Leverage or Loss? Guarantee Funds and Microenterprise
By Katherine Stearns - Published: July 1993
Guarantee fund mechanisms can potentially increase financing for microentrepreneurs in developing countries beyond the funding levels available from donors. Three distinct guarantee fund models are proposed here based on the experiences of small enterprise guarantee programs. ACCION International’s own guarantee program, as well as case studies from Ecuador and Colombia, illustrate the positive effects that guarantee funds can have.
