Статті в журналах з теми "Microfinance management"

Microfinance institutions are established to promote the financial activities mainly saving and credit in community. Microfinance’s activities are focused on reducing poverty level of community people. Poor, disadvantaged, marginalize and women are in mainstream of microfinance’s programs. The study was focused on finding out the contribution of microfinance on socio-economic development of rural community. The study was based on the quantitative design. Cross-sectional data was collected from the 8 microfinances of Syangja district. Purposive sampling technique was adopted to select the respondents. The perceptual analysis of data reported the significant contribution of micro-finance in social change and development. Microfinances working since 2 to 20 years covering the diverse field of social activities were the samples of the study. There was a need to improve the internal management of microfinance to provide the services more effectively.

This article deals with the issue of client solvency in microfinance. Microfinance includes all financial products and services designed for a public excluded from traditional banking circuits. The development of these microfinances is a very important issue and makes it possible to reduce the unemployment rate. However, the lack of customer solvency makes the management of these microfinances complex. In this article, we propose a microfinance management technique based on the use of K-nearest neighbor (KNN) and smart contract algorithms. The proposed approach makes it possible to model the behavior of a customer to arrive at their solvency.

Social performance management refers to the ability to achieve social goals by putting customers at the center of strategy and operations in microfinance institutions. The social performance of a microfinance institution means its effectiveness in achieving social goals and creating value for customers. This is just one aspect of social performance management. Social performance management examines the whole process through which an effect occurs. In the present study, social performance is considered as an assessment of social goals such as targeting the poor and marginalized, an adaptation of services that deliver economic benefits to customers, and the environment, and employees to improve social responsibility towards customers and the community. The overall performance of microfinance institutions contributes to the long-term sustainability of the organization. Sustainability of microfinance institutions means the long-term continuation of the microfinance program, which includes continuity of financial and non-financial services of microfinance institutions. The sustainability of microfinance institutions are measured by using a portfolio, performance, financial management, and profit-to-financial ratio. In the present study, the sustainability of microfinance considered as a long-term continuation of the program that benefits all stakeholders in the microfinance sector and society. Most microfinance institutions devote their efforts to achieving the social and financial goals of the organization. Social performance facilitates progress in achieving the social goals of microfinance institutions. As such, sustainability is a dynamic concept that aims to meet the expected cost of all programs and return on investment.

Abstract: History of microfinance can be traced back to the middle of 1800s when the theorist Lysander Spooner was writing of about benefits of small credits to entrepreneurs. It is the source of financial services to small scale business lacking access to banking and related services. Microfinance refers to a variety of financial services that target low-income clients particularly women since the clients of microfinance companies (MFCs) have lower incomes and often have limited access to other financial services, microfinance products tend to be for smaller monetary amount than traditional financial services. These services include loans, savings, insurance and remittance. Microfinance loans are given for variety of purposes frequently for microenterprise development. This also reflects in diversity of products and services offered. Because of varied needs and because of the industry’s focus on the poor, microfinance often use nontraditional methodologies such as group lending or other forms of collateral securities not employed by the formal financial sector. Keywords: Microfinance, Financial Management, JLG, SHGs.

Sound liquidity management is integral for any financial institution’s stability and profitability, since deteriorating liquidity management is the most frequent cause of poor financial performance. As with any financial institution, the biggest risk in microfinance sector is lending money and not getting it back leading to liquidity problems as most of them have no access to lender of the last resort which is the Central Bank of Kenya. The study sought to investigate the effect of liquidity management on financial performance of microfinance institutions in Kenya. The target population of the study was all the twenty-six microfinance in Kenya that are members of Association of Microfinance Institutions and were licensed by the Central Bank of Kenya as at 2017. A census of all the twenty-six 26 Microfinance Institutions in Kenya was conducted for five years from 2012 to 2016. Secondary data on the study variables was gathered from the audited financial statements of the Microfinance Institutions. The study employed random effect model on a 5-year panel data from 2012 to 2016 on all the 26 Microfinance Institutions in Kenya. The study found a positive relationship between capital adequacy and financial performance and a negative relationship between asset quality, maturity gap and financial performance. The study would help Microfinance Institutions as they would use the research findings to develop liquidity management strategies to enable Microfinance Institutions improve on their financial performance.

Purpose The purpose of this paper is to address the problem of why the poorest, most disadvantaged groups such as rural African women, benefit less from microfinance. The authors focus on the perception and experiences of ordinary rural entrepreneurial women on microfinance in a context of extreme poverty and where family responsibility and economic activities are closely intertwined. Design/methodology/approach The authors purposefully sampled 15 poor females with small businesses in two Nigerian villages. The key characteristic guiding the sampling was that the respondents had to be poor. The authors held two focus groups and ten interviews to capture their experience and understanding of microfinance. The authors used thematic analysis to establish patterns in the data. Findings For poor entrepreneurial women, a livelihood for survival, putting food on the table and paying school fees are priorities, not business growth. They see microcredit as debt and a great risk that could lead to irreversible losses. Family responsibilities for basic consumption needs of the household can affect their ability to repay loans; perceived dangers of microcredit may outweigh potential benefits. Research limitations/implications The theories, especially functionalist economic theory, do not take account of microfinance users’ experiences. Practical implications Microfinance should be aware that the poorest perceive microcredit differently and should eliminate the intimidating barriers raised to them. Instead of providing a means for the poor to alleviate poverty or coping strategies for them to manage cash flows and risks, microfinance causes fear and anxiety by demanding high rate of return in a very short period of time. Social implications The very poorest, who should be the beneficiaries of microfinance, are less likely to be able to benefit. The condition of poverty creates different realities for those at the base of the pyramid. Originality/value This research questions the neoliberal rationality assumptions that microfinance rest on; the paper fills a gap in the literature, i.e. how the potential borrowers themselves living in deep-rooted poverty perceive and experience microfinance.

This study focuses on Management Information System (MIS) Adoption in Microfinance Banks (MFBs) in Oyo State, Nigeria. Specifically, the study analyzed factors influencing the adoption of MIS in microfinance banks. Primary data was collected with the aid of administered questionnaire on some selected microfinance banks staff. Data collected were analysed using descriptive statistical tools to determine factors influencing adoption of MIS in Microfinance banks’ in Oyo State, Nigeria. While inferential statistical tools of Multiple Regression and ANOVA were used to determine factors with significant contributions to MIS adoption and at what degrees. Results revealed that Relative advantage- the extent to which a technology provides improvement over currently available tools, Complexity- simplicity of the technology’s use or learning, and Compatibility- consistency of the innovation with social practices and norms among its users were the significant factors that influenced adoption of MIS in Microfinance Banks and were significantly different from one another. It is thus recommended that Common management information system platform should be recommended to all Nigerian microfinance banks by the regulatory authorities for suitable MIS adoption.

This study focuses on Management Information System (MIS) Adoption in Microfinance Banks (MFBs) in Oyo State, Nigeria. Specifically, the study analyzed factors influencing the adoption of MIS in microfinance banks. Primary data was collected with the aid of administered questionnaire on some selected microfinance banks staff. Data collected were analysed using descriptive statistical tools to determine factors influencing adoption of MIS in Microfinance banks’ in Oyo State, Nigeria. While inferential statistical tools of Multiple Regression and ANOVA were used to determine factors with significant contributions to MIS adoption and at what degrees. Results revealed that Relative advantage- the extent to which a technology provides improvement over currently available tools, Complexity- simplicity of the technology’s use or learning, and Compatibility- consistency of the innovation with social practices and norms among its users were the significant factors that influenced adoption of MIS in Microfinance Banks and were significantly different from one another. It is thus recommended that Common management information system platform should be recommended to all Nigerian microfinance banks by the regulatory authorities for suitable MIS adoption.

