Journal articles: 'Microfinance challenges'

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Koob, Michael. "Mikrofinanzierungen." Der Betriebswirt: Volume 51, Issue 3 51, no. 3 (2010): 17–22. http://dx.doi.org/10.3790/dbw.51.3.17.

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Mikrofinanz hat sich zu einem entwicklungspolitischen Schlagwort ausgebildet. In der Entwicklungszusammenarbeit gilt die Vergabe von Kleinstkrediten seit langem als Erfolgsmodell. Was steckt hinter diesem durch den Friedensnobelpreisträger Muhammad Yunus bekannt gewordenen Instrument? Wie sieht die Praxis in den Entwicklungsländern aus? Gibt es für Mikrofinanzierungen auch einen Markt in den entwickelten Ländern. Microfinance has raised high expectations regarding poverty alleviation in the developing countries. Lack of empirical evidence has not, however, diminished the enthusiasm of the proponents of microfinance. The perception that microfinance plays an important role in poverty alleviation has attracted substantial assistance from international donors and local governments. What are the instruments and tools for implementing microfinance successfully in a country? What are the challenges? We have chosen Uganda in East Africa as a good example to see the lessons learnt in microfinance. Even in the industrialized world microfinance plays a more and more important role in the financial sector for customers and institutional investors. Keywords: mikrofinanzierungen, microfinances

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Janda, Karel, and Pavel Zetek. "Microfinance Revolution: Controversies and Challenges." Politická ekonomie 63, no. 1 (2015): 108–30. http://dx.doi.org/10.18267/j.polek.991.

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Prathap, B. N., K. C. Subrahmanya, and B. S. Harisha. "Microfinance Delivery – Challenges and Remedies." International Journal of Management Studies V, no. 3(9) (2018): 138. http://dx.doi.org/10.18843/ijms/v5i3(9)/17.

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Riwajanti, Nur Indah. "Islamic Microfinance: Challenges and Development." Vol.1 No.1 1, no. 1 (2015): 42. http://dx.doi.org/10.18382/jraam.v1i1.12.

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Sharma, Puspa Raj. "Microfinance: A Powerful Tool for Social Transformation, Its Challenges, and Principles." Journal of Nepalese Business Studies 1, no. 1 (2006): 69–74. http://dx.doi.org/10.3126/jnbs.v1i1.40.

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This paper attempts to explore the role and importance of microfinance in reducing poverty by generating the income of the poor. Microfinance has been emphasized for poverty reduction in developing countries through executing dual activities such as collection of domestic saving and investment of small loan. In this connection, this paper suggests microfinance practitioners and MFI to follow certain principles for making the microfinance services more sustainable in the long run and sheds light on the problems and challenges of microfinance.  Journal of Nepalese Business Studies Vol.1(1) 2004 pp.69-74

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Abdul Rahman, Rashidah, and Faisal Dean. "Challenges and solutions in Islamic microfinance." Humanomics 29, no. 4 (2013): 293–306. http://dx.doi.org/10.1108/h-06-2012-0013.

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Iyengar, Kishen Parthasarathy, Najam Ahmad Quadri, and Vikas Kumar Singh. "Information Technology and Microfinance Institutions." Journal of Electronic Commerce in Organizations 8, no. 2 (2010): 1–11. http://dx.doi.org/10.4018/jeco.2010040101.

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Microfinance Institutions have the potential to alleviate poverty across the world. However, they face many challenges before they can grow to meet set objectives. The use of information technology holds promise to enable such growth. There are some key challenges that must be addressed by microfinance institutions before the full potential of IT can be realized. This paper articulates five key challenges that microfinance institutions face, particularly those operating in rural undeveloped areas in the developing world. This paper also discusses how some of these challenges are being overcome by these institutions. Finally, the authors lay out a framework for building and operating effective information systems.

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Karn, Santosh Kumar. "Challenges and Opportunities of Microfinance in Nepal." International Journal of Social Sciences and Management 5, no. 3 (2018): 72–75. http://dx.doi.org/10.3126/ijssm.v5i3.20612.

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The purpose of the paper is to highlight the opportunities and challenges faces the microfinance sector in Nepal. Many developmental programs implemented in Nepal, microfinance programs have a strong rural orientation and are targeted at the poor. Numerous challenges are ahead of this sector like lack of accessibility, unhealthy competition, seasonal migration, political unawareness, excluding vulnerable groups, threatening the financial discipline, resource constraints, low level of knowledge. of micro finance institutions (MFIs) etc. On the other hand, the rapid increase in poverty in Nepal, along with other opportunities, is paving way for the growth of this sector and offering a huge market potential for microfinance. On this basis the sector presents a lot of opportunities such as: stimulating growth of economy, women empowerment, increasing volume, accessibility and outreach, economics of scope etc.Int. J. Soc. Sc. Manage. Vol. 5, Issue-3: 72-75

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Hussein Kakembo, Ssemambo, Muhamad Abduh, and Pg Md Hasnol Alwee Pg Hj Md Salleh. "Adopting Islamic microfinance as a mechanism of financing small and medium enterprises in Uganda." Journal of Small Business and Enterprise Development 28, no. 4 (2021): 537–52. http://dx.doi.org/10.1108/jsbed-04-2019-0126.

