Temporal fit in entrepreneurial finance: a perspective on institutional timing in a resource-constrained environment

What is it about?

Micro-entrepreneurs in resource-constrained settings often depend on loans that must be disbursed at specific times, such as during planting seasons, harvest periods, or peak trading cycles. This study demonstrates that the productive value of such funding diminishes significantly when disbursements are delayed. These delays force micro-entrepreneurs to alter their business plans, reallocate resources, scale back investments, or resort to informal financial channels. Ultimately, untimely funding leads to lower profitability, difficulties in loan repayment, and threats to business continuity.

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