Both alternative financing models, microcredit and p2p lending, opened huge possibilities to support so-called “unbankables” on their way out of poverty, unemployment and social exclusion. How they work, what impact they have on the German start-up endeavour and which kind of obstacles still remain that they need to overcome will be investigated in the paper at hand.
Inhaltsverzeichnis (Table of Contents)
- INTRODUCTION
- Relevance of the Topic
- Objectives and Structure of the Thesis
- FUNDAMENTALS OF MICROCREDITS
- Definition of Microcredits
- Characteristics of Microcredits
- Socio-Political Intentions
- Credit Period and Redemption
- Credit Risks and Collaterals
- Developmental Types of the Supply of Microcredits
- Upgrading
- Downscaling
- Greenfieldbanking
- Linkage Banking
- German History of Microcredits
- FUNDAMENTALS OF PEER-TO-PEER LENDING
- Definition of Peer-to-Peer Lending
- Characteristics of P2P Lending
- Models of P2P Lending
- Direct and Indirect Lending
- Secured and Unsecured Lending
- Prior Relationship Lending
- Exemplary P2P Lending Process
- PARALLELS OF P2P LENDING AND MICROCREDITS
- RELEVANT THEORIES OF ECONOMICS CONCERNING MICROCREDITS AND P2P LENDING
- Law of Diminishing Marginal Returns
- Transaction Cost Theory
- Principal Agent Theory
- Problems of the Principal-Agent-Relationship
- Adverse Selection
- Hold-Up Problem
- Moral Hazard
- Approach for Problems of the Principal-Agent-Relationship
- Screening
- Signaling
- Monitoring
- Summary of Findings for the Principal Agent Theory
- FRAMEWORK FOR MICROCREDITS AND P2P LENDING IN GERMANY
- Economic Factors and Labour Market
- Current Start-Up Demeanour in Germany
- Formations of Companies in Numbers and Structural Features
- Characteristics of Start-Up Financing
- Alternatives of Financing
- Loan Programmes
- Start-Up Grant of the Federal Employment Agency
- Support for Recipients of Unemployment Benefit II – “Einstiegsgeld”
- KfW Start-Up Loan
- Legal Framework for Microcredits and P2P Lending Platforms
- General Regulations for Microcredits
- Legal Framework for P2P Lending
- SUPPLY OF MICROCREDITS AND P2P IN GERMANY
- Microcredit Supply
- The “Mikrokreditfonds Deutschland” and Microfinance Institutions
- The “Deutsche Mikrofinanz Institut”
- The GLS-Bank
- Summary of Loan Disbursement
- P2P Lending Suppliers
- Smava
- Auxmoney
- Online P2P Microcredit Model
- DEMAND OF MICROCREDITS AND P2P LENDING IN GERMANY
- Potential Volume of Demand
- Borrower Characteristics
- Start-Ups of Women
- Start-Ups of Immigrants
- Start-Ups out of Unemployment
- Investors Characteristics
- EVALUATION OF START-UP FINANCING THROUGH MICROCREDITS AND P2P LENDING PLATFORMS
- Impact Assessment of the “Mikrokreditfonds Deutschland”
- Evaluation of the Preferential Treatment of Target Groups
- Evaluation of the “Mikrokreditfonds Deutschland”
- The Expedience of Founders
- The Expedience of Microfinance Institutions
- The Expedience of the DMI
- The Expedience of the GLS Bank
- The Expedience of the “Mikrokreditfonds Deutschland”
- Evaluation of the P2P Granting System
- CONCLUSION AND OUTLOOK
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This thesis investigates the potential of online peer-to-peer lending platforms as a financing tool for microcredits, specifically for start-up financing in Germany. The goal is to explore the economic and legal framework for this concept, assess its suitability within the German context, and evaluate its potential impact.
- The characteristics and economic implications of microcredits and peer-to-peer lending
- The current state of start-up financing in Germany, including existing loan programmes and legal frameworks
- The potential of online peer-to-peer platforms for microcredit provision in Germany
- The feasibility and impact of this concept on both borrowers and investors
- The analysis of relevant economic theories, including the law of diminishing marginal returns, transaction cost theory, and the principal-agent theory
Zusammenfassung der Kapitel (Chapter Summaries)
The thesis starts by outlining the relevance and objectives of the topic, setting the stage for the subsequent exploration of microcredits and peer-to-peer lending. Chapter 2 dives into the fundamental aspects of microcredits, defining their characteristics, and examining their socio-political intentions, credit periods, risks, and German historical context. Chapter 3 focuses on the fundamentals of peer-to-peer lending, defining the concept, its characteristics, and various models. Chapter 4 draws parallels between peer-to-peer lending and microcredits, highlighting their potential synergies. Chapter 5 delves into relevant economic theories, particularly the law of diminishing marginal returns, transaction cost theory, and the principal-agent theory, providing theoretical frameworks for understanding the interactions between borrowers, lenders, and intermediaries in the context of microcredits and peer-to-peer lending.
Schlüsselwörter (Keywords)
This thesis focuses on microcredits, peer-to-peer lending, start-up financing, online platforms, Germany, economic framework, legal framework, transaction costs, principal-agent theory, and microfinance institutions.
- Quote paper
- Kathleen Kühnel (Author), 2011, Microcredits and peer-to-peer lending as financing tools for start-ups in Germany, Munich, GRIN Verlag, https://www.grin.com/document/177415