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PurposeDespite the fact that small and medium enterprises (SMEs) play a crucial role in strengthening the financial sector within developing and emerging economies through providing employment opportunities to the rural and urban population, capacity building in the form of skills training and economic empowerment, they still face a plethora of challenges that continue to threaten their existence, performance and growth. Access to operational and administrative funds needed to execute their activities effectively is a significant challenge and detrimental to the growth of SMEs in Uganda. Conversely, Islamic microfinance has been noted as a panacea to the challenges of financial inaccessibility among SMEs, especially in developing countries. The purpose of this paper is therefore to investigate how the adoption of Islamic microfinance can play a fundamental role in enhancing the sustainability of microfinance institutions (MFIs) while meeting the financing challenges of SMEs in Uganda.Design/methodology/approachIn this study, a review of existing literature was carried out to critically examine relevant information (literature sources) and empirical studies on SMEs, their performance and challenges. The study being conceptual tries to understand how Islamic microfinance could be adopted as an alternative scheme of financing to bridge the gap and mitigate the financial challenges facing SMEs.FindingsThe study finds that the existing MFIs have failed to achieve their objectives of providing financial services to the poor and SMEs while remaining sustainable. This has left the majority of SMEs within Uganda's informal sector financially handicapped, thus leading to their failure in meeting their expectations and eventually collapsing even before celebrating their third or fourth birthdays. However, the enactment into law of the Financial Institutions Amendment Act 2016 that paved the way for the introduction of Islamic finance in Uganda, and the Tier 4 Microfinance Institutions and Money Lenders' Act, 2016 that incorporated the aspects of Islamic microfinance within the existing microfinance framework as seen and is perceived as a key factor in addressing the financial challenges faced by MFIs and the SMEs if fully adopted.Research limitations/implicationsThis study is conceptual with no empirical investigation and discussion of key theories. On the contrary, it will be imperative and useful when carrying out more extensive hypothetical studies by future researchers, specifically in the area of Islamic microfinance that is relatively new in Uganda.Practical implicationsPractically, this paper will serve as a guide to policymakers and practitioners in the field of microfinance by adding a flair that could enable in bridging the challenges associated with inadequate financing of SMEs in Uganda.Social implicationsSocially, the social aspects of charity (Zakah and Sadaqah) will help to improve the livelihood of the poorest of the poor who cannot engage in active business through meeting their basic needs of life without begging thereby preventing them from being social outcasts.Originality/valueThe study establishes Islamic microfinance (IMF) as a promising and unexplored viable option potentially needed in intensifying the financing needs of SMEs in Uganda. The paper provides an entirely new dimension in nature and way microfinance products should be structured with a view of ensuring that there is sustainable provision of financial services to SMEs. The paper adds real value to the existing conventional microfinance products and services in Uganda, given the ethical and moral attributes of Islamic microfinancing practices that are assumed to efficiently and effectively motivate SME owners and other small entrepreneurs to thrive.

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Kakembo, Ssemambo Hussein, and Abu Umar Faruq Ahmad. "Employing Islamic Microfinance in Addressing Poverty Challenges in Brunei." International Journal of Corporate Finance and Accounting 6, no. 1 (2019): 49–61. http://dx.doi.org/10.4018/ijcfa.2019010104.

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Countries within the Asian region are continuously struggling to improve the living standards of their citizens. Some of them are still facing a plethora of challenges due to the ever-increasing levels of both relative and absolute poverty. This is especially among the poorest of the poor who have no access to the mainstream financial services. The conventional microfinance institutions have been greatly criticised for their dubious acts of charging exorbitant interests. Islamic microfinance has therefore, been seen as one of the viable alternatives to meeting the challenges of poverty and as an opportunity in the livelihoods of the people in the Asian region. This article analyses the magnitude at which Islamic microfinance can play a fundamental role in alleviating insignificant poverty levels in Brunei Darussalam through using a proposed Mudarabah financing model.

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Ahmed, Syed Ghazanfar, and Muhammad Ismile. "ISLAMIC MICROFINANCE; DEMAND AND CHALLENGES: A CASE STUDY OF DISTRICT GHOTKI, SINDH." Journal of Social Sciences and Humanities 57, no. 2 (2018): 125–42. http://dx.doi.org/10.46568/jssh.v57i2.37.

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Pakistan is a developing country and it has been showed remarkable development in many areas since its foundation in 1947. However, still some issues have not been handled properly, like poverty, corruption, load shedding, water crises etc. Apart from other issues, poverty is a big issue of the country and it can be observed more or less in every province. In this paper, we have analyzed the ground situation of district Ghotki, through surveys, which is considered last district of Sindh. We tried to find the problems of poor people of district Ghotki, observed their general life style, discussed their issues and inquired about government’s role to provide the people with basic necessities of life. In this paper, mainly qualitative method is adopted to reach to best conclusion. However, partially quantitative style could also be observed, especially where concepts of Microfinance are discussed. We realized that around 40% people of the district need microfinance services and they are ready to welcome Islamic Microfinance banks, because people don’t want to opt interest based conventional microfinance services, and secondly, conventional microfinance banks don’t have capacity to cover vast area of the district.

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Sethi, Vandana. "Urban Microfinance in India: Issues and Challenges." Research Journal of Humanities and Social Sciences 10, no. 2 (2019): 568. http://dx.doi.org/10.5958/2321-5828.2019.00093.7.

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Milana, Carlo, and Arvind Ashta. "Microfinance and financial inclusion: Challenges and opportunities." Strategic Change 29, no. 3 (2020): 257–66. http://dx.doi.org/10.1002/jsc.2339.

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Ghate, Prabhu. "Indian Microfinance: The Challenges of Rapid Growth." Asia-Pacific Journal of Rural Development 22, no. 1 (2012): 93–94. http://dx.doi.org/10.1177/1018529120120105.

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KONO, Hisaki, and Kazushi TAKAHASHI. "MICROFINANCE REVOLUTION: ITS EFFECTS, INNOVATIONS, AND CHALLENGES." Developing Economies 48, no. 1 (2010): 15–73. http://dx.doi.org/10.1111/j.1746-1049.2010.00098.x.

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Ahmed, Salehuddin. "Microfinance institutions in Bangladesh: achievements and challenges." Managerial Finance 35, no. 12 (2009): 999–1010. http://dx.doi.org/10.1108/03074350911000052.