This research examines the influence of microfinance services on the socioeconomic performance of Malaysian B40 households, which are considered vulnerable communities in Malaysia. Mainly, it explores the mediating role of entrepreneurial competencies and financial management practices in the relationship of microfinance services with households’ economic well-being, entrepreneurial success, and social wellbeing. Likewise, this research also examines the moderating role of microfinance institutions’ service efficiency in the success of microfinance services to improve households’ socioeconomic outcomes. The responses were collected from the participants of Amanah Ikhtiar Malaysia, the largest microfinance institution serving the low-income population of Malaysia. Employing the structural equation modelling approach, results show that microfinance financial services and non-financial services positively influence households’ socioeconomic performance through entrepreneurial competencies and financial management practices. On the other hand, microfinance financial services are also found to have significant direct influence on households’ socioeconomic performance. Further, results also indicate that microfinance institutions’ service efficiency positively moderates the influence of financial services to improve households’ socioeconomic performance. This is novel research that introduces human capital development as an underlying mechanism in the household economic portfolio model, suggesting that microfinance interventions develop human capabilities among their participants, which further assist them in the efficient management of financial and business affairs, thus, improving socioeconomic outcomes.

The operations of Microfinance Institutions (MFIs) in Ghana have recently come under serious public scrutiny. This position was fairly caused by Bank of Ghana’s (BOG’s) announcement regarding 70 microfinance companies whose provisional licenses were revoked BOG (2016). This led to the closure of DKM Diamond Microfinance and some other microfinance companies in the country. This worsening circumstance surrounding the microfinance industry calls for the need to provide practical knowledge on the use of financial analysis tools to manage internal financial risks of the microfinance industry. Data from Akuapem Rural Bank (AKRB) financial statements for the period of 2008 to 2015 (refer to appendix) was analysed using regression analysis, descriptive statistics, trend analysis and ratios. It was observed that the profitability of AKRB is greatly influenced by credit risks, bank size, interest income growth and debt-ratio. The study also revealed that AKRB had comprehensive and adequate risk management structures in place in managing its credit and other operational risks.

A strong research tradition on the economic and social impacts of microfinance intervention has been going on. But a dearth of studies on microfinance organizational and management perspectives is there, although the social and economic impacts of this development program largely depend on its organizational setup and intervention management. ICT (decipher!!!) has been used in microfinance organizations for quite a long period of time. This study looks into the ICT-mediated material and social changes that happen in this unique type of organization and its management. The study was conducted using exploratory case study in two organizations. A number of semi-structured interviews and focus groups have been conducted at different layers of the organizations. The study found that ICT has profound implications for change in different material and social aspects of microfinance organizations. As a catalyst, ICT causes organizational structure shrank both horizontally and vertically. Because of the use of ICT a loss-of-middle phenomenon emerges in organizational structure and a tendency of centralized decision authority prevails. It helps boosting up the operational performance and transparency and lowering the long-debated interest rate of microfinance. It engenders profound changes in human resources and socio-cultural aspects of microfinance organizations. However, if protective mechanism is not adopted then the use of ICT may have detrimental effects to the social performance of microfinance. This study contributes to the knowledge domain of ICT-mediated organizational change and the microfinance policy makers by exploring the implications of ICT to different organizational aspects. It contributes by unearthing the detrimental effect of ICT to the development outcome of microfinance intervention.

This study examined total quality management as determinant of the performance of microfinance organizations. It seeks to empirically investigate the predictive power of total quality management (TQM) dimensions on performance measured by customer satisfaction. A survey research design was adopted and 20 licensed microfinance banks in Delta State were sampled. The total number of employees of the selected banks was 327. Taro Yamane formula was used in determining a sample size of 180 employees. The data were analysed using both descriptive and inferential statistics. The results revealed that all the TQM dimensions were significantly related to performance. Specifically, continuous quality improvement, employee involvement and customer relationship management predict positive performance. The study concluded that TQM practices need to be given adequate attention by microfinance institutions. The study recommended among others that employees in microfinance banks should be updated on best practices in the industry. Also, microfinance banks should train and retrain their employees on innovative and best practices in the industry.

The primary objective of this paper is to determine the relationship between the effects of capital structure and the performance of Microfinance Institutions in Oman. In this research, a questionnaire was used to obtain the results and the qualitative study where the qualitative data was collected through primary date. The target group to answer this questionnaire was from the owners of Microfinance in Oman, and 10 answers were obtained. The results found there is a positive relationship between Capital Structure and Performance of Microfinance. The capital structure is important in improving the performance of Microfinance and maintaining its proper management. It also leads to improved performance, which results in an increase in profit, the correct management of expenses, and a reduction in losses. Empirical results indicate that effective use and creation of social capital is vital to improving the effects of Microfinance, and Owners of Microfinance should focus more on harmonious social relationships and deliberately building social capital. Also, provided Microfinance Owners to work on a plan to reduce expenses and increase profitability, as well as recognize the correct management of capital structure. As well as understanding the structure of capital and the positive impact on the performance of Microfinance.

The objective of this study was to evaluate whether relationship exist between credit risk management techniques and financial performance of microfinance institutions in Kampala, Uganda. Specifically, the study examined whether there is a relationship between credit risk identification, credit risk appraisal, credit risk monitoring, credit risk mitigation and financial performance of microfinance institutions in Kampala using sample of 60 members of staff in finance and credit departments of three licensed microfinance institutions in Kampala, Uganda namely Finca Uganda Ltd, Pride Microfinance Ltd, UGAFODE Microfinance Ltd. Primary data was collected using questionnaires and it comprised of closed ended questions. Secondary data was collected from the microfinance institutions (MDI’s) annual reports (2011 - 2015). Frequencies and descriptive statistics were used to analyse the population. Pearson linear correlation coefficient was adopted to examine relationship between credit risk management techniques and financial performance. The findings indicate that credit risk identification and credit risk appraisal has a strong positive relationship on financial performance of MDIs, while credit risk monitoring and credit risk mitigation have moderate significant positive relationship on financial performance of MDIs. The study recommends, among others, that the credit risk appraisal process should identify and analyse all loss exposures, and measure such loss exposures. This should guide in selection of technique or combination of techniques to handle each exposure. The study concludes that MDIs should continually emphasise effective credit risk identification, credit risk appraisal, credit risk monitoring, and credit risk mitigation techniques to enhance maximum financial performance.

