Dissertations / Theses on the topic 'Microfinance management'

In the following paper I have tried to find the correlation between type of ownership and effective risk management in the operations of microfinance institutions in India. The results found are consistent with the current findings of how the type of ownership does not impact both the financial or social performance of MFIs. Dataset of 72 MFIs was acquired from the Microfinance Information Exchange on MFIs and evaluated using an OLS regression. The results show that the type of ownership insignificantly impacts both the credit and liquidity risk ratios of MFIs. It is possible that the impact of ownership type is more evident in other aspects of operations. In the future, a study on type of ownership and exposure to strategic and market risks could be a way forward.

This thesis concerns the ideas of management accounting and control, as it examines poverty management, oral accounts and social control perspectives in a Bangladeshi Microfinance Institution (MFI). It traces how poverty management technologies are put in place and traditional oral accounts and social control mechanisms are expropriated for microfinance operation in the village. It ultimately seeks to understand how an alternative form of management accounting and control was made operable in a rural setting. The research involved intensive ethnographic fieldwork with in-depth interviews, direct observations, and documentation reviews. Drawing on the theoretical notions of the ‘society of control’ and ‘ethopolitics’, it illustrates how microfinance technologies are put in place to work especially in the emerging terrain of a control society; whether microfinance toolkits form a set of disciplinary and biopolitical mechanisms for the management of poverty; how local networks, social relations etc. are materialised in the making of a particular version of control society; how oral accounts are produced in such settings; how community ethos and values act as important aspects of ethopolitical social control systems; and how social controls are accommodated, reproduced and sustained for management control purposes in microfinance operation. It was the emergence of MFIs that integrated management accounting and control with household and village exchange relations, their social structures, and associated values and beliefs. This analysis makes several contributions to management accounting and control: first, by revealing poverty management technologies that MFIs design, modify and retain to monitor, report and evaluate the lives of poor people; second, to the discussion of accounting presence and absence; third, to the oral and verbal use of accounting; fourth, to the discussion of social control mechanisms; and finally, to the issues of microfinance in accounting. The thesis also has some theoretical contributions: first, it adds to the discussion of accounting in post-panopticon organisations; second, it shows the existence of alternative mechanisms of control while the organisation is in the becoming process; and finally, it employs ethopolitics as a governmental strategy which is unique in the accounting literature.

Thesis (MDF)--Stellenbosch University, 2011.
The research report provides a credit risk assessment and evaluation of Accion Microfinance Bank Limited (AMFB) for the period 2006 to 2010, using Morgan Stanley’s methodology for analysing the credits and performance ratings of microfinance institutions (MFIs). Since MFIs are set up to provide credit and other financial services to the poor, financially underserviced segment of the society, and since the credit support granted to such micro businesses usually lacks collateral, it is imperative that the management of such credit services be sound in order to mitigate the high risks involved. Thus, credit risk management determines the success and survival of microfinance banks (MFBs): weak credit management leads to capital erosion and eventual failure, whereas sound credit risk management guarantees profitability and sustainability and, hence, the realisation of the objectives of their setup – enhancing the welfare of micro-entrepreneurs. The data for the research report were sourced from AMFB’s financial statements for the years 2006 to 2010 and from interviews that were conducted with principal officials of this MFB. The research found that good regulatory corporate governance and management practices, sound quantitative credit risk assessment and management, and quality and maturity of management lead to low credit risk accompanied by high profitability and sustainability for MFBs. As AMFB matured, the quality of portfolio, profitability, sustainability and operating efficiency were seen to increase. The quality of shareholders, board and management was found to be crucial for the sound management of the MFB. The research report, therefore, recommends regular and continuous credit risk identification, assessment and management, as well as sound corporate governance, if MFBs are to survive and grow and achieve their developmental objectives.

Ghanaian microfinance banks (MFB) experience a high collapse rate, with more than 100 MFBs failing between 2015 and 2016. Grounded on Porter's competitive strategy theory, the purpose of this case study was to explore successful strategies used by selected participants to achieve business sustainability. Fourteen participants from 6 successful MFBs in the Greater Accra Region, including managers and MFB owners with more than 5 years of professional and industry experience, participated in semistructured interviews. Observations and company documents served as a secondary source of data collection. Through thematic analysis, 5 themes emerged: cash and liquidity management, capacity building, monitoring, compliance, and corporate governance. MFB owners and leaders will benefit from the findings of the study by gaining insights on how to implement strategies, which lead to business sustainability. Implications for positive social change include the potential for an improved standard of living through the financial resources provided by MFBs to entrepreneurs for business startups, which could lead to reducing unemployment and poverty within the working class population of Ghana.

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.

Thesis (MDF)--Stellenbosch University, 2013.
This study examines the default rate and performance of Microfinance bank (MFBs) loans to Small and Medium Enterprises (SMEs) in Nigeria based on the case study of Accion Microfinance Bank Limited (AMFB), Lagos State. Responses from 150 employees of AMFB revealed that the causes of default rate and performance of SMEs reflect the risk and vulnerability of the SME sector in Nigeria. It further showed that MFBs apply stringent credit criteria in granting loans to SME borrowers, coupled with the existing high cost of funds. The attitude, lack of transparency on the part of SME owners and fund diversion were identified as major factors responsible for the high default rate among SME borrowers. These and other factors warrant the need for further study in the areas of the impact of MFB loans on SME development given the new revised microfinance policy framework in Nigeria.

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.

El texto completo de este trabajo no está disponible en el Repositorio Académico UPC por restricciones de la casa editorial donde ha sido publicado.
The microfinance sector has a strategic role since they facilitate integration and development of all social classes to sustained economic growth. In this way the actual point is the exponential growth of data, resulting from transactions and operations carried out with these companies on a daily basis, becomes imminent. Appropriate management of this data is therefore necessary because, otherwise, it will result in a competitive disadvantage due to the lack of valuable and quality information for decision-making and process improvement. The Master Data Management (MDM) give a new way in the Data management, reducing the gap between the business perspectives versus the technology perspective In this regard, it is important that the organization have the ability to implement a data management model for Master Data Management. This paper proposes a Master Data management maturity model for microfinance sector, which frames a series of formal requirements and criteria providing an objective diagnosis with the aim of improving processes until entities reach desired maturity levels. This model was implemented based on the information of Peruvian microfinance organizations. Finally, after validation of the proposed model, it was evidenced that it serves as a means for identifying the maturity level to help in the successful of initiative for Master Data management projects.
Revisión por pares

Thesis (MBA)--Stellenbosch University, 2012.
The efforts of government in creating jobs and eradicating poverty in developing countries have received major attention among policy makers and operators of microfinance in the last one decade. One of such efforts is the establishment of a microfinance program known as South Africa Microfinance Apex fund (samaf) by South African government. Samaf was established in 2006 with the aims and objective to provide micro loan and credit to poor people living in peri-uban and rural areas of South Africa. This was brought about as a result of a gap created by major financial institutions that are neither available nor operating in such rural and remote areas. This research attempts to explore the effectiveness of samaf on job creation and poverty reduction as mandated by its aims and objective. The study was a case study, and data analysis mainly used descriptive statistics and inferential statistics to analyze the quantitative data that was collected in the research field. Findings from the study reveal that samaf was effective in terms of number of jobs creation. Also, it was found that there was an improvement in the life styles of beneficiaries than before they took samaf loan. However, samaf itself do have its shortcoming in term of quick delivery of funds to the MFIs. The study further discovered that, majority of samaf MFIs are not willing to expand their operations into informal settlement areas because of two reasons. First, majority of people living in such areas are considered vulnerable because due to the possibility non repayment of loans as they live in abject poverty. Secondly, majority do not have a fixed or permanent address which makes it difficult for MFIs to trace them. Based on the observation above, samaf will need a guiding and better strategy in terms of its delivery as there is none currently. This is necessary if it plans to achieve its aims and objectives and delivers on its mandate.

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management, 2000.
Also available online at the DSpace at MIT website.
Includes bibliographical references.
This paper attempted to extract from the literature a package of measures, or metrics, that can be used by microcredit programs and institutions to gauge their success as financial institutions, as well as their broader societal impact as welfare organizations. What was learned is that microcredit organizations, unlike more traditional financial institutions, are largely unregulated and therefore tend to use of variety of non-standardized measures to assess their success and sustainability. Moreover, it is clear that microfinance institutions can not easily trade-off those measures that track institutional success, for those that measure the well-being of the community as a result of borrowing money and mounting a micro-enterprise, since a number of confounding factors make direct correlation difficult. By employing the Balanced Scorecard framework, microcredit organizations can collect regularly data that reports on the financial status of the organization, its internal business practices, the rate of borrower success, and lessons learned. Moreover, the microcredit organization that assumes to impact the borrower community at large, can use the same framework to aggregate these data across borrower communities and monitor them along with certain health and welfare data to infer a degree of behavioral impact.
by Judith B. Seltzer.
M.B.A.

Thesis (MBA)-- Stellenbosch University, 2005.
ENGLISH ABSTRACT: Microfinance services in Tanzania have existed for some years, yet have remained weak and slow to develop. Therefore, the objective of this study is to survey problems that impact on the growth of Microfinance Institutions (MFIs) in Tanzania. MFIs in Tanzania include commercial banks, rural community banks, on-bank financial institutions, NGOs and Savings and Credit Co-operative Societies (SACCOs). The problems in the microfinance sector are prioritised and show that the lack of sufficient capital to lend to clients is the problem that has the greatest impact on growth, followed by education level of clients. A number of these problems show agreement as expressed by the Spearman Rank Correlation Coefficients. The recommendations directly touch the provision of capital support to MFIs as a most priority criteria towards MFIs growth. Sufficient capital to lend to clients can decrease the impact of other problems that shows correlation with it, such as service quality to customers, attraction of low income earners, client focus, small and irregular cash flows from clients, as well as education level of clients. Finally, it is shown by a selected best practice matrix that solutions to problems impacting on the growth of MFIs in Tanzania depend on a combination of several best practices that can lead to sustainable solutions. Hence MFls may find a combination of relevant best practices that fit efficiently. effectively and economically to their respective operating environments.
AFRIKAANSE OPSOMMING: Mikrofinansieringsdienste in Tanzania bestaan al geruime jare, maar is ongelukkig swak ontwikkeld en toon stadige groei. Die doelwit van hierdie studie is om probleme te identifiseer wat impakteer op die groei van die Mikrofinansiering-instansies (MFI) in Tanzania. MFIs in Tanzania sluit in kommersiele banke, landelike / gemeenskapsbanke, niebank finansiele instansies, Nie-regeringsorganisasies (NGOs) en Spaar en Krediet Samewerkende Gemeenskappe (SACCO's). Die probleme in die mikrofinansiering-sektor is geprioritiseer en dui daarop dat die gebrek aan beskikbaarheid van voldoende lenings-kapitaal die grootste impak op die sektor het, gevolg deur die vlak van onderwys-opvoeding van kliente. Verskeie van die probleme gelys vind ooreenkomste by mekaar, soos uitgelig deur die "Spearman Rank Correlation Coefficients". Aanbevelings gemaak, hou direk verhand met die voorsiening van kapitale ondersteuning aan MFIs, as die belangrikste kriteria wat sal lei tot MFI groei. Voldoende leningskapitaal kan die impak van ander probleme wat verband hou met die tekort aan kapitaal verminder, soos onder andere die kwaliteit van klientediens, die lae-inkomste mark wat bedien word, kliente fokus, klein / ongereelde inkomste-strome van kliente, asook die onderwys-opvoedingsvlakke van kliente. Ter afsluiting, dit is getoon deur die beste praktykbeginse/s matriks, dat die oplossing vir probleme wat impakteer op die groei van die MFI sektor in Tanzania, afhanklik is van 'n kombinasie van verskeie beste praktykbeginsels wat kan lei tot volhoubare oplossings. Sodoende kan MFIs 'n kombinasie van beste praktykbeginsels vind wat effektief en ekonomies sal werk vir hulle onderskeie omgewings.