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Lavoie, Fréderic, Marlei Pozzebon1, and Lauro Gonzalez. "Challenges for Inclusive Finance Expansion: the Case of CrediAmigo, a Brazilian MFI." Management international 15, no. 3 (2011): 57–69. http://dx.doi.org/10.7202/1005433ar.

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Investigating the replication of microcredit methodologies in Brazil, this paper seeks to explore the conditions under which microfinance and microcredit, two “financial inclusion” strategies, are likely to enhance social inclusion. A qualitative case study was conducted focusing the path of CrediAmigo, a Brazilian microfinance institution (MFI). This study is probably the first to provide an integrated perspective on critical issues concerning the replication of microcredit methodologies in Brazil. The findings may support MFI managers and policy makers in taking steps to facilitate the expansion of microfinance across Brazil.

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EPSTEIN, MARC J., and KRISTI YUTHAS. "THE CRITICAL ROLE OF TRUST IN MICROFINANCE SUCCESS: IDENTIFYING PROBLEMS AND SOLUTIONS." Journal of Developmental Entrepreneurship 16, no. 04 (2011): 477–97. http://dx.doi.org/10.1142/s1084946711001951.

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Trust is the basis of many aspects of microfinance operations and is a critical determinant of microfinance success. Trust governs interactions within borrowing groups, between clients and loan officers and between clients and institutions. To effectively address the many strategic challenges microfinance institutions (MFIs) face, they must design control systems that address low levels of interpersonal and institutional trust in their target populations. By increasing focus on trust, MFIs can significantly improve their financial sustainability and social impact. This paper examines trust and its important role in both existing challenges and effective solutions in the microfinance industry. Informed by prior literature and field experience, a model is developed that can provide an effective foundation for scholars and MFI leaders to better understand and manage for improved microfinance success.

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Ramírez Virviescas, Natalia, Sergio Monroy Isaza, and Diego Alejandro Guevara Castañeda. "Agroecology and integral microfinance: recommendations for the Colombian post-conflict avoiding the financialization of rural financing." Cuadernos de Economía 38, no. 78 (2019): 729–51. http://dx.doi.org/10.15446/cuad.econ.v38n78.73236.

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One of the main challenges for the Colombian post-conflict is to develop sustainable proposals for peasant families that were affected by the armed conflict. With the purpose of analyzing this challenge, after the introduction, the second part of the paper presents the land possession dynamics in Colombia, criticizes the Green Revolution approach and discusses theoretical concerns about agroecology. The third section highlights the importance of combined microfinance in comparison to financialized microfinance, for financing rural projects and agroecology. Furthermore, this part argues that the combination of agroecology and combined microfinance is a powerful tool to make scenarios sustainable for small producers. Finally, the fourth section concludes.

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Azmi, Nik Nur Izzati Nik Muhammad, and Mohamed Asmy Bin Mohd Thas Thaker. "Literature Survey on Islamic Microfinance." Global Review of Islamic Economics and Business 8, no. 1 (2020): 023. http://dx.doi.org/10.14421/grieb.2020.081-03.

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Islamic microfinance can be seen as an emerging industry in some Muslim countries like Indonesia, Malaysia, Pakistan, Bangladesh, and MENA regions. It acts as a movement to eradicate poverty in the society and to help improve the social standard of the poor people. The concept of Islamic microfinance is similar to those implemented in conventional microfinance except for it adheres to several points and concepts which in line with the Shariah rulings. As a growing industry, Islamic microfinance does facing several challenges such as limited outreach in the market, lack of expertise in the industry, governance and management problems, and many more. Hence, this paper will discuss further the issues and challenges faced by Islamic microfinance institutions in selected Muslim countries. Plus, some suggestions are given at the end of this paper to solve these issues.

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Mehta, Pooja V. "Microfinance and Innovative Financing for Gender Equality : Approaches, Challenges and Strategies." Indian Journal of Applied Research 3, no. 4 (2011): 57–58. http://dx.doi.org/10.15373/2249555x/apr2013/19.

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Alshebami, Ali Saleh, and D. M. Khandare. "Islamic Microfinance Industry in Yemen “Challenges and Opportunities”." International Journal of Social Work 2, no. 2 (2015): 1. http://dx.doi.org/10.5296/ijsw.v2i2.7937.

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<p>The purpose of the study is to theoretically review the Islamic micro finance industry in Yemen and to identify the challenges and opportunities for this industry. The data collected is entirely based on secondary data collected from various sources such as books, websites, official reports and others. The study covered the period from 1997 to 2013. The study revealed that there is a promising demand for Islamic microfinance and at the same time there are some challenges facing its growth and development. The researcher finally concluded the study by providing some valuable suggestions that might help in progressing of the industry.</p>

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Mia, Md Aslam. "Interest Rate Caps in Microfinance: Issues and Challenges." Journal of Industrial Distribution & Business 8, no. 3 (2017): 19–22. http://dx.doi.org/10.13106/ijidb.2017.vol8.no3.19.

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Woldie, Atsede, John Isaac Mwita, and Joyce Saidimu. "Challenges of microfinance accessibility by SMEs in Tanzania." Thunderbird International Business Review 54, no. 4 (2012): 567–79. http://dx.doi.org/10.1002/tie.21484.

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Toindepi, Joseph. "Investigating a best practice model of microfinance for poverty alleviation." International Journal of Social Economics 43, no. 4 (2016): 346–62. http://dx.doi.org/10.1108/ijse-05-2014-0091.

