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Lincoln University-Yunus Social Business Center (LU-YSBC)

The Yunus Social Business Centre at Lincoln University (YSBC-LU) was established in April 2017.

Lincoln University-Yunus Social Business Center (LU-YSBC)

The Yunus Social Business Centre at Lincoln University (YSBC-LU) was established in April 2017.

Overview

The YSCB-LU is the first Yunus Social Business Centre in New Zealand, and one of a number that have been established at universities around the world, including La Trobe University in Australia, Becker College in the USA, and Glasgow Caledonian University and King’s College London in the UK. 
 
Yunus Social Business Centres were established by Nobel laureate Professor Muhammad Yunus Professor Yunus. Professor Yunus is the founder of the Grameen Bank in Bangladesh, which helps alleviate poverty, through microfinancing, and lending to the country’s poor without the need for collateral. 
 
A social business is set up to solve a specific problem to the benefit of poor or disadvantaged members of society. Unlike a charity, they generate profit and aim to be financially self-sustaining. 
 
The objectives of the Yunus Social Business Centre are to build awareness of social business, and undertake training and education, provide mentoring, and support research on social business.
 
The YSBC-LU is located within the Faculty of Agribusiness and Commerce and builds on the University’s international reputation in the field of economic development Including the Lincoln University Centre for International Development (LUCID), postgraduate supervision and the work of staff overseas.
 
The establishment of LU-YSBC will extend the University’s focus on social business and entrepreneurship.

People

Advisor – Professor Hugh Bigsby
Director - Professor Christopher Gan
Assistant Director – Associate Professor Sazali Abidin
Secretary – TBA
Research Advisor – TBA
 
External Advisory Committee
TBA

Research

Microfinance in Asia

The development and role of microfinance has grown rapidly in recent decades. Microfinance plays an important role in poverty reduction and in providing financial access to households in rural areas.

Providing financial services and helping people who have difficulty in meeting loan contract requirements (e.g., the legality of business and collateral) are predominant features of microfinance institutions compared with other financial institutions such as commercial banks. 

Based on this principle, the objective of this book is to provide an overview of microfinance programme development and the determinants influencing the accessibility of microcredit by rural households in Asia.

A special feature of this book is a chapter devoted to Islamic microfinance in Indonesia. The principles of Islamic microfinance are derived from Islamic law and people’s religious beliefs.

Unlike chapters in a traditional textbook, each chapter in this book is self-contained with specific rural credit characteristics and examples.

Christopher Gan and Gilbert V Nartea, Microfinance in Asia, World Scientific Publishing Co Pte Ltd, May 2017, 392pp, ISBN: 978-981-3147-94-2    

Rural Finance

The objectives of the Yunus Social Business Centre are to build awareness of social business, and undertake training and education, provide mentoring, and support research on social business. One of the research theme is rural finance, which helps alleviate poverty, through microfinancing, and lending to the country’s poor without the need for collateral. Unlike a charity, they generate profit and aim to be financially self-sustaining.

Microfinance

Microfinance has been recognised and considered as the common mechanism to provide credit for the poor and low income people, especially people in rural areas.

Microfinance has been gradually embedded in national strategies of many developing countries to address the universal goal of combating hunger and poverty in the new millennium. However, microfinance Institutions (MFIs) around the world are finding that reaching out to this underserved market can be challenging in terms of costs and risks.

Improving access to rural financial services also encounters challenges in weak infrastructure, low levels of rural education and the limited capacity of financial service providers.

Microfinance postgraduate research occurs in several areas:

