Dissertations / Theses: 'Sustainability of microfinance'

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García, Pérez Icíar. "Sustainability in Microfinance Institutions." Doctoral thesis, Universitat Jaume I, 2019. http://hdl.handle.net/10803/666062.

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Inspired by the 1999 Program of Action defined by the United Nations, which describes eight pragmatic areas for a Culture of Peace. My proposal will work on the section 'Sustainable economic and social development' evaluating microfinance and the organizations that manage them, as a tool to achieve this objective. Immersed in a global context and under the prism of sustainability, the performance analysis of the organizations activity can not be done only from its economic exercise, but it is necessary to measure its impact under a wider range of criteria (Fernández et al., 2013). The main objective of this thesis will be to contribute to the improvement of research in this sector, presenting a global vision of the behaviour of MFIs in terms of sustainable performance, based on a model that articulates the financial, environmental, social and governance dimensions of integrated form. Inspirado en el Programa de Acción de 1999 definido por Naciones Unidas en el que se describen ocho ámbitos pragmáticos para una Cultura de Paz. Mi propuesta trabajará sobre el apartado ‘Desarrollo económico y social sostenible’ evaluando las microfinanzas y las organizaciones que las gestionan, como herramienta para la consecución de este objetivo. Inmersos en un contexto global y bajo el prisma de la sostenibilidad, el análisis de desempeño de la actividad de las organizaciones no puede realizarse únicamente desde su ejercicio económico, sino que es preciso medir su impacto bajo una mayor amplitud de criterios (Fernández et al., 2013). El principal objetivo de esta tesis será contribuir a la mejora de la investigación de este sector, presentando una visión global del comportamiento de las IMFs en términos de desempeño sostenible, basado en un modelo que articule las dimensiones financiera, ambiental, social y de gobernanza de forma integrada.

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Cumbi, Gonqalo M. T. "The sustainability of microfinance in Mozambique." Thesis, Stellenbosch : University of Stellenbosch, 2011. http://hdl.handle.net/10019.1/14638.

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Thesis (MDF)--University of Stellenbosch, 2011. In the microfinance discourse, sustainability can relate to organisational, managerial and financial aspects. However, what is in vogue in mainstream analysis is the financial sustainability of MFIs throughout the world, especially in Africa, Asia and Latin America. What has attracted controversial debate on the self financial viability of MFIs is the extent they have maintained the balance between achieving substantial levels of profitability (through employing the institutionalist approach), and being agents of poverty-alleviation (through the welfarist approach). Analysing the mixed fortunes of the five MFIs in Mozambique between 2005 and 2009, this study explores the scope and patterns of outreach programmes as an essay in service-delivery by the MFIs, the repayment capacity of the different stripes of clients, the cost-control regime adopted by the MFIs and the ultimate variegated levels of success realised, and the challenges faced by the MFIs in different provinces.

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Lekatsa, Teboho. "The sustainability of microfinance institutions in South." Master's thesis, University of Cape Town, 2014. http://hdl.handle.net/11427/29002.

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Microfinance targets the poor and very poor, both in urban and rural areas. It has become a common method of poverty alleviation in many developing countries. Several microfinance institutions have adopted a social mission to eradicate poverty by providing credit to the poor. In the past, microfinance organizations used to focus on farmers in rural areas. Modern microfinance programs are focused on the population that is largely neglected by the formal financial sector, specifically women. Due to the perceived risk in this type of uncollateralized lending, private equity markets are not keen on financing microfinance institutions. Furthermore, microfinance institutions are seen as socially motivated as opposed to being financially motivated. For that reason, their profitability and sustainability has come under question in the last decade. Two approaches to the issue of sustainability exist. The dominant institutionist approach argues that microfinance institutions should focus on being sustainable as this will improve their chances of alleviating poverty. The welfarist approach disagrees with this view by arguing that focusing on sustainability will result in the neglect of the poorest of the poor. This study analyses the sustainability of microfinance in South Africa by using a case study research approach. The study explores the challenges to sustainability in South Africa. The results of the study indicate that the microfinance institutions are not profitable nor self- sufficient. The most notable challenge to this sustainability is the high personnel costs. South African MFIs experience higher operating costs than their African counterparts. The study also indicates that the more financially sound microfinance institutions have a lower level of depth outreach than the more subsidy dependent institutions.

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Smit, Nicol. "Sustainability of commercial microfinance institutions in South Africa." Thesis, Stellenbosch : Stellenbosch University, 2015. http://hdl.handle.net/10019.1/97443.

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Thesis (MDF)--Stellenbosch University, 2015. ENGLISH ABSTRACT: The approach to offering financial services to the poor has evolved over the past decades. The microfinance schism between the two paradigms, institutionist and welfarist, has yet to be narrowed by evidence of greater success of the one over the other. The drive for commercialisation of microfinance institutions has spurred many crises across the globe and the validity of the argument that commercial microfinance is more sustainable has come under scrutiny. This research report dissects the sustainability of African Bank and Capitec, two commercial microfinance institutions. Accounting ratios are applied to the audited financial data of both microfinance institutions to measure their sustainability from 2007 up to their most recent audited results. The research has found that both microfinance institutions experienced rapid growth since 2007, primarily driven by larger average loan sizes over longer terms. The research shows that Capitec has more diverse sources of revenue and depends less on its loan portfolio to generate income than African Bank. It also shows that Capitec has a more conservative approach with regard to provisioning for loans, and is consequently better prepared for loan write-offs than African Bank. Overall, Capitec is found to be more sustainable in each period measured.

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Ek, Sara. "The implications of financial sustainability in the microfinance industry." Thesis, KTH, Industriell ekonomi och organisation (Inst.), 2011. http://urn.kb.se/resolve?urn=urn:nbn:se:kth:diva-91363.

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Microfinance is a relatively young and somewhat ambiguous concept. The phenomenon has, however, proven to contribute to making the lives better for many poor people, thus the interest for the industry has grown substantially. The increased attention has stimulated the movement towards more financially sustainable organizations. Along with this transformation, concerns regarding how it affects the poor have been raised. This study aims to map the key characteristics of financially sustainable microfinance institutions (MFIs) and what features that separates them from their non-sustainable counterparts. By analyzing data from 1109 MFIs, some significant differences between sustainable and non-sustainable organizations have been found. The study shows that for-profit MFIs are self-sufficient to a greater extent than the non-sufficient ones, which might be caused by the pressure to deliver value to shareholders. Furthermore, there are indications that self-sufficient MFIs are more efficient, which can be assumed to be caused by technological advantages, or different lending methods. The findings on outreach are somewhat contradictory; sustainable MFIs are reaching more clients on average, which discards a mission drift. On the other hand, self-sufficient MFIs have larger average loan sizes and less female borrowers, two indications that a mission drift actual exists. Self-sufficient MFIs have also proven to have lower loan loss rates and lower yields on loan portfolio. Positive findings, as they indicate that the MFIs have sound loan portfolios and that they have managed to become self-sustainable not by exploiting the poor, but by reducing costs and increasing efficiency. Financial sustainability can therefore be assumed to be achieved without forsaking the poor, if the social aims of the organizations are consistent with the financial objectives.

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Okumu, Luka Jovita. "The microfinance industry in Uganda : sustainability, outreach and regulation." Thesis, Stellenbosch : University of Stellenbosch, 2007. http://hdl.handle.net/10019.1/1091.

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Thesis (PhD (Economics)--University of Stellenbosch, 2007. Using an econometric approach on panel data collected from 53 microfinance institutions (MFIs) in Uganda over a period of six years (annual), this study has identified the determinants of sustainability and outreach of MFIs. In addition, the study has also used survey data from 31 non-Bank of Uganda (BOU) regulated MFIs or Tier 4 MFIs, four BOU-regulated non-bank MFIs, 12 commercial banks and the BOU itself to assess the effects of financial regulation of MFIs on their sustainability and outreach. The results indicate that sustainability is positively and significantly driven by real effective lending rates and age of an MFI, and negatively by the ratio of gross outstanding loan portfolio to total assets, the ratio of average loan size to the national per capita income, the unit cost of loans disbursed, and a group-based delivery mechanism compared to an individual-based delivery mechanism. Outreach is positively and significantly driven by an MFI being a savings and credit co-operative (SACCO) compared to being a private company, effectiveness of governance, the age of an MFI, the ratio of gross outstanding loan portfolio to total assets, and the ratio of salary/wage paid to staff to the national per capita income, and negatively by the ratio of average loan size to the national per capita income and the unit cost of loans disbursed. In the short run, financial regulation negatively influences the outreach of MFIs, but positively affects their sustainability. In the long term, financial regulation positively influences both the sustainability and the outreach of MFIs. The results suggest a number of policy options. First, the MFIs should focus on the real effective lending rate, given its significance in their sustainability. Second, for a real effective lending rate to be relatively low, the rate of inflation should be low. This calls for prudent monetary policy management by the government. Thirdly, the cost of doing business should be kept low. This calls for prudence in business management by the MFIs and creating a cost-effective business environment by the government. While the results are tentative, in order to expand outreach more SACCOs should be established and the MFIs should commit more funds to lending purposes compared to other investments. Finally, before enacting financial legislation, it is important that its benefits and costs are adequately assessed to ensure that the benefits outweigh the costs both in the short and long term.

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Ogunleye, Toyin S. "Sustainability and Outreach: Analysis of Microfinance Banks in Nigeria." Thesis, University of Bradford, 2015. http://hdl.handle.net/10454/15206.