Thesis (MDF)--University of Stellenbosch, 2010.
The level of poverty in Namibia is relatively high. Access to finance is cited as one of factors hampering economic growth and poverty alleviation. Microfinance is seen as one of the effective tools that can address poverty alleviation by engaging the poor in sustainable economic activities. Microfinance services have existed in Namibia since the late 1990s, yet they have not attained growth. The main providers of microfinance services consist mainly of Micro-lenders, Non-Governmental Organizations (NGOs), Savings and Credit Cooperative Societies (SACCOS), Public Financial Institutions (PFI) and to a less extent Commercial Banks (CB). This research report aimed to study and identify the problems that impact on the growth of microfinance finance institutions (MFIs) in Namibia. The findings of this study revealed that lack of regulatory and policy framework, lack of capital and high operational costs were the main problem areas hampering the growth of MFIs in Namibia. The study made recommendations which are aimed at enhancing the growth of microfinance institutions.

Thesis (S.M. in Management Studies)--Massachusetts Institute of Technology, Sloan School of Management, 2013.
Cataloged from PDF version of thesis. Page 50 blank.
Includes bibliographical references (p. 49).
This thesis compares two microfinance business models, the non-profit Grameen Bank model and the commercial for-profit Compartamos Banco so as to identify industry best practices. Although there are many differences between these two models, the author concludes that the fundamental distinction between them is in their funding methods. Grameen Bank funds microloans primarily through local funds usually from savings deposits, while Compartamos Banco takes a funding approach that is similar to that of traditional commercial banks, including engaging in an IPO to fundraise. Based upon an analysis of respective business models, both institutions, in aiming to reduce poverty, believe that reaching scale and financial sustainability is important. Qualitative analysis and secondary research are used to gather the data that provides this analysis. The author concludes that in order for Grameen Bank to effectively reach its objectives, it should manage savings deposits to generate more microcredit rather than the large amount of interbank lending that is being generated as fixed deposit investments. Compartamos Banco's commercial model is effective in reaching aggressive financial growth. However, as it endeavors to scale for higher social impact, without industry-wide support (which identifies borrower's overall indebtedness), pure expansion could lead to disastrous consequences (Andhra Pradesh crisis). Risk can be better managed by smaller scale peer pressure in case there is no system to identify over-indebtedness. The analysis also highlights how microfinance institutions find it difficult to balance social impact and financial returns.
by Ryosun Jang.
S.M.in Management Studies

Thesis (MDF)--Stellenbosch University, 2008.
ENGLISH ABSTRACT: This study focuses on the factors that hinder the growth of the microfinance industry in Namibia. The actual issues of the sector are not known as not much research has been undertaken on it. However, it is possible to establish the constraints that limit the growth of the microfinance environment in the country. The study presents the identified limitations with associated solutions as experienced in different countries and reported by various authors and academics. The desired situation would be for the microfinance sector to operate effectively by serving the poor and unemployed but economically active people. Although this is not the all encompassing solution to the plight of the rural and urban poor, it is, however, the beginning at the attempt to move out of poverty. The questions that the respondents answered were designed specifically to clarify which sector of the low income section of society that was accessing the loans available on the market. This fact will enable policymakers to focus on resolving the hindrance that will produce the most results than taking haphazard actions that bring minimal results. The results could also be useful to microfinance providers in that they can use the information to identify business opportunities for the diversification of the products they offer. Finally, the constraints hindering the growth of microfinance such as the restrictive regulatory environment for one are not unique to Namibia. Hence, the experience and solutions from other countries are available for study. However, the local industry would have to initiate their own solutions to match and meet local conditions.
AFRIKAANSE OPSOMMING: Hierdie studie fokus op die faktore wat die groei van mikrofinansies in Namibie belemmer. Die werklike probleme is nie bekend nie omdat baie min navorsing nog in hierdie verband gedoen is. Dit is egter wel moontlik om die beperkinge tot groei van die mikrofinansies industrie in Namibie te bepaal. Die studie bied 'n oorsig van bekende beperkinge en moontlike oplossings soos ervaar in verskillende lande en soos gerapporteer deur verskeie outeurs en akademici. Die ideale situasie sal wees dat die mikrofinansies sektor effektief funksioneer deur die armes en werkloses, maar ekonomies aktiewe, gemeenskap te dien. Hoewel dit nie 'n alomvattende oplossing bied vir die behoeftes van plattelandse en stedelike armes nie, is dit egter 'n poging om hierdie mense uit armoede te lig. Die vrae wat respondente moes antwoord het spesifiek gepoog am te bepaal watter sektor van die samelewing die lenings wat beskikbaar is in die mark gebruik. Hierdie kennis sal wetgewers in staat stel om te fokus op probleme wat die grootste struikelblokke is, eerder as om lukraak probleme aan te spreek met minimale resultate. Die bevindinge mag ook van belang wees vir mikrofinansies voorsieners wat die inligting kan gebruik om besigheidsgeleenthede te identifiseer om sodoende hulle produk-reeks te diversifiseer. Laastens, die beperkinge in die mikrofinansies sektor soos die beperkende regulatoriese omgewing is nie uniek tot Namibie nie. Dus, die oplossings vanuit ander lande kan toegepas word in Namibie. Die Namibiese industrie sal egter hulle eie oplossings moet vind om die plaaslike omstandighede die hoof te bied.

Thesis (MBA)--Stellenbosch University, 2002.
ENGLISH ABSTRACT: The efficiency and availability of financial services for the poor is a global problem, and has only recently started to enjoy attention in South Africa. This dissertation aims to study the problems experienced by the South African microfinance industry, which includes a vast range of financial products. The survey conducted of the South African industry indicates that its makeup is significantly different from the industries in Latin America and Asia. The problems in the industry are prioritised and show the high cost structure to be the most pressing issue. A number of these issues show agreement as expressed by Spearman rank correlation coefficients. Clear trends exist between distinct market-segments in the industry. Tests for differences in location of specific populations indicate significant differences in perceptions regarding these segments. The government's recent suggestion to unify the financial service regulators into a mega-regulator is based on the assumption that the microcredit and commercial credit industries share the same priorities and problems. The very low Spearman rank correlation coefficient found in this study, on the other hand, seems to indicate that no reason exists to assume the priorities are the same at the two levels. Finally, it is shown by means of a "best practice matrix", that solutions to most problems can be found, but that the fit is dependent on a large number of variables.
AFRIKAANSE OPSOMMING: Die beskikbaarheid van finansiële dienste vir armes is 'n wêreldwye probleem, en het eers onlangs meer aandag in Suid Afrika begin geniet. Hierdie studie fokus op die probleme wat ervaar word in die mikrokrediet (mikrolenings) industrie. Die opname toon dat die Suid-Afrikaanse industrie beduidend verskil in samestelling van die ooreenstemmende industrieë in Suid-Amerika en Asië. Die probleme in die industrie is geprioritiseer en toon dat die hoë koste-struktuur die grootste probleem is. Sekere kwelpunte toon ooreenstemming, uitgedruk by wyse van Spearman se rangkorrelasie-koëffesiënt. Duidelike tendense bestaan tussen onderskeie mark-segmente in die industrie. Toetse vir ooreenstemming in die ligging van sekere populasies toon beduidende verskille in persepsies rakende hierdie segmente. Die regering se onlangse voorstel om die beheer-liggame van finansiële dienste saam te snoer in een liggaam is gebaseer op die aanname dat die mikrokrediet en kommersiële krediet industrië dieselfde probleme en prioriteite deel. Die baie lae Spearman rangkorrelasie-koëffisiënt impliseer egter dat daar geen grondige rede bestaan om aan te neem dat die prioriteite dieselfde is vir die twee vlakke nie. Laastens word beste praktyke aangedui in die vorm van 'n "beste praktyk matriks". Oplossings vir byna alle probleme kan gevind word, maar die toepaslikheid is afhanklik van 'n wye verskeidenheid veranderlikes.