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Purpose – The purpose of this paper is to establish what constitutes best practice models of microfinance for poverty alleviation. It argues that the new microfinance phenomenon characterized by two camps; commercial and developmental players should be recognized as legitimate separate microfinance approaches with different aims and motives. This paper aims to establish strong foundational argument for developing parallel thinking and separate best practice models for effective engagement with each approach. Design/methodology/approach – Rapid evidence assessment methodology was used to systematically identify and analyze a comprehensive list of relevant literature on best practice models of microfinance for poverty alleviation from both online and offline publications. Over 40 publications on microfinance best practice were critically reviewed with a specific attention to how the two approaches to microfinance (commercial and developmental) were dealt with in relation to impact on poverty and best practice approaches. Findings – The paper argues that, business priorities of commercial microfinance providers differ significantly to those of development microfinance providers and this impacts on the program design which means clients of each regardless of coming from the same target group may have different experiences. The microfinance concept evolved far beyond any single philosophical or ideological confinement that there is now need for formal recognition and acknowledgment that commercial and developmental microfinance paradigms are parallel models of approaches whose continuous evolution is less likely to converge in the near future, so should be treated separately. Research limitations/implications – Because the purpose, challenges and requirements of commercial and developmental microfinance approaches are different, continued lack of purposeful distinction between the two will continue to cause confusion and lack of precision in policy response on specific sector challenges. Further work and discourse on the impact of both commercial and developmental approach to microfinance on service delivery to the poor is required to test the implications on best practice. Originality/value – The paper highlights the fundamental flaw in the current perspective of microfinance sector which fails to recognize irreconcilable parallel approaches underpinned by different motives.

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Alhassan, Yahaya, and Uzoechi Nwagbara. "Institutions, Corruption and Microfinance Viability in Developing Countries: the Case of Ghana and Nigeria." Economic Insights – Trends and Challenges 2021, no. 2 (2021): 61–70. http://dx.doi.org/10.51865/eitc.2021.02.06.

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This article focuses on the role corrupt institutions (microfinance institutions) play in microfinance not being accessible for business development in Africa. It specifically sheds light on the contexts of Nigeria and Ghana to tease out the challenges and opportunities for small businesses consequent upon a culture of corruption in these countries and associated challenges for small business owners and entrepreneurs as well as microbusiness development. As well-known, in many developing countries with a high level of corruption, there is potentially a high incidence of institutional void, which presents setback and challenges for businesses to thrive. Microbusiness development relies largely on effective institutions to develop, and in situations where institutions are corrupt, these challenges are rather redoubled thus posing a threat to entrepreneurship development. Therefore, these contexts enable us to understand and interrogate the challenges facing microbusiness development, where corrupt microfinance institutions exist, as well as business opportunities if these corrupt institutions were not present. Thus this paper argues that for businesses to thrive enabling and effective institutional mechanisms are crucial, which will facilitate opportunities for microbusiness development.

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Diniyya, Aulia Arifatu. "Development Of Waqf Based Microfinance And Its Impact In Alleviating The Poverty." Ihtifaz: Journal of Islamic Economics, Finance, and Banking 2, no. 2 (2019): 107. http://dx.doi.org/10.12928/ijiefb.v2i2.879.

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The purpose of this paper is to discuss the potential role of the institution of Waqf in poverty alleviation. Poverty is a complex, multi-dimensional phenomenon that has captured the attention of numerous scholars and agencies globally. The social role of the Islamic financial sector can be best exemplified by providing finance to the poor to increase their income and wealth. This paper will explore on how microfinance can be provided on Shariah compliant basis through Waqf model. This research also reviewing the development of the integrated Waqf based Islamic microfinance which aimed to provide solutions to reduce poverty. An integration of Waqf-based Islamic microfinance (IWIM) model is proposed to address all the practical challenges of microfinance faced in Muslim communities. In this model, microfinance is practised in compliance with Shari’ah to address the multi-dimensional aspects of poverty and empowering the poor in order to enhance the socio-economic development and hence the well- being of the Ummah. With this aspiration, the IWIM model aims to tackle the challenges related to the scarcity of capital, inadequate human resources, absence of proper Takaful programs and project financing in an integrated approach. However, Waqf based microfinance still may be facing some problems should be addressed which related to credit risk, moral hazard, and economic viability.

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Kabeta, Temesgen. "REVIEW OF MICROFINANCE AND WOMEN EMPOWERMENT IN ETHIOPIA." American Journal of Finance 2, no. 6 (2017): 1. http://dx.doi.org/10.47672/ajf.267.

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Purpose: The purpose of this study was to review the role of microfinance and empowering women in Ethiopia Findings: According to findings of different authors microfinance is providing financial services to unemployed and low income individuals or groups who would have no access to formal banking services. It has positive impact on the living standard of the poor people in particular and alleviating poverty in their household in general. It is not only undermining poverty in the country, but also empowering women through surviving and making their life prosperous with dignity and self reliance by providing financial services. And also Ethiopian Microfinance is facing different challenges in empowering such as lack of collateral assets, lack of information, work burden, production failures, verbal abuse, lack of infrastructure, low institutional capacity and opportunities of women in microfinance are providing startup capital, women empowerment, poverty eradication, social and political empowerment, improved saving skills and the above challenges listed should be take consideration by government and concerned body as well as problem solving study must be conducted.Unique contribution to theory, practice and policy: It is better when countries microfinance would be more diversified its services to poor categories of the women. Infrastructural facilities must be fulfilled for microfinance institution to empower women

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Firdaus, Nur. "The Relationship between Culture and Social Capital with the Sustainability of Microfinance." International Research Journal of Business Studies 13, no. 2 (2020): 113–26. http://dx.doi.org/10.21632/irjbs.13.2.113-126.