Postgraduate student supervision topic Supervisor Associate supervisor Graduate student
Determinants of Credit Rationing in Vietnam’s Agriculture Christopher Gan Sazali Abidin Tuan Anh Nguyen
SME Accessibility to Financing in Vietnam Christopher Gan Baiding Hu Nhung Nguyen
Credit Constraints and its Impact on Farm Household Welfare: The Case of Vietnam’s North Central Region Christopher Gan Baiding Hu Tran My Minh Chau
Household Livelihood Strategies, Environmental Dependency and Poverty: The Case of Vietnam Rural Area Christopher Gan Baiding Hu Hong Ngoc Ta
Credit Accessibility: The Impact of Microfinance on Indonesia Rural Household Christopher Gan Cuong Nguyen Danang Budi Santoso
Islamic Finance Institutions in Indonesia: An Investigation of the Rural Household Christopher Gan Baiding Hu Bayu Arie Fianto
Accessibility to Microcredit and Its Impact on Small and Medium Sized Enterprises Performance in Malaysia Christopher Gan Baiding Hu Adlin Ruslan
Impact of Commercialization on Semi-formal MFIs’ Outreach and Financial Sustainability: An Empirical Analysis of Southern Thailand Christopher Gan Cuong Nguyen Jumtip Seneerattanaprayul
Determinants of Poverty in Vietnam: An Empirical Analysis Christopher Gan Baiding Hu Linh Thuy Nguyen
Empowerment of Women through Climate Change Resilient Agriculture in Vietnam Christopher Gan Baiding Hu Thi Thuy Ha Nong
Impacts of Microfinance and Sustainability of Microfinance Institutions (MFIs) in Thailand Christopher Gan Cuong Nguyen Wittawat Hemtanon
Microfinance Development and Accessibility to Microfinance of the Poor in Rural Credit Market: A Case of Vietnam Christopher Gan Gilbert Nartea Phan Dinh Khoi
Rural Household Credit Accessibility in China  Christopher Gan Baiding Hu Judy Li Xia
Microfinance Performance in Malaysia  Gilbert Nartea Christopher Gan Suraya Hanim Mokhtar
Rural Financing in Thailand Agriculture  Christopher Gan Minsoo Lee Visit Limsombunchai
Risk Management in Thailand Agriculture Sector  Christopher Gan Gilbert Nartea Satit Aditto
Credit Accessibility of Small-scale Farmers and Fisherfolk in the Philippines  Christopher Gan Gilbert Nartea Annalyn Garay

Publications and Professional Presentations


Book Chapters

Nhung Nguyen, Christopher Gan and Baiding Hu, “Credit Accessibility and Small and Medium Sized Enterprises Growth in Vietnam,” In Albert Tavidze (edition), Progress in Economics Research, Volume 32, Nova Science Publishers, New York, 2015, Chapter 3, pp. 67-90.
Aditto, Satit, Christopher Gan and Gilbert Nartea, “Sources of Risk and Risk Management Strategies: The Case of Smallholder Farmers in a Developing Economy (Chapter 20)” in Nerija Banaitiene (ed) Risk Management - Current Issues and Challenges, Publisher: InTech, September 2012, pp. 449-473 (available @http://dx.doi.org/10.5772/50392)

Refereed Publications

Bayu Fianto, Christopher Gan, Baiding Hu and Jamal Roudaki, “Equity Financing and Debt-Based Financing: Evidence from Islamic Microfinance Institutions in Indonesia,” Pacific-Basin Finance Journal, http://dx.doi.org/10.1016/j.pacfin.2017.09.010

Changsheng Li, Liqiong Lin, and Christopher E.C. Gan, “China credit constraints and rural households’ consumption expenditure”, Finance Research Letters, Volume 19, November 2016, pp. 158–164, http://dx.doi.org/10.1016/j.frl.2016.07.007

Yana Lin, Christopher Gan, Zhizhong Xie.” Impact of Rural Financial Market Competition on Credit Risk: Evidence from County RCCs in Fujian Province”, Journal of Agrotechnical, 2017,(01):85-97. DOI:10.13246/j.cnki.jae.2017.01.008

Minh Chau Tran, Christopher Gan and Baiding Hu,” Credit constraints and their impact on farm household welfare,” International Journal of Social Economics, Vol. 43 No. 8, 2016, DOI 10.1108/IJSE-11-2014-0243

Aruna Chandra, Thankom Arun and Christopher Gan, “United States Microfinance:  Regulating to Promote Growth,” Review of Applied Economics, Vol. 11, Nos. 1-2, January-December 2015, pp. 1-27.

Nguyen, Nhung, Christopher Gan and Baiding Hu, “An Empirical Analysis of Credit Accessibility of Small and Medium Sized Enterprises in Vietnam,” Banks and Bank System, Vo. 10, Issue 1, 2015, pp. 34-46.

