What is the potential demand for microcredits in Argentina? New estimates

Abstract

The purpose of this paper is to estimate and characterize the profiles of the potential demand for microcredit in Argentina, according to a number of socioeconomic and demographic attributes. Our estimates are based on a survey conducted annually by the Pontifical Catholic University of Argentina spanning data from 5682 stratified households in Argentina for 2010. The paper provides a useful tool and fresh empirical evidence for microfinance institutions; Government, international organizations, donors and the academic community on the potential
demand of microcredit on an annual basis from now onwards with the aim of strengthening and informing the supply of microcredit. We estimate a potential demand of about 661.000 to 919.000 potential consumers depending on the poverty line assumptions used. These potential consumers are mostly selfemployed and informal, half of them within the range of 30 to 49 years, over 60% male, 70% without access to banking services and living in the Southern Greater Buenos Aires, the Western Greater Buenos Aires, Córdoba, the Northern Greater
Buenos Aires, Rosario and Mendoza, in that order of importance.