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Poverty has been the biggest problem around the world, and one of the innovative solutions offered is microfinance. Since the success story of Grameen Bank has been widely spread, many countries decided to adopt microfinance programs to alleviate poverty. Microfinance is then believed as an effective instrument that can answer the poverty challenges. Several studies have analysed the impact of microfinance on poverty reduction, but the results varied. Some support that microfinance can improve the poor, but other criticize and argue that microfinance does not play a significant role to reduce the poverty rate and even undermine the poor. This article aims to analyse factors, namely culture and social capital, that can influence the sustainability of microfinance performance. The assumption used in this article is that the success of microfinance cannot be separated from the borrowers’ background that influences their behaviours towards microfinance. The article summarized a number of studies that have discussed this issue using a qualitative approach. The findings show that culture and social capital have an impact on the sustainability of microfinance, but the impacts depend on the condition of cultures and social capital in a society. However, additional supports are needed and should not be ignored to accelerate the impact of microfinance.

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Gyimah, Adjei Gyamfi, Annette Serwaa Agyeman, and Solomon Adu-Asare. "Assessing the Impact of Operational Flaws on the Performance of Microfinance Institutions in Ghana." International Finance and Banking 7, no. 1 (2020): 37. http://dx.doi.org/10.5296/ifb.v7i1.15753.

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Microfinance institutions contribute significantly to the development of a country, and many of these institutions are found in most developing countries including Ghana. However, many challenges have been alleged to stifle the efforts of microfinance companies in their attempt to make their all-important contribution to the development of nations. This study explored the effect of operational flaws on the performance of microfinance institutions in Ghana. The results discovered flaws and challenges associated with the operations of the MFIs in many areas including corporate governance, credit risk management, credit administration, regulatory challenges, and training programs. The study also revealed that such flaws and challenges do harm the overall performance of the MFIs. Based on the findings, it is recommended that MFIs put in place a well-composed and resourceful credit committee to perform the duty of credit risk management in the institutions. The institutions could also reduce their interest rates to encourage their clients to apply for more loans. Lastly, it is recommended that the MFIs take all necessary steps to ensure that they reduce the flaws and challenges they face to mitigate the negative impact of such deficiencies on their performance.

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Srnec, K., and B. Havrland. "Microfinancing: challenges and prospects. Appropriate conditions for changes from informal to formal microfinancing institutions ." Agricultural Economics (Zemědělská ekonomika) 52, No. 10 (2012): 489–96. http://dx.doi.org/10.17221/5055-agricecon.

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&ldquo;The International Year of Microcredit 2005 underscores the importance of microfinance as an integral part of our collective effort to meet the Millennium Development Goals. Sustainable access to microfinance helps to alleviate poverty by generating income&hellip;&rdquo; (Kofi Anan). One of the important factors which influence disbursement of public debts in the LDCs are Microfinancing institutions. The article characterizes the progress of discharge of bankrupt from the macroeconomic point of view, and in the situation for microfinancing industry. One of the main question is when and under what conditions it is the suitable to accelerate the transformation of informal MFIs to formal institutions. In the conclusion, the basic conditions and hypothesis, which are necessary for functioning of formal MFIs, are mentioned.&nbsp;

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Hope Quao, Kwami, Lawrence M. Lekhanya, and Nirmala Dorasamy. "An investigation of the financial monitoring policies for microfinance institutions in Ghana." Investment Management and Financial Innovations 14, no. 4 (2017): 90–104. http://dx.doi.org/10.21511/imfi.14(4).2017.09.

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The need to regulate microfinance institutions (MFIs) was advocated and researched yet lacks purposeful in-depth exploring studies of the formulation process of financial monitoring policies, their implementation and accompanying challenges. Consequently, this study contributes by reviewing the specific financial policies for microfinance in Ghana and assesses factors mitigating effective implementation of such policies. It also introduces implementation theory into the MF research arena, thus shifting MF research focus. The study revealed that policies formulated for MFIs in Ghana and elsewhere are skewed and policy implementation, monitoring and supervision found to be less effective. The results further identified inadequate support structures and large unlicensed profit-oriented informal microfinance operations in Ghana as major obstacles to efficient implementation of microfinance policies. This paper therefore recommends the creation of a semi-autonomous institution, the National Microfinance Oversight Authority, to license, regulate and supervise the informal microfinance institutions in Ghana.

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Diniz, Eduardo Henrique, Martin Jayo, Marlei Pozzebon, Frédéric Lavoie, and Flávio Henrique dos Santos Foguel. "ICT Helping to Scale up Microfinance." Journal of Global Information Management 22, no. 1 (2014): 34–50. http://dx.doi.org/10.4018/jgim.2014010103.

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Finding ways to downscale microfinance is one of the current challenges facing commercial banks, especially in developing countries. As banks have a poor knowledge of microfinance, operating in this market will require capacity-building, innovative business models and new technological architectures. This paper discusses how one particular architecture – the Brazilian model of correspondent banking (CB) – is helping banks cope with these challenges. Since the model was created, in 2000, it has allowed banks to downscale financial services outside their traditional branches and establish successful partnerships with local microfinance institutions (MFIs). The authors focus on one particular case involving a partnership between an accredited MFI (Banco Palmas) and two major banks (Banco do Brasil e Caixa Econômica Federal), to make the argument that the Brazilian CB model represents an innovation at the “meso level”, defined by Helms (2006) as the infrastructure comprising a network of service providers necessary to the operation of MFIs.

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Kundu, Debashish. "Microfinance Delivery Institutions in India-Governance and Management Challenges." Journal of Commerce and Management Thought 7, no. 2 (2016): 278. http://dx.doi.org/10.5958/0976-478x.2016.00019.7.

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Garikipati, Supriya, Susan Johnson, Isabelle Guérin, and Ariane Szafarz. "Microfinance and Gender: Issues, Challenges and The Road Ahead." Journal of Development Studies 53, no. 5 (2016): 641–48. http://dx.doi.org/10.1080/00220388.2016.1205736.

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Morais, Neavis, and Mokbul Morshed Ahmad. "NGO-led Microfinance: Potentials and Challenges in Conflict Areas." Journal of International Development 23, no. 5 (2010): 629–40. http://dx.doi.org/10.1002/jid.1672.

