Market value analysis of entrepreneurs? microcredit and personal loans

This paper compares the market value of microcredit and personal loans to entrepreneurs. Based on primary data collected on a database of loans for entrepreneurs in Brazil, this work used the model of Blattber and Deighton (1996) – a marketing strategy model that applies financial evaluation techniques and clients statistics, with the purpose of optimizing the processes of acquisition, retention and capitalization of clients. Results show that traditional personal loan has a lower value compared to the micro-credit operation, even though microcredit clients have a history of informality, low income and lack of credit history.