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Institutional and interpersonal trust and entrepreneurship: insights from relationship banking and microfinance in Brazil

Published Online:pp 58-74https://doi.org/10.1504/IJBG.2015.066097

We examine the value of trust in entrepreneurship by addressing the context of microfinance. We investigate the cases of three community banks providing microfinance in bottom-of-the-pyramid communities in Brazil. Using qualitative methods, we find that institutional trust seems to facilitate the operation of microfinance organisations that support entrepreneurship, while stimulating consumption within a community and the development of local small businesses. Additionally, interpersonal trust seems to facilitate the development of formal and informal businesses.

Keywords

interpersonal trust, entrepreneurship, microfinance, institutional trust, Brazil

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