Objective - Health assessment on microfinance institutions was conducted through non-financial measurements consisted of assessment on general and risk managements. The assessment was commonly used to assess commercial banks. Microfinance institutions, however, are differed to commercial bank in terms of their closeness to the poor. The paper presented the development and analysis of non-financial performance measures using local culture basis that can be applied to properly assess microfinance institutions. Methodology/Technique - Qualitative study with ethnomethodology approach was applied to see cultural activities undertaken. Managers were considered as key informants. Results of qualitative study were analyzed using Fuzzy-Analytic Hierarchy Process method and Weighted Product Model was applied to weight the criteria and sub-criteria as well as the final assessment. Findings - Results showed that local culture activities that could be used to assess general management in microfinance institutions were providing assistance in establishing places of worship, supporting religious activities, supporting the development of facilities and infrastructures in the villages, relief activities of cultural festival, helping in funeral, wedding favors, educational assistance, medical assistance, forming arts groups, and business group. Novelty - This study suggests that non-financial performance measurements can use local culture and facilitate the management of microfinance institutions to perform performance measurement Type of Paper - Empirical Keywords: Non-Financial; Performance Measures; Local Culture; Microfinance Institutions. JEL Classification: G21, G31.

Purpose Microfinance is seen as the tool for poverty elimination. It provides loan to that particular section of the society which is not included in the mainstream financial system. The purpose of this paper is to study the impact of Microfinance on the lifestyle of women. The study is undertaken to address the question whether the Microfinance actually reach to the root of poverty and improve the standard of living for women who are considered to be the poorest of poor. This paper also aims to acquire the deeper understanding of the entrepreneurial skills which may or may not be inculcated with the help of Microfinance. Design/methodology/approach The paper is based on empirical data. The data were collected through structured questionnaire and purposive sampling was used. The respondents were the women beneficiaries of the Microfinance Institutions in the National Capital Region. Total of 117 women were personally interviewed to obtain the response for the questionnaire. Findings Microfinance helped to develop entrepreneurial skills among the women as acquiring loan helped them start their own microenterprise and support themselves and their family. Microfinance enhanced the participation of women in the household decision-making. As a result, after obtaining Microfinance, women were found to be more socially developed and empowered. Also, the gender gap seemed to have narrowed as a result of Microfinance. Research limitations/implications The findings of the study are limited to the National Capital Region. Practical implications Microfinance will be beneficial for women and lead to their empowerment when they have control over the usage of the loan. Microfinance institutions play an important role in facilitating women to become self-reliant. With the help of this paper, one can understand the role of Microfinance in uplifting the marginalized section of the society. Originality/value The research work is authentic and original as per the understanding. This paper gives an insight into how Microfinance can not only eliminate poverty but also help women develop the entrepreneurial skills. The paper explores into the issue of how gender inequality can be addressed through Microfinance.

PurposeThis study investigates the role of national culture between outreach and sustainability of microfinance institutions (MFIs). Despite microfinance's deep embeddedness in cultural contexts, research on the influence of national culture on MFI performance is rather sparse. This paper seeks to fill this gap and, based on cross-country microfinance data, attempts to explain the outreach-sustainability relationship in reference to cultural factors.Design/methodology/approachAn unbalanced panel, consisting of 5,741 MFI-year observations of 1,232 MFIs from 43 countries in six regions, is drawn from the Microfinance Information Exchange (MIX) Market database. Two different econometric models are tested. Model 1 estimates the direct effect of outreach on sustainability, using a fixed-effects estimator. Model 2 examines the moderation effect of national culture on outreach-sustainability relationship, employing correlated random effects approach.FindingsThe results show that depth of outreach and financial sustainability of MFIs are negatively related, and the relationship is moderated by national culture. Power distance and uncertainty avoidance positively moderate the outreach-sustainability relationship, whereas individualism and masculinity negatively moderate the relationship.Originality/valueThe findings suggest that the national culture where MFIs are located plays an important contingent role in their performance and that the magnitude of the trade-off effect varies from culture to culture. The research thus provides further insight in the trade-off debate and contributes to literatures of both microfinance and cross-cultural management.

PurposeThe purpose of this paper is to analyze the macroeconomic significance of transaction costs in microfinance intermediation and explain how the deposit mobilization and micro lending impact the microfinance transaction costs. It presents some empirical evidence as building blocks for the theory of financial intermediation that aims at strengthening the efficiency of financial intermediation in the context of preferential credit and or the microfinance sector.Design/methodology/approachThe study uses the panel data consisting of different groups of banks in India (such as public sector banks, private banks and foreign banks) data across a period from March 1993 to March 2009 to estimate the panel VAR model to determine the determinants of transaction cost model in financial intermediation. The study also uses the panel Granger causality analysis to test the direction of causation to know the behavior of the operating expense of the banks in their financial intermediation process.FindingsThe study reveals that there is a positive direct relationship between operating expense and priority sector lending by banks. The findings show that the transaction costs act as a barrier for the banking firms in microfinance intermediation; and, the banks are able to manage the transaction costs of microfinance intermediation with an increase in overall deposit mobilization and increased non-microfinance lending. The study recommends that there is a need to upscale the functional efficiency of microfinance intermediaries.Originality/valueThis study offers to bridge the research gap and adds novel information to the literature on microfinance intermediation. It is the first empirical paper showing the macroeconomic significance of transaction costs in microfinance intermediation.

An important pillar in the development of Islamic microfinance institutions is Total Quality Management and Sharia Governance. This pillar is the main differentiator between conventional Islamic finance institutions. Institutional efforts to provide satisfaction to customers. The concept of quality (quality) for service and non-service basically includes various things that are focused on the customer. Shari'ah supervision is needed to ensure the implementation of Shari'ah principles in the financial institution, which is played by the Shari'ah Supervisory Board. Implicitly this shows that the practice of shari'ah microfinance institutions has not been concerned with shari'ah principles and the quality of good governance, one of the causes of reputation and public trust in Islamic microfinance institutions will also have an impact on community loyalty use the services of a Shari'ah microfinance institution. Improved reputation and customer trust can be used as an indicator of the success of the development of Islamic microfinance institutions and at the same time predicting their future success in order to increase market share.

Purpose This paper aims to understand how competing logics can co-exist in the organizational field of Indian microfinance. Design/methodology/approach The paper uses the theoretical lens of an organizational field to understand the composition of the microfinance field. Using the definition of an organizational field, key players in Indian microfinance are identified and their interactions within the field are analysed to understand the emergence and co-existence of multiple logics. The data used for this paper are collected from published work on Indian microfinance. Findings The co-existence of competing logics is sustained through the creation of two sub-fields within Indian microfinance. Each of the sub-field is dominated by one institutional logic. The field originated in developmental logic of microfinance and gradually adopted the banking logic post-2000. The sub-fields are dominated by different organizational forms with different nature of interaction within the field. Research limitations/implications Actors within the field would experience institutional complexity with lesser intensity because of the existence of two distinct sub-communities with individual logic. Dual logics can sustain itself independently provided these are embedded in two different sub-communities. Despite the emergence of a new logic, the previous logic can still remain relevant given the enabling support from institutional infrastructure. Practical implications The manifestation of development and banking logics through practices and the belief system in Indian microfinance would offer useful insights for social entrepreneurs balancing the dual goals of hybrid organizations. Due to the sub-communities, a professional working with different forms of organization would experience little pressure to adjust to diverse logic and would also experience no or little identity conflict. Originality/value This paper focuses on the microfinance sector in India as an organizational field and explores the mechanism of co-existence of the dual goals of microfinance at the field level.

