Paper

Alleviating Global Poverty through Microfinance: Factors and Measures of Financial, Economic, and Social Performance (Draft)

A study of the factors that fuel the success of microfinance institutions
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This paper aims to answer the following questions:

  • What are the primary determinants of success for microfinance institutions?
  • What are the appropriate measures of success?
  • Is the primary goal of microfinance institutions to provide access to capital to the poor or to provide additional income?
  • Is it necessary that borrowers are also able to improve living conditions that include better housing, nutrition, education, etc.?

In this regard, the paper examines:

  • The political and business environment;
  • The microfinance institutional leadership;
  • The strategy, structure and systems that manage the organization;,
  • Borrower characteristics.

The study:

  • Specifies the antecedents and consequences of investments in microfinance;
  • Examines the nature and amount of existing contributions,
  • Considers how to enhance the contribution of microfinance to the alleviation of global poverty;
  • Reviews literature;
  • Examines prior impact studies and data;
  • Interviews senior officers at Opportunity International;
  • Analyzes data and field interviews of microfinance activities in Ghana.

The study develops a microfinance contribution model that:

  • Articulates the antecedents and consequences of investments in microfinance to identify both the key success factors and the key performance indicators of microfinance success;
  • Includes a specification of the performance drivers and a set of measures for the inputs and processes that lead to success;
  • Develops a set of measures for both outputs and outcomes.

About this Publication

By Epstein, M., Crane, C.
Published