Event

The Sir Arthur Lewis Institute of Social and Economic Studies (SALISES) hosts the Research Seminar Presentation of Ms. Sherry Katwaroo-Ragbir, MPhil candidate, on Thursday 26^th January, 2012, at 2 pm, at the SALISES Conference Centre, UWI.

Ms. Katwaroo-Ragbir will deliver her presentation on the Microfinance Sector in Trinidad and Tobago.

Is there a microfinance sector in Trinidad and Tobago? If so, is it viable? What does it look like? This paper applies a case study approach to establish a comprehensive understanding of the current operations of the microfinance sector in Trinidad and Tobago. Three major microfinance institutions (MFIs) are studied in an attempt to explain the differing strategies adopted by local MFIs; establish the size of the microfinance sector; determine who the clients of MFIs are and ascertain the financial sustainability and efficiency of the current industry players. The legal structures of the MFIs studied differ from each other: one is a not-for-profit organization, another is a state funded corporation and the third a limited liability company. This paper also seeks to position the microfinance sector within the local financial sector as well as to highlight other outlets through which the clients of microfinance institutions can access financial services to fund small and micro enterprises (SMEs). The microfinance sector in Trinidad and Tobago is also compared to global trends and the state of the global microfinance sector.

This study establishes that an undeveloped microfinance sector exists and that the microfinance sector has limited outreach in the provision of credit to the SMEs, with key players struggling to attain financial sustainability. Innovation and growth of more traditional financial institutions, such as credit unions, emerge as having a greater impact on microfinance provision.

Keywords: Microfinance, Case Study, Financial Sustainability, Trinidad and Tobago, Small and Micro Enterprises (SMEs), Credit Union