Dissertation presented for the Degree of Doctor of Philosophy at Stellenbosch University.
Thesis (PhD (Business Management))--University of Stellenbosch, 2010.
ENGLISH ABSTRACT: Uncertainty of continued donor funding poses a risk to microfinance operations worldwide, and this study explores the circumstances under which African microfinance institutions (MFIs) will consider commercial funding as a viable alternative source of funding. This research aims to identify the factors that are associated with successful access to private capital for pro-poor financial institutions. It examines the suitability of new opportunities for accessing fresh capital by MFIs for development and poverty reduction using commercialisation as an option. In a world awash in private capital, it is vital to harness the power of the private sector to solve key development challenges (World Bank, 2007). As microfinance institutions grow, they increasingly find themselves in need of additional capital to finance expansion of services to cover more poor communities. The study undertook a cross-country data analysis of 103 microfinance institutions to help provide understanding of the critical success factors that underpin successful access to commercial capital. The study also tested the hypothesis on the viability of commercial finances, and developed and tested a commercialisation success model for tapping commercial funds. The prediction model based on firm-level data from a sample of 21 African countries between 1998 and 2003, aims to minimise chances of failure and act as a screening system by investors as well as a selfassessment tool for MFIs intending to seek commercial capital. On examining the direct and indirect impact of firm-level success factors on commercialisation, the study identified key predictors of success and guidelines for MFI financing’s integration with the larger financial system. The study finds that certain critical success factors (CSFs) define minimum pre-conditions for microfinance institutions considering commercial funding as an alternative source of finance. There is evidence to suggest that the desire to tap into the capital markets and capacity to link with commercial investors is a realisable vision for African MFIs. The research evidence is instructive of widened financing options for MFIs and capacity to relax growth constraint in the industry. Based on the CSFs, the study suggests how MFIs can break free from 'captive' donor funding as a necessary platform for the switch to commercial finance in the industry. However, the findings also suggest the need for MFIs to satisfy the interests and requirements of prospective commercial investors to overcome new challenges. In particular, the results show that the extent of organisational formalisation and transparency in financial reporting are absolutely essential in drawing commercial lenders to invest in microfinance. In addition the study establishes the reasons why traditional approaches to financing microfinance cannot work any longer. There are some concerns on mission drift; in particular whether the poor gain from commercialisation, and under what circumstances their interests are taken care of in order to preserve the long-term social value of microfinance as a poverty reduction strategy. The study was carried out based on a rather limited time series data. However, the number of firms and the diversity is considered adequate for the study, as well as sample representation across Africa. The study also used views of 'thought leaders' as the source of information. Other personnel calibre may have had different suggestions. Perceptions were drawn from commercial lenders/investors of microfinance programmes based in Africa. Needless to say, any generalisation of CSFs beyond the African microfinance context should be made with caution. This study is probably one of the first attempts to explore the possibility of a linkage between microfinance and capital markets and it will be of interest to MFIs, commercial banks, international donors and investment funds with an interest in investing in the microfinance industry. The findings suggest that the speed of increase in financial leverage per country depends as much on the dynamism of the market, as it does on the level of development of the finance sector. The results indicate that commercial investors will be attracted by good financial returns and administrative efficiency (return on assets, cash-flow adequacy and operating expense ratio), transparent reporting and information disclosure and clarity, as well as low inflation levels. Investors will also be looking for larger, regulated and profitable MFIs with a low-risk profile for their investment portfolios. The study found strong support to the hypothesis that the commercialisation index (CI) is a better measure of successful commercialisation than the LMA (leverage multiplier added), given the variables used. In all cases, compelling evidence shows that the CI has more explanatory power and is an accurate predictor of two-year success in commercialisation as examined by logistic regression. These results suggest that the superior predictive abilities of the CI commercial rating rule could be explored to guide screening efforts for winners, investment decisions and other binary classification investigations. Specifically, the model can be useful in guiding successful commercialisation schemes in Africa because it provides MFIs with a structured approach for achieving sustainable commercial microfinance.
AFRIKAANSE OPSOMMING: Onsekerheid oor volgehoue skenkerbefondsing is ’n risiko vir mikrofinansieringsinstansies wêreldwyd, en hierdie studie ondersoek die omstandighede waaronder Afrika se mikrofinansieringsinstansies (MFIs) kommersiële befondsing sal oorweeg as ’n lewensvatbare, alternatiewe bron van befondsing. Hierdie navorsing poog om die faktore, wat met die suksesvolle toetrede tot private kapitaal van pro-arm finansiële instellings geassosieer word, te identifiseer. Dit ondersoek die gepastheid van nuwe geleenthede vir MFIs om vars kapitaal te bekom en as ’n opsie te gebruik vir ontwikkeling en die vermindering van armoede deur kommersialisasie. In ’n wêreld met oorvloedige bronne van private kapitaal is dit lewensnoodsaaklik om die krag van die privaatsektor in te span om kern ontwikkelingsuitdagings op te los (World Bank, 2007). Soos mikrofinansieringsinstansies groei, het hulle ’n toenemende behoefte aan addisionele kapitaal ten einde die uitbreiding van dienste te kan finansier en om meer arm gemeenskappe te kan bereik. Die studie het data komende van 103 mikrofinansieringsinstansies uit verskeie lande ontleed om begrip van die kritiese suksesfaktore (KSFe), wat suksesvolle toegang tot kommersiële kapitaal onderskraag, te verkry. Die studie het ook die hipotese oor die lewensvatbaarheid van kommersiële finansiering getoets, en ’n model vir kommersialisasie-sukses ontwikkel en getoets om kommersiële fondse te bekom. Die voorspellingsmodel, wat gebaseer is op maatskappy-vlak data van ’n groep van 21 Afrika lande tussen 1998 en 2003, poog om die kanse op mislukking te minimeer en te dien as ’n siftingstelsel vir beleggers sowel as ’n selfondersoekmiddel vir MFIs wat beplan om kommersiële kapitaal te bekom. Deur die direkte en indirekte impak van maatskappyvlak suksesfaktore op kommersialisasie te bestudeer, het die studie sleutelvoorspellers van sukses asook riglyne vir die integrasie van MFI finansiering met die groter finansiële stelsel geïdentifiseer. Die studie bevind dat sekere KSFe minimum voorvereistes vaslê vir MFIs wat kommersiële befondsing as ’n alternatiewe bron van finansiering oorweeg. Daar is bewyse wat daarop dui dat die begeerte om toegang tot die kapitaalmarkte te verkry en die kapasiteit om met kommersiële beleggers te skakel ’n realiseerbare visie vir Afrika MFIs is. Die navorsing lewer insig wat aanduidend is van breër finansieringsopsies vir MFIs, en wat die beperkinge op groei in die industrie verslap. Gebaseer op die KSFe, stel die studie voor hoe MFIs uit die houvas van skenkerbefondsing kan loskom as ’n nodige stap vir die oorskakeling na kommersiële finansiering in die bedryf. Die bevindings dui egter ook op die behoefte van MFIs om aan die belange en vereistes van moontlike kommersiële beleggers te voldoen ten einde nuwe uitdagings te oorkom. Die resultate dui spesifiek daarop dat die mate van organisasie-formalisering en die deursigtigheid van finansiële verslagdoening noodsaaklik is om kommersiële uitleners te trek om in mikrofinansiering te belê. Verder bevestig die studie die redes waarom tradisionele benaderings tot die finansiering van mikrofinansiering nie meer kan werk nie. Daar is wel sekere bekommernisse oor die moontlike kompromittering van missie; in besonder is die vraag of die armes wel baat vind by kommersialisasie, en onder watter omstandighede daar na hulle belange omgesien word ten einde die langtermyn sosiale waarde van mikrofinansiering as ’n strategie vir armoede verligting te behou. Die studie is uitgevoer gegrond op tydreeksdata wat betreklik beperk is. Die aantal maatskappye en die diversiteit word egter as voldoende beskou vir die studie, asook dat die steekproef verteenwoordigendend was van lande regoor Afrika. Die studie gebruik ook die menings van ‘leierdenkers’ as ’n bron van inligting. Personeel van ’n ander kaliber mag verskillende voorstelle gehad het. Persepsies is verkry van kommersiële uitleners/beleggers van mikrofinansieringsprogramme wat in Afrika gebaseer is. Vanselfsprekend behoort enige veralgemening van die KSFe buite die Afrika mikrofinansieringskonteks met omsigtigheid gedoen word. Hierdie studie is waarskynlik een van die eerste pogings om die moontlikheid van ’n skakel tussen mikrofinansiering en die kapitaalmarkte te ondersoek en dit sal van waarde wees vir MFIs, kommersiële banke, internasionale skenkers en beleggingsfondse wat in belegging in die mikrofinansieringsbedryf belangstel. Die bevindinge dui daarop dat die spoed waarmee die effek van finansiële hefboom in ‘n land toeneem net soveel afhang van die dinamika van die mark as van die ontwikkelingsvlak van die finansiële sektor. Die bevindinge dui daarop dat kommersiële beleggers aangetrek sal word deur goeie finansiële opbrengste, administratiewe doeltreffendheid (opbrengs op bates, voldoende kontantvloei en die bedryfsuitgawe verhouding), deursigtige verslagdoening en duidelike openbaarmaking van inligting, sowel as lae inflasievlakke. Beleggers gee ook voorkeur aan groter, gereguleerde en winsgewende MFIs met ’n lae risikoprofiel vir hulle beleggingsportefeuljes. Die studie vind sterk ondersteuning vir die hipotese dat die Kommersialisasie-indeks (CI) ’n beter aanduiding van suksesvolle kommersialisasie is as die Leverage Multiplier Added (LMA), gegewe die veranderlikes wat gebruik is. In alle gevalle was daar sterk getuienis dat die CI ’n beter verduideliker is en ’n akkurate voorspeller is van die tweejaartermyn sukses in kommersialisasie soos deur middel van logistiese regressie getoets. Hierdie resultate dui daarop dat die superieure voorspellingsvermoëns van die CI se kommersiële beoordelingsreëls beproef kan word om die sifting van wenners, beleggingsbesluite en ander binêre klassifikasie ondersoeke te lei. Die model kan spesifiek nuttig wees om rigting te gee aan suksesvolle kommersialisasieskemas in Afrika omdat dit MFIs ’n gestruktureerde benadering gee tot die bereiking van volhoubare kommersiële mikrofinansiering.

In sub-Saharan Africa, only 13% of new businesses show profitability and survive beyond start-up. Such a low rate of success has an adverse impact on the region economy as small and medium enterprises comprise 90% of African businesses. Understanding the cause of business failure can help existing and new entrepreneurs to focus on factors that may help to overcome barriers to business growth and increase entrepreneurs' chances of success. The purpose of the correlation study was to examine the relationship between business ownership characteristics, resources and professional management, timing, and profitability. The resource-based theory served as the theoretical lens for the study. A random sample of 238 micro-, small, and medium enterprises in Ouagadougou, the capital city of Burkina Faso, completed the questionnaire via the Survey Monkey website. Analysis revealed R-² (15, N = 238) = 94.9, p < .005 (p = 0.000) supported the validity of Lussier's model in predicting profitability. The data analysis showed that 14 out of 15 independent variables made a unique statistically significant contribution to the model at p < 0.05. The implications for positive social change may include the potential to reduce entrepreneurship failure, increase employment opportunities, improve standards of living, and increase economic growth. New or existing businesses may benefit from the findings of the study in increased entrepreneurship success and job creation due to greater awareness of effective business success and failure models. Sustainability of micro-, small, and medium enterprises may increase the number of successful entrepreneurs who can provide regular meals for the families and send the children to school, which may lead to an increase in educational attainment.

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.