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Zulfiqar, Ghazal M. "From Kashf Foundation to Kashf Microfinance Bank—Changing Organizational Identities." Asian Journal of Management Cases 14, no. 2 (2017): 94–114. http://dx.doi.org/10.1177/0972820117713595.

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This case documents the challenges faced by the Kashf Microfinance Bank (KMFB) in 2012, when it was a relatively new entrant in a financial industry established by the 2001 Microfinance Institutions Ordinance. The case documents the difficulties KMFB faced in establishing itself as a microfinance bank, moved away from the unregulated NGO sector where its parent company, Kashf Foundation, was situated. As a microfinance bank KMFB faced the simultaneous challenge of surviving the start-up stage and adapting to the stringent banking regulations placed on it by the State Bank of Pakistan (SBP). The latter required learning to strike a balance between the sometimes conflicting banking and development institutional logics, a typical problem for hybrid institutions with a social mission. As KFMB grappled with trying to meet the SBP’s requirements on capital adequacy, it faced a repayment crisis originating from its parent company, wiping out a significant portion of its equity. The case focus is on a decision KMFB’s board must take, regarding whether or not to invite a new majority shareholder to bring the Bank out of the red. This includes the decision criteria for choosing a shareholder that will uphold KMFB’s mission of financial inclusion.

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Karki, Karun Kishor, Nirajan Dhungana, and Bhesh Bahadur Budhathoki. "Breaking the Wall of Poverty: Microfinance as Social and Economic Safety Net for Financially Excluded People in Nepal." Molung Educational Frontier 11 (June 17, 2021): 26–53. http://dx.doi.org/10.3126/mef.v11i0.37835.

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Microfinance is a financial service aimed at economically underprivileged people who have no or limited access to formal financial institutions such as banks due to the lack of financial resources, collateral, or low income. Microfinance institutions provide a collateral-free loan to low-income individuals with the principle of financial inclusion, which allows them to invest in various self-employment activities. In this article, we critically review the development of microfinance and its issues and challenges in Nepal. More specifically, using the concept of the Grameen Bank model and its relevance in the context of Nepali microfinance institutions, we explore how microfinance can be an effective tool of financial intervention to alleviate rural poverty in Nepal. Methodologically, we utilize secondary data sources such as government and non-government reports and existing empirical studies. We offer recommendations for policymakers to establish appropriate modalities, programs, and microfinance services targeting the socio-economic transformation of rural communities in Nepal. We conclude that the government and financial institutions can stimulate microfinance institutions through multidimensional interventions and facilitation to advance the socio-economic status of financially underprivileged people in rural communities in Nepal.

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Harelimana, Jean Bosco, and Musangamfura Ignace. "Major Challenges Affecting Financial Performance of Microfinance Institutions in Rwanda." Management and Organizational Studies 5, no. 4 (2018): 41. http://dx.doi.org/10.5430/mos.v5n4p41.

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This paper sought to determine the specific challenges affecting financial performance of Microfinance institutions(MFIs) in Rwanda.This study used the cross-sectional survey research design. The target population of the study was 199 respondentsfrom clients of selected Microfinance institutions and 53 respondents from managers and staff of MFIs. Aquestionnaire was used to collect data. The data was first explored for the underlying factor structure among thestudy variables through factor analysis. Thereafter, the study undertook both descriptive and inferential statisticalanalyses.The findings revealed that liquidity, NPL, return on asset and return on equity are powerful instrument of financialperformance of MFIs in Rwanda, it assumes that the strategies to be taken in order to address the main challengesfacing MFIs in Rwanda are: Legal and Regulatory environment, Support infrastructure, Client Protection, Financialinclusion, Financial Education as well as Gender and Youth inclusion. The policy and law should also be reviewed toallow the transformed MFIs a tax holiday and exempt from tax any assets donated or transferred to the deposit takingmicrofinance institutions.

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Lamichhane, Basu Dev. "Microfinance for Women Empowerment: A Review of Best Practices." Interdisciplinary Journal of Management and Social Sciences 1, no. 1 (2020): 13–25. http://dx.doi.org/10.3126/ijmss.v1i1.34504.

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The purpose of the paper is to highlight the role of microfinance for women empowerment. The study is a descriptive study design. Many developmental activities and programs are implemented in the society but microfinance programs are strong rural based and deprived women oriented and targeted to the marginalized people. Microfinance is an effective and powerful instrument for women empowerment. The number of challenges ahead of women empowerment are poor economic status, illiterate, unskilled, unemployment, low access in land, housing, transportation, electricity and family decision. It is considered as one of the most effective poverty alleviation tools. Microfinance services are considered as an entry point or vehicle towards empowering women. Members of microfinance institution (MFIs) have more contribution to saving and income generating activities, household decision making and activities beyond household sector. Although many programs have been implemented for poverty alleviation, only microfinance programs are seen as poor and rural women based. Microfinance is one of the best alternatives to generate self-employment specially the poor women in the rural areas. It provides services to them who have no collateral to offer against the loans. Women who could gain access to microfinance services have been able to create self-employment opportunities and have been economically and socially empowered through increased income through small projects. Microfinance has a profound impact on the economic status, decision making power, knowledge and self-worthiness of women, community activities and self-help group programs. The study reveals that there is a positive relationship between microfinance and women empowerment. Microfinance becomes catalyst for social change and women's empowerment.

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Ahmed, Saleh. "Development Innovations through Entrepreneurial Microfinance and the Attempt to Achieve the United Nations Millennium Development Goals in Bangladesh." Advances in Social Work 13, no. 2 (2012): 358–74. http://dx.doi.org/10.18060/1966.

