Growing commercialization and competition in microfinance drives the focus of micro lenders from outreach per se to achieving financial sustainability in serving the poor. Such a goal can conflict with the traditional social mission of microfinance – outreach to the poor. In places where...

Using a stochastic frontier approach, we analyse the imposition of financial sustainability requirement on the traditional social mission of microfinance – outreach to the poor. We also address whether the way ownership is organised and practiced affects the costs of microfinance delivery....