ABSTRACT
The chapter generally reviewed the empirical context of the global microfinance industry, within the microfinance livelisystem framework (MLF). First, the nature of rural financial markets and livelihoods is examined. Second, the products and services of the industry including microloans, micro-savings, micro-insurance and payment services are assessed. Third, the eight factors (costs, worth, length, breadth, depth, scope, contract enforcement mechanisms and microfinance plus) underpinning the design of microfinance products and services are further assessed. Fourth, it reviewed the perceptions of clients on the interplay of macro-economic, macro-institutional, service provider (MFI level factors), the household as well as the individual client characteristics in determining product and service uptake. These include interest rates, lending models (group versus individual), household size, livelihood diversification, a growing rural economy, inflation, the state of the rule of law, start-up requirements of clients, their participation in other poverty interventions, education levels and the role of gender, among others. Last, but not least, the chapter reviewed the empirical evidence of the impact of microfinance on rural livelihood diversification, asset accumulation patterns and welfare outcomes within the context of microfinance programmes and the MLF as well as the household livelisystem model (HLM).