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As one of the countries in the Global South, Bangladesh has experienced numerous development challenges since its liberation in 1971. Bangladesh has showcased how to fight against poverty and to initiate meaningful change and development in human lives. Nobel Prize (2006) winner Grameen Bank is one of the popular development innovations in the country. Since the beginning of this Bank in the early 1970s, microfinance and entrepreneurship development with small amounts of money have proliferated to nearly every corner of the globe with the paramount goal of alleviating global poverty and ensuring human development. Like all other new social science techniques, the societal revolution brought about by microfinance expansion has left substantial room for refinement and further support by empirical evidence. This article critically evaluates a non-governmental initiative to empower extremely poor women through entrepreneurial microfinance, and examines the socioeconomic impacts in achieving the United Nations Millennium Development Goals (UNMDGs). This article covers both primary and secondary information. The aim is to demonstrate how countries of the Global South can use carefully designed microfinance projects to address major development challenges and meaningfully contribute to creating a more equal, humane society.

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Alshebami, Ali Saleh, and D. M. Khandare. "The Role of Microfinance for Empowerment of Poor Women in Yemen." International Journal of Social Work 2, no. 1 (2015): 36. http://dx.doi.org/10.5296/ijsw.v2i1.7752.

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<p>The objective of this paper is to identify the challenges facing the empowerment of women in Yemen. This paper is mainly based on the secondary data collected from the records of the Yemeni Government programmes viz., Social Fund for Development, Microfinance books, websites, official reports and other sources related to the research subject. The mentioned study covers the period from 1997 to 2013 and the area for the study is Yemen. The result of the study reported that there are multiple factors affecting the empowerment of women in Yemen through microfinance such as customs and traditions, high interest rate, financial literacy, wrong religious perceptions, demanded collaterals. However, despite the difficulties and challenges facing women empowerment in Yemen, it is believed that women who are connected to microfinance programs have been positively affected with their households in various aspects as many studies revealed that.</p>

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Semenova, Ekaterina. "Improving the Mechanism of State Regulation of Non-credit Financial Organizations: Traditions and Innovations." Moscow University Economics Bulletin 2020, no. 3 (2020): 25–57. http://dx.doi.org/10.38050/01300105202032.

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Non-credit financial organizations (microfinance organizations, credit cooperatives and others) occupy a significant share in the market of financing of the population and small and medium-sized businesses. In recent years, microfinance institutions have been frequently mentioned in connection with scandals related to their activities. Part of the scandals associated with violations in their work, including consumer complaints about illegal actions of individuals, recovered debts of microfinance organizations, some associated with fraudulent schemes for the construction and formation of financial pyramids. A number of other violations in the activities of microfinance organizations have been identified, which requires a more careful approach to the regulation of their activities, both to protect consumer rights and to ensure stable development of the financial sector. The current situation in the global financial market poses new challenges for the Central Bank of Russia to improve the tools to identify and suppress the illegal actions of microfinance organizations. The article provides recommendations for improving the mechanisms of regulation and suppression of violations of microfinance organizations and credit and consumer cooperatives at an early stage.

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Rakshit, Sandip, and Mokhalles Mohammad Mehdi. "Standard microfinance bank, Nigeria: developing underserved markets." Emerald Emerging Markets Case Studies 11, no. 2 (2021): 1–24. http://dx.doi.org/10.1108/eemcs-10-2019-0257.

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Learning outcomes To understand the challenges of building a successful business in an emerging market like Yola, Nigeria. To understand the role of micro-finance banks in doing business in Yola, Nigeria. To comprehend strategies adopted in market segmentation and sales of products or services to the customer. To apprehend strategies adopted to sustain and compete in Nigeria – both rural and urban. Case overview/synopsis Standard Microfinance Bank Limited (SMFB) was a private micro-finance bank situated at Yola, Adamawa State of Nigeria. It initially started as a community bank in 1992 to provide loans to individuals and small business owners in Adamawa. It started with the services of payment service and savings account with a limited lending capacity. It had become a full-fledged retail bank and was grown to 13 branches across Nigeria. It planned for expansion such as market development, product development and diversification by the year 2020. It had a customer base of 60,000 till the end of December 2018. Vazheparambil Mani Francis was the Chief Executive Officer (CEO) of the SMFB. The SMFB faced challenges such as operating the remote villages, lack of financial literacy among people, recovery of the loan amount, submission of false credentials and change of customer identity after loan by their customer. It was not going to be an easy task for him to operate the business of SMFB in Nigeria. However, in December 2018, Francis was facing a dilemma about the future success of SMFB business in Nigeria by looking into the challenges and complexities of business. Francis was determined to figure out the appropriate growth strategy for managing the challenges. Complexity academic level Undergraduate and graduate early-stage program. Supplementary materials Teaching notes are available for educators only. Subject code CSS 11: Strategy.

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Marakkath, Nadiya, and Laurence Attuel-mendes. "Can microfinance crowdfunding reduce financial exclusion? Regulatory issues." International Journal of Bank Marketing 33, no. 5 (2015): 624–36. http://dx.doi.org/10.1108/ijbm-06-2014-0080.

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Purpose – The purpose of this paper is to discuss how regulatory environment can be a fundamental constraint or lever in defining the scope of operations of a social innovation. Design/methodology/approach – Semi-structured interviews with top-level executives of pioneers of crowdfunding were run in India and France, two of the three leading countries in this field. Findings – Four main issues rise: choice of legal status, constraints for the operations model, compliance with anti-money laundering measures and challenges in marketing and sustainability. Originality/value – This paper contributes to knowledge advancement in the field of this new funding actor that could challenge the banking system. This is the first paper to explore these regulatory issues and their impact on marketing practices.

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Alhassan, Eva Atu, Mabel Akosua Hoedoafia, and Imoro Braimah. "The Effects of Microcredit on Profitability and the Challenges on Women Owned SMEs: Evidence from Northern Ghana." Journal of Entrepreneurship and Business Innovation 3, no. 1 (2016): 29. http://dx.doi.org/10.5296/jebi.v3i1.9525.

