In the context of farming in Malawi, reducing risk did not induce an increase in demand for credit, contrary to theoretical predictions. These results highlight the difficulties in mitigating environmental risks to poor farmers and to increase investments in better technologies.
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In the context of microfinance in Sri Lanka, high variance in returns may limit the willingness of banks to lend to microenterprises, but it remains a puzzle why incremental growth and reinvestment remains such a challenges as many firms have exhibited a high level of returns.