Most microloan applicants in Nigeria are denied access to financial services by the commercial banks because of the high risk involved in granting loans to an individual without tangible assets to offer as collateral. The purpose of this qualitative multiple case study was to explore small business owners’ understanding of suitable funding options from microfinance banks in Nigeria to sustain their businesses beyond the first 5 years. An investigation was conducted on how small business owners could obtain information on funding options most suitable to sustain their business. Guided by the ethical banking operations framework theory, the strategies business owners had used was explored to understand available funding options. A homogenous sampling strategy was used to purposefully identify and select the microfinance applicants who had similar experiences using different funding options. Fifteen customers of microfinance institutions (MFIs) participated in semistructured interviews. Additional data on MFIs was obtained from established secondary sources. Yin’s 5-step process was used to analyse the data, with member checking and triangulation used for validation. Key findings emerged on lack of appropriate entrepreneur training, inadequate financial management, skills gap, and inability to interpret the bank’s information on loan procedures. This revealed the need to develop ways for small business owners to more easily access information on loan options. MFIs may use the findings of the study to enhance access to their financial services and promote the growth of MFIs to increase sustainable economic growth for both owners and the local communities they serve. Positive social change may be promoted through financial empowerment and job creation.

Thesis (MBA)--Stellenbosch University, 2011.
Little research has yet been undertaken in South Africa about commercial banks that are servicing the microenterprise market. The objective for the current research was to investigate the key factors that should be considered by commercial banks in South Africa servicing the microenterprise market. The focus for the study was on identifying the key factors and on investigating how the key factors were being considered. There are a number of case studies documenting the key factors that international commercial banks have considered. However, in South Africa, there are relatively few documented cases, which rightfully confirms that commercial banks providing microfinance to microentrepreneurs are still in a new line of business that is in its early developmental stages. The first part of the current study aimed to identify the key factors that required consideration, which have been well documented in a number of research reports. The focus was also laid on international commercial banks that offered microfinance services, especially to microenterprises. The intention was to obtain an overview of how international banks have considered the key factors concerned. The second part of the research study aimed to see how South African commercial banks have considered the above-mentioned key factors, using Absa and Capitec banks as case studies. The key factors identified are the following: the operating model; the delivery model; institutional commitment; product development; funding; technical assistance; human resource (recruitment, retention and remuneration); and operations (credit methodology; loan appraisals; lending methodology; collections; branch network; and support services). The international commercial banks whose case studies are reviewed include: Banco do Nordeste; Bank Rakyat Indonesia; the Commercial Bank of Zimbabwe; the Cooperative Bank of Kenya; Banque du Caire; the Agricultural Bank of Mongolia; Hatton National Bank; the Industrial Credit and Investment Corporation of India; and Banco de la Empressa. From the case studies it was seen that some of the commercial banks considered certain factors more than others. The other differentiating factor is how the key factors were considered, because the operating context of the different commercial banks differs. In South Africa, Absa and Capitec Bank have also considered the key factors, however, the operating model and the delivery model are the biggest differentiator as to how the other factors are considered.

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management, 2007.
Includes bibliographical references (leaves 67-69).
The microfinance industry in India experienced extraordinary evolution throughout the 1990s and into the new century, and it is now entering a new phase of rapid expansion. But there is still a huge gap between the demand for and supply of microfinance services in India. With its enormous population of poor people, India is attracting increasing attention from commercial players and government agencies, both of which are instrumental to furthering the growth of microfinance. This study reviews the current state of microfinance in India using the case-study approach. Two examples were chosen as representatives of the most prevalent forms of microfinance delivery-the Grameen model and the Self Help Group model. The two cases also represent two diverse schools of thought that dominate the worldwide microfinance industry: for-profit commercial microfinance institutions (MFIs) and not-for-profit NGO MFIs. The study discusses evolving legal structures, strategies, financing models, and operating models used by Indian MFIs to rapidly grow their operations in order to fulfill the huge unmet demand. It also covers the legal, financial, and operational challenges facing MFIs, and concludes with recommendations for remedial measures and policy changes that are required to support the urgent need to expand microfinance services in India.
by Venkateshwarlu Maroju.
M.B.A.

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management, 2006.
Includes bibliographical references (p. 57-59).
Donor grants and soft loans have been utilized by many microfinance institutions (MFIs) to support their operations. However, such grants and loans, already of limited size and availability, are becoming harder to access as the pool of global MFIs grows. Another option for MFIs is tapping international capital markets, international loan and security markets, but there are many barriers to this practice. This paper studies how MFIs and the poor who are seeking capital to foster their entrepreneurial spirits can overcome these barriers to access international capital markets and meet the growing micro finance demand. First, this paper establishes the degree of linkage between MFIs and international financial markets by reviewing the present funding condition of MFIs. It concludes that purely commercially based funding from capital markets is minimal except for some of the best managed MFIs. A huge gap exists between most other MFIs and international capital markets. Second, this palper studies the microfinance investment potential by analyzing the returns of one microfinance investment fund. It concludes that the profile of microfinance investment matches the needs of investors in capital markets.
(cont.) Investors in developed countries are always looking for investment products that mitigate their portfolio volatility. This paper verifies that microfinance has an attractive profile matching these needs, and offering stable return, as well as low correlation with stocks, bonds and macroeconomic factors. Capital market investors and microfinance have the potential to build win-win relationships. One of the remaining challenges of MFIs is generating required return commensurate with risks. Third, this paper proposes securitization in a microfinance global pool as a means to overcome the barriers to connecting MFIs and the poor to capital markets. In this securitization scheme, the global pool buys microcredits from MFIs, thereby 1) increasing return, 2) enabling many MFIs to obtain funds from capital markets by sharing fixed costs of funding, 3) reducing exchange rate and geographic concentration risks, and 4) creating secondary markets and liquidity. Some challenges to securitization still need to be overcome. Nevertheless, this paper demonstrates that; securitization in the microfinance global pool will be an effective means to bridge the gap between capital markets and MFIs and the poor.
by Daisuke Ueno.
M.B.A.

Thesis (MBA)--Stellenbosch University, 2009.
ENGLISH ABSTRACT: Globally microfinance is recognised as an important tool in addressing poverty and in building the assets of poor people. Housing microfinance is emerging as an important tool for assisting poor people to improve their housing conditions and to build their asset values. However, microfinancial institutions are perpetually dogged by small scale financially unviable operations. This study seeks to identify the factors that must be present to ensure that a microfinance initiative is able to scale up significantly, and further investigates the Kuyasa Fund as an example of a microfinance organisation that is scaling up. The McKinsey 7S model is used to evaluate the Kuyasa Fund’s plans for scaling up and the shared values, strategy, structure, skills, staffing requirements, style and systems of the Kuyasa Fund is examined in determining the scalability of the Kuyasa Fund. Overall Kuyasa have either already addressed the critical factors in determining its growth or it is in the process of addressing those factors. The biggest strengths of the Kuyasa Fund in its growth plans are the cohesive strategy and in the compelling strategic intent that represents its shared values. However in the medium and long term the greatest challenge is located in the long-term financing and transformation of the Kuyasa Fund from a non-profit to a for-profit entity that has equity shareholders. In achieving this transformation Kuyasa would be required to balance its development objectives with the requirements of equity holders, who will require prescribed rates of return. Preventing mission drifts and achieving scale will be the most important tensions to balance. To mitigate these risks and to set clear guidelines for its operations, the Kuyasa board developed clear criteria for the evaluation of equity partners and the board also set a trajectory for the transformation of Kuyasa to a company. The intention of these is to guide the Kuyasa operation towards the milestones that must be reached before conversion and to set the criteria to select partners. The Kuyasa Fund’s path to conversion from a small niche player limited to one province to a national role player, transformed into an equity holding company will present interesting material for learning about scaling up development efforts, and not just for microfinance.
AFRIKAANSE OPSOMMING: Mikrofinansiering word wêreldwyd erken as ‘n belangrike hulpmiddel in die stryd teen armoede en in die bou van bates vir arm mense. Behuising-mikrofinansiering is besig om as ‘n belangrike instrument na vore te tree om arm mense te help om hul behuisingsomstandighede te verbeter en hul batewaarde op te bou. Mikrofinansieringsinstansies word egter aanhoudend lastig geval deur kleinskaalse besighede wat nie finansieel lewensvatbaar is nie. Hierdie studie poog om die faktore te identifiseer wat teenwoordig moet wees om te verseker dat ‘n mikrofinasieringsinisiatief beduidend kan uitbrei en ondersoek verder die Kuyasa Fund as ‘n voorbeeld van ‘n mikrofinansieringsorganisasie wat tans uitbrei. Die McKinsey 7S-model word gebruik om die Kuyasa Fund se planne vir uitbreiding te evalueer. Die Kuyasa Fund se gedeelde waardes, strategie, struktuur, vaardighede, personeelvereistes, styl en stelsels word ondersoek om die uitbreidingsmoontlikhede van die fonds te bepaal. Oorhoofs het Kuyasa alreeds die kritiese faktore aangespreek wat hul groei bepaal of hulle is in die proses om hierdie faktore aan te spreek. Die grootste sterkpunte van die Kuyasa Fund se uitbreidingsplanne lê in die samehangende strategie en in die gebiedende strategiese rigting wat sy gedeelde waardes verteenwoordig. In die medium- tot langtermyn is die grootste uitdaging geleë in die langtermyn-finansiering en transformasie van die Kuyasa Fund van ‘n niewinsgewende tot ‘n winsgewende entiteit met ekwiteitsaandeelhouers. Ten einde hierdie transformasie deur te gaan, sal van Kuyasa vereis word om sy ontwikkelingsdoelwitte te balanseer met die vereistes van die aandeelhouers, wat hul eie opbrengskoerse sal vereis. Om koersvas hul missie na te streef teenoor die beplande uitbreiding te behaal sal die belangrikste spannings wees om te balanseer. Ten einde hierdie risiko’s te beperk en duidelike riglyne daar te stel vir sy bedrywighede, het die Kuyasa raad duidelike kriteria ontwikkel om ekwiteitsvennote te evalueer. Die raad het ook ‘n vorderingsplan bepaal vir die transformasie van Kuyasa tot ‘n maatskappy. Die bedoeling hiervan is om die Kuyasa bedryf te lei op die pad na mylpale wat bereik moet word voordat omskakeling kan plaasvind en om kriteria daar te stel om vennote te kies. Die Kuyasa Fund se pad na omskakeling van ‘n klein niche speler, beperk tot een provinsie, tot ‘n nasionale rolspeler, wat getransformeer het tot ‘n ekwiteitsmaaskappy sal interessante leergeleenthede bied oor die uitbreiding van ontwikkelingsmaatskappye en nie net op die gebied van mikrofinansiering nie.

