Contextualizing Microcredit in Bosnia-Herzegovina and Hungary: A Focus Group Exploration

Microfinance is gaining importance as a toolto reduce poverty and promote financial and social inclusion. The main goal ofthe paper is to analyze the role of microcredit to solve the problem of the creditaccess to vulnerable people. The paper focuses on the direct experience ofpeople who have used microcredit living in Bosnia-Herzegovina and Hungary toanalyze the use of microcredit in these areas. From the methodological point ofview, the research uses focus groups to investigate on customer relations withthe banking system, microcredit, social and financial exclusion, and possiblealternatives to microcredit. In this way, it is possible to analyze mechanismsthrough which the involvement in microcredit operations results in positive(and negative) effects on people's lives. Results show that microcredit is agreat opportunity to facilitate employment, create jobs, increase productivity,improve living conditions promote social integration. Results show that servicesof mentoring and coaching improve entrepreneurship skills or vocational(technical) know-how. These services help to improve access to finance forvulnerable individuals and to support better living conditions. We identifycurrent good practices among microfinance services to understand thefuture potential role of microcredit propose concrete in particular areas.