Limsombunchai, Visit, Christopher Gan and Minsoo Lee, “An Analysis of Credit Scoring for Agricultural Loans in Thailand,” World Bank Group, April 2015, pp. 1-4, agrifin@worldbank.org

Phan, Dinh Khoi, Christopher Gan, Gilbert V. Nartea and David A. Cohen, “The Impact of Microcredit on Rural Households in the Mekong River Delta of Vietnam, “ Journal of the Asia Pacific Economy, Vol. 19, No. 4, 2014, pp. 558-578, available @ http://dx.doi.org/10.1080/13547860.2014.920591

Aditto, Satit, Christopher Gan and Gilbert Nartea,” Economic Risk Analysis of Alternative Farming Systems for Smallholder Farmers in Central and North-East Thailand,” International Journal of Social Economics, Vol. 41 No. 4, 2014, pp. 294-320, available DOI: 10.1108/IJSE-11-2012-0223.

Phan, Dinh Khoi, Christopher Gan, Gerry Nartea and David Cohen, “Formal and Informal Rural Credit in the Mekong River Delta of Vietnam: Interaction and Accessibility,” Journal of Asian Economics, Vol. 26, 2013, pp. 1-13, (available @ http://dx.doi.org/10.1016/j.asieco.2013.02.003)

Li, Xia, Christopher Gan and Baiding Hu, “Accessibility to Microcredit by Chinese Rural Households,” Journal of Asian Economics, 22, 2011, pp. 235–246.

Li, Xia, Christopher Gan and Baiding Hu, “The Impact of Microcredit on Women’s Empowerment: Evidence from China,” Journal of Chinese Economic & Business Studies, Volume 9, No 3, 2011, pp. 239-261.

Li, Xia, Christopher Gan and Baiding Hu, “The Welfare Impact of Microcredit on Rural Households in China,” Journal of Socio-Economics, No 40, 2011, pp. 404–411.

Mok, Thai Yoong, Christopher Gan and Amal Sanyal, “The Determinants of Urban Household Poverty in Malaysia,” Journal of Social Sciences, Vol. 3, No. 4, 2007, pp. 190-96.

Gan, Christopher, Gerry Nartea and Annalyn Garay, “Credit Accessibility of Small-Scale Farmers and Fisherfolk in the Philippines,” Review of Development and Cooperation, Vol. 1, Issue 1, December 2007, p. 108-125.

Limsombunchai, Visit, Christopher Gan, and Minsoo Lee, "Determinants of Bank Lending in Thailand Rural Financial Markets," Journal of Greater Mekong Subregion Development Studies, Vol. 3, No. 2, December 2006, pp. 63-76.

Limsombunchai, Visit, Christopher Gan and Minsoo Lee, “An Analysis of Credit Scoring for Agricultural Loans in Thailand,” American Journal of Applied Sciences, Vol 2, No. 8, pp.1198-1205, 2005.

Conference Presentations


Hong Ngoc Ta, Christopher Gan, Ian McDonald and Baiding Hu, “Economic Contribution of Environmental Resources Use to Rural Livelihoods in Vietnam,” paper presented at the 5th International Conference on Vietnamese Studies, Hanoi, Vietnam, December 15 to 16, 2016.

Bayu Arie Fianto, Christopher Gan, Baiding Hu and Jamal Roudaki, “Islamic Microfinance Institutions: An Empirical Analysis of Rural Households Welfare in Indonesia,” paper presented at 19th Annual Waikato Management School Student Research Conference, October 17, 2016, pp. 1-15. (In conference proceedings: http://cms.mngt.waikato.ac.nz/studentresearchconference/ PastConferences/2016Proceedings.aspx)

Yana Lin, Christopher Gan, and Zhizhong Xie, “Impact of Rural Financial Market Competition on Credit Risk: Evidence from County RCCs in Fujian Province,” paper presented at the Tenth China Rural Finance Development Forum, OL Stadium Hotel, Beijing, August 19-20, 2016.

Nhung Nguyen, Christopher Gan & Baiding Hu, “Small and Medium Sized Enterprises Access to Credit in Vietnam,” Paper presented at The Seventh Vietnam Economist Annual Meeting, Ho Chi Minh City, Vietnam, June 24-25, 2014.

Minh Chau Tran, Christopher Gan and Baiding Hu, “Credit Constraints and Impact on Farm Household Welfare: Evidence from Vietnam’s North Central Coast Region, paper presented at the 6th Malaysia Finance Association Conference (MFA2014), Sasana Kijang, Kuala Lumpur, Malaysia, June 4-6, 2014.