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The thesis empirically examined the implications of microfinance scaling up or sustainability on outreach in Nigeria. Basically, two methodologies were used namely, panel data econometric and survey methods. The panel dataset of 752 microfinance banks in Nigeria was used during the period 2011-2014, while the survey was conducted on some selected microfinance banks in Federal Capital Territory, Abuja in 2014. The findings from the thesis showed that, at the national level, yield, labour cost, orientation, efficiency, gender and size of loans are the major drivers of microfinance banks‟ sustainability in Nigeria. While at the state level, microfinance banks sustainability is driven by orientation and loan size. Findings also showed that sustainable MFBs tend to be more focused on the poor clients. The thesis showed that lending to female clients improves repayment rate of MFBs in Nigeria. Corroborating the regression result, the survey findings also suggest that lending to women had improved and enhanced repayment rate. In view of these findings, the thesis recommends that sustainability and outreach are not necessarily incompatible. However in pursuing sustainability greater attention should be on female clients, as greater lending to women would improve the repayment rate of MFBs and further engendered the industry sustainability.

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Heng, Sophyrum. "Assessing Outreach and Sustainability of Microfinance Institutions in Cambodia." Ohio University / OhioLINK, 2015. http://rave.ohiolink.edu/etdc/view?acc_num=ohiou1429731492.

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Nyamsogoro, Ganka Daniel. "Financial sustainability of rural microfinance institutions (MFIs) in Tanzania." Thesis, University of Greenwich, 2010. http://gala.gre.ac.uk/6366/.

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An enduring problem facing microfinance institutions is how to attain financial sustainability. Several studies have been conducted to determine the factors affecting financial sustainability of microfinance institutions using large and well developed MFIs in various countries. However, no such study has been conducted in rural Tanzania where majority of MFIs are small, most of which are member-based (cooperatives). Consequently, the factors affecting their financial sustainability are not known. This study, therefore, was set to bridge this knowledge gap. This study followed a quantitative research approach using panel data regression as the main data analysis technique. The study was based on four years primary and secondary data obtained from 98 sampled rural MFIs in Tanzania. We found that microfinance capital structure, interest rates charged, differences in lending type, cost per borrower, product type, MFI size, number of borrowers, yield on gross loan portfolio, level of portfolio at risk, liquidity level, staff productivity, and the operating efficiency affect the financial sustainability of rural microfinance institutions in Tanzania. The study makes the following key contributions to knowledge in addition to determining factors affecting financial sustainability of rural microfinance institutions in Tanzania: First, the study reveals that there exists simultaneous causality relationship between financial sustainability and breadth of outreach. When this relationship is not considered in determining factors affecting financial sustainability there may be inconsistent evidence on the existence of mission drift. Second, it unveils the trade-off between financial sustainability and breadth of outreach with regards to the minimum loan size when group lending is used. That is, larger loan size, while improves profitability, reduces the breadth of outreach. Third, the study provides empirical evidence that the impact of a particular lending type on microfinance institution‟s profitability will depend on the term to maturity and number of instalments reflected in its lending terms. Fourth, consistent with the institutionists‟ view, the study provides empirical evidence that financial sustainability of microfinance institutions improves their breadth of outreach. Lastly, the study documents the applicability and limitations of previous studies to rural microfinance institutions in Tanzania.

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Schulte, Markus [Verfasser]. "Selected Essays on the Sustainability of Microfinance Institutions / Markus Schulte." Frankfurt am Main : Frankfurt School of Finance & Management gGmbH, 2019. http://d-nb.info/1198716444/34.

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Hernández, Emilio. "Evaluating the sustainability of a select group of Nicaraguan microfinance institutions." [Gainesville, Fla.] : University of Florida, 2004. http://purl.fcla.edu/fcla/etd/UFE0004582.

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Kambole, Christopher Ngolwe. "Interest rate ceiling and financial sustainability of microfinance institutions in Zambia." Master's thesis, University of Cape Town, 2017. http://hdl.handle.net/11427/29087.

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Interest rate ceilings are often considered as an effective way of preventing lenders from charging extortionate interest rates. However, setting the rates too low may cause institutions to fail to raise enough revenue to cover their costs. Low rates may pressure MFIs to reduce costs, increase loan sizes, withdraw services from areas where it is expensive to operate, or exit from the market altogether. A 42% interest rate ceiling was introduced in Zambia on the effective annual lending interest rate of MFIs in January 2013, which was later removed in November 2015. This research was aimed at investigating the effect of interest rate ceiling and microfinance direct costs on the financial sustainability of microfinance institutions in Zambia. The study used time series data from consolidated quarterly financial statements from March 2006 to September 2016 and employed Autoregressive Distributed Lags (ARDL) approach to analyse the effect of Yield on Gross Portfolio, Cost of Funds, Operating Expenses and Loan Loss provisions on Operational Self Sufficiency (OSS). OSS was used as a proxy for financial sustainability (dependent variable). Results of the time series analyses showed a positive and significant effect of Yield on Gross Portfolio and Cost of Funds on OSS in the long run. On the other hand, Operating Expenses and Loan Loss provisions had a negative relationship with OSS, albeit statistically insignificant. Trend analysis of the Yield on Gross Portfolio showed a downward trend and consequently the OSS also trended downwards, with the lowest OSS being recorded during the period interest rate ceilings were introduced. However, the trend showed that the microfinance sector was generally sustainable during the study period. The reduction in OSS following the introduction of the ceiling confirmed findings from prior studies regarding the negative impact of interest rate ceilings on the financial sustainability of MFIs. Although the study results showed that the MFIs were generally sustainable during the study period, it was evident that they were negatively impacted by the interest rate ceiling. Therefore the recommendation from this study is that interest rates must be set at levels where costs can be adequately covered. Furthermore, managing costs and loan delinquency should be core priorities among Zambian MFIs to ensure financial sustainability.

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Phiri, Veronica Nanyangwe. "Sustainability of the Zambian microfinance industry: A case study of credit management services." University of the Western Cape, 2002. http://hdl.handle.net/11394/7093.

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Magister Artium (Development Studies) - MA(DVS) This thesis is both a qualitative and quantitative study, investigating the sustainability of Credit Management Services Limited (CMS) within the broader context of the Zambian micro finance industry. Micro finance is regarded as one of the tools for poverty reduction. As such, making microfinance available to many poor people is the purpose of microJinance. Over the years it has become clear that microfinance institutions have to operate efficiently and be self-sustai nable in order to continue assisting the poor. However. in spite of the support and encouragement given for sustainability, evidence shows that there are few sustainable microfinanee institutions in the world. The various factors impacting upon sustainability therefore, need to be examined and means of enhancing sustainabi Ii ty mapped out. The study brought to the fo re the main viewpoints regarding sustainability and how they have been inl1uenced by experiences of MFls around the world. The framework for discussion and analysis of operational sustainability, financial sustainability and operational e ffi ciency is also set out. The study discusses the Zambian microfinance industry and shows how and why the industry has emerged and grown in the past decade. Some constraints are identified that need to be dealt with in order to enhance sustainability of the industry. The study of CMS reveals that the institution is not yet fi nancially sustainable, but that its effi ciency levels are steadily increasing as it has put in place mechanisms to recover costs, charge economic rates of interest and increase and maintain its client outreach. Indicators are that it is moving in the right direction with its cost recovery. increasing client outreach and utilization of loans for on-lending as opposed to subsidies. This study therefore draws on the general experiences of the Credit management Services in order to draw lessons for the Zambian industry. The study will argue the case that though sustainability is difiicult to achieve, there arc positive indicators in the Zambian industry that this is possible and that CMS could be considered as an example. This claim is verified against the experi ence on the ground of Credit Management Services. The study concludes that building a sustainable microfinance industry anywhere is not the easiest task. Sustainabi lity is possible but requires a lot of investment in capacity bui lding and del iberate steps for cost effi ciency, appropriate pricing poli cies and an increased client outreach. The Zambian situation characterised by even a younger industry. will require not only a concerted effort in capacity building, but much more, the need to counter constra ints in the external environment of Mrls. Recommendations lo stake holders inc lude the need to utilise cheaper local human resources and invest in strengthening local institutions owned by local communities, to enhance the sustainability or micro finance initiatives.

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Virtue, Tony. "Towards the sustainability of microfinance services: the role of client impact monitoring." University of Southern Queensland, Faculty of Business, 2008. http://eprints.usq.edu.au/archive/00006289/.

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[Abstract]: Over the last few decades microfinance has become an integral part of the economic development of the less developed countries with regional governments, themultilateral donor agencies such as the World Bank and the Asian Development Bank and other donor organisations investing in the industry to build its capacity andwiden the outreach. Further, the World Bank has highlighted the need to help the poor achieve self-sustainability as much more than just a social issue. In fact, in their view, the long-term financial growth of the Developed countries will be largely determined by the expansion of the Third World as their future client base. Those who are interested in economic development in the less developed countries strongly believe that microfinance will be an effective tool of alleviation of poverty and developing prosperity for the poor. For this reason microfinance is considered as one of the effective way of achieving Millennium Development Goals (MDGs).Central to the success of microfinance is the distribution of capital from the wealthy to the poor in a manner which encourages accountability and responsibility from therecipient, while at the same time allowing donors to see appropriate stewardship of their funds. This is measured through the achievement of financial independence ofthe group being studied. The role of implementing agencies in facilitating this efficient and accountable transfer of capital is seen to be crucial to the ongoing development of microfinance. The interrelation between donors and these agencies requires a high degree of trust and mutual accountability, in many cases built up through years of hard work and experimentation.The policy framework and legislative environment for microfinance is still evolving. For instance some countries are still developing the regulatory environment to monitor the transparency of the industry. Furthermore, there are some growing concerns on the level of efficiency of the delivery of microfinance in making an impact on projects or at least making an impact on alleviation of poverty. In order to contribute to the latter, this study investigates a major microfinance operation in thePhilippines to examine whether it is consistent with the wider international practices, particularly in achieving the MDGs.The study uses a survey tool developed by the donor agency to monitor the quantitative and qualitative aspect of the microfinance operation and benchmark them against similar operations within the Asian region. The results show that, in the majority of cases, the Philippines operation has outperformed their counterparts. However, there is considerable room for improvement to maintain the sustainability of the operation.These experiences of successes and failures need to be recorded and delineated to build on existing achievements and support an environment geared towards substantial growth in the funding of microfinance in the future. It is the intention of this study to highlight these experiences and draw attention to the very real achievements currently being experienced through some effective microfinanceprojects.