The purpose of the article is to investigate whether female presence in microfinance institutions’ management team, i.e. board members, managers and loan officers, will improve their financial performance. We combine financial data on MFIs that is available from the MIX Market database with original data on the gender composition of MFIs’ management team, who include board members, managers and loan officers. This original dataset of 223 MFIs is analyzed using Logit-Tobit regression models with return on assets (ROA) as the dependent variable and proportion of female board members, female loan officers and female managers as the main independent variables. We find that a higher proportion of female managers and female loan officers improve financial performance in microfinance, while a higher proportion of female board members does not. Our results indicate that a major contributor to the financial sustainability of microfinance institutions is having a higher rate of women in vital decision-making roles, especially lower level management positions.

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

The purpose of this study is to obtain an overview of the sharia microfinance issues, sharia microfinance solutions to solve problems, and institutions strategies for strengthening sharia microfinance. The method used in this study is a qualitativeanalysis method using the tool Analytical Network Process (ANP) is used to find the priority of problems, solutions and strategies for improvement of sharia microfinance institutions. The results of studies suggest that the improvement in sharia microfinance institutions have 4 aspects, those are the problems of the human resource aspects (SDI), infrastructure aspects, market aspects, and management aspects. Aspect of the priority issues in the sharia microfinance institutional improvement is a human resources (SDI), while the improvement solution of sharia microfinance institutional is an aspect of human resources(SDI) as well. Then the strategy which becomes a priority in the improvement of sharia microfinance institutions is the optimization of the board of sharia (DPS)

Like in many other developing countries, microfinance programmes in Myanmar have become an avenue to reduce poverty. This research examines whether microfinance in Myanmar has empowered female clients compared to non-microfinance clients, in terms of: (i) general decision-making (children’s education, family planning, children’s marriage, health care); and (ii) financial decision-making (income utilisation, loan usage, savings, investment). Primary data was collected using a questionnaire survey to achieve the research objectives. The sample of the survey consists of two groups of women living in the Ayeyarwady region, Myanmar: (i) Beneficiaries of microfinance programmes, and (ii) non-beneficiaries of any microfinance institutions. Female clients either started a new business or expanded/diversified an existing business using microfinance, which helped to increase income and savings. Overall, 89.8% of microfinance clients have gained significant empowerment (in making general and financial decisions combined). The discriminant analysis based on four indicators - children’s education, children’s marriage, savings, and investment - shows that the decision-making power of microfinance clients has improved compared to non-clients. The government should actively promote a microfinance ecosystem through robust microfinance institutional frameworks including, microfinance institutions, intermediaries, and local government agencies. Financial literacy awareness campaigns should be organised frequently to promote wider women’s participation in microfinance programmes.

Purpose The purpose of this study is to understand the operations of interest-free microfinance institutions, find the issues and recommend possible solutions in the Indian context. Design/methodology/approach This paper is based on the case study of Sanghamam Multistate Cooperative Credit Society. This research uses both primary and secondary data. The institution is assessed in terms of two major performance aspects, namely, outreach indicators and financial performance indicators. A brief comparative study of Sanghamam with the aggregate performance of the Indian microfinance industry has also been included. Findings It is found that Sanghamam has been successfully providing interest-free microfinance services in India. The performance of Sanghamam on selected industry benchmarks is in line with the performance of the Indian microfinance industry. However, a few issues such as potential liquidity risk, lower penetration in the poorer sections of the population, Shariah issues in the method of determination of service charges on demand loans and in the structure of group deposit scheme and profit-sharing business loans have been highlighted. Research limitations/implications Sanghamam is evaluated from only outreach and financial performance aspects and not from the aspect of the impacts of its services. Practical implications This study would help in documenting the operations of Sanghamam. Moreover, the recommendations provided, if implemented, would help Sanghamam in further growth. Social implications This study would help create awareness in the society about the practices of interest-free microfinance. Originality/value This paper highlights the interest-free microfinance practices in India that have not received the needed attention. The authors have discussed the key issues related to the interest free microfinance and recommended the possible solutions.

PURPOSE: In the era of globalization and competition in a vigorous market, micro and small enterprises (MSEs) look for sustainable growth by consuming diverse resources. Previous studies have identified that financial services of microfinance are essential drivers for SMEs’ survival. Yet, the feature role of other microfinance services, such as micro-credit, micro-savings, micro-insurance, training, and social networking, to achieve substantial growth of the MSE sector is still lacking, which explains why MSEs make such a small contribution to Pakistan’s economy. Therefore, the main purpose of the research is to consider the impact of microfinance services on the growth of MSEs in Pakistan, as MSEs are the most vulnerable group in the country and throughout the world. Moreover, this study also identified the mediating role of social and psychological capital in enhancing the productivity of microfinance services for MSEs. METHODOLOGY: 770 respondents from metropolitan cities in Pakistan were contacted for the survey, and the response rate was 64%. After screening the data, only 357 questionnaires appeared to be completed in all respects, so they were initially fed into the computer spread and then imported for further analysis. Structured questionnaires were used to collect the data from 357 micro and small enterprises operating in the developing market of Pakistan. Derived hypotheses were verified through Structural Equation Modelling (SEM) using AMOS 21. FINDINGS: The study’s findings revealed that microfinance services have an essential role in promoting MSE growth. Microfinance institutions’ services, such as micro-credit, micro-savings, micro-insurance, and training, play an important role in the development of MSEs. Moreover, social and psychological capital are the crucial factors that partially mediate the relationship between microfinance services and MSE growth in Pakistan. The limitation of this study is the adaptation of a crosssectional design to collect the data. Longitudinal research at different time frames may present diversified results. IMPLICATIONS: The study gives the impression that institutions of microfinance, practitioners, and other policymakers should enhance their perimeter to offer microfinance services and support group-based lending or training to maximize their social and psychological capital, through which MSEs may be able to attain substantial growth. ORIGINALITY/VALUE: This empirical study contributes to the literature on microfinance services and MSE growth by focusing on the mediating effect of social and psychological capital, and providing the foundation for further studies.

Microfinance institutions render essential services to start-up small, micro, medium-sized enterprises (SMMEs) by way of extending loans to entrepreneurs. SMMEs operating in South Africa have relatively better access to microfinance loans in comparison with those operating in Nigeria, Kenya and Ethiopia. A survey was conducted in order to compare the relative ease of access to microfinance loans in South Africa, Nigeria, Kenya and Ethiopia based on a survey conducted in the four Sub-Saharan African countries. The ease of access to microfinance loans was assessed based on criteria defined by Barry and Tacneng (2014). A total of 401 SMMEs participated in the study. Loan applicants were asked to provide answers to questions that indicated the ease of securing loans and meeting loan repayment conditions. Emphasis was placed on the demand for collateral as a requirement for extending loans to applicants, the assessment of entrepreneurial and auditing skills of loan applicants, the difficulty of meeting loan repayment conditions, and adherence to regulations and guidelines recommended by governments. Descriptive, bivariate and multivariate methods of data analyses were used for data analyses. The study found that about 21% of SMMEs were satisfied with the ease of securing loans, whereas the remaining 79% of SMMEs did not. The ease of access to microfinance loans varied by country in which South African loan applicants were the most satisfied in comparison with the remaining three countries. Securing microfinance loans, as well as fulfilling loan repayment conditions were easiest in South Africa, and most difficult in Ethiopia. In terms of ease of securing loans and meeting loan repayment conditions, the order of nations was ranked as South Africa, Nigeria, Kenya and Ethiopia. In all four countries, the ease of access to microfinance loans was influenced by country of business operation, extent of benefits realized by SMMEs, and highest level of formal education.