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Women owned enterprises have limited access to capital as traditional banks shy away from them due to the high risk associated with lending to SMEs. Hence, several Microfinance Institutions (MFIs) sprung up with the aim of providing credit to SMEs especially women entrepreneurs. In this paper, the effect of microcredit from these MFIs on profitability of women owned SMEs is examined with data from 199 women entrepreneurs in the Tamale Metropolis of Ghana. The enterprises were randomly selected from five Microfinance Institutions and categorized based on their economic activities using stratified sampling. Semi structured interview checklist was used to survey the women owned SMEs whilst questionnaires were administered to the Microfinance Institutions. A paired sample t-test was employed to determine the changes in Gross Profit over time after which effect of size was also determined. The results indicate a significant increase in the average monthly gross profit over time.

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Machdum, Sari Viciawati. "Organizing Skills For Zakat Utilisation Dynamics In Faith-Based Organization." KOMUNITAS: International Journal of Indonesian Society and Culture 10, no. 1 (2018): 53–67. http://dx.doi.org/10.15294/komunitas.v10i1.11117.

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This article discusses the implementation of the microfinance program in one of the zakat institutions in Indonesia, Pos Keadilan Peduli Umat (PKPU) as Faith-Based Organization (FBO). Utilization of zakat through microfinance requires the community workers to be able to be adaptive to the dynamics of the existing system within himself, organization, community and the organization environment. The dynamic of the social system in the process of microfinance will provide its challenges, both for change agents and service recipients. Based on a qualitative approach, this study describes the organizing skills that Community workers needed to have in implementing microfinance program. The data were collected through in-depth interviews, participant observation, and literature study. This study illustrates organizing skills --that could help community workers to be more adaptive to organizational and environmental dynamics in the process of microfinance-- are organizational restructuring based on environmental needs and changes, flexible direction to develop a supportive organizational climate, and the development of organizing skills down to the grassroots.

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Nugroho, Agus Eko. "The Pro-poor Policy of Microfinance in Indonesia." Gadjah Mada International Journal of Business 11, no. 3 (2009): 317. http://dx.doi.org/10.22146/gamaijb.5523.

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This paper discusses and proposes the policy issues associated with the development of microfinance industry in Indonesia. Despite its capability of financing small-scale businesses, the development of the microfinance industry is far behind that of commercial banks. The policy focus on developing sound financial practices of microbanks has ignored the role of semi-formal and informal microfinance institutions (MFIs) in serving poor people. Compliance with the sound banking practices could inevitably drive microbanks away from serving the poor. Regarding the capability of informal and semi-formal MFIs of outreaching the poor, the challenges to microfinance policy in Indonesia is to develop inclusive financial systems through which the progress of microbanks goes in a parallel direction with the developments of semi-formal and informal MFIs, such as cooperatives and rotating saving and credit associations (ROSCAs).

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Khouildi, Mohamed Yassine, and Salina Hj. Kassim. "AN INNOVATIVE FINANCING INSTRUMENT TO PROMOTE THE DEVELOPMENT OF ISLAMIC MICROFINANCE THROUGH SOCIALLY RESPONSIBLE INVESTMENT SUKUK." Journal of Islamic Monetary Economics and Finance 4, no. 2 (2019): 237–50. http://dx.doi.org/10.21098/jimf.v4i2.935.

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Purpose: Socially responsible investment (SRI) sukuk has a high potential to be an innovative financing mechanism for Islamic microfinance. This paper explores the possibility of implementing SRI sukuk for raising funds to support the microfinance industry and to promote financial inclusion. It also aims to identify the associated issues and challenges in implementing the SRI sukuk for microfinance purpose.  Methodology: The paper uses qualitative research method through a thorough review of existing literature, archives, and library research related to the area of social, sustainable and responsible investment sukuk, Islamic microfinance and their related issues.  Findings: The SRI sukuk has a high potential to be developed as innovative shariah-compliant mechanism as shown by Malaysian experience in issuing the SRI sukuk to develop socially-related projects including the educational and green energy sectors. The paper also highlights and learn from the successful experience of the European Bank for Reconstruction and Development in issuing the first microfinance bonds.  Significance/Originality: The findings from this study provide inputs to the relevant stakeholders in implementing new financial tools to develop the social sector, especially Islamic microfinance in helping the poor and assist them to become economically independent. New innovative tools for raising funds in microfinance is highly needed to achieve sustainability of the microfinance industry. Type of paper: Research paper

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Rashid, Md Harun Ur, Mohammed Jashim Uddin, and Shah Asadullah Mohd. Zobair. "Islamic Microfinance and Sustainable Development Goals in Bangladesh." International Journal of Islamic Business & Management 2, no. 1 (2018): 67–80. http://dx.doi.org/10.46281/ijibm.v2i1.53.

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The main objective of this study is to explore the Islamic Microfinance Instruments in achieving the Sustainable Development Goals (SDGs) in Bangladesh. The methodology of this study is based on secondary data including existing relevant literature, and annual reports of different financial institutions. The findings of this study show that Islamic microfinance institutions have a broader scope to attain SDGs through their various investment modes.The study categorizes the Islamic microfinance instruments into four broadly parts which are profit and loss sharing financing, non-profit & loss sharing financing, Islamic social enterprise based financing and charity based financing which have a positive effect to the real sector of the sustainable economy that will lead towards achieving SDGs. The Islamic Microfinance institutions are continuing their efforts in attaining SDGs through their various products. With growing the potentiality, Islamic microfinance has both direct and indirect impacts on ensuring economic development, environmental sustainability, and social inclusion by creating employment opportunity, spreading knowledge and skills, making self-dependent, protecting from adverse effects. The paper also tries to put recommendations to reduce the challenges of Islamic microfinance acting as impediments to achieving the SDGs.

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Journal articles on the topic 'Microfinance challenges'

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