ABSTRACT
Vast numbers of informal entrepreneurs operating around the world must seek financial services outside the formal banking system. Cultural traditions along with a limited financial infrastructure in many developing economic environments result in an assortment of alternative banking services (Adams and Fitchett 1992). These financial products attempt to serve business development needs among the poor in both rural and urban settings. “Off the books” financial activities serve millions of entrepreneurs and households in base-of-the-pyramid situations. To clarify the diversity of the alternative financial service environment of informal entrepreneurs, this chapter considers these research questions:
What factors influence the creation and operation of alternative financial services used by informal entrepreneurs?
What types of alternative financial services are available in informal entrepreneurial settings?
What actions could improve access to financial services for informal entrepreneurs?
