AP or India's borders. Other microfinance crises, in Bolivia, Nicaragua, Nigeria, and Bosnia, have not spread beyond the borders of a particular country. That could likely have consequences.

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Businesses Serving the Poor Need to Get Over Their Unease About Profit

Harvard Business Review

But even more so, I believe that deep down, managers and executives feel that getting by on razor-thin margins is the morally correct way to do business among the poor. The microfinance industry is a rare D and E success story. Prahalad's brilliance and persuasiveness certainly had something to do with it.