Microfinance: Does it Hold its Promises? A Survey of Recent Literature

Khawari, Aliya

doi:10.2139/ssrn.556213

Cited by 26 publications

(21 citation statements)

References 39 publications

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“…Financial sustainability states that MFIs must be able to cover their operating and financial costs using operating revenue (Morduch ). Khawari (: 7) wrote that ‘Sustainability is permanence’, implying that financially sustainable MFIs are able to exist indefinitely and serve the poor, hence an endless fight against poverty (Paul ).…”

Section: Literature Reviewmentioning

confidence: 99%

“…The role of microfinance in poverty alleviation cannot be over‐emphasized given a multiplicity of studies cementing the position microfinance occupies in improving the livelihood of the poor (Iezza , Khawari , Ayayi and Sene ). The poverty alleviation role of microfinance is hinged on the assumption that MFIs exist ‘eternally’ (financial sustainability) hence can register a consistent dent on poverty.…”

Section: Introductionmentioning

confidence: 99%

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

Bayai

Ikhide

2018

Ann Public Coop Econ

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This study analyses selected Southern Africa Development Community (SADC) Microfinance Institutions (MFIs) in delineating how commercialized financing structure relates to financial sustainability given the need to control poverty through financially sustainable MFIs. The study takes from a recent SADC microfinance survey which recommended financial rescue packages for ailing MFIs to proffer financial sustainability. This survey failed to specify the form of financing which supports financial sustainability in addition to the inconclusive and little evidence in this regard. We note that though the financing structure and the level of financial sustainability varies with countries, MFIs are generally financially unsustainable. A robust probit model framework affirms the role of financing structure on financial sustainability. Portfolio at risk, cost efficiency and costs linked to deposit attraction explain financial sustainability. We suggest the availing of more donations, upgrading risk management and improving cost efficiency to induce financial sustainability.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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

Bayai

Ikhide

2018

Ann Public Coop Econ

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“…Involved in subsistence activities the majority of the poor still finds it very difficult to break the cycle of poverty. In this regard, some have even questioned the effectiveness of financing schemes such as microcredit for the poor (Khawari, 2004;Morduch, 1998;The Economist, 2006). It is not surprising that most of the poor would prefer to work as an employee rather than try out their luck in business.…”

Section: Discussion and Recommendations For Renewing Company And Govementioning

confidence: 99%

The Bottom Of The Pyramid: Key Roles For Businesses

Habib

Żurawicki

2010

JBER

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The poor at the Bottom of the Pyramid (BOP) has traditionally been viewed as an unattractive segment for businesses. The lack of interest has led to various proposals to increase company participation. At the same time there is also a renewed focus on how to reduce or eliminate poverty. Companies are asked to seriously consider both objectives: making a profitable operation and eradicating poverty. For businesses, the poor can be viewed as consumers, suppliers, and employees.  Each of these areas presents different challenges which are discussed. Finally, recommendations are presented to address the issues and to make the companies more effective.

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“…The study mobilizes current literature in this field (Bygrave and Hofer, ; Khawari, ; Constantinou and Ashta, ; Ashta, ), including World Bank microfinance reports, Microcredit Summit Campaign reports (Daley‐Harris, , , , , ), and concrete mini‐case studies. It starts by analyzing the strengths and weaknesses of alternative funding modes characterized by weak presence and fragility.…”

mentioning

confidence: 99%