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Tamanni, Luqyan. "Empirical essays on sustainability, portfolio risk, and outreach of Islamic microfinance institutions." Thesis, University of Glasgow, 2017. http://theses.gla.ac.uk/8489/.

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Islamic microfinance is a growing sector that is expected to provide a long-term solution to poverty in the Muslim world, home to more than 600 million poor people. The role of microfinance institutions in poverty alleviation is still debatable, however established literature provides assurance that microfinance does contribute to the development of financial sector and reduction of poverty in developing countries. Nonetheless, the rise of competition in the microfinance sector has forced many microfinance institutions to resort to commercial funding and lending activities, which according to some studies has led microfinance institutions to trade off poverty alleviation objective with commercial goals of profitability and sustainability. This thesis examines the impact of commercialisation push and its subsequent impacts on Islamic microfinance institutions in three empirical chapters. They are a) comparison of financial performance i.e. profitability and sustainability, between Islamic microfinance institutions with conventional microfinance institutions, b) examination of portfolio risk and vulnerability of Islamic microfinance institutions (IMFIs), and finally c) survey of the presence or absence of ‘mission drift’ at IMFIs. The thesis benefits from the latest panel data provided by MIX Market database, which is obtained from the publicly accessible websites at www.mixmarket.org. MIX Market provides reliable dataset for many microfinance institutions from all regions in the world. However, the dataset used for this research covers 1,320 microfinance institutions during the period of 1998 to 2014, from four regions where IMFIs exist, namely East Asia and Pacific, South Asia, Middle East and North Africa and Eastern Europe and Central Asia. IMFIs represent about 2.88 per cent, or only 38 IMFIs, in the dataset from the overall sample. Using Ordinary Least Squares regression to analyse financial performance, portfolio risk, and poverty outreach, the research finds mixed results. Overall, although IMFIs are worse off than their conventional counterparts in terms of financial performance, i.e. lower profitability and high cost, they are relatively better off with outreach to the poor, indicated by lower average loan balance per borrower to income per capita (depth of outreach) and positive number of active borrowers (breadth of outreach). In addition to lower or negative profitability, the first empirical chapter also indicates that IMFIs are operating at higher cost per borrower than conventional MFIs. However, interestingly IMFIs manage to record positive operational self-sufficiency (being a ratio of financial revenue over expenses, or OSS), which is an important indicator of sustainability, in addition to return on assets (ROA). Lower ROA is attributed to higher operational cost, e.g. cost per borrower, while OSS is higher mainly due to irregular funding mechanism of IMFIs. Many of the IMFIs rely on donations or charitable funds and also to a certain extend grants from government and donors. The second empirical chapter explores portfolio and default risk of IMFIs and find that they are facing relatively lower risks than conventional MFIs. The result defies expectation, as IMFIs are face challenging working environment and operate in some of the poorest countries in the world with frequent natural disasters or armed conflicts. They are also less vulnerable despite their clients are from the poorest segment in the society, often with lower educational level, and the nature of Islamic financial products are relatively unknown to most clients. Many of the IMFIs and their clients live in countries considered to be high risk or have histories of instability, either politically or economically. Finally, the third paper examines poverty outreach performance of MFIs to find any evidence of mission drift in Islamic microfinance institutions. Using similar method with the first empirical chapter, the paper finds that there is no clear evidence of mission drift at Islamic microfinance institutions, as indicated by lower Average loan balance per borrower to income/capita and at the same time significantly lower percentage of women borrowers. However, this claim requires more explanations to qualify as convincing evidence. The findings contradict the argument for mission drift, i.e. the presence of higher Average loan balance and lower Percentage of women borrowers. The results do not confirm nor reject the hypothesis that there will be no mission drift at Islamic microfinance institutions. Nonetheless, the results are consistent with literature i.e. there is no clear evidence of mission drift in existing and mostly conventional microfinance institutions. Overall, the regression results of all three empirical chapters of the thesis indicate that IMFIs are still loyal to their primary mission of poverty alleviation, despite operating at a loss and high operational cost. Their relatively positive outreach, in both scale and depth, is complementary to consistently high operational self-sufficiency. Although sustainability is important in microfinance, IMFIs are not currently concerned with sustainability objectives as their funding mechanism can still support their pursuit of poverty alleviation. However, as the drive of commercialisation and intensifying competition continue, especially with many international donors becoming more selective, IMFIs must abandon over-reliance on subsidy or grants. Should their current financial performance persists, i.e. lower return and higher cost, IMFIs may soon discover poverty alleviation mission as liability, not an achievable goal.

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Mustapha, Nazar S. "Banking and Microfinance Performance: Market Power, Efficiency, Performance, Outreach and Sustainability Perspectives." ScholarWorks@UNO, 2017. http://scholarworks.uno.edu/td/2347.

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This dissertation consists of two empirical papers that explore recent phenomena in Banking and Microfinance Performance. Chapter 1, “Market Power and Bank Performance in MENA Countries,” examines the determinants of market power in 12 Middle Eastern and North African (MENA) countries in the aftermath of the Global Financial Crisis (GFC), specifically within six Gulf Cooperation Countries and six non-Gulf countries. We examine the dynamics of bank competition in MENA countries, provide an up-to-date assessment of market power, investigate the factors impacting bank competition, and explore the evolution of market power during the financial crisis. Our results show an overall increase in market power following the GFC for both regions. We find that bank size, capitalization, and diversification affect market power differently in the pre-crisis and post-crisis years. Larger banks enjoy cost advantages and the diversification impact on market power has decreased in the post-crisis years and the impact of capitalization on market power increased during the GFC. Overall, banks with higher capitalization can better weather the crisis. Chapter 2, “The impact of firm-level characteristic and county-specific attributes on the performance and efficiency of the Microfinance institutions,” estimates the impact of country-specific macro-variables and firm-specific attributes on the financial performance and the efficiency of microfinance institutions (MFIs). We use a large international up-to-date database consisting of over 10,000 firm-years for MFIs over 89 countries during the period 2008-2015. Several interesting findings emerge: a) regulation and outreach are negatively correlated. b) There is a negative and highly statistically significant correlation between the percentage of female borrowers and loan size, which is evidence of “mission drift”. c) An increase in the percentage of female board member has positive and statistically significant effect on MFIs profitability and ROA; which emphasizes the importance of female participation in leading position in MFIs.

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Hoskinson, Brenda. "Microfinance sustainability versus development objectives: an assessment of the South African environment." Thesis, Rhodes University, 2008. http://hdl.handle.net/10962/d1002992.

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In a world where almost half of the population lives in poverty, the alleviation of poverty is a serious developmental challenge for many states. Microfinance has grown in popularity as a means for achieving poverty reduction all over the world. Due to the success of microfinance institutions, such as the Grameen Bank, in achieving self-sufficiency and improving the lives of its clients, the expectations for similar institutions are high. MFIs attempt to find a balance between business and development goals. It is not necessarily a contradiction to be a business seeking profit as well as being an institution committed to development. However, the values coupled with these two objectives are sometimes conflicting. Thus it is important to see how equilibrium can be achieved and to note what sacrifices must be made in order to reach a balance. This thesis will focus on examining and assessing the challenges faced by South African MFIs in balancing development goals while at the same time having to be self-sufficient. The Small Enterprise Foundation will be used as a case study to consider the particular experiences of a South African MFI. The evaluation of the unique challenges that the South African landscape presents will provide a context in which to understand microfinance operations and a clearer understanding of the particular problems and challenges faced by the South African micro-finance industry in balancing the achievement of development goals against the imperative to be self sustainable in providing services to the poor. Through that understanding the common conception of what makes a “successful” MFI will also be challenged.

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Mgoduka, Bulelwa Keitumetse. "Impact of microfinance institutions on small business sustainability in Nelson Mandela Bay." Thesis, Nelson Mandela Metropolitan University, 2015. http://hdl.handle.net/10948/8564.

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The rise of microfinance in South Africa as a development trajectory has dismissed ideas that small business enterprises have no significant contribution to the economic growth and development of the country. The primary objective of the study is to assess the impact of microfinance service providers on the success and sustainability of small business enterprises in the Nelson Mandela Bay. By applying descriptive statistics, 2 ordinary least square regression analyses as well as correlation matrix; the results reveal that microfinance has a positive and significant impact on the success and sustainability on small business enterprises in the Nelson Mandela Bay. The research findings hold a variety of implications for Government and policymakers. The study recommends that the microfinance sector must be under good governance through the microfinance regulatory and supervisory structures, since the sector contributes a great deal towards one of the most important objectives of the Post-Apartheid Government. Further, small business entrepreneurs must be well exposed to the requirements, standards and norms which govern the financial sector. This is particularly important in terms of the National Credit Act provisions.

