Int. J. Entrepreneurship and Small Business, Vol. 11, No. 1, 2010 55 Copyright © 2010 Inderscience Enterprises Ltd. Micro-finance agencies and SMEs: model of explication of tacit knowledge Patricia A. Rowe* UQ Business School, The University of Queensland, St Lucia, Qld, 4072, Australia Fax: +61 (7) 3365 6988 E-mail: p.rowe@business.uq.edu.au *Corresponding author Michael J. Christie Division of Research, Southern Cross University, Lismore, NSW, 2480, Australia E-mail: michael.christie@scu.edu.au Frank Hoy Worcester Polytechnic, Worcester Mass, 01609-2280, USA E-mail: fhoy@wpi.edu Abstract: This paper contributes to a new area of research, namely: institutional preparedness of economic development agencies for developing small and medium-sized enterprises (SMEs). The cases presented illustrate variations in the micro-finance lender agency-enterprise development of processes for sharing vision and interdependence. In clarifying the nature of the agency-enterprise relationship along these two dimensions, we develop a set of propositions. Our model contends 1 that effective processes for sharing vision and good cooperation maximise the likelihood of explication of tacit knowledge 2 that ineffective processes for sharing vision and good cooperation lead to ad hoc explication of tacit knowledge 3 ineffective processes for sharing vision and poor cooperation minimise the likelihood of explication of tacit knowledge 4 effective processes for sharing vision and poor cooperation maximise the likelihood of explication of tacit knowledge. Keywords: micro-finance; micro-credit; explication of tacit knowledge; interdependence; processes for sharing vision; small business. Reference to this paper should be made as follows: Rowe, P.A., Christie, M.J. and Hoy, F. (2010) ‘Micro-finance agencies and SMEs: model of explication of tacit knowledge’, Int. J. Entrepreneurship and Small Business, Vol. 11, No. 1, pp.55–73.