FINANCING STRUCTURE AND FINANCIAL SUSTAINABILITY OF SELECTED SADC MICROFINANCE INSTITUTIONS (MFIs)

Bayai, Innocent; Ikhide, Sylvanus

doi:10.1111/apce.12207

Cited by 30 publications

(30 citation statements)

References 37 publications

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“…The aim of MFIs, regardless of their legal incorporation, is to increase the financial inclusion of poor entrepreneurs while also being financially viable organizations (Périlleux et al. , Bayai and Ikhide ). Thus, MFIs can be termed ‘hybrid organizations’ or ‘social enterprises’ because they operate using both social logic and financial logic (Battilana and Dorado , Stephan et al.…”

Section: Introductionmentioning

confidence: 99%

Board Governance: Does Ownership Matter?

Dato

Hudon²,

Mersland

2019

Ann Public Coop Econ

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Good governance is crucial to achieving an organization's mission. Nevertheless, little is known about how the structure of governance is influenced by the nonprofit (NPO) or for‐profit ownership (FPO) structure of an organization, partly because they tend to be active in different sectors. In this paper we overcome this challenge by using data from a global sample of 392 microfinance institutions. The results show that the average NPO has a larger board, more female directors, and a higher number of board meetings than the average FPO. Moreover, where there are larger boards and more frequent board meetings, this has a positive effect on the financial performance of NPOs. It is thus confirmed that ownership structures influence boards’ characteristics and that some board mechanisms are more efficient in some ownership structures than in others. An effective board design should thus be based on a firm's ownership structure.

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Section: Introductionmentioning

confidence: 99%

Board Governance: Does Ownership Matter?

Dato

Hudon²,

Mersland

2019

Ann Public Coop Econ

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“…The majority of the literature in the microfinance sector has taken "Sustainability" as a synonym of "Financial Sustainability" (Bayai and Ikhide, 2018;Brau and Woller, 2004;Chikalipah, 2017). By and large, this view can be justified as capital is the primary factor needed by an institution to function effectively.…”

Section: Quest For ''Sustainability Of Mfis''mentioning

confidence: 99%

Organizational sustainability and performance improvement in microfinance institutions (MFIs): managerial insights of what, why and how

Sinha

Ghosh

2021

SRJ

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Purpose The special importance of microfinance institutions (MFIs) in the context of emerging economies is well acknowledged. The success of MFIs is country, culture and context-specific. This study aims to capture the organizational sustainability viewpoint of MFIs through the experiences and insights of the managers engaged in running MFIs in an emerging market. Design/methodology/approach The study follows a qualitative approach and collects primary data through insightful interactions with the senior managers of various Indian MFIs, followed by thematic analysis to identify the factors impacting the sustainability of MFIs. It is supplemented by an extensive systematic literature review to enrich the findings. The identified factors are then analyzed through the lens of a balanced scorecard (BSC) approach to developing a framework in assessing the performance of MFIs operating in similar to this study’s context. Findings The authors observe that the majority of the studies on MFI sustainability are financial outcome centric. This study adds value by exploring a holistic and organization-centric approach drawing support from stakeholder theory, which emphasizes that the shareholders, employees and customers are equally important for the sustainability of the MFIs. Research limitations/implications While the identified sustainability factors would help the practitioners focus upon the factors of improvement, the BSC framework would facilitate the conduct of performance review and taking related decisions thereon for the sustainability of MFIs. Originality/value To the best of the authors’ knowledge, this study is the first of its kind to attempt to assess the MFI organizations striving for sustainability through the lens of BSC framework.

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“…Most profit-oriented microfinance institutions use individual or group loans. Instead of being used for SME investment (due to the larger size), most of these loans are used for consumption or education or health care services especially as they have collateral (Bayai & Ikhide, 2018;Fall, Akim, & Wassongma, 2018;Sanfilippo-Azofra et al, 2019). With the participation of microfinance programs, there has been a significant improvement in family health research behaviors and health services, (Bhuiya, Khanam, Rahman, & Nghiem, 2018;Faruqee, 2010;InM, 2015).…”

Section: Microfinance In Developing Countriesmentioning

confidence: 99%

Civil Servant Borrowing Practices: A Determinant of Poverty in Zimbabwe

Zhongming

Mangudhla

Mbona

2020

BER

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In assessing microfinance institutions (MFIs) and civil servants' perspectives on borrowing in Zimbabwe, we examine the purpose and rationale of MFIs establishments. Thus, in an attempt to understand the reason behind high borrowing, we also considered loan terms, the nature of loans issued, and the uses of MFIs borrowed funds among households. Driven by the exploratory approach, qualitative research involving semi-structured interviews and observation methods were applied in this study. Using, the purpose of the loan, pricing of loans, repayment terms, and loan terms, interview questions were designed and conducted. Our results show that MFIs loans are: short term loans, income (salary) based; and, these loans are mainly for immediate household consumption needs not an investment. This study also indicates that loan application requirements are more favorable for employed households, especially public sector employees. Even though civil servants have a better advantage in accessing MFIs loans, in the long run, they are likely to remain in poverty; since their purpose of borrowing is geared towards family expenses. Also, MFIs prevailing interest rates (high), evidenced with shorter repayment periods, reflect their failure to pull borrowers out of poverty; however, creating an interdependence syndrome of continuous borrowing. Since we focused on lending practices of households, our results serve as a basis of a joint policy formulation in combating poverty. Thus, understanding poverty through the borrowing of employed citizens aids in grasping the interconnectedness of sectors; which, is an essential tool for sustainable development and strategic planning.

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FINANCING STRUCTURE AND FINANCIAL SUSTAINABILITY OF SELECTED SADC MICROFINANCE INSTITUTIONS (MFIs)

Cited by 30 publications

References 37 publications

Board Governance: Does Ownership Matter?

Board Governance: Does Ownership Matter?

Organizational sustainability and performance improvement in microfinance institutions (MFIs): managerial insights of what, why and how

Civil Servant Borrowing Practices: A Determinant of Poverty in Zimbabwe

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