Microfinance and microcredit are relatively new concepts in South Africa, yet the industry has experienced significant consolidation and growth. The industry appears to be progressing towards a sustainable growth phase. The aim of this paper is to study the problems experienced by the microfinance industry in South Africa, with regard to supply-side credit. Respondents ranked 26 challenges affecting the growth of MFIs in South Africa in order to establish the degree in which these issues affected their organisations. The top six issues impacting on the growth of the South African MFIs are: - High operational cost - Increased competition from commercial banks - Increased competition from MFIs - Legislation and regulatory framework - Fraud, There are solutions to most of these challenges. The industry can learn from a recommendation by Africa Diagnostic, which are: “The client must come first; groom leaders; and highlight transparency. All these recommendations are discussed at length.

Management control (MC) is a behavioural issue. Senior managers seek to align managerial endeavours with the organisation’s objectives. Traditionally, alignment has focused on seeking to ensure that managers support organisational aims by motivating, rewarding, and even monitoring, the achievement of assigned targets. MC was originally mainly about financial targets, before broadening to include nonfinancial performance measures. However, there is evidence to suggest that organisations may also seek to align managerial “values” with those of the organisation. Organisational attempts to influence managerial mindsets through the MC process raise non-trivial questions regarding the procedures and systems involved, the reasons for apparently expanding into attempts to influence thinking, and the possible consequences of such attempts. These questions form the basis of the present study. This thesis reports on a case study of Compartamos Bank, a Mexican organisation with a religious ethos, selected through theoretical sampling. Compartamos claims to have the “person” at the centre of its philosophy. The thesis contributes to the MC literature by broadening the scope of value systems. The findings suggest that value systems are not just a means of boosting performance and accomplishing organisational aims; they may also be used to foster managers’ development on various personal dimensions. Evidence from the case study suggests that frequent reinforcement of the organisation’s philosophy through its value system, along with a boundary system, may enhance “value congruence”. However, using these MC mechanisms may also cause various unintended side-effects. In detailing the implementation process of a value system, the study fills a gap identified in the MC literature regarding whether and, if so, why organisations may implement “softer” approaches involving the encouragement of shared values, and what may be the possible consequences of doing so.

Poor loan repayment causes the decline and failure of some microfinance institutions. The purpose of this qualitative multiple case study was to explore strategies that microfinance (MFI) leaders use to reduce loan default in the base of the pyramid market. The study population included 6 MFI leaders, 12 borrower community-based groups, and 4 staff members of the Adventist Development and Relief Agency (ADRA Rwanda) who reduced MFI loan default in Rwanda. Data were collected through semistructured interviews with 3 MFI leaders, 3 ADRA Rwanda staff members, and 3 members of borrower groups. Data were also collected through focus groups with 3 borrower community-based groups comprising 6 to 8 members. Additional data were collected through the analysis of MFI and ADRA Rwanda organizational documents. The Varian group lending model was the conceptual framework for the study. Data analysis involved methodological triangulation and the Gadamerian hermeneutics framework of interpretation. Four major themes emerged: intrapreneurship and environmental business opportunities, favorable loan repayment conditions, strategies for choosing borrower groups, and loan use monitoring. A sustainable microfinance institution can produce social change by providing microfinance loans that clients can use to start and grow microenterprises that can become the source of income for improving the lives of clients and their family members. Findings may also be used to create economic growth through the participation of more people in economic activities in the base of the pyramid market.

Thesis (MDF (Development Finance))--University of Stellenbosch, 2010.
ENGLISH ABSTRACT: The purpose of this study is to determine the effects of the global financial, economic, and food price crises on microfinance institutions (MFIs), and on the microfinance industry in general as well as to illuminate microfinance‘s way forward in the medium-term (2-3 year) future. The research report took the form of an international survey representing the responses of 59 MFIs in 39 countries. It is unique in its focus on microfinance practitioners from MFIs of all sizes and profit orientations, and that it only sought responses from the six developing regions of the world—Latin American and the Caribbean, Eastern Europe and Central Asia, the Middle East and North Africa, Sub-Saharan Africa, South Asia, and East Asia and the Pacific. This report identifies 23 impacts of the crises and groups them into four classifications—client impacts, liquidity and profitability impacts, MFI growth and development impacts, and political and reputational impacts. This study demonstrates that the crises have affected MFIs around the world profoundly, and that MFIs have faced a resilient hierarchy of impact groups. Across MFI regions, sizes, ages, product offerings, registration status classifications, and affiliations, the four impact groups were shown to maintain the same order of severity, with client impacts being the category of biggest concern of MFI respondents. Also severe were liquidity and profitability impacts. The least severe categories of impacts were found to be MFI growth and development impacts and political and reputational impacts, respectively. Through quantitative and qualitative analysis of microfinance practitioner responses, this report establishes an overall ranking of the 23 impacts the global crises are having on the industry. The analysis has further revealed that Sub-Saharan Africa reported the highest impacts of the crises out of all the regions surveyed. The size of an MFI affects its resilience against the crises, with small MFIs being more severely affected than large MFIs. Age was found to have an inverse relationship with MFI impact ratings, and there were very few significant differences between for- and non-profit MFIs. This research report has demonstrated that the benefits afforded to MFIs by accepting deposits may have been over-promoted by industry observers during the early stages of the crises, as no apparent benefits have emerged from responses to this survey. The report concludes with a summary of respondent indications about the way forward for the microfinance industry.

Ghana has experienced an unprecedented failure of microfinance institutions. Within a period of 8 years from 2011 to 2019, the Bank of Ghana has revoked the license of over 489 microfinance institutions. The purpose of the exploratory multiple case study was to explore strategies that microfinance managers apply to mitigate the effects of crisis to remain sustainable. The targeted population was composed of owner-managers from 6 microfinance companies in Ghana and 6 consultants who overcame the microfinance crisis and remained in practice. The situational crisis communication theory and the team leadership model were the conceptual frameworks for this study. Methodological triangulation was used to support the review and analysis of data from structured interviews, focus group discussions, and relevant company documents. Data were analyzed using NVivo to provide alphanumeric coding, and thematic analysis was used to support the identification of themes and subthemes, which were organized and linked to the crisis phenomenon to identify the 5 emerged themes: governance, communication, fundraising, cost reduction, and business model strategies. The study findings may contribute to social change by building confidence in the financial system, making microfinance services available to the lower end market. There may be more historical crisis effect mitigation strategies and evidence available to practitioners, entrepreneurs leading to job creation and sustainable businesses globally. These findings could provide insights for business leaders, owners-managers, the board of directors, practitioners and regulatory bodies to develop strategies to help their institutions survive in crises.

In simultaneously pursuing commercial and social goals, specialist microfinance organisations (MFOs) are leading examples of social enterprises working in development. Yet evidence of the feasibility of such ‘double bottom line’ management is limited. The thesis takes a comparative case study approach to investigating the dynamics of a social enterprise model of microfinance, with particular emphasis on its role in promoting employment related goals. Case study material consists primarily of the experience of two Central Asian MFOs that participated in an action research project ‘Microfinance for Decent Work’ implemented by the International Labour Organisation (ILO). Data was obtained through participant observation, staff interviews, client level surveys, and it also includes reflective practice arising from my participation in the ILO project as a consultant to both MFOs between 2008 and 2012. The findings are mixed. One of the MFOs was more strongly internally motivated to achieve social goals, and was more successful in implementing social performance management initiatives. The other was motivated more by the goal to demonstrate social performance to external stakeholders, and was less responsive to the evidence generated. The thesis also illustrates both path dependence in the evolution of social performance management, and the limited capacity of external agencies such as the ILO to influence the institutionalisation of development management within MFOs.

El texto completo de este trabajo no está disponible en el Repositorio Académico UPC por restricciones de la casa editorial donde ha sido publicado.
Microfinance has undergone a great growth in the last years, bringing consequently the significant increase of the data of the transactions and daily operations, manual processes of cleaning, complexity in IT projects and, in comparison with the traditional bank, a less amount of resources. For this reason, the model must allow the master data to have maintenance processes that reduce manual cleaning activities and contribute to the implementation of technology projects in an agile manner. On the other hand, the research seeks to combine a basic pillar such as Master Data Management (MDM) for the analysis of information with the lean approach, already used in the industry for the operational cost and additionally an evaluation measure prior to this process obtaining the state of the capabilities in the organization. In this way, the result will be that the organization can be previously evaluated and quickly identify which points should be improved to achieve the implementation of MDM initiatives. Likewise, within the research it is concluded that the Peruvian microfinance sector is prepared for the implementation of master data management with a 'proactive' maturity level of 3.46 points.

Thesis (MDF)--University of Stellenbosch, 2010.
Regulating microfinance activities has been an important policy concern in improving financial inclusion and extending financial services to all. However, introducing a regulatory framework of any kind pushes targeted institutions to change. In this case, microfinance regulatory framework that came to effect in 2008 has created three tiers of microfinance institutions: prudentially regulated deposit-taking institutions, credit only and unregulated informal groups. Those undertaking deposit-taking business were required by this regulation to transform their operations to comply with the requirements. Though many institutions wanted to be allowed to mobilise public deposits, only three institutions had managed to obtain at least a provisional license two years after the regulation became operational. The purpose of this research is to establish the factors affecting this microfinance transformation process in Kenya. Experiences around the world indicate that microfinance regulatory frameworks are dogged with a myriad of challenges that, at times, has limited the enjoyment of benefits of regulation. These challenges affect both the regulator and institutions being regulated. This study identifies several important factors affecting the transformation process of microfinance institutions in Kenya. These include the ability to meet capital requirements, restructuring existing ownership and getting new shareholders, ability to raise funds for transformation, acquiring suitable information systems, motivation to be regulated, governance issues and managerial inertia. These factors explain why certain institutions have moved faster than others in the transformation process and why some have opted to remain credit only.

The purpose of this study is to examine how the management of micro-finance institutions in Uganda has affected the performance indicators of these institutions, and whether or not the management of these institutions is responsible for their failure. The need to carry out this study arose as micro-finance institutions in Uganda failed to attain their planned performance indicators, to such a degree that most of them closed down. Although at their inception there was considerable entrepreneurial activity supported by a highly favourable government policy environment, their closure soon after establishment raised concern as to what caused them to fail. This study was encouraged by the observation that most of these institutions failed to realise their performance indicators as planned, but the underlying cause was not clear. Thus, the study focuses on establishing stakeholder perceptions of the management of the micro-finance institutions, and the relationship between their management (planning, implementation of planned programmes, and control) and their performance indicators, following the rationale of the functional and contingency paradigms of the concept of management. The study examines the way management dealt with these institutions‟ internal and external environments to influence their ability to realise their planned performance. The study is conducted using positivistic research methodology. This involved a collection of quantitative data from a sample of 454 respondents, including 64 managers, 177 employees, and 213 clients. Structured questionnaires were used to collect the data, and purposive and convenience sampling were applied to select the respondents. The respondents were selected from 56 randomly selected micro-finance institutions operating in Central Uganda and representing 75 percent of the country‟s operational institutions by December 2009. The data were analysed using the narrative, chi-square test, the ANOVA, factor analysis, and correlation and regression methods of analysis aided by the SPSS programme. The findings show that 79.2 percent of stakeholders (managers, employees, and clients) perceived that the management of their institutions was not conducted well in terms of planning, plan implementation, and control. Eighty-one (81) percent of both managers and employees and 83.4 percent of clients held the perception that the institutions failed xvi to achieve their performance indicators as planned. Furthermore, 81.7 percent of both managers and employees described their institutions‟ internal environment as largely defined by unsatisfactory supervision, and 66.9 percent of them revealed that their institutions‟ external environment was defined by family relations. These relations adversely affected the ownership, decision-making, employee recruitment, and deployment in the institutions. The findings also show that there were significant positive but weak relationships between management (planning, implementation, control, and dealing with the internal environment and the impact of the external environment) and the performance indicators of the institutions. The management of the institutions realised only 24.8 percent of their predicted performance indicators. Of the 13 null hypotheses that were formulated for this study, seven were rejected and the alternative hypotheses were accepted, while six were accepted. All the dimensions of the management of the micro-finance institutions in Uganda need to be developed if the performance of the institutions is to be improved and sustained to desired levels. It is suggested that large performance improvements will be realised by ameliorating all the dimensions of the institutions' management, while placing more emphasis on improving the following dimensions: the organisation of the institutions; the managing of their internal environment and the impact of their external environment; the conduct of their internal concurrent control; and the planning of their performance indicators and marketing, involving all the stakeholders, in particular the managers, employees, clients, Government, and the Uganda Micro-finance Forum, where necessary. Further research is recommended into other factors affecting the performance indicators of the institutions, since none of the management functions had explained them properly.

Thesis (PhD) - Faculty of Business and Enterprise, Swinburne University of Technology, 2009.
Thesis is submitted in fulfilment of the requirements for the degree Doctor of Philosophy, Faculty of Business and Enterprise, Swinburne University of Technology - 2009. Typescript. Includes bibliographical references (p. 190-197) Restricted: no access. Release date 1st January 2011.

Thesis (MDF)--University of Stellenbosch, 2011.
In many developing countries, culture and tradition have contributed to the disempowerment of women. In these countries, a women's time is divided between the reproductive role of creating a family, the productive role of feeding the family, and balancing all the demands. This has resulted in 1) higher unemployment rate for women than men in virtually every developing country as reported by the World Bank gender statistics database, and 2) women having low self-confidence and self-esteem. Furthermore, when living outside their country with little or almost nothing, refugee women live in camps, temporary shelters, collective centres or rent a house in a host country where they compete with the local populations for property as well as natural and social resources, while being excluded from some of the basic rights through restrictive regulations imposed by the host country. Building upon the widely known facts that women more likely reinvest their earnings in a business and their families and spend more of their extra income on things that help develop human capital, better sanitation, better nutrition and also better health care and education, this study addresses the application of microfinance with the objective of empowering Congolese refugee women in the Western Cape in South Africa. The theoretical contributions of this study are twofold. Firstly, an analysis of the situation of the Congolese refugee women is presented in terms of their predicaments and opportunities in SA, using a survey. Secondly, building upon the conclusions of this survey, a support and empowerment microfinance approach adapted to the Congolese refugee women community is derived. As practical contribution, this study proposes the development of a business model that will cater for Congolese women refugees and its implementation through the creation of a non-governmental organisation in the Western Cape.

El texto completo de este trabajo no está disponible en el Repositorio Académico UPC por restricciones de la casa editorial donde ha sido publicado.
The microfinance sector has a strategic role since they facilitate integration and development of all social classes to sustained economic growth. In this way the actual point is the exponential growth of data, resulting from transactions and operations carried out with these companies on a daily basis, becomes imminent. Appropriate management of this data is therefore necessary because, otherwise, it will result in a competitive disadvantage due to the lack of valuable and quality information for decision-making and process improvement. The Master Data Management (MDM) give a new way in the Data management, reducing the gap between the business perspectives versus the technology perspective In this regard, it is important that the organization have the ability to implement a data management model for Master Data Management. This paper proposes a Master Data management maturity model for microfinance sector, which frames a series of formal requirements and criteria providing an objective diagnosis with the aim of improving processes until entities reach desired maturity levels. This model was implemented based on the information of Peruvian microfinance organizations. Finally, after validation of the proposed model, it was evidenced that it serves as a means for identifying the maturity level to help in the successful of initiative for Master Data management projects.
Revisión por pares

Poverty alleviation in Buea, Cameroon, has been a problem of concern for decades. The study is vital because managers who control the funds given to the government of Cameroon to help reduce poverty are politicians and do not equitably distribute the funds to all on the pretext that the default rate is high. The purpose of this study was to find better ways to make additional capital available to the microbusiness owners of Buea to open or improve businesses. This qualitative case study design was consistent with the aim of understanding the importance of risk management within the microfinance industry and the risks involved in getting loans and paying them back. The key research question concerned how the microbusiness owners of Buea can obtain additional capital to open new businesses or improve existing businesses. The conceptual framework for this study was Rostow's theory of modernization. Twenty purposively sampled loan officers, bank managers, government officials, and microbusiness owners in Buea were interviewed. Six participants from the population also participated in a focus group. Study findings suggest it is possible for microbusiness owners in Buea to get microloans and start or improve businesses with the use of land titles as collateral or family members as cosigners. The government of Cameroon could improve the financial stability of microbusinesses by facilitating the issuance of land titles or certificates, which are acceptable forms of collateral. This study may contribute to positive social change by improving the financial stability of microbusinesses in Cameroon, and possibly in other socially similar countries.

Microfinance for-profit organizations flooded the market in the early 2000's when microcredit demonstrated profitability. Ever since, an intense debate arose contesting the morality of profiting from the poor. Many for-profit micro finance institutions were accused of predatory lending through high interest rates and aggressive marketing and payment collection. In this paper, I examine the validity of the arguments for and against for-profits by extensively comparing the different target audiences of the charity sector and the private sector and the main arguments of each side. I conclude that, although the ability to serve the poor is compromised by profit motives, for-profit micro finance organizations are serving a different market - and a much needed one - than nonprofits. Therefore, for-profits serve a function that, as of right now, nonprofits are not able to.

Thesis (MTech (Internal Auditing))--Cape Peninsula University of Technology, 2015.
Approximately 57% of the total population in South Africa lives under the poverty line. In this regard, Small, Medium and Micro Enterprises (SMMEs) which provide microfinance play a vital role to provide access for poor households to banking-related financial services. This service can only be delivered sustainably through means of deploying effective management practices, especially in terms of risk management. The purpose of this research is to identify risks faced by microfinance SMMEs and to establish the effectiveness of the current risk management practices deployed by them. This study aims at increasing the knowledge base and understanding of risk management practices by conducting a comprehensive literature review and field research. In order to establish a theoretical basis, a comprehensive literature review was performed and prior studies on various aspects relating to microfinance risk management were investigated. This was followed by a field research which studied the risk management of microfinance providers in the Cape Metropole; large financial service providers like commercials banks were excluded. Data were collected by means of a questionnaire from microfinance providers in the Cape Metropole. These microfinance providers were drawn from a list of credit providers that was obtained from the National Credit Regulator (NCR) public domain. A purposive sampling method was used to select the participants for this study. The information provided by participants is kept strictly confidential and anonymity of all respondents was guaranteed. This research noted that collaterals are absent in microfinance and instead, a close connection between microfinance SMMEs and their clients come into place. Risk management frameworks which provide an all-inclusive approach to risk management are largely absent in microfinance SMMEs. Much fewer microfinance SMMEs actively identify risks, categorise, prioritise and document them appropriately. The research further showed that the views on risk management depend on whether the respondent is an owner or a manager of the enterprise.

This study was undertaken to examine the issues relating to risk and loan portfolio management in Microfinance institutions in Uganda. The first objective of this study was to establish the extent of governance in MFIs in Kampala, by looking at the overall management of these institutions, assessing how decision are made, and looking at how they are staffed. The second objective is to establish the variables that best explain management of Micro-Finance Institutions (MFIs). The third objective is to identify the risk management of loan portfolios and lastly to provide recommendations based on the findings. The researcher used explanatory and survey research designs. A minimum sample 114 participants from 50 MFIs was used in data collection and analysis. The researcher employed principle component analysis (PCA) basing on Eigen values to identify variables above mean-scores and the nodes on the scree plot (ordered eigenvalues) denotes the number of variables that best explain the dimensions and conclusion on each variables was drawn basing on mean values of descriptive statistical analysis. Furthermore the orthonormal loadings display of the variables is employed basing on the first principle component that identified the names of variables above the mean score and final variable is drown basing on descriptive statistical analysis using mean scores focusing on those above the mean. The analysis is based on three dimensions of assessments, namely; Governance, Human capital and Risk Management. In general 227 variables were observed from the 3 dimensions, however by employing the PCA the researcher was in position to come up with those that best explain the 3 dimensions and in summary 29 out of 131 variables were identified by the PCA that best describes governance, 17 out of 72 variables were extracted that best explain what is taking in place in human capital whilst 5 out of 24 variables were extracted in relation to risk management. Furthermore conclusions are drawn by employing descriptive statistical analysis basing on mean scores of the variables identified by the PCA. Therefore out of the 29 variables identified by PCA on governance dimension, 19 variables on average have mean scores above 3 signifying good performance in those areas. Therefore the strength of MFIs under governance is seen in the following areas; The MFIs surveyed have strong board that is professionally ethical and knowledgeable in the area of managing financial institutions. They are performing better in the area of decision making, they do make timely decisions, and the board keeps on monitoring management and making sure that strategies agreed upon are properly implemented. The board is well committed in filing tax returns which is a legal requirement to all taxpaying institutions. However 10 variables showed sign of weakness because they have mean scores on average below 3. Management of MFIs need to strengthen its self in the area of allowing individual initiative in decision making, recognition of management committees in place, this smoothen the operations of the institution and lastly the board need to mentor the management, most of the personnel managing these institutions lack skills in managing the entity. On the side of human capital management, 17 variables identified by PCA, basing on their mean scores, 13 have mean scores above 3 showing good performance of MFIs. In this case the strength of MFIs lies in having educated human resources in place; MFIs gave the ability to exploit the available opportunities more especially targeting low income earners that for long have been neglected. However mores is needed under human capital dimension more especially in those areas where on average their mean scores was below 3 such as training programs where the respondents revealed that the type of training obtained does not match with the job requirements therefore they do not benefit from these programs. There is still a lot of bureaucracy within the management that slows the operations of the MFIs. This is further explained by having directors commuting as loan officers. Failure to accept risk exposes the entire institution to a vague of collapse. The last dimension is risk management and in this way, 5 variables were identified by the PCA, and basing on their mean scores, 3 variables showed good progress and that is having performance management system in place, there are limited complaints from the clients about the MFIs services offered and lastly all employees are given access rights to organisation resources, the loan schemes are open to all employees and no discrimination in service delivery, however 2 variables were identified with mean scores below 3 showing weaknesses within the systems. Therefore MFIs have to improve technologies used in their operations; the use of file carbines, off line computers exposes the institution to high degree of risk. There is need to strengthen their distribution channels so that the financial services offered reach out to clients at ease. Specifically the research study identified various risks like systematic risk, operational risk, credit risk, counterparty risk and legal risk in that they do affect the gross loan portfolio in MFIs and policy measures have been recommended to mitigate such risks in financial institutions. These risks can be mitigated by; • Having Internal control systems of checks and balances • Hedging of transactions through advance booking and paying cash in advance. • Diversification of portfolio, through investing in as many assets possible • Continuous reminder of their obligations and making a fall up of clients and as well insuring the loans. • Investors are encouraged to form a network of partners in the business • Continuous engagement of a legal adviser to the institutions. The study contributed to better understanding of risk management in MFIs, that no single variable can be relied upon to explain effective management of risks but however in this study three dimensions play a crucial role in management of risks. The MFI management should focus on having an internal audit function operating independently in that financial controls should be regularly updated to cope with the changing environment. Audit committee of the board should be complete enough to supervise and regulate internal control systems, written policies in the organization should be effectively implemented with clear division of responsibilities of middle to top managers and lastly Segregation of powers and authority need to be strongly emphasized as a way of enhancing proper management of risks in MFIs.

Thesis (MDF)--Stellenbosch University, 2012.
The study was carried out to find out the effect of credit risk and portfolio loan management on profitability of microfinance Banks (MFBs) in Lagos, Nigeria. To achieve the objective of the study, an econometric model was developed. A sample size of 14 microfinance banks was randomly selected, comprising four national, five state and five unit microfinance banks respectively. Five year annual financial statements of these 14 selected microfinance banks were obtained for this analysis using panel data that produce 70 observations for the period 2006 to 2010 The result reveals that the current value of all independent variables follow an expected relationship with the profitability of microfinance banks. That is, the net interest margin, asset mix proxied by ratio of loan to total asset, and ratio of equity to total assets have a positive relationship with the profitability of microfinance banks (MFBs) in Lagos state, Nigeria. Asset quality (ratio of non-performing loan to total loan) and the interest earnings to total assets ratio have a negative relationship with profitability of microfinance banks. However, the result reveals that of the five immediate past value of these independent variables, only net interest margin and interest earnings to total assets ratio maintained expected relationship with the performance (profitability) of microfinance banks. From the hypothesis test, it was found that credit risk management has a significant effect on the profitability of microfinance banks in Lagos state, Nigeria The study is set against the background and realisation that many MFBs in Lagos seem to continue to seek growth and profit without much attention to addressing credit risk issues – a necessity for their survival on a sustainable basis. The results indicated that the credit evaluation process was positively and significantly related to the quality of the loan portfolio in MFBs. The study also found out that internal rather than external to the MFB’s are more likely to provide the main explanation for MFBs’ profitability. To enhance their profitability, loan products which seem to have various defects which make loans even more risky need to be reviewed. The defects include: long loan processing procedures, absence of training to clients on proper utilisation of loans, lack of mechanisms to assess the suitability and viability of the business proposal for which loans were applied, inappropriate mechanism for assessing character for loan applicants, absence of moratorium periods between taking of a loan and repayment of a first instalment as clients were requested to repay their first instalment within the first month. The study recommended that MFBs should have a broad outlook in its credit risk and portfolio management strategy and this calls for radical reforms within the MFB’s operations and policies as well as more aggressive approaches most especially before availing credit and in its loan recovery as it had a direct impact on profitability.

Avec les orientations prises en 2002 par la Commission Bancaire de l’Afrique Centrale (COBAC) en vue de développer les activités microfinancières, le métier de la microfinance s’est transformé dans sa forme organisationnelle (en passant de l’informel au formel) mais aussi dans sa relation avec son environnement. L’observation du terrain met en lumière que cette perspective est largement déterminée par la coopération entre les très petites entreprises (TPE) et les établissements de microfinance (EMF) dont les pratiques managériales sont soumises à l’épreuve de la réglementation. A ce titre, la réglementation conditionne les pratiques des acteurs, et donc devrait contribuer au développement du marché et assurer la pérennité des EMF et TPE à travers leur coopération. Par rapport à ce qui précède, quels enseignements peut-on tirer de l’expérience gabonaise afin de générer une meilleure compréhension du problème de l’impact de la réglementation sur les acteurs du marché de la microfinance? Ce travail révèle qu’en environnement institutionnalisé, les EMF sont partagés entre deux attitudes : financière ou sociale. Il fait apparaître que plusieurs TPE, porteuses de projets, n’arrivent pas à bénéficier de l’offre du marché microfinancier. Ce paradoxe nous amène alors à interroger les différents comportements que la réglementation du marché de la microfinance traduit et induit. Nous avançons que ces comportements, de même que leur interaction, agissent sur la coordination des acteurs, c'est-à-dire sur la manière dont les EMF et les TPE sont gérés, ainsi que sur la coopération EMF/TPE. Ce travail participe ainsi à une meilleure compréhension du marché de la microfinance au Gabon
With the direction taken in 2002 by the Banking Commission of Central Africa (COBAC) to develop microfinance activities, the business of microfinance has turned in its organizational form (moving from informal to formal), but also its relationship to its environment. Our field observation shows that this perspective is largely determined by the cooperation between the very small enterprises (VSE) and microfinance institutions (MFIs) whose management practices are put to the test of regulations. As such, the regulation affects the behavior of actors and thus should contribute to market development and the sustainability of MFIs and VSE through their cooperation. Compared to the above, what lessons can be learned from the Gabonese experience to generate a better understanding of the problem of the impact of regulation on the market of microfinance? We show that in an institutionalized environment, EMF have two options: a financial attitude and a social attitude. We show that many small businesses, with projects, are unable to benefit from the offer of the microfinance market. This paradox then leads us to question the different behaviors that the regulation of the microfinance market translated and induced. We induce that these behaviors as well as their interaction affect the internal organization of tasks (coordination) of the actors, that is to say on how EMF and VSE are managed, as well as the cooperation between EMF and VSE. This work opens up new areas of understanding of the microfinance market in Gabon

Embedding social and financial goals into investment decisions and organizational missions is an increasing hallmark of social finance, a rapidly growing phenomenon that aims to create sustainable solutions to some of society’s largest challenges such as poverty alleviation (Mosley & Hulme, 1998; Burgess & Pande, 2005; Beck et al. 2007a), wealth inequality (Buera et al. 2014; Lagoarde-Segot, 2017) and environmental preservation (Nicholls & Pharoah, 2008) among others (Benedikter, 2011). In recent years, the concept of social finance has emerged through applications such as venture philanthropy (Moody, 2008; Scarlata & Alemany, 2010), socially responsible investing (Renneboog et al. 2008; Nofsinger & Varma, 2014; Gutiérrez-Nieto et al. 2016), impact investing (Bugg-Levine & Emerson, 2011; Höchstädter & Scheck, 2015), corporate social responsibility (Falck & Heblich, 2007; Jha & Cox, 2015), crowdfunding sites that appeal to the charitable intentions of retail investors (Lehner, 2013; Lehner & Nicholls, 2014) and microfinance (Morduch, 1999; Beck et al. 2007b; Armendáriz & Labie, 2011). The microfinance industry is particularly suited to explore the nuances of social finance due to the wide range of actors present in the sector, including not only public, private and nonprofit actors (D’Espallier et al. 2016) but also a wide range of investor profiles including commercial rate, concessionary and fully donative funders (Dorfleitner et al, 2017). To meet these innovations in social finance, a substantial body of scholarly research has materialized in various areas: corporate finance (Bogan, 2012; Tchuigoua, 2014), investing (Dorfleitner et al. 2012; Brière & Szafarz, 2015), nonprofit finance (Jegers, 2011; Roberts, 2013), banking (Gutiérrez-Nieto et al. 2009; Cornée et al. 2016), entrepreneurship (Nicholls, 2010; Bruton et al. 2015), development economics (Cull et al. 2009; Ahlin et al. 2011; Hermes et al. 2011; Hartarska et al. 2013), business ethics (Sandberg et al. 2009; Arjaliès, 2010; Hudon & Sandberg, 2013), organizational theory (Battilana & Dorado, 2012; Pache & Santos, 2013), legal studies (Henderson & Malani, 2009), public economics (Duncan, 2004; Andreoni & Payne, 2011) and management studies (Cobb et al. 2016). However, these theories are often siloed within a particular domain and used separately. Despite a long research tradition on microfinance, there is still an ongoing debate on how to assess profits in a heterogeneous environment with multiple organizational objectives, the comparative advantages of public and private funders and their associated financial instruments to scale the microfinance sector and the nature of trade-offs between the financial and social objectives of microfinance institutions (MFIs). This dissertation aims to fill these gaps by analyzing social finance from an interdisciplinary perspective. The aim is to further nuance our understanding of the compatibility between financial and social objectives and how the trade-off between these two elements is moderated through financial mechanisms from donors and social investors. By analyzing the dimensions where trade-offs are most acute for social enterprises, this dissertation aims to put forth a conceptual framework to help assess profitability. Our analysis focuses on the microfinance industry, which offers a rich research setting due the wide range of institutional profiles active in the sector, including nonprofit, cooperative, for-profit and government agents and its global contributions to financial inclusion, poverty reduction and female empowerment. This dissertation is structured into three chapters, each of which addresses a different research question using different methods and units of analysis. The first chapter is a meta-analysis that uses statistical analysis of empirical research results to aggregate the existing findings on social and financial performance trade-offs as they pertain to microfinance institutions. The second chapter develops a typology of subsidy and donation instruments and then proposes a conceptual model to identify the crowding-in and crowding-out effects of public and private donors on private, commercial investors. The second chapter is complemented with an empirical analysis of a Mexican MFI, Banco Compartamos, using secondary data to suggest how the evolution of funding instruments attracted private commercial capital. Chapter three constructs a conceptual framework to identify fair profits for social enterprise, focusing on the case of microfinance. We then empirically apply the conceptual framework to an international dataset of microfinance institutions. Starting from the observation that no consensus has emerged regarding performance trade-offs between the financial and social objectives of microfinance institutions, Chapter 1 – A Meta-analysis Examining the Nature of Trade-offs in Microfinance – aggregates existing research findings to determine the dimensions of MFI performance, and study characteristics, that drive the confirmation of trade-offs. Specifically, after an initial screen of 3,299 articles, 623 empirical trade-off findings from 61 studies were coded into a dataset, where each empirical finding consists of a pairwise observation between a single financial performance variable and a single social performance variable. Using a probit model to analyze the direction and statistical significance across categories of social/financial performance and study artifacts, findings suggest that depth of outreach, cost of outreach, and efficiency indicators increase the prevalence of trade-offs, while risk indicators are associated with fewer trade-offs. Profitability indicators and outreach to women are found to have no significant effect on performance trade-offs. Study characteristics suggest that using an economic frontier methodology or publishing in development journals increases the incidence of trade-offs. These results help to understand the moderating factors that drive performance trade-offs and suggest that MFI managers and stakeholders may need to make difficult decisions regarding the social goals that may need to be sacrificed to achieve financial sustainability.Chapter 2 – Crowding-in without Crowding-out: Subsidy Design to Foster Commercialization – investigates the financial mechanisms that public and private donors have at their disposal and how they can use these instruments to attract fully commercial private capital to social enterprises. In this article, we first construct a typology to explain the ways in which private donors are complementing public donors in subsidy design. We argue that specific instruments such as corporate intangibles and credit guarantees can trigger permanent crowding-in effects that attract commercial partners, while preventing perverse effects such as crowding-out and soft budget constraints. Applying the typology and investment logics to the case of Compartamos, we observe that crowding-in and crowding-out effects can be present simultaneously, which allows us to suggest that subsidies and donations do not force path dependency towards commercialization but rather co-exist, for example attracting commercial debt investment while crowding-out commercial equity. Our research could help both private and public donors identify strategies to maximize social impact while reducing perverse mutual externalities. Finally, in the presence of performance trade-offs and donor pressures to commercialize operations and scale-up, Chapter 3 – What is an acceptable level of profit for a social enterprise? Insights from Microfinance – develops a conceptual framework for fair profits in social enterprise and then applies the framework to the microfinance industry. The fair profit framework is constructed on four dimensions: the level of profitability, the extent to which the organization adheres to its social mission, the pricing and the surplus distribution of the organization. Using a global sample of MFIs, our results suggest that satisfying all four dimensions is a difficult, although not impossible task as less than 3% of the sample fulfill all four criteria. Using our framework, we suggest that excessive profits in microfinance can be better understood relative to pricing, the social outreach of an organization, and the commitment to clients over time through reduced interest rates. This dissertation provides solid scientific evidence on the compatibility between financial and social returns in social finance. Our dissertation examines social finance through the lens of microfinance, and investigates the performance trade-offs facing MFIs as well as the moderating role of financing mechanisms to help MFIs fulfill their double-bottom-line mandate. We hope we demonstrate that the unique combination of financing technicalities significantly shape the evolution of recipient organizations. Some practical implications are also identified to help practitioners, regulators and managers navigate the ongoing debate on the compatibility of financial and social returns and the design of financial instruments for social enterprise. We firmly believe that these academic works contribute and bring new perspectives to social finance in development economics, and business ethics.
Doctorat en Sciences économiques et de gestion
info:eu-repo/semantics/nonPublished

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.

El presente trabajo de investigación tiene como objetivo exponer situaciones operativas detectadas durante la experiencia profesional como auditor interno de entidades microfinancieras (Cajas Municipales/ONG´s); situaciones que representaron riesgos de fraude, y que en conjunto coadyubaron a la ocurrencia de fraudes significativos, sin la detección oportuna de la Gerencia y/o funcionarios responsables de la operatividad interna. Como parte del trabajo de investigación se realizó un estudio general de la ocurrencia de fraudes en el Perú y en el mundo, mostrándose en una primera parte que la presencia de fraudes en el Perú se inicia desde la época colonial (según el historiador peruano Alfonso Quiroz) y continúa hasta nuestros días, con la detección de los últimos casos de fraudes detectados en empresas constructoras brasileñas, situación mostrada por la Defensoría del Pueblo a través de dos reportes (Reporte: La Corrupción en el Perú, 2017). Pero la corrupción no es un mal que ocurre solo en nuestro país, también sucede en grandes empresas extranjeras, tal como lo muestran dos estudios realizados por entidades de prestigio como son la sociedad de auditoría y consultoría PricewaterhouseCoopers, y la Asociación de Examinadores de Fraudes Certificados. Al final del documento se realizó un diagnóstico para una mejor gestión de los riesgos, y que consiste en el análisis y calificación de los riesgos detectados en los tres casos que mostramos, asignándole una valoración. También estamos proponiendo un plan antifraude para entidades microfinancieras y una serie de procedimientos de control interno aplicables a este tipo de entidad.
This research work aims to present operational situations detected during my professional experience as an internal auditor of microfinance entities (Municipal Savings Banks/NGOs), which represented fraud risks and led to the occurrence of significant fraud, without proper detection of Management and/or officials, responsible for internal effectiveness. As part of the research work, a general study was conducted of the occurrence of fraud in Peru and the world, showing in the first part that fraud in Peru started in the colonial period (according to Peruvian historian Alfonso Quiroz) and it continues until the present with the latest cases of fraud detected in Brazilian construction companies, a situation shown by the Peruvian Office of the Ombudsman in its two annual reports (Report: Corruption in Peru). But corruption is not a problem that occurs only in our country, it also happens in large foreign companies, as shown by two studies made by prestigious entities such as the audit and consulting society PricewaterhouseCoopers, and the Association of Certified Fraud Examiners. At the end of the document, a diagnosis for better risk management is being made, which consists of the analysis and rating of the risks detected in the three cases we show, assigning it a valuation. We are also proposing an anti-fraud plan for microfinance entities and a series of internal control procedures applicable to these types of entities.
Trabajo de investigación

Microfinance is the provision of credit/loans to poor individuals for the purpose of income generation. The Sub-Saharan African region which is among the poorest areas in the world is thought to be one of the regions where the microfinance industry is dynamic and growing in terms of acceptance and patronage. Even though microfinance in the Sub-Saharan Africa region has received a lot of research attention, most have focused largely on the financial performance whilst there is no available information on project management practices in new product development.Since project management is considered to be an effective means of managing new product development, the purpose of this work was to investigate the practice of project management in new product development in microfinance institutions in Sub-Saharan Africa and to assess which project management methods, and tools and techniques are used.A case study was adopted and a semi-structured interview through telephone/Skype was conducted on eight senior management staff from different microfinance institutions. The respondents comprised five Non-governmental organizations, two Non-Bank financial institutions and one Commercial Bank, operating in Angola, Gambia, Ghana, Mozambique, Namibia and Kenya.The empirical findings were that six of the microfinance institutions are involved in new product development whilst two of the institutions which are Non-governmental organizations are not. The main product that is developed by these microfinance institutions is credits/loans. The reason for new products development was to meet clients’ needs even though competition and the need to be innovative was also a factor.This research also shows that the six microfinance institutions that are into new product development organize product development through projects. Project management is the means through which new products are developed. In addition, projects are managed either solely by each microfinance institution or done in collaboration with other institutions.A further indication based on project management steps suggests a flexible practice of project management in developing new products as project management steps are not tightly followed. The project management methods that are used in developing new products in all these institutions was the in house method as all the respondents considered it an effective way because this method is adapted to their institutional structure.In addition, the commonly used tool and technique among all the institutions was the progress reports which contained necessary information for monitoring and evaluating of the projects.

Among the reasons for financial exclusion is the fact that the poor, being largely illiterate and unemployed, are traditionally perceived as ‘bad credit risks’. This is the dominant perception of the poor in the formal credit markets – a perception that also exists in the microcredit sector. In other words, while information asymmetry is a recognized problem in lender-borrower relationships, lenders consider the problem particularly severe when they contemplate doing business with the poor. A contrasting paradigm, such as the one adopted by Grameen Bank of Bangladesh, views the poor as possessing economic potentials that have not been tapped – that is, as ‘good credit risks’. Grameen Bank’s microcredit features appear to have successfully mitigated the problems of information asymmetry and, to a large extent, made it possible for the poor to access microenterprise credit. Using the Grameen Bank model as a benchmark, this study examined the lending features of private sector microlenders in South Africa and those of KhulaStart (credit) scheme. The aim was to identify how the lending features affect microenterprise credit access. Primary data were obtained through interviews, while relevant secondary data were also used in the study. A key finding of the study was that while the Khulastart scheme was, like Grameencredit, targeted at the poor, the method of its delivery appeared diluted or unduly influenced by the conventional (private sector) paradigm that pre-classifies people as ‘good’ or ‘bad’ credit risks. As a result, the scheme was not robust enough to support microenterprise credit access. This has consequences for job-creation and poverty reduction. Based on the findings, the study maintains that a realistic broadening of microenterprise credit access will not occur unless there is a fundamental paradigm shift in microcredit practices, and unless measures designed to mitigate information asymmetries are sensitive to the historical, economic and sociocultural realities of the South African poor.

Microfinance has generally been acclaimed as one way to reduce poverty through the provision of financial services targeting the previously “unbankable” poor. Persons with Disabilities (PWDs) are amongst society’s most excluded groups financially and the absence of PWDs within mainstream Microfinance urges Disabled People’s Organisations (DPOs) to directly engage in Microfinance. The practices by such alternative actors are suggested to be generally rejected because they risk being inefficient and failing. The objective of this study is to analyse examples of how DPOs in Nepal practice Microfinance and whether they generally follow recommended best practices. The correlation with what is perceived as best practices provide evidence to suggest whether the DPOs’ practices should be generally rejected or motivated as plausible and justified accordingly. To accomplish this, a well-justified analytical framework of recommended best practices for DPOs engaged in Microfinance is created, and field research is undertaken in Nepal, April-May 2014. It can be concluded that recommended best practices are followed at a general level; however, the extent varies within and between the analysed practices. The results provide sufficient evidence to suggest that the practices are plausible and justified accordingly, and should not be generally rejected.