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Nguyen, Quynh Anh Mai. "Financial services for the poor in Vietnam : a comprehensive analysis on the performance and sustainability of microfinance sector." Thesis, https://doors.doshisha.ac.jp/opac/opac_link/bibid/BB13135797/?lang=0, 2020. https://doors.doshisha.ac.jp/opac/opac_link/bibid/BB13135797/?lang=0.

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The dissertation chooses Vietnam as a typical case to address the gap in microfinance studies. Instead of focusing on the beneficiaries of the microfinance system, as many studies have been done, the subjects of this study are microfinance institutions (MFIs). The objective is to suggest a balanced sustainability approach for MFIs in Vietnam that refers to governance practices, legal environmental, and social and financial objectives as equally important. Particularly, it identifies the constraints and the potential, and suggests workable approaches to support Vietnam microfinance providers in extending and developing services throughout the country in a financially sustainable manner. 博士(現代アジア研究) Doctor of Philosophy in Contemporary Asian Studies 同志社大学 Doshisha University

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Diete-Spiff, Josephine Aruoriwo. "Determining Sustainable Strategies for Directors of Microfinance Banks in Nigeria." ScholarWorks, 2015. https://scholarworks.waldenu.edu/dissertations/1779.

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The Nigerian microfinance banks often close their offices abruptly, leading to the loss of shareholders' funds. The purpose of this phenomenological study was to explore strategies microfinance bank directors use to maintain business sustainability. The concepts of microfinance banking, sustainability value, and strategic management theory formed the conceptual framework for this study. Twenty managing directors from microfinance banks in the Anambra state of Nigeria participated in semistructured interviews. The data analysis process involved the use of Moussakas' modified van Kaam process, which resulted in the emergence of 3 themes: strategic management, fear of microlending, and maintaining sustainability. The emergent themes indicated the necessity of a strategic management focus on maintenance of sustainability, growth in microfinance banking knowledge, best practice implementations, savings mobilization, technological input, and expansion of microlending services. The implications for positive social change involved the potential for bank directors to apply these findings to improve Nigerian microfinance banking performance and provide regular payments of shareholders' dividends. The increase in shareholders' funds and provision of credit administration to indigent Nigerians may contribute to economic growth within local communities, decrease crime, and increase income generating business activities in Nigeria.

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Nakiyimba, Doreen. "Poverty reduction and sustainability of rural livelihoods through microfinance institutions. : A case of BRAC Microfinance, Kakondo sub-county Rakai district Uganda." Thesis, Linnéuniversitetet, Institutionen för samhällsstudier (SS), 2014. http://urn.kb.se/resolve?urn=urn:nbn:se:lnu:diva-38607.

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Microfinance is perceived to be one of the poverty alleviation mechanisms in poor countries today. This study was set out to find out what impact microfinance has on the livelihoods of women in Kakondo sub-county, Rakai district in Uganda. The reason why the focus was put on women was to find out whether these women can manage to sustain their livelihoods on a long term perspective through the process of acquiring microfinance credit. In order to find out what impact microfinance has, a group of women from the same borrowing group (all BRAC microfinance borrowers) were interviewed. As speculated, the results from the study showed that microfinance credit does really play a key role in helping the poor cope with poverty however, as microcredit on its own does not alleviate poverty, which also brings us to the fact that these women can improve their livelihoods however sustainability on a long term perspective is doubtful.

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Bui, Thu trang. "Factors affecting microfinance development in Vietnam." Thesis, Sorbonne Paris Cité, 2017. http://www.theses.fr/2017USPCD065/document.

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L’émergence de la micro-finance a été vue comme un remède pour un grand nombre de problèmes sociaux issus de la pauvreté en vertu de son efficacité dans l’octroi de crédits, dans l’amélioration de l’équité sociale ainsi que dans la réduction du niveau de pauvreté. Des millions de foyers en dessous du seuil de pauvreté n’ayant pas accès aux services bancaires ont ainsi pu accéder à des services financiers au travers de programmes de micro-finance. Cependant, le développement de la micro-finance ne suit pas un modèle identique pour tous les pays et les Institutions de Micro-finance (IMF) ont eu différents degrés de rentabilité. Beaucoup d’entre elles doivent encore faire face à des contraintes majeures pour fournir de manière efficace des services de micro-finance rentables. L’expansion des programmes de micro-finance reste un grand défi qui fait barrière au développement du secteur de cette dernière. Quelles pourraient être les raisons expliquant cette inefficience ?Cette thèse a pour but de contribuer à l’état des connaissances actuelles ainsi qu’aux recherches sur le développement et les caractéristiques du secteur de la micro-finance en analysant les facteurs stratégiques pouvant avoir un effet sur son développement dans le contexte du Vietnam.Pour ce faire, il sera appliqué à la fois des méthodes de recherche qualitatives et quantitatives.Nous effectuerons une analyse comparative entre l’innovation financière dans le système de micro-finance du Vietnam et deux modèles de référence internationaux : la Grameen Bank et la banque Rakyat d’Indonésie (BRI) afin de déterminer quelles contraintes limitent l’ampleur et la portée des activités de micro-finance au Vietnam ; quels types de modèles de microfinance sont adéquats : que cela soit pour des modèles commerciaux à but lucratif ou pour des projets de micro-finance sociale. Par ailleurs, des analyses empiriques seront portées par les techniques OLS et GMM afin d’examiner l’impact de l’environnement institutionnel ainsi que des facteurs macroéconomiques sur la rentabilité des IMF’s. Les résultats donnent la preuve d’une persistance de la rentabilité et de l’existence d’économies d’échelle en micro-finance. La qualité des prêts semble être un facteur déterminant concernant la rentabilité des IMF’s au Vietnam. Notre analyse confirme également le rôle important de l'État ainsi que le rôle décisif dans l'auto-innovation des institutions de microfinance The appearance of microfinance has been known as a remedy for many social ills rooted in poverty because of its efficacy in credit dispensation, social equality enhancement and reduction of poverty. Millions of poor and non-bankable people in developing countries have been provided access to formal financial services through microfinance programs. However, the development of microfinance is not a single model for all country and microfinance institutions (MFIs) have had various degree of sustainability. Many MFIs still face major constraints in their pursuit of effectively delivering microfinance services profitably. Expansion of microfinance programs remains a formidable challenge for the development of microfinance industry. What would be reasons for that inefficiency?This thesis seeks to contribute to the current state of knowledge and research thoroughly on the development and the characteristics of microfinance industry by investigating strategic factors affecting microfinance development in Vietnam context. It applies both qualitative and quantitative research methods.We develop comparative analysis between financial innovation of Vietnam microfinance system and two other international benchmarks namely Grameen Bank in Bangladesh and the Bank Rakyat of Indonesia (BRI) to figure out what constraints limit the scale and scope of Vietnam microfinance activities; what types of microfinance models are suitable: whether for-profit commercial models or social microfinance ventures in Vietnam context. Besides, empirical work is carried out using both OLS and GMM techniques to examine the impact of institutional environment as well as macroeconomic factors on MFIs’ profitability. The results present evidence on a dynamic role of profitability and economies of scale in microfinance. Loan quality seems to be a very important determinant of MFI’s profitability in Vietnam. Our analysis also confirms the significant role of State level as well as the decisive role in self-innovation of microfinance institutions

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Annim, Samuel Kobina. "Microfinance paradigm : institutional performance and outreach." Thesis, University of Manchester, 2010. https://www.research.manchester.ac.uk/portal/en/theses/microfinance-paradigm-institutional-performance-and-outreach(2b19d49b-ce81-49fe-b8ff-e65c20c7aa21).html.

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Microfinance research concerns addressed in this thesis relate to: (1) targeting of clients vis-à-vis financial sustainability; (2) loan size effect of interest rate and clients’ well-being status; (3) economic governance and the dual objectives of microfinance institutions; and (4) patterns, trends and drivers of microfinance institution’s efficiency. The thesis emphasises operational issues that affect institutional performance and outreach of microfinance institutions rather than impact of microfinance intervention on poverty reduction. The thesis revolves around four empirical chapters that seek to address the above research concerns. Both micro and macro-level analyses have been explored with the aim of identifying institutional and public policies that drive the success of microfinance interventions. Micro level data from households in Ghana and cross country data mainly from the Microfinance Information Exchange (MIX) market are used. Varied microeconometric techniques (ordinary least squares, instrumental variable estimation, quantile regression, pooled regression, fixed and random effects estimations, Hausman-Taylor, Fixed Effects Vector Decomposition, stochastic frontier analysis and non-parametric efficiency estimations) are used depending on the hypotheses being considered in each of the empirical chapters. The main findings are: observed trade-off between financial sustainability and reaching poorer clients; formal institutions dispensing their own funds target poorer clients; pronounced variations in responsiveness of loan size to interest rate changes; semi-elasticity of loan amount responsiveness to a unit change in interest rate is more than proportionate and very significant for the poorest group; lesser time in securing property and availability of credit information show positive effects in targeting poorer clients; both type (pure technical and scale) and scope (narrow and broad) of financial efficiency show varying trends; and lastly, negative effects of bureaucracies in property registration and lack of credit information on social efficiency are also observed. This thesis suggests the following recommendations both for management of microfinance institutions and other stakeholders including international microfinance investors and government: harmonizing microfinance programmes irrespective of the source of funds; segmenting microfinance outreach markets based on socio-economic well-being; curtailing bureaucracies in property registration; and providing credit related information. These are paramount to the success of the microfinance paradigm, especially in achieving its social objective.

