Microfinance institutions’ operational self-sufficiency in sub-Saharan Africa: empirical evidence
Abstrak
Abstract The topic of financial sustainability in microfinance institutions has become more important as an increasing number of Microfinance Institutions (MFIs) seek operational self-sufficiency, which translates into financial sustainability. This study aims to identify factors that drive operational self-sufficiency in microfinance institutions. To accomplish this, 416 MFIs in sub-Saharan Africa are studied and several drivers for operational self-sufficiency are empirically analyzed. Results indicate that these drivers are return on assets, and the ratios total expenses/assets and financial revenues/assets. The results imply that MFIs should encourage cost-management measures. They also reveal that there may not be a significant tradeoff in self-sufficiency and outreach. These findings will enable microfinance institutions worldwide to sharpen their institutional capabilities to achieve operational self-sufficiency and also provide policymakers with more focused tools to assist industry development.
Topik & Kata Kunci
Penulis (2)
Laxmi Remer
Hanna Kattilakoski
Akses Cepat
- Tahun Terbit
- 2021
- Sumber Database
- DOAJ
- DOI
- 10.1186/s40991-021-00059-5
- Akses
- Open Access ✓