ABSTRAK Pengelolaan pembangunan desa islami adalah konsep pembangunan desa yang memiliki karakteristik tercapainya tujuan pembangunan sosial ekonomi yang berdimensi holistik, seimbang antara aspek material dan spiritual. Penelitian ini bertujuan untuk mengkaji pembahasan kajian-kajian terdahulu secara sistematis tentang konsep dan praktik pengelolaan pembangunan desa dalam perspektif islam. Dalam rangka melakukan review publikasi artikel secara sistematis, riset ini menggunakan standar protokol RAMESES. Hasil penelitian ini terbagi menjadi dua tema utama, yaitu peran dan fungsi lembaga keuangan mikro syariah dalam pembangunan desa dan Lembaga Swadaya Masyarakat dalam pengelolaan pembangunan desa. Tema pertama menghasilkan tiga subtema: praksis keuangan mikro syariah di Bangladesh, Malaysia, dan Indonesia. Tema kedua menghasilkan satu subtema yaitu peranan Pesantren dalam mendukung pengelolaan pembangunan desa. Hasilnya memberikan landasan untuk mengisi ruang-ruang yang belum dimasuki untuk membangun pengelolaan pembangunan desa yang komprehensif berdasarkan prinsip atau nilai Islam yang ideal. Kata kunci: Islami, Pengelolaan Pembangunan Desa, Systematic Literature Review. ABSTRACT Islamic village development management is a village development concept that has the characteristics of achieving socio-economic development goals with a holistic dimension, balanced between material and spiritual aspects. This study aims to systematically review the discussion of previous studies on the concepts and practices of village development management from an Islamic perspective. To conduct the article review systematically, this research was carried out using the RAMESES protocol standard. The results of this study are divided into two main themes, namely the role and function of Islamic microfinance institutions in village development and non-governmental organizations in managing village development. The first theme produces three sub-themes: the practice of Islamic microfinance in Bangladesh, Malaysia, and Indonesia. The second theme resulted in a sub-theme, namely Pesantren's role in supporting the management of village development. The results provide a foundation to fill in the gaps that have not been entered to build a comprehensive village development management based on ideal Islamic principles or values. Keywords: Islamic, Village Development Management, Systematic Literature Review. REFERENCES Abdullah, M. F., Amin, M. R., & Ab Rahman, A. (2017). Is there any difference between Islamic and conventional microfinance? Evidence from Bangladesh. International Journal of Business and Society, 18(S1), 97–112. Adejoke, A.-U. G. (2010). Sustainable microfinance institutions for poverty reduction: Malaysian experience. OIDA International Journal of Sustainable Development, 2(4), 47–56. http://dx.doi.org/10.2139/ssrn.1666023 Akhter, W., Akhtar, N., & Jaffri, S. K. A. (2009). Islamic micro-finance and poverty alleviation: A case of Pakistan. 2nd CBRC, Lahore, Pakistan, 1–8. Al-Jayyousi, O. (2009). Islamic values and rural sustainable development. Rural21, 39–41. Alwyni, F. A., & Salleh, M. S. (2019). Discourses on development and the Muslim world. International Journal of Business and Social Science, 10(11). https://doi.org/10.30845/ijbss.v10n11a16 Anwar, A. Z., Susilo, E., Rohman, F., Santosa, P. B., & Gunanto, E. Y. A. (2019). Integrated financing model in Islamic microfinance institutions for agriculture and fisheries sector. Investment Management and Financial Innovations, 16(4), 303–314. https://doi.org/10.21511/imfi.16(4).2019.26 Anwarul Islam, K. . (2016). Rural development scheme: A case study on Islami Bank Bangladesh Limited. International Journal of Finance and Banking Research, 2(4), 129. https://doi.org/10.11648/j.ijfbr.20160204.12 Aslam, M. N. (2014). Role of Islamic microfinance in poverty alleviation in Pakistan: An empirical approach. International Journal of Academic Research in Accounting, Finance and Management Sciences, 4(4), 143–152. https://doi.org/10.6007/ijarafms/v4-i4/1288 Bebbington, A., Dharmawan, L., Fahmi, E., & Guggenheim, S. (2006). Local capacity, village governance, and the political economy of rural development in Indonesia. World Development, 34(11), 1958–1976. https://doi.org/10.1016/j.worlddev.2005.11.025 Begum, H., Alam, A. S. A. F., Mia, M. A., Bhuiyan, F., & Ghani, A. B. A. (2019). Development of Islamic microfinance: A sustainable poverty reduction approach. Journal of Economic and Administrative Sciences, 35(3), 143–157. https://doi.org/10.1108/jeas-01-2018-0007 Begum, H., Alam, M. R., Ferdous Alam, A. S. A., & Awang, A. H. (2015). Islamic microfinance as an instrument for poverty alleviation. Advanced Science Letters, 21(6), 1708–1711. https://doi.org/10.1166/asl.2015.6123 Belton, B., & Filipski, M. (2019). Rural transformation in central Myanmar: By how much, and for whom? Journal of Rural Studies, 67(February), 166–176. https://doi.org/10.1016/j.jrurstud.2019.02.012 Bhuiyan, A. B., Siwar, C., Ismail, A. G., & Talib, B. (2011). Financial sustainability & outreach of MFIs: A comparative study of aim in Malaysia and RDS of Islami Bank Bangladesh. Australian Journal of Basic and Applied Sciences, 5(9), 610–619. Budiwiranto, B. (2009). Pesantren and participatory development: The case of the Pesantren Maslakul Huda of Kajen, Pati, Central Java. Journal of Indonesian Islam, 03(02), 267–296. Elwardi, D. (2018). The role of Islamic microfinance in poverty alleviation : Lessons from Bangladesh Experience. In MPRA Paper (No. University of Muenchen). Fatimatuzzahroh, F., Abdoellah, O. S., & Sunardi, S. (2015). The potential of pesantren in sustainable rural development. Jurnal Ilmiah Peuradeun, 3(2), 257–278. Retrieved from https://journal.scadindependent.org/index.php/jipeuradeun/article/view/66 Febianto, I., Binti Johari, F., & Zulkefli, Z. B. K. (2019). The role of Islamic microfinance for poverty alleviation in Bandung, Indonesia. Ihtifaz: Journal of Islamic Economics, Finance, and Banking, 2(1), 55. https://doi.org/10.12928/ijiefb.v2i1.736 Fianto, B. A., Gan, C., & Hu, B. (2019). Financing from Islamic microfinance institutions: Evidence from Indonesia. Agricultural Finance Review, 79(5), 633–645. https://doi.org/10.1108/AFR-10-2018-0091 Hassan, A. (2014). The challenge in poverty alleviation: Role of Islamic microfinance and social capital. Humanomics, 30(1), 76–90. https://doi.org/10.1108/H-10-2013-0068 Hassan, A. A., Qamar, M. U. R., & Chachi, A. (2017). Role of Islamic microfinance scheme in poverty alleviation and well-being of women implemented. İslam Ekonomisi ve Finansi Dergisi, 1, 1–32. Retrieved from http://dergipark.gov.tr/download/issue-file/11046 Hassan, A., & Saleem, S. (2017). An