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Hunt, Katherine <1985&gt. "Determining the effect of regulation on Microfinance Institutions Financial Self-Sustainability. A Cross-Country Comparison." Doctoral thesis, Alma Mater Studiorum - Università di Bologna, 2014. http://amsdottorato.unibo.it/6747/.

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Microfinance is an initiative which seeks to address financial inclusion, micro-entrepreneurship, and poverty reduction without over burdening governments. However, the current sector of microfinance is still heavily dependent on the good will of donors. The over-reliance on donations is a feature which threatens the long term sustainability of microfinance. Much has been written about this reliance, but research to date hasn’t empirically examined the effect of regulation as a mediator. This is a critical area of study because regulation directly affects Microfinance Institutions’ (MFI) innovation, and innovation is what shapes the future of microfinance. This thesis considers the role that regulation plays in affecting MFI’s and their ability to innovate in products, services and long-term sustainability via access to capital. Interviews were undertaken with stakeholders in MFI’s, NGO’s, Self-Regulating Bodies, and Regulators in India, Pakistan, and Bangladesh. This thesis discusses findings from interviews in relation to regulatory measures regarding financial self-sustainability of MFI’s. The conclusions of this thesis have implications for policy and inform the microfinance literature.

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Schreiner, Mark Joseph. "A Framework for the Analysis of the Performance and Sustainability of Subsidized Microfinance Organizations with Application to Bancosol of Bolivia and Grameen Bank of Bangladesh." Connect to resource, 1997. http://rave.ohiolink.edu/etdc/view?acc%5Fnum=osu1216056969.

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Thesis (Ph. D.)--Ohio State University, 1997. Advisor: Douglas H. Graham, Agricultural Economics and Rural Sociology Program. Includes bibliographical references (leaves 282-296). Available online via OhioLINK's ETD Center

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Karlsson, Ylva. "Former sex workers in Kenya making microfinance work : The role of Social Capital for the sustainability." Thesis, Mittuniversitetet, Institutionen för samhällsvetenskap, 2010. http://urn.kb.se/resolve?urn=urn:nbn:se:miun:diva-12274.

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Chikaza, Zakaria. "Analysis of financial sustainability and outreach of microfinance institutions (MFIs) in Zimbabwe : case study of Harare." Thesis, Stellenbosch : Stellenbosch University, 2015. http://hdl.handle.net/10019.1/97465.

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Thesis (MDF)--Stellenbosch University, 2015. ENGLISH ABSTRACT: The debate as to whether there is a trade–off between financial sustainability and outreach remains inconclusive among many researchers, therefore this research was conducted to bridge this knowledge gap. The study was conducted in Harare using longitudinal research design and analysed using panel data regression model. The study was conducted for the period of 3 years from 2011 to 2013 on 60 sampled MFIs in Harare. The findings were that MFIs in Harare are very sustainable but their outreach is low as shown by large loan sizes offered to clients. It was further revealed that staff cost per dollar and proportion of female clients are the only variables that affect sustainability of MFIs in Harare. Finally the research revealed that sustainability goals be achieved simultaneously and therefore are compatible. The key contributions to knowledge revealed by the study are as follows: there is a positive relationship between sustainability and outreach. Two variables affect sustainability on MFIs in Harare namely staff cost per dollar and proportion of female clients. The study recommends that Microfinance institutions in Harare should focus on financial sustainability in order to reduce their subsidy dependence, to ensure survival and growth in the future. To the policy makers the study recommends that sustainability does not compromise the outreach to the poor.

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Mateteni, Nyasha. "Impact of corporate governance mechanisms on sustainability of selected microfinance institutions in Cape Town, South Africa." Thesis, Cape Peninsula University of Technology, 2017. http://hdl.handle.net/20.500.11838/2681.

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Thesis (MTech (Business Administration))--Cape Peninsula University of Technology, 2017. A highly uneven income distribution and South Africa’s economic structure has over the years produced a larger number of the so called ‘unbankable’ families or households that are not served by the commercial retail-banking sector. Microfinance institutions (MFIs) emerged as an important tool for poverty alleviation and as a substitute in providing access to credit facilities to those individuals. However, many MFIs have failed to sustain and grow their business due to malpractices and poor implementation of sound corporate governance mechanisms. This study aims to identify the impact of corporate governance mechanisms on sustainability at selected MFIs in Cape Town. The study was undertaken in order to bridge the information gap and increase the knowledge base on the issues of corporate governance and sustainability of MFIs as this lack of information may be due to insufficient research in the sector. A survey research design by employing the triangulation method was used to gather data from selected MFIs (n=15) in Cape Town. Quantitative, qualitative and secondary data instruments were used for data collection. Participants for this study were selected through the use of purposive sampling. Data were analysed through SPSS V24 to generate descriptive and statistical results. Cronbach’s alpha value was employed to determine the reliability of the dataset. The study found that most MFIs have no governance mechanisms in place that act as a blue print to address governance issues. Only a few MFIs distinguish the positions of Chief Executive Officer (CEO) and Chairman. In addition, this research showed that MFIs are struggling to be profitable as most of them continuously record lower levels of operational self-sufficiency and return on assets. The study recommends the ideal board size of MFIs, board diversity, separation on the positions of CEO and the Chairman, the use of the King IV report, and strategies for sustainability.

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Dlamini, Menzie Sithembiso. "The effect of subsidies on the performance and sustainability of microfinance institutions in sub-Saharan Africa." Diss., University of Pretoria, 2012. http://hdl.handle.net/2263/28557.

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Microfinance Institutions (MFIs) in sub-Saharan Africa (SSA) and the developing world have over the years attracted and received billions of US dollars (valued at over US$4 billion annually worldwide) in subsidies and concessionary funds. These subsidies are used to capitalize, promote growth, and help improve efficiency, operations and performance of newly established MFIs. At face value these interventions seem positive, yet studies have shown that they can be counterproductive in terms of their effect on the performance, efficiency and self-sustainability of the MFIs. This research addresses this issue by identifying four determinants of MFI’s performance and analysing the effect that subsidies have on them. A quantitative approach was used in the analysis in which the financial data of 92 MFIs were estimated using panel data estimation. The method of variable selection was based on the procedure used by Nawaz (2010). This method of determining the relationship between selected performance and sustainability indicators and subsidy was modelled on the Subsidy Dependant Index (SDI) method of analysis developed by Yaron (1992a) and the Return on Asset (ROA), Operational Self-Sufficiency (OSS) and Financial Self-Sufficiency (FSS) methods of analysis developed by the SEEP Network (2005). The summary results of the analysis showed that the majority of MFIs (90.22%) were not sustainable nor were they found to be profitable. However, the results show that all the institutions were operationally self-sufficient and that, on average, MFIs in SSA charged higher interest rates than MFIs in other parts of the world. The average OSS was 136.01% showing that MFIs are operationally self-sufficient. However, the average FSS value was 74.32% reflecting that the MFIs are not able to raise enough revenue to cover their capital and indirect costs which would ultimately result in them running out of equity funds. The inclusion of subsidies in the sustainability regressions resulted in a decline in the ability of the MFIs to attain operational and financial self-sufficiency, thus showing the negative effect subsidies have on the sustainability of MFIs. Inflation and interest rates charged on loans also had a negative effect on sustainability as they resulted in an increase in costs and a decline in the number of low income clients. MFIs located in wealthier countries were found to be more efficient because of the lower costs associated with having wealthier clients who have larger loan sizes. MFIs in lower income countries have to overcome limitations of weak infrastructures, low population densities and rural markets which increase operating costs. Older institutions were found to more likely be sustainable than new and young MFIs as expected because of their improved efficiency and productivity and also because they have more experience and are therefore better equipped to overcome challenges. However, by adding subsidy in the analysis the results show that the level of efficiency of MFIs is reduced. The results also show that with increased maturity MFIs are found to be more productive, however, when subsidies are included in the finances the levels of productivity will decline as costs increase. NBFIs are the most suitable business model to practice in MFIs in Africa according to the findings which reflect that NBFIs are more profitable and efficient than any of the other business models in the sample. However, cooperatives were found to be the most productive business model as they have a stronger borrower to staff ratio than the other institutional types. Furthermore, cooperatives and NBFIs tend to have clients who are better off and therefore can afford to take larger sized loans, unlike clients of NGOs who are poor who struggle to have a stable income. Copyright Dissertation (MSc(Agric))--University of Pretoria, 2012. Agricultural Economics, Extension and Rural Development unrestricted

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Kateshumbwa, Mwesigye Edgar. "A comparative Case Assessment of the development Roles of MFIs in Uganda and Bangladesh." Thesis, University of the Western Cape, 2007. http://etd.uwc.ac.za/index.php?module=etd&action=viewtitle&id=gen8Srv25Nme4_1393_1256910745.

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The overall objectives of this thesis were to assess the theory and evaluate the development roles of MFIs in Uganda and Bangladesh. The study in particular focussed on MFIs impact on poverty reduction, empowering women, promoting health, as well as promoting children's education in Uganda and Bangladesh. The study preferred the selected countries because Bangladesh is internationally considered as the best practice for microfinance, whilst Uganda is assumed to be well-positioned in terms of microfinance as compared to other developing countries in Africa. The question that guided this empirical investigation was whether MFIs empower women, reduce poverrty, promote children's education as well as health among its beneficiaries in Uganda and whether Bangladesh has important lessons of experience for Uganda.