Nhung Nguyen, Christopher Gan and Baiding Hu, “Small and Medium Sized Enterprises Access to Credit in Vietnam,” Paper presented at the World Business and Social Science Research Conference, Novotel, Bangkok, Thailand, October 24-25, 2013.

Phan, Dinh Khoi, Christopher Gan and Gerry Nartea, “Credit Accessibility of Rural Households in the Mekong River Delta Rural Credit Market in Vietnam,” paper presented at the 4th International Conference of Economics Students: The Rising Asia: Its Quest Towards Sustainable Development at Thammasat University, Bangkok, Thailand, July 21-23, 2012 (This is an award Winning paper under the Socio-Political Structure: The Foundation of Development category.)

Phan, Dinh Khoi, Christopher Gan and Gerry Nartea,” Credit Accessibility of Rural Households in the Mekong River Delta of Vietnam,” paper presented at the 15th Annual Waikato Management School Student Research Conference, The University of Waikato, Hamilton, New Zealand, October 17-18, 2011 (in conference proceedings).

Mokthar, Suraya, Gilbert Nartea and Christopher Gan, “A Comparative Analysis of Malaysia's Microfinance System with Grameen Bank (Bangladesh) and People's Bank (Indonesia), paper presented at the Second European Research Conference on Microfinance, University of Groningen, The Netherlands, June 16-18, 2011 (in conference proceedings http://www.rug.nl/gsg/Research/ Conferences/EUmicrofinconf2011/ Papers).

Li, Judy Xia, Christopher Gan and Baiding Hu, ”The Welfare Impact of Microcredit on Rural Households in China,” paper presented at the 14th Annual Waikato Management School Student Research Conference, The University of Waikato, Hamilton, New Zealand, October 18-19, 2010 (Best paper award and in conference proceedings).

Li, Judy Xia, Christopher Gan and Baiding Hu, “Accessibility to Microcredit by Chinese Rural Households,” paper presented at the 51st New Zealand Association of Economists (NZAE) Conference, Auckland, New Zealand, June 30 to July 2, 2010, (in conference proceedings).

Mok, Thai Yoong, Christopher Gan and Amal Sanyal, “The Determinants of Urban Household Poverty in Malaysia,” paper presented at the Land, Water and Environmental Management: Integrated Systems for Sustainability organised by International Congress on Modelling and Simulation (MODSIM07), University of Canterbury, Christchurch, New Zealand, December 10-13, 2007.

Limsombunchai, V., Christopher Gan and Minsoo Lee, “Determinants of Bank Lending in Thailand Rural Financial Markets,” paper presented at the 2006 AIB Southeast Asia Regional Conference, Global Vision and Local Competence, Bangkok, Thailand, December 7-9, 2006 (in conference proceedings in TS Chan, Geng Cui and Arthur Hau (eds), ISBN: 962-8134-08-6.CD ROM).




 

Projects

Empowerment of Local Community in Central Maluku Regency to Promote Integrated Coconut Processing Industry

Utilisation of coconut fruit in Central Maluku Regency is still limited due to lack of human resources (human ware), innovation technology and processing methods. The targeted area of our proposed program will take place in Teon Nila Serua (TNS) district particularly Isu village. There are 1762 households in TNS districts who are involved in coconut plantation and coconut utilisation.

Currently, there has been a small scale agroindustry unit namely Karya Mekar Trading Company that produce coco fibres from coconut husk. However, the current production rate of coco fiber is still relatively low by utilising only around 5% of available coconut fruits in TNS district. In addition, other major part of coconut such as coconut meat has been used to produce dry coconut meat or copra in traditional way. However, the moldy copra product turns to be less competitive in local market compared to conventional frying oil (based on palm oil) due to poor quality as well as potential risk of aflatoxin contamination by mold Aspergillus flavus.

The aims of the programme are to create a resilience and integrated community based on coconut agroindustry. It is believed that introduction of innovative and appropriate technology may enhance the know-how of local people to utilise coconut fruits. The programme focuses on establishment of 4 new coconut products namely: concentrated coconut cream milk, coconut charcoal, nata de coco and vinegar.

In addition, the prgramme also aims to improve the production rate and quality of coco fibers in TNS district. The agroindustry model proposed in Central Maluku is designed for small and medium scale enterprises or SME by involving all stakeholders such as business units, local communities (coconut farmers and local government), local universities and New Zealand counterpart (Lincoln University).

