Microfinance Institutions (MFIs) provide loans to low income individuals. The credit scoring systems of MFIs, if they exist, are strictly financial. Although many MFIs consider the social impact of their loans, they do not incorporate formal systems to estimate this social impact. This paper...

This study explores the social entrepreneurial potential of the rule-breaking practices of microfinance programs’ beneficiaries. We empirically apply the positive theory of social entrepreneurship that views social entrepreneurship as a pursuit of neglected positive externalities. Using the...

En Afrique subsaharienne, les zones agricoles et rurales abritent plus de trois quarts de la population et contribuent pour la grande part à l’emploi, au PIB, aux recettes d’exportations et à l’offre alimentaire. Dès lors, le financement des activités qui se développent dans ces zones...

This paper identifies factors that explain why microfinance institutions are reaching more clients in some countries than in others. To that end, the paper applies a cross-country analysis on a unique dataset covering 115 countries. Results indicate that the microfinance sector is more present...

Avec plus de 59 millions de membres et encore en pleine croissance, les coopératives d’épargne et de crédit (coopec) dans les pays du Sud font pourtant l’objet de relativement peu d’attention au sein du secteur de la microfinance. Les principales critiques adressées à ces...

This paper focuses on the use of donor funds to finance MFIs. The role of donors in microfinance is rapidly evolving, particularly since the emergence of socially responsible and commercial investors. We argue that public policy should be designed to facilitate the entry of new private actors...

Product innovation in microfinance is aimed at responding to the variety of poor clients’ needs, i.e. to develop and sustain the offer of a range of client-led products. The paper describes innovative market-oriented products that combine flexibility features with financial discipline. Those...

This paper shines light on subsidy-dependent microfinance institutions (MFIs). Firstly, our model shows that subsidy uncertainty can have pervasive effects on MFIs’ poverty-reduction mission. In particular, we argue that supply-driven uncertainty can lead to mission drift. MFIs maximize...

Using data from 319 microfinance institutions (MFIs) in 68 developing countries, we study the degree to which international debt investments are related to the financial and social performances of MFIs. We find that commercial investments are mainly related to financial performance and level of...

This paper starts from the observation that 23% of the world’s microfinance institutions (MFIs) manage without subsidies. We examine how unsubsidized institutions cope with their social mission. Overall, the lack of subsidies worsens social performances. However, our results show that...