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Aveh, Felix Kwame. "An evaluation of the performance of microfinance institutions in Ghana : an investigation into the factors that impact on sustainability and success of microfinance institutions in Sub-Saharan Africa." Thesis, University of Bradford, 2011. http://hdl.handle.net/10454/5164.

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The thesis examines factors that influence sustainability and success of microfinance institutions in Ghana. The topic is important, particularly in poverty stricken Africa, where microfinance institutions play a significant role in supporting governments' initiatives to reduce/alleviate poverty. The developed model is tested using data collected from 14 face-to-face interviews and 114 questionnaires. The data is analysed using different techniques- descriptive statistics, cross-tabulations and regression analysis. The research design and scale of the study are appropriate to both the problem addressed and doctoral level research. A number of factors in the model developed were found to be influencing the sustainability and success of microfinance institutions. A model was proposed that seeks to offer an explanation of sustainability and success of Microfinance Institutions in Ghana. The proposed model identified five categories being: institutional characteristics, agency costs, business strategy, environment/governance and success. Single factor analysis established positive relationships between sustainability and all the five factors but placed more emphasis on three out of the five factors namely; success, business strategy and environment/ governance. Multiple factor analysis established no significant differences in the sustainability with respect to the type of MFI, ownership and source of funding. Multiple Regression which allows for the testing of theories or models established a significant relationship between the Operational Self Sufficiency (OSS) and the predictors, especially the drop-out rate of clients and average loans. The Subsidy Dependence Index (SDI) was calculated for the various types of MFIs and the result was a high dependency ratio especially among the FNGOs. Though the dependency is on the decline, it is very slow indicating that most MFIs will depend on subsidies for a very long time to come. Finally it was observed that the relatively high interest rates charged by most of the MFIs tended to defeat the purpose for which the microfinance movement came about. Not only did the study confirm the research model, but it also revealed that most owners did not exhibit a deep sense of involvement and used general knowledge to practice in Ghana. The study concluded that success factors, business strategy, and environment/governance were the most critical of the sustainability factors in Ghana. It is therefore important that managers develop institutional capacities especially in managing the agency problem effectively if they have to be sustainable and successful.

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Aveh, Felix K. "An evaluation of the performance of microfinance institutions in Ghana. An investigation into the factors that impact on sustainability and success of microfinance institutions in Sub-Saharan Africa." Thesis, University of Bradford, 2011. http://hdl.handle.net/10454/5164.

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The thesis examines factors that influence sustainability and success of microfinance institutions in Ghana. The topic is important, particularly in poverty stricken Africa, where microfinance institutions play a significant role in supporting governments¿ initiatives to reduce/alleviate poverty. The developed model is tested using data collected from 14 face-to-face interviews and 114 questionnaires. The data is analysed using different techniques- descriptive statistics, cross-tabulations and regression analysis. The research design and scale of the study are appropriate to both the problem addressed and doctoral level research. A number of factors in the model developed were found to be influencing the sustainability and success of microfinance institutions. A model was proposed that seeks to offer an explanation of sustainability and success of Microfinance Institutions in Ghana. The proposed model identified five categories being: institutional characteristics, agency costs, business strategy, environment/governance and success. Single factor analysis established positive relationships between sustainability and all the five factors but placed more emphasis on three out of the five factors namely; success, business strategy and environment/ governance. Multiple factor analysis established no significant differences in the sustainability with respect to the type of MFI, ownership and source of funding. Multiple Regression which allows for the testing of theories or models established a significant relationship between the Operational Self Sufficiency (OSS) and the predictors, especially the drop-out rate of clients and average loans. The Subsidy Dependence Index (SDI) was calculated for the various types of MFIs and the result was a high dependency ratio especially among the FNGOs. Though the dependency is on the decline, it is very slow indicating that most MFIs will depend on subsidies for a very long time to come. Finally it was observed that the relatively high interest rates charged by most of the MFIs tended to defeat the purpose for which the microfinance movement came about. Not only did the study confirm the research model, but it also revealed that most owners did not exhibit a deep sense of involvement and used general knowledge to practice in Ghana. The study concluded that success factors, business strategy, and environment/governance were the most critical of the sustainability factors in Ghana. It is therefore important that managers develop institutional capacities especially in managing the agency problem effectively if they have to be sustainable and successful.

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Srivastava, Tripti. "Microfinance: A Comparative Analysis of Varying Contexts, Current Needs, and Future Prospects between Developing and Developed Countries." Bowling Green State University / OhioLINK, 2010. http://rave.ohiolink.edu/etdc/view?acc_num=bgsu1288558199.

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Bredberg, Sofia, and Sara Ek. "How to apply microfinance activities in the developed world : a case study in New York City." Thesis, KTH, Fastigheter och byggande, 2011. http://urn.kb.se/resolve?urn=urn:nbn:se:kth:diva-42291.

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This study strives to examine how microfinance activities can be successfully applied in the developed world. This is done through a field study in New York City. Throughout interviews and observations with three of the largest actors in New York: Acción USA, Grameen America and Project Enterprise, as well as interviews with their clients, the lending processes and key characteristics of the organizations have been mapped. Furthermore, the Federal Reserve Bank of New York has been interviewed on the general opinion of microfinance in the US. Previous theory elaborates on some of the major challenges with implementing microfinance activities in the developed world, such as lack of funding and cultural differences hindering the lending processes to be carried out as they are in the developing world. Henceforth, problems regarding regulation, awareness and outreach are discussed. Throughout the observation of the institutions we can confirm that some of the challenges brought up in theory actually are apparent. We do, however, question the criticism towards the use of group-based lending programs in the developed world. Our study does, in contrast to previous research, imply that the concept does work as well in the US as it does in developing countries. Since this is a case study based on the observations of only a few organizations, it is precarious to draw any general conclusions based upon the findings. Indications of key success factors are, though, group-based lending programs, non-financial services, creating awareness, financial sustainability, savings as funding, standardized regulations and increased transparency. Finally we advocate focus on job creation to obtain acknowledgement.

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Arsyad, Lincolin, and arsy0002@flinders edu au. "AN ASSESSMENT OF PERFORMANCE AND SUSTAINABILITY OF MICROFINANCE INSTITUTIONS: A Case Study of Village Credit Institutions in Gianyar, Bali, Indonesia." Flinders University. Development Studies, 2006. http://catalogue.flinders.edu.au./local/adt/public/adt-SFU20060621.142512.

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Microfinance institutions have evolved as an economic development tool intended to benefit low-income people. The benefit, however, can only be achieved if the institutions have a good financial and outreach performance. This study has three objectives. The first objective is to assess the influences of informal and formal institutions and their interrelationships on the practical operational arrangement of Village Credit Institutions of Bali (Lembaga Perkreditan Desa or LPD). Second, to evaluate the financial performance and outreach indicators of the institutions and to assess the influence of informal and formal institution on the sustainability of the institutions, which has received little attention from previous studies. Finally, to outline some elements of a strategic business plan for two selected village credit institutions (LPDs) in Gianyar district, LPD Mas and LPD Kerta. By using a case study approach, this study finds that the informal institutions (such as social values, norms, and sanctions) have significant influences on the practical arrangements of the LPDs, including the organisation, recruitment procedure, delivery mechanism, and remuneration system. Along with the influence of informal institutions, the formal institutions have also had some direct influences on the practical operational arrangements of the LPDs that are reflected in the supervision and guidance system of LPDs, an obligation to apply prudential principles of banking, and the remuneration system. The findings also show that the local government regulations (formal institutions) concerning the LPDs have accommodated the informal institutions of the Balinese in the background of their establishment, status and ownership, and organisation of the LPDs. Based on the performance indicators - portfolio quality, leverage, capital adequacy ratio (CAR), productivity, efficiency, profitability, self-sufficiency, and outreach ï¿½ the LPDs in Gianyar district could be considered as success microfinance institutions. The success is influenced by some important factors. First, the use of local people in managing the LPDs and the application of character-based lending system in screening the clients. This has resulted in a high clientsï¿½ sense of belonging and moral obligation to support the development of the LPD Second, the use of social (custom) sanctions in the contractual enforcement has forced the borrowers to comply with their credit contract in a timely fashion. Third, the use of local community personnel whose remuneration is based on performance and low transaction costs has resulted in the high efficiency of LPDs. Fourth, a growing economy and supporting government policy at all levels through provision of a legal basis for the LPDs and the Central Bank regulation (formal institutions) have also contributed to the success of the LPDs. Thus, based on the necessary conditions of sustainable microfinance institution proposed by some scholars(Yaron 1994; Christen 1998), it can be concluded that the Gianyar district LPDs have been sustainable, and by that implication they have positive net social benefits for their clients. Any attempt, however, to replicate the achievements of the LPDs by imitating its mode of operations should be conducted with great caution. A mechanism that works well in one socioeconomic environment (in this instance, in Bali) will not necessarily work in another, where the social system including social norms and values are different. But, the experience of the LPDs is a valuable thing since it has highlighted some critical issues that should be considered when handling the complex issue providing financial services to rural people.

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Nduwarugira, Ginnet, and Tsion Woldemariam. "Microfinance a poverty trap or solution? : A study of the development strategies operational NGOs use to help entrepreneurs in developing countries escape the povetry trap." Thesis, Högskolan Kristianstad, Sektionen för hälsa och samhälle, 2015. http://urn.kb.se/resolve?urn=urn:nbn:se:hkr:diva-14461.

