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Female poverty and financial exclusion of women often reflect patriarchy, a societal logic that consists of norms, beliefs, and traditions that rationalise the marginalisation of women. Microfinance institutions (MFIs) have a developmental objective of promoting women’s empowerment through the provision of banking services. Yet, it remains the case that patriarchy not only influences the extent of outreach to women but also the relationship and contractual terms between MFIs and the female clients they serve. In this study, we revisit the debate on the relationship between lending to women and credit risk and test the moderating effects of the level of patriarchy in the host country and the existence of female leadership in the MFI. Using data on 415 MFIs, we find that patriarchy negatively moderates the impact of lending to women on credit risk. The results further show that the observed effect is less pronounced in female-led MFIs than in male-led ones. We argue that, in comparison to their male counterparts, female leaders of MFIs possess heightened skills and a deeper understanding necessary to effectively serve women in patriarchal societies. [ABSTRACT FROM AUTHOR]

This study investigated the influence of microfinance institutions (MFIs) on the development of micro and small enterprises (MSEs) in Kebridehar City Administration. The objective was to assess the role of MFIs in the growth of MSEs, specifically focusing on aspects such as loan provision, financial skills training, role modelling and savings mobilisation. The researchers collected data from 170 MSEs that utilised the services of MFIs, using both secondary and primary sources. Descriptive and inferential statistics were employed to analyse the data, revealing that loans, financial skills training, savings mobilisation and role modelling all had a significant impact on the growth of MSEs in the city. This study enhances our understanding of how these factors contribute to the development of MSEs. [ABSTRACT FROM AUTHOR]

The self‐sustainability of microfinance institutions (MFIs) is a growing concern as they work as non‐profit organizations to achieve global poverty reduction goals. This study aims to examine the MFIs' self‐sustainability using an efficiency measurement technique based on Data Envelopment Analysis (DEA). It also determines the influence of different financing sources on MFIs' self‐sustainability as well as the moderating impact of external governance on this relationship. It uses the Generalized Method of Moments (GMM) estimator to analyze the panel data from 661 MFIs in 86 countries during the 2010–2018 period. The DEA analysis reveals that MFIs are still in the intermediate stage of self‐sustainability in terms of technical and cost efficiency. The second‐stage regression results reveal that financing sources such as retained earnings and equity have a robust positive and statistically significant effect on the MFIs' self‐sustainability, implying that MFIs that rely more on these two sources are more likely to be self‐sustainable. The moderation analysis reveals that good governance accelerates the positive effect of financing sources on MFIs' efficiency. Given these empirical findings, MFIs' decision‐makers can benefit from considering their own funding and equity. Quality governance can be ensured by government agencies and regulatory bodies to support the MFIs' sustainability. [ABSTRACT FROM AUTHOR]

By utilizing data of 1,336 Microfinance Institutions (MFIs) from 91 emerging and developing countries for the period 2010–2018, this study investigates the non-linear/quadratic relationship between employee turnover and the depth of outreach of MFIs. The data were analysed using conventional panel data econometric tools and techniques. In general, the findings revealed that employee turnover has an inverted U-shaped relationship with the depth of outreach of MFIs when proxied by the proportion of female borrowers. The study outcomes imply that a low to moderate level of employee turnover is good for MFIs, as it may overcome organizational blindness and groupthink, and favours the replacement of unproductive and inefficient employees that lack social or human capital related to their job. However, after a certain threshold, employee turnover was observed to generate an adverse impact on the depth of outreach of MFIs. Therefore, the management of MFIs should give due consideration to ensuring an optimal level of employee turnover that is beneficial for the intended organizational goals. [ABSTRACT FROM AUTHOR]

Copyright of Mexican Journal of Economics & Finance / Revista Mexicana de Economia y Finanzas is the property of Instituto Mexicano de Ejecutivos de Finanzas and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

This study delves into the pivotal role of directors of microfinance banks in developing countries in implementing governance practices to ensure sustainability. As microfinance institutions strive to balance social impact with financial viability, effective governance emerges as a crucial factor for sustainable operations. The research investigates the strategies and frameworks adopted by directors of microfinance institutions to establish robust governance structures that promote long-term sustainability. Through comprehensive case studies and interviews with key stakeholders, the study identifies best practices and common challenges faced by microfinance bank directors in governance implementation. Key areas of focus include risk management, transparency, accountability, and stakeholder engagement. The findings highlight the critical importance of strong governance in mitigating risks, enhancing institutional credibility, and ensuring the alignment of financial and social objectives. Moreover, the research underscores the necessity for tailored governance models that consider the unique socio-economic contexts of developing countries. It reveals that adaptive governance strategies, which incorporate local cultural and regulatory nuances, significantly contribute to the sustainability and resilience of microfinance institutions. By bridging theoretical governance principles with practical