BRIDGING THE FINANCIAL GAP: THE ROLE OF MICROCREDIT IN EMPOWERING ECONOMICALLY EXCLUDED POPULATIONS IN THE WESTERN BALKANS – AN EMPIRICAL CASE FROM REPUBLIKA SRPSKA

Microcredit organizations play a crucial role in fostering microentrepreneurship, especially in regions and among groups that have traditionally been excluded from the formal financial system. The research conducted in Republika Srpska focuses on individuals who have completed their working life, sometimes already at the age of 50, and who lack access to credit cards or larger loans from banks. The results show that more than 20% of respondents would definitely take a credit card if given the opportunity, with an additional more than 10% expressing potential interest. This indicates a substantial untapped demand for financial products aimed at economically excluded groups. Such access could motivate individuals to engage in small-scale entrepreneurial activities and thereby promote local economic development. The paper highlights the need to design flexible microcredit products tailored to older users, with a particular emphasis on supporting entrepreneurial initiatives rather than merely covering basic living expenses.