Microfinance (MF) and Micro-Small Enterprises (MSEs): Building Human Capital of the Urban Poor in Khartoum State, Sudan.

This study aimed to develop more understanding around three main concepts: microfinance, micro-small enterprises and human capital. The purpose was to find the links and relationships between the concepts and to determine how microfinance supports micro-small enterprises and the impact of the gains from micro-small enterprises operation on expenditure on human capital. The study targeted women-owned micro-small enterprises within Khartoum State. The study followed a qualitative interpretive perspective and applied the grounded theory methodology. Accordingly, 'theoretical sampling' and the 'constant comparative' techniques were used. In-depth unstructured interviews were conducted with women entrepreneurs in traditional and non-traditional types of ventures. Data analysis followed the grounded theory coding techniques, building categories and identifying the relationships between them to formulate concepts that help informing about the main research questions. The findings revealed that all the studied group of women entrepreneurs within urban settings of Khartoum State utilize some form of informal microfinance/micro-credit services, predominantly personal lending and rotating saving and credit groups. It was also revealed that these women entrepreneurs spend their earned income mainly on family well-being, children health and education which are basic components of human capital. In addition, women entrepreneurs gain more skills and knowledge ultimately leading to the improvement of their human capital. This study concludes that microfinance informal services provides support to women micro-small enterprises and enables them to contribute to human capital development, of their children, of other family members and of the entrepreneur herself. [ABSTRACT FROM AUTHOR]