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Microfinance is many times used as a developmental tool to tackle hunger and other issues related to poverty. The adoption of microfinance as a tool to raise welfare in communities is rising in the sector of Non-Governmental organizations (NGOs). In recent times, development projects by Non-Governmental Organizations have been criticized for lacking financial sustainability and for leading people into a poverty trap created from a vicious cycle of borrowing. For entrepreneurship to flourish, micro-financial clients must first escape the poverty trap by becoming self-sufficient.The purpose of this thesis is to comprehend what strategies operational Non-Governmental Organizations use in developing countries in order for clients to escape the poverty trap with the help of sustainable microfinance.The stakeholder theory is the comprehensive approach used in this thesis to understand how a Non-Governmental Organization’s stakeholders influence their Microfinance Program and vice versa. The Non-Governmental Organizations need to incorporate all the stakeholders and assist these stakeholders to strive for a common goal. A qualitative case study was conducted on the global, non-profit, strategic organization; The Hunger Project.Our findings resulted in identifying the integrated holistic Epicenter strategy as The Hunger Project’s solution to tackling economic- and development inhibiting barriers. The findings indicate that a sustainable Microfinance Program may need to be integrated into all surrounding aspects influencing the micro-financial stakeholders.The implications of this study is that microfinance providers can gain an understanding of the requirements for sustainable Microfinance Programs. This understanding will result in organizations being able to contribute to a more sustainable development for underprivileged entrepreneurs. Our dissertation contributes in creating awareness in potential solutions for overcoming micro-financial criticism, by implementing and integrating sustainable principles along with the society.

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Arrassen, Wassini. "La microfinance : quelles leçons tirées des expériences des pays en développement ?" Phd thesis, Université Paris Dauphine - Paris IX, 2013. http://tel.archives-ouvertes.fr/tel-00945886.

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Après une synthèse des principales avancées en microfinance, la thèse offre un aperçu sur les institutions de microfinance (Imf) dans les pays en développement entre 2000 et 2009. Une étude approfondie du marché de l'Afrique Subsaharienne est également proposée. Elle sert de prélude à l'analyse économétrique des déterminants des performances financière et sociale des Imf dans cette région ainsi qu'à l'examen des arbitrages entre les deux objectifs. Le modèle est également estimé avec les données de l'Amérique Latine et Caraïbes afin de tester, entre autres, sa robustesse spatiale. Les résultats montrent que malgré la forte croissance affichée, les Imf demeurent fragiles à cause des retards de paiement et de la faible rentabilité. En outre, il n'existe pas de modèle universel de la microfinance sans spécificités régionales. La commercialisation du secteur est remise en cause car même si elle ne s'accompagne pas nécessairement d'une déviation de la mission sociale, elle n'améliore pas la performance financière. Enfin, la richesse du secteur provient de sa segmentation alors que sa faiblesse est due à son manque d'organisation, avec une concurrence se traduisant par une recrudescence des risques au lieu d'une diversification des produits.

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Tesfamariam, Berhane Ghebreslasie. "Assessing the sustainability of Saving and Micro-Credit Programme (SMCP), Eritrea." Thesis, Stellenbosch : University of Stellenbosch, 2004. http://hdl.handle.net/10019.1/1963.

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Dougherty, John Paul. "Three Essays on the Economic Sustainability of Drought Insurance and Soil Investment for Smallholder Farmers in the Developing World." The Ohio State University, 2018. http://rave.ohiolink.edu/etdc/view?acc_num=osu1531672015876609.

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Wahlgren, Isabel, and Sarah Bergh. "Empowering women through an NGO chain : Assessing development from a knowledge transfer perspective." Thesis, Uppsala universitet, Företagsekonomiska institutionen, 2015. http://urn.kb.se/resolve?urn=urn:nbn:se:uu:diva-255966.

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Over the last decades the topic of microfinance as a method to alleviate poverty has been debated to a large extent in the academic literature. In India, the method of Self-Help Groups (SHGs) is today widespread among Non-Governmental Organizations (NGOs) and has been proven to empower women economically and socially. Alongside, NGOs have increasingly directed their efforts towards more long-term development strategies, in which knowledge has gained a larger attention as a component to sustainable development. Even though literature from different research streams has confirmed that there is a need for effective knowledge transfer between NGOs to reach and empower the female end beneficiaries in the NGO-sector, few theoretical attempts have been made to understand the organizational dynamics behind knowledge transfer in an NGO-context. That is why we wished to further understand knowledge transfer in an NGO-context. Our purpose is to explore what it is that makes knowledge become transferred throughout an NGO-chain in order to reach the end beneficiaries. To answer the research question of what variables affect knowledge transfer throughout the actors in an NGO-chain and what factors determine these variables, a case study was conducted on an NGO-chain working towards SHGs in Uttarakhand, Northern India. Interviews have been conducted with leaders and staff of one foreign and one local NGO and two focus groups have been held with participants of SHGs. The findings show that several of the variables that research within knowledge management previously have found, including trust, communication, organizational culture and absorptive capacity, do have an influence on the transfer of knowledge throughout the NGO-chain. Furthermore, the variables networks, relationships, and organizational strategy were also shown to impact the outcome of the knowledge transfer. Moreover there are several factors in the intra-organizational and inter-organizational dynamics of the NGO-chain that determine whether each variable has an inhibiting or enabling effect on knowledge transfer.

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Shahidullah, AKM. "Community-Based Developmental Entrepreneurship: Linking Microfinance with Ecosystem Services." International Journal of Development and Sustainabilty, 2 (3), 1703-1722, 2013. http://hdl.handle.net/1993/31836.

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This research examined whether microfinance-assisted developmental mechanisms can integrate ecological objectives alongside social and economic ones—thus promoting sustainability. The specific focus was to test the ability of microenterprises operated by community-entrepreneurs in supporting local ecosystem services. To this end, the research: elucidated the nature and dynamics of linkages between communities and the local ecosystems with the lens of coupled social-ecological systems, i.e. illustrated ecological modernization of microenterprises in a developing country context; tested how community-based enterprises transform upon application of green microfinance strategy; and then recognized how social learning is promoted through such community-based intervention mechanisms, e.g. microfinance. The research used case study and participatory approaches. The case study comprised two components: i) a green microfinance program, and ii) communities in a riparian, and a wetland ecosystem in Bangladesh engaged in entrepreneurship. The major tools that the study employed for data collections were: household surveys, participatory land -use surveys, semi-structured interviews, key informant interviews, focus group discussions, multi-stakeholder workshops, field observations, and document reviews. The research findings reveal that the green microfinance strategy, in the short and medium terms, catalyzes entrepreneurial and social innovations, and combine the embedded economic and social objectives of the classic microfinance with the new ecological objectives towards sustainability. The strategy applied by Microfinance Institution (MFI) and adopted by community enterprises transformed the ventures—helping them to go green and reducing greenhouse gas emission. Besides, the partnerships that occur between non-governmental organization (NGO) and community-based organization (CBO) in the process of implementing developmental programs—result social learning and innovations in the communities. The research review found grassroots developmental initiatives as an evolving phenomenon over time. With this view, and with its observation through this cross-sectional study, the research proposes a framework entitled ‘community-based developmental enterprise (CBDE)’. The framework proposes community level entrepreneurial ventures, associated NGO-MFIs, CBOs and other development partners to consider ecosystem services and wellbeing components in entrepreneurial design and actions. October 2016

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Bah, Alpha Amadou. "La micro finance en Guinée : articulations entre finance formelle et informelle et lutte contre la pauvreté au Fouta Djalon." Phd thesis, Université Toulouse le Mirail - Toulouse II, 2012. http://tel.archives-ouvertes.fr/tel-00833592.

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Cette recherche qui porte sur la micro finance a comme zone d'étude la Moyenne Guinée ou Fouta Djallon, une des quatre régions naturelles de la Guinée. L'objectif principal est d'analyser la façon dont la micro finance contribue à articuler la finance formelle (banques) et la finance informelle (tontines, banques villageoises, etc.) pour fournir des services financiers durables en milieu rural et d'étudier son incidence sur la lutte contre la pauvreté. Tant au plan régional (Afrique de l'Ouest) qu'au plan national guinéen, nous avons souligné que les différents secteurs financiers fonctionnent dans un contexte de cloisonnement relativement souple. Le secteur de la micro finance, le dernier né des secteurs financiers, constitue aujourd'hui une alternative forte dans la collecte de l'épargne et le financement des activités locales à travers des mécanismes novateurs établis essentiellement sur la base de la proximité avec les populations locales. Pourtant, nous montrons comment deux visions de la micro finance continuent à s'affronter : l'une sociale, fondée sur le bon vouloir des donateurs, donc fortement dépendante des bailleurs de fonds; l'autre, commerciale, institutionnelle, fondée sur la volonté de construire une véritable autonomie fonctionnelle de l'IMF, à la fois aux plans, technique, financier et humain. Par ailleurs, nous avons montré comment le débat sur le lien entre micro finance et pauvreté n'est pas encore tranché, tant les impacts sur le terrain interpellent les chercheurs et les bailleurs de fonds sur l'efficacité de la micro finance comme outil de réduction effective de la pauvreté. La question demeure de voir comment la micro finance peut être un élément de décloisonnement à travers une articulation entre finance formelle et finance informelle. Pour répondre à cette question, nous avons identifié deux arguments qui constituent les deux parties de la thèse. La première partie expose la diversité des modes de financement en Afrique de l'Ouest, fait le lien entre micro finance et pauvreté, en reprenant les débats théoriques qui continuent à s'affronter sur cette question et présente la problématique de l'articulation entre services financiers comme solution de décloisonnement et d'amélioration de la fourniture des dits services. La deuxième partie montre des exemples empiriques d'articulation entre banque, micro finance et finance informelle à travers les pratiques des usagers et formule quelques préoccupations sur le devenir de cette activité dans la région.