Islamic microfinance business model in Bangladesh: Its role in alleviation of poverty and socio-economic well-being of women. Humanomics, 33(1), 15–37. https://doi.org/10.1108/H-08-2016-0066 Hosen, M. N., & Fitria, S. (2018). The Performance of Islamic rural banks in Indonesia: 2010-2015. European Research Studies Journal, 21(Special Issue 3), 423–440. https://doi.org/10.35808/ersj/1393 Hudaefi, F. A., & Heryani, N. (2019). The practice of local economic development and maqāṣid al-sharī‘ah: Evidence from A Pesantren in West Java, Indonesia. International Journal of Islamic and Middle Eastern Finance and Management, 12(5), 625–642. https://doi.org/10.1108/IMEFM-08-2018-0279 Ibrahim, M., & Murtala, S. (2018). The Role of Islamic microfinance institutions in alleviating poverty in Bauchi State, Nigeria. International Journal of Service, Management and Engineering, 5(1), 9–22. Islam, M. T., Omori, K., & Yoshizuka, T. (2005). Rural development policy and administrative patterns in Bangladesh : A Critical Review. Bull. Fac. Life Env. Sci, 10, 19–26. Kazimoto, P., & Fukofuka, S. (2013). The financial management challenges on the village socio-economic development. International Forum, 16(2), 37–50. Khaleequzzaman, M., & Shirazi, N. S. (2012). Islamic microfinance - An inclusive approach with special reference to poverty eradication in Pakistan. IIUM Journal of Economics and Management, 20(1), 19–49. Kraus, S., Breier, M., & Dasí-Rodríguez, S. (2020). The art of crafting a systematic literature review in entrepreneurship research. International Entrepreneurship and Management Journal, 16(3), 1023–1042. https://doi.org/10.1007/s11365-020-00635-4 Laila, T. (2010). Islamic microfinance for alleviating poverty and sustaining peace. World Universities Congress, 1–9. Li, Y., Fan, P., & Liu, Y. (2019). What makes better village development in traditional agricultural areas of China? Evidence from long-term observation of typical villages. Habitat International, 83(October 2018), 111–124. https://doi.org/10.1016/j.habitatint.2018.11.006 Mamun, A., Uddin, M. R., & Islam, M. T. (2017). An Integrated approach to Islamic Microfinance for poverty alleviation in Bangladesh. Üniversitepark Bülten, 6(1), 33–44. https://doi.org/10.22521/unibulletin.2017.61.3 Mohamed, E. F., & Fauziyyah, N. E. (2020). Islamic microfinance for poverty alleviation : A systematic literature. International Journal of Economics, Management and Accounting, 28(1), 141–163. Muhammad Syukri Salleh. (2011). Islamic-based development for post-tsunami Aceh: A theoritical construct. Media Syariah: Wahana Kajian Hukum Islam Dan Pranata Sosial, 13(2), 163–168. Muhammad Syukri Salleh. (2015a). An Islamic approach to poverty management: The Ban Nua Way. International Journal of Contemporary Applied Sciences, 2(7), 186–205. Muhammad Syukri Salleh. (2015b). Islamic economics revisited: Re-contemplating unresolved structure and assumptions. 8th International Conference on Islamic Economics and Finance, (January). Mustari, M. (2014). The roles of the institution of pesantren in the development of rural society: A study in kabupaten Tasikmalaya, West Java, Indonesia. International Journal of Nusantara Islam, 1(2), 13–35. https://doi.org/10.15575/ijni.v1i1.34 Mustari, M. (2018). Institution of pesantren as a contributing factor in developing rural communities. Socio Politica, 8(1), 71–89. Nasrin, N., & Sarker, S. B. (2014). Disbursement and recovery of rural credit: A study on Rajapur Branch of Rupali Bank Limited. IOSR Journal of Business and Management, 16(11), 15–23. https://doi.org/10.9790/487x-161161523 Onakoya, A. B., & Onakoya, A. O. (2013). Islamic microfinance as a poverty alleviation tool: Expectations from Ogun State, Nigeria. Scholarly Journal of Business Administration, 3(2), 36–43. Organisation for Economic Co-Operation and Development (OECD). (2006). A paradigm shift in rural development. Rahim Abdul Rahman, A. (2010). Islamic Microfinance: An ethical alternative to poverty alleviation. Humanomics, 26(4), 284–295. https://doi.org/10.1108/08288661011090884 Rahim, S. A. (2017). Evaluation of the effectiveness of training programmes of Islami Bank Bangladesh Limited. Journal of Business and Retail Management Research, 11(3), 154–164. Rokhman, W. (2013). The effect of Islamic microfinance on poverty alleviation: Study in Indonesia. Economic Review – Journal of Economics and Business, XI(2), 21–30. Samsuddin, S. F., Shaffril, H. A. M., & Fauzi, A. (2020). Heigh-ho, heigh-ho, to the rural libraries we go! - a systematic literature review. Library and Information Science Research, 42(1). https://doi.org/10.1016/j.lisr.2019.100997 Satar, N., & Kassim, S. (2020). Issues and challenges in financing the poor: lessons learned from Islamic microfinance institutions. EJIF - European Journal of Islamic Finance, 1(15), 1–8. Shaffril, H. A. M., Ahmad, N., Samsuddin, S. F., Samah, A. A., & Hamdan, M. E. (2020). Systematic literature review on adaptation towards climate change impacts among indigenous people in the Asia Pacific Regions. Journal of Cleaner Production, 258, 120595. https://doi.org/10.1016/j.jclepro.2020.120595 Suzuki, Y., Pramono, S., & Rufidah, R. (2016). Islamic microfinance and poverty alleviation program: Preliminary research findings from Indonesia. Share: Jurnal Ekonomi Dan Keuangan Islam, 5(1), 63–82. https://doi.org/10.22373/share.v5i1.910 Uddin, T. A., & Mohiuddin, M. F. (2020). Islamic social finance in Bangladesh: Challenges and opportunities of the institutional and regulatory landscape. Law and Development Review, 13(1), 265–319. https://doi.org/10.1515/ldr-2019-0072 Umar, H., Usman, S., & Purba, R. B. R. (2018). The influence of internal control and competence of human resources on village fund management and the implications on the quality of village financial reports. International Journal of Civil Engineering and Technology, 9(7), 1526–1531. Wajdi Dusuki, A. (2008). Banking for the poor: The role of Islamic banking in microfinance initiatives. Humanomics, 24(1), 49–66. https://doi.org/10.1108/08288660810851469 Wong, G., Greenhalgh, T., Westhorp, G., Buckingham, J., & Pawson, R. (2013). RAMESES publication standards: Meta-narrative reviews. Journal of Advanced Nursing, 69(5), 987–1004. https://doi.org/10.1111/jan.12092 Xalane, M. A. E., & Binti Che Mohd Salleh, M. (2018). Poverty alleviation in Mogadishu, Somalia: The role of Islamic microfinance. Global Conference on Islamic Economics and Finance 2018, 60–80. Yudha, E. P., Juanda, B., Kolopaking, L. M., & Kinseng, R. A. (2020). Rural development policy and strategy in the rural autonomy era. Case study of pandeglang regency-indonesia. Human Geographies, 14(1), 125–147. https://doi.org/10.5719/hgeo.2020.141.8