The programme of coconut utilisation in Central Maluku is a good model for community development as it integrates the social, economic as well as the environmental aspect of coconut fruit utilisation. In addition, it also facilitates the empowerment of local women group to produce a number of local products such as VCO and nata de coco. This is in line with the vision of New Zealand and UGM Cared program to increase the welfare of women in the rural area in Indonesia.

Researchers


Prof. Dr. Ir. Sutardi  Dr. Ir. Hary Sulistyo, Dr. Muhammad Mufti Azis, Dr. Purwanto Su, Dr. Ir. Lestari Rahayu Waluyati and Dr. Ir. Vonda M. N. Lalopua, Community Resilience and Economic Development (CaRED) programme, Gadjah Mada University, Yogyakarta, Indonesia
Prof. Christopher Gan, Yunus Social Business Centre. Faculty of Agribusiness and Commerce, Lincoln University, Christchurch, New Zealand

Funder


NZAID

A Trajectory of Financial Inclusion Towards Economic Inclusion: Empirical Evidence from China’s Rural Household

The availability of financial services that meet the specific needs of users without discrimination is a key objective of financial inclusion. The world’s unbanked have never been without options for accessing financial services; they have just been without good options. The main reason for this disparity is government policy. In many countries regulation is keeping people out of the financial system.

The raison d'être of financial intermediaries (FIs), is fundamental to our understanding of why financial exclusion exists and appears endemic in developing countries. Past studies have failed to link the two. The complete understanding of why financial exclusion exists and appears dominant in developing countries is embedded in the understanding of why financial intermediaries exist and operate.

It becomes difficult to explain why exclusion exists if FIs are merely perceived as delegated monitors, risk managers and a coalition of information sharers. Profit-maximisation, which implies cost minimisation, suggests that intermediaries will refrain from serving those economic agents perceived to be associated with significant information asymmetry and transaction costs that characterise imperfect financial markets.

The concept of financial inclusion appears to be gaining both policy and academic relevance in recent times. It is increasingly becoming a strategic factor in the development policy mix. Financial inclusion that ensures access to financial resources helps overcome social exclusion, inequality and the attainment of inclusive-growth that promises sustainable development. Thus, the transformative role of access to affordable and safe financial services means that FI will engender inclusive and participatory growth to stimulate sustainable development.

As the research focuses on the key elements underpinning financial inclusion, the aim is to empirically examine the dynamisms and the conduits through which an inclusive financial system translates into an economic system that is inclusive, pro- poor and growth-engendering.

Researchers


Prof. Christopher Gan and Miss Zhenni Yang, Faculty of Agribusiness and Commerce, Lincoln University, Christchurch, New Zealand

Funder


Seed Fund, Faculty of Agribusiness and Commerce, Lincoln University, Christchurch, New Zealand

News and Events

Social Business Academia Conference

 
The Social Business Academia Conference will take place in Wolfsburg, Germany on November 6-7, 2018.

The goal of the conference is to foster the creation of an interdisciplinary and international academic and research community around the topic of growing international significance, as well as enhancing capacity, quality, and recognition of research in social business.

Academia Conference is a pre-event of the Global Social Business Summit 2018, targeted to the most prestigious academia audience, where researchers and academics worldwide engage in enhancing discussions on Social Business and its most recent advancements.

It is an excellent occasion for YSBCs around the world to share their experiences and future plans. Contacts with other academics in the same field of interest always produce new energy. We are expecting academics from at least a dozen countries to come to this event. We currently have 61 YSBC across 28 countries.

There are over 25 in the pipeline as well. YSBC is essentially a social business research hub set in universities or academic institutions in collaboration with the Yunus Centre to facilitate social business research, and undertake among other things, teaching, knowledge sharing and other action programmes towards alleviating poverty or solving other pervasive social problems.

This conference is one of the best platforms for those with an interest in social business to discuss new strategies to be implemented to enhance the welfare of the people across the globe with employment, education, healthcare, clean water, clean energy.

This conference is led by the Yunus Centre and facilitated by the Grameen Creative Lab. After the Social Business Academia Conference, the main event Global Social Business Summit (GSBS) is taking place at the same venue.

For further details, see https://gsbs-2018.com/

Gallery

Professor Muhammad Yunus visited the Faculty of Agribusiness and Commerce on Monday, 10 April 2017, to sign a Memorandum of Understanding with Lincoln University.
 
 

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