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Nawaz, Ahmad. "Issues in the sustainability of microfinance." Doctoral thesis, 2009. http://hdl.handle.net/11858/00-1735-0000-0006-AFBF-5.

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Skosana, Ntombi. "The sustainability of microfinance organisations in rural South Africa." 2007. http://encore.tut.ac.za/iii/cpro/DigitalItemViewPage.external?sp=1001162.

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Thesis (DTech. degree in the Business School)--Tshwane University of Technology, 2007. This dissertation seeks to establish whether microlenders in South Africa aimed at the rural poor with the purpose of poverty alleviation are or can be self-reliant, self-sufficient and ultimately self-sustaining. This question arose because typical micro finance clients are low-income persons that do not have access to formal financial institutions. Access to conventional formal financial institutions, for many reasons, is inversely related to income: the poorer you are, the less likely that you have access. On the other hand, the chances are that, the poorer you are, the more expensive or onerous informal financial arrangements (Sapovadia, n.d ). A lot of studies have been carried out in other countries, especially developing countries on other similar development microlenders such as the Grameen Bank in Bangladesh that have successfully managed to extend credit to the poor by embarking on alternative or rather unorthodox methods, such as group-lendingthat are not used by formal financial institutions such as commercial banks. Since the poor borrow relatively small amounts that may not even cover all transaction costs, these methods are aimed at among others reaching a huge number of poor people simultaneously to ensure that at least all transaction costs are covered. South African and other development microlenders in the world have attempted to replicate this methodology of lending without the same level of success. The South African situation is further complicated by the South Africa’s economy, which is unique to economies of other developing countries. South Africa has one of the world’s worst income inequalities that have resulted in a dual economy comprising of a first world and third world economies in one country. However donor funding is extended to South African microlenders with basically the same requirements especially with regard to the expectation that the microlenders must attain or promise to be self-sufficient within a certain or specific period in time. “Donors, governments, and many analysts regard sustainability as the benchmark of microfinance institutions’ (MFIs) performance” (Baumann, 2004). This study used requirements by donors as a yardstick to measure the sustainability of development microlenders in South Africa to establish if the alternative method of microlending has yielded the desired results. These results were also critically compared to the microlenders in developing countries to establish specific parallels and contrasts that might be brought about by the South Africa’s unique situation. Data relating to specifically operational and financial self-sufficiency was collected from South African microlenders who are lending for poverty alleviation purposes. This data was analysed to establish whether such organisation are selfsufficient or not. Findings indicated that microlenders in South African in spite of using alternative methods to credit granting such as group lending to exploit social capital that exist in poor communities, most of them are neither self-sufficient or self-sustainable. Further to this it was established that the South African situation does not allow for a direct comparison to microlenders in other developing countries because of South Africa’s dual economy.

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Kasenge, Eric. "Achieving sustainability while delivering on the social impact : challenges facing microfinance institutions." Diss., 2012. http://hdl.handle.net/2263/26286.

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The aim of this study was to investigate how Microfinance Institutions (MFIs) in South Africa balance sustainability with developmental objectives. Twelve semistructured, in-depth interviews were conducted with microfinance subject matter and microfinance institutions. The research found that commercialisation is not compatible with social impact as it leads to mission drift, which can be managed by an inclusive stakeholder governance structure. The trade-off between sustainability and social impact (outreach) was evident for commercial MFIs; while sustainability can be achieved through scale and cost management. In addition, MFIs achieve lower delinquency rate by implementing non-financial interventions such as client training and using group lending methodology that fosters social capital in the client base. The lack of a visible collaboration between MFIs has deprived the industry of a strong voice that can mobilise society to leverage the benefits of microfinance to help South Africa reduce inequalities. Despite the fact that regulatory restrictions concerning savings mobilisation for micro enterprise lenders are inhibiting product innovation and curtailing outreach, microfinance has proved to be a valuable tool that South Africa has not leveraged to alleviate poverty and reduce income inequalities. Dissertation (MBA)--University of Pretoria, 2012. Gordon Institute of Business Science (GIBS) unrestricted

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"The efficiency and sustainability of microfinance institutions in South Africa." Thesis, 2012. http://hdl.handle.net/10210/4937.

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M.Comm. Microfinance refers to the provision of financial services, in particular small loans in the context of South Africa, to poor people with very small businesses. Commercial banks have largely considered poor people in remote areas unbankable, because they lack collateral and have no credit histories. Microfinance institutions emerged as unconventional institutions with innovative techniques, mechanisms and instruments to advance financial services to this segmented part of the population. This has, however, not been without challenges. Microfinance institutions face a number of challenges such as lack of competent human capital, unfavourable regulatory environment, and insufficient financing. The study examines if these challenges are applicable in the South African context and whether financial and operational inefficiency has hindered microfinance institutions in South Africa from sustainably increasing their outreach through the provision of microcredit. It surveys two microfinance institutions, characterised as non-governmental organisations using the group lending methodology to offer microloans to the very poor. The results indicate that microfinance institutions are not on a sound fiscal footing, and large operating expenses have resulted in some form of inefficiency. This has, however, not hindered the microfinance institutions from reaching a greater number of borrowers. The witnessed increased outreach in number of clients reached is considered unsustainable given the existence of inefficiency and financial weakness. The results suggest a number of policy options on the side of government and the institutions concerned. Increasing the funding sources available to microfinance institutions should be considered by both government and private institutions. This policy would succeed if microfinance institutions work at reducing their operational costs and become both efficient and sustainable so as to be seen as viable investment options.

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Spohn, Sabine. "Embedding microfinance: sustainable delivery of microfinance services in rural areas of Papua New Guinea." 2010. http://repository.unimelb.edu.au/10187/8536.

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After a series of transitional phases, the microfinance industry has recognised that microfinance should comprise a variety of financial services, not only credit. In their endeavour to provide services to low-income populations, microfinance practitioners have therefore delivered services through a variety of institutional forms and delivery methods. While the outreach has been promising, the provision of services on a cost covering basis has lagged. Practitioners have attributed the difference in performance to differing country contexts (in particular urban, highly populated versus rural, less populated areas) and institutional capacity. The goal of this thesis is, therefore, to identify factors which potentially affect the performance of microfinance institutions but have so far not found due consideration. With the increasing trend towards commercialization the microfinance industry, like commercial banking, relies more on economic, capitalist principles in cash based economies. These principles and the use and need for cash based services are assumed to be universally accepted and existing. I attempt to identify issues, in particular characteristics of societies, which contradict this notion and thus might impact on the performance of microfinance institutions. I examine these in Bogia District of Madang Province, a rural area of Papua New Guinea (PNG). In addition, I study a potential role model for a microfinance institution that might be able to integrate these local specificities beneficially into its service delivery. This thesis makes this argument in theoretical terms in Chapters Two and Three, which comprise a review of factors affecting the performance of microfinance institutions, in particular focusing on factors so far not deeply researched. The review establishes that some issues are more considered as influencing performance than others. In particular the potential clients' understanding of economic principles and their familiarity with the functions and use of money in partly established cash economies find little consideration in the microfinance research literature. Chapter Four provides background details to PNG and Chapter Five details the research methods as well as the field site. Chapters Six and Seven analyse the key findings of the field research, in particular: i) the local socio-economic and socio-cultural characteristics and their potential impact on the performance of microfinance institutions and ii) an application of these findings to examine whether a co-operative could serve as a role model for the successful service delivery in rural areas of PNG. Through the field research it could be documented that these issues are crucial to identify for any microfinance institution since familiarity with financial services and functions of money and understandings of contractual obligations of villagers in rural areas, in particular for credit services, may vastly differ from the institutions’ perception. Through their remoteness villagers are also used to interact informally within their clan and kinship groups. Therefore, a co-operative set-up will be a suitable option for delivering microfinance services in rural areas of PNG since it is a familiar and accepted form and can incorporate local specificities into its service delivery and thereby contribute to the economic development of its members.

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Vilanculo, Martins dos Santos. "The relationship between formal microfinance institutions and the poor in Beira-Mozambique." Thesis, 2008. http://hdl.handle.net/10539/5031.

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ABSTRACT This paper examines the relationship between microfinance institutions and the poor in Beira-Mozambique and the benefits accruing from the established relationships. The study focuses on access to credit and the promotion of entrepreneurship among the target group. The study concludes that the institutions and the target group, especially active clients, treasure close long-term relationships and strive to build and sustain such relationships. However, the relationships have thus far had only a limited, albeit promising, impact on the sustainability of the institutions, access to credit and the promotion of entrepreneurship among the target group. Another major finding is that clients already in the credit relationship do not have serious problems accessing credit upon successful repayment of previous loans. However, those seeking to enter credit relationships face strict entry requirements. In short entering credit relationships is more difficult than staying in them.

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Nawaz, Ahmad [Verfasser]. "Issues in the sustainability of microfinance : three empirical essays at micro and macro level / vorgelegt von Ahmad Nawaz." 2009. http://d-nb.info/1003800580/34.

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Nguyen, Quynh Anh Mai. "Financial services for the poor in Vietnam : a comprehensive analysis on the performance and sustainability of microfinance sector." Thesis, 2009. http://id.nii.ac.jp/1707/00027640/.

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Dissertations / Theses on the topic 'Sustainability of microfinance'

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