The purpose of this paper is to provide theoretical explanation of business process reengineering performance using emerging themes of adaptability and knowledge management in the context of developing economies. The study used a narrative cross-sectional survey conducted using qualitative data collection technique, specifically the appreciative inquiry. The study used operations managers and senior executive managers to gather qualitative data from Uganda’s reengineered microfinance institutions to provide indepth explanation of business process reengineering performance. The authors find that adaptability, knowledge creation and knowledge sharing explain business process reengineering performance. The results suggest that business process reengineering be made mandatory to ensure sustainable competitiveness of the financial sector. The study provides novel insights of business process reengineering performance using a theory of change and a complexity theory. Methodological, theoretical, managerial and policy implications herein play pivotal role in bridging the knowledge gap that exists in Microfinance institutions of developing economies.

This study tries to review the research around Islamic microfinance institution. It uses descriptive statistical analysis based on selected 100 journal publications or paper related to Islamic microfinance institution, both national and international journal. The entire sample journal publications have published for ten years from 2007 to 2016. The Results show that Islamic microfinance institute research is still dominated by the discussion about Islamic microfinance institution (54%), followed by eradication of poverty (25%), then financing the poor societies (11%) and the last is about management of Islamic microfinance institution (10%). In addition, Indonesia, Malaysia and Pakistan are being the highest of Islamic microfinance study area, while the majority of publications area are from Indonesia, United States and United Kingdom. Furthermore, the comparison of quantitative research and mixed methods are still less than the qualitative approach.

Loan performance of microfinance firms has declined recently. This pattern compromises microfinance organizations sustainability, viability and hinders them achieving their objectives. The purpose of this study was to see how credit management strategies affected loan performance at Kenyan microfinance institutions. The particular objectives of the study were to assess the impact of credit policy, customer evaluation, collection policy, credit conditions, and credit risk management on loan performance. Thirteen Kenyan microfinance banks are the subject of this initiative. Financial Intermediation theory, Information Asymmetry theory, and Transaction Cost theory will be used in this research. The study employed a descriptive research approach. In this study, both primary and secondary data will be employed. The basic data will be evaluated using the statistical metrics of mean and standard deviation. A direct model will be used to evaluate the impact of credit management strategies on loan performance (without moderation) and a moderating effect (with moderation). It was also utilized inferential statistics with linear regression models. Structured questionnaires were utilized in primary data collection. Financial reports for Microfinance banks and supervisory reports from the Central Bank of Kenya (CBK) will be used for secondary data collection. The study found that that their firms conduct client appraisal. The study also found that client appraisals were effective. The study found that the firm checks at the client’s credit worthiness before issuing a loan. The study found that the bank has credit analyst whose work is appraise all potential loan customers who seek to borrow from the bank. There are various services providers contracted by the bank e.g. for credit tracking to help with tracking of vehicles used as collateral, insurance firms, law firms who assist in security perfection in case where land has been used as collateral, CRB firms who assist in giving information on clients CRB performance, company search firms e.g. credit info who assist in ascertaining the authenticity of companies belonging to clients who seek to borrow a loan from the firm. The study found that that the loan default rate is below 20%. The study also found that loan performance can be improved by calling customers frequently to remind them off their loans obligation particularly the perennial defaulters. Credit policy, client evaluation, collection policy, credit conditions, and credit hazard control were all huge on advance exhibition of microfinance banks in Kenya, as per the review, at a 5% degree of importance and a 95% degree of certainty. Their organizations perform customer assessment, as indicated by the review's discoveries. Client evaluations were also shown to be beneficial in the study. Before granting a loan, the business examines the client's credit worthiness, according to the research. Following are some recommendations based on the study's results and conclusions: On the impact of microfinance banks' credit policies and decision-making on loan performance, it is recommended that effective credit risk management procedures be developed and executed, particularly through credit risk management information systems. Keywords: Credit Management, Loan Performance, Microfinance

Non-bank Islamic microfinance institutions (BMT) are legal entity Cooperative have no instrument to fulfill liquidity needs as Islamic banking. Whereas the BMT should provide liquidity fund for the partners / members at any time. This article uses descriptive analytical method, to understand deeply the Tawarruq contract as liquidity management solutions Non-bank Islamic Microfinance Institutions (BMT). The results show the Tawarruq contract can be revitalized by necessity of the present to fulfill the liquidity needs of Non-bank Islamic Microfinance Institutions (BMT). Keywords: Tawarruq, Islamic Microfinance Institutions, BMT

Purpose The successful story of microfinance institutions is often tied to the practice and methods of credit delivery as evidence among international world class microfinance institutions across the globe. The purpose of this paper is to examine the impact of practice and methods of credit delivery employed by “non- profit” and “for-profit” microfinance institutions on financial sustainability and outreach programmes of the microfinance institutions in Nigeria. Design/methodology/approach The study adopts the survey research design and multi-stage stratified random sampling procedure to collect data from 372 senior management staff, managing directors and board members of microfinance institutions of both groups in Nigeria. Data collected were analyzed using descriptive statistics and multiple regressions analysis. Findings The findings suggest that the current practice and methods of credit delivery of microfinance in both “non-profit” and “for-profit” microfinance institutions have an inverse relationship with the financial sustainability and outreach programmes of the institutions. This study provides empirical evidence for the incessant failure of microfinance institutions in Nigeria. Research limitations/implications The study therefore recommends an immediate overhaul of the methodology and practice of microfinance institutions in the country to align with international best practice. Originality/value In spite of the huge literature on microfinance in Nigeria, there is not enough evidence to empirically prove that the practice of microfinance has affected the performance of the industry in Nigeria. This study sets out to fill that gap in the literature. The paper examines the practice of microfinancing in Nigeria vis-à-vis the performance of the microfinance institutions, categorized into NGO and microfinance bank “for-profit” institutions using international best practices from countries where microfinance is highly successful as a benchmark for deployment of microfinance in Nigeria, in order to proffer policy direction to stakeholders on steps to take to ensure viability in the microfinance subsector in Nigeria.

Over the last few years, more and more attention has been devoted to microfinance by academics and practitioners interested in development issues. This paper is part of this trend, as it tries to identify to what extent the corporate governance framework can be applied to microfinance organizations. Therefore, after considering some of the key issues, it tries to show how relevant these issues are to the microfinance industry.

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

This paper investigates investment performance of microfinance investment funds. The examined funds have recorded lower total risk than global stocks and bonds (measured by four benchmark indices) with moderate but stable returns. The analysis revealed that investment in microfinance investment funds that focus especially on debt instruments represents an attractive opportunity for the portfolio diversification as this asset class does not show any positive correlation with global or emerging capital markets. At the same time, it provides adequate risk-adjusted returns and may be therefore attractive not only for investors with a particular interest in the socially responsible aspect of investment into microfinance. Santrauka Šiame straipsnyje nagrinejamos investicijos i investicinius mikrofinansu fondus. Nagrinejami fondai yra žemesnes bendrosios rizikos nei pasaulio akcijos ir obligacijos (apskaičiuotos pagal keturis atskaitos rodiklius) su vidutiniška, bet stabilia graža. Analize parode, kad investavimas i investicinius mikrofinansu fondus, ypač i susijusius su isiskolinimo priemonemis, yra patraukli galimybe verslo portfolio diversifikacijai, nes ši turto kategorija nerodo jokios teigiamos koreliacijos su pasaulio ar naujomis kapitalo rinkomis. Tuo pačiu metu tai teikia adekvačia graža pagal rizika ir todel gali būti patrauklūs ne tik investuotojams, turintiems tam tikru interesu.

This paper studies microfinance and debt trap nexus. We have used an ethnographic approach, unstructured observation and interviews, to develop scenarios with the help of which we try to explain the phenomenon. Our research was carried out in DipKalaMoral, a small village located in Shikalbaha union under Karnaphuli Upazila of Chittagong in Bangladesh. We have found that excessive leverage through multiple borrowing lead to debt trap when households face unexpected income shocks due to economic cycle, unexpected weather (like heavy monsoon), wedding expenditure or paying dowry, and unexpected healthcare expenditure. In addition to that, we have found that informal money lenders tend to exploit households when households are heavily leveraged. Interestingly, we have identified a new phenomenon, ‘borrowing for others’ when households borrow from Micro Finance Institutions (MFIs) to lend money to others. A number of policy measures have been recommended which could be beneficial for policy makers and MFIs.

Purpose The purpose of this study is to use empirical findings to identify the different forms of accountability practices existing in Cameroon microfinance institutions (MFIs) and explore how such practices have evolved and institutionalised within the microfinance sector in Cameroon through time. Design/methodology/approach This study is designed to investigate if the institutionalised accountability practices within the microfinance sector in Cameroon are a cure or a curse for poverty alleviation. This study is based on the new institutional sociology (NIS) and on a case study approach and combines in-depth interviews and secondary data sources. Findings This study identifies three principal forms of accountability practices common with MFIs in Cameroon: dysfunctional, manipulative and dribbling accountabilities. Originality/value This paper is novel because it extends the NIS into the microfinance sector and explains how conflicting institutional pressures resulting from differences of accountability practices can be resolved and also exposes the unintended consequences of both resistance and passive actions of local actors on microfinance, the poor and poverty alleviation.

PurposeGlobally, women have been recognized as key contributors toward livelihood and poverty eradication, especially in developing countries in sub-Saharan Africa. This is due to their great involvement and participation in micro small and medium enterprises (MSMEs) that create employment and ultimately economic growth and development. Thus, the main purpose of this study is to establish the mediating role of social cohesion in the relationship between microfinance accessibility and survival of women MSMEs in post-war communities in sub-Saharan Africa, especially in Northern Uganda where physical collateral were destroyed by war.Design/methodology/approachThe data for this study were collected using a pre-tested semi-structured questionnaire from 395 women MSMEs who are clients of microfinance institutions in post-war communities in Northern Uganda, which suffered from the 20 years' Lord Resistance Army (LRA) insurgency. The Analysis of Moment Structures (AMOS) software was used to analyze the data and the measurement and structural equation models were constructed to test for the mediating role of social cohesion in the relationship between microfinance accessibility and survival of women MSMEs in post-war communities.FindingsThe results revealed that social cohesion significantly and positively mediate the relationship between microfinance accessibility and survival of women MSMEs in post-war communities in Northern Uganda. The results suggest that the presence of social cohesion as a social collateral promotes microfinance accessibility by 14.6% to boost survival of women MSMEs in post-war communities where physical collateral were destroyed by war amidst lack of property rights among women. Similarly, the results indicated that social cohesion has a significant influence on survival of women MSMEs in post-war communities in Northern Uganda. Moreover, when combined together, the effect of microfinance accessibility and social cohesion exhibit greater contribution towards survival of women MSMEs in post-war communities in Northern Uganda. Indeed, social cohesion provides the social safety net (social protection) through which women can access business loans from microfinance institutions for survival and growth of their businesses.Research limitations/implicationsThis study concentrated mainly on women MSMEs located in post-war communities in developing countries in sub-Saharan Africa with a specific focus on Northern Uganda. Women MSMEs located in other regions in Uganda were not sampled in this study. Besides, the study focused only on the microfinance industry as a major source of business finance. It ignored the other financial institutions like commercial banks that equally provide access to financial services to micro-entrepreneurs.Practical implicationsThe governments in developing countries, especially in sub-Saharan Africa where there have been wars should waive-off the registration and licensing fees for grass-root associations because such social associations may act as social protection tools through which women can borrow from financial institutions like the microfinance institutions. The social groups can provide social collateral to women to replace physical collateral required by microfinance institutions in lending. Similarly, the governments, development agencies, and advocates of post-war reconstruction programs in developing countries where there have been wars, especially in sub-Saharan Africa should initiate the provision of group business loans through the existing social women associations. This may offer social protection in terms of social collateral in the absence of physical collateral required by the microfinance institutions in lending. This may be achieved through partnership with the existing microfinance institutions operating in rural areas in post-war communities in developing countries. Additionally, advocates of post-war recovery programs should work with the existing microfinance institutions to design financial products that suit the economic conditions and situations of the women MSMEs in post-war communities. The financial products should meet the business needs of the women MSMEs taking into consideration their ability to fulfil the terms and conditions of use.Originality/valueThis study revisits the role of microfinance accessibility in stimulating survival of women MSMEs as an engine for economic growth in the presence of social cohesion, especially in post-war communities in sub-Saharan Africa where physical collateral were destroyed by war. It reveals the significant role of social cohesion as a social protection tool and safety net, which contributes to economic outcomes in the absence of physical collateral and property rights among women MSMEs borrowers, especially in post-war communities.

Microfinance is known as economic crisis manager of rural society. It provides the easy loan along with the skill of financial management and other orientation program. Microfinance is the friend of poor who always become ready to support the poor, marginalized and disadvantage communities. The study aims to identify the social impact of microfinance on the beneficiaries of Syangja district. The data collected were from the 385 beneficiaries of microfinance through structured questionnaire. The study has measured the impact of microfinance on education, healthcare, decision making power and women’s empowerment. There was significant impact observed on the social development of beneficiaries. This study had compared the changes between poor and non-poor as the national standard of poverty. There was significant association between poor and non-poor in the most of cases which had indicated significantly different effect of facilities provided by the microfinance.

We determine how Microfinance Banks (MFBs) impacts on entrepreneurship development in Nigeria. Data were collected through structured interview from entrepreneurs, Microfinance Bank managers and Regulators. The finding revealed that non-financial services of Microfinance Banks contribute to the survival of entrepreneurs and there is indication that Microfinance Banks enhance the productivity of entrepreneurship. This finding supports the evidence from the Central Bank of Nigeria (CBN) that there is an increase in total assets, Investment and Deposit Liabilities of MFBs in recent times. Beside this, respondents claimed that influence and control over entrepreneurships financing by Microfinance Banks should be view as partially effective. This result suggest that although Microfinance Banks in Nigeria are trying their best, there is need to put more effort in order to meet total demand of financing the entrepreneurships in Nigeria. We recommend that MFBs should assist their clients by providing training on credit utilization and the government should urgently tackle the problem of infrastructure development and maintenance.

This study aims to understand the cause-and-effect relationship between financial and non-financial measures under a balanced scorecard (BSC) model in the microfinance sector of Bangladesh. Structural equation modeling is employed to test non-financial relationships hypothesized under BSC model and one sample t-tests are conducted to further relate non-financial variables to the financial performance variable for two microfinance providers. While all non-financial variables share positive and significant relationships, findings show that customer perspective and internal business process factors are quite strong and more evident for Grameen Bank than a cooperative bank. As such, microfinance providers which will improve their non-financial perspectives can ultimately benefit from increased financial performance. The article draws attention to microfinance providers so that they can address shortcomings in their current performance measurement systems and identify mechanisms that can help them improve their financial performances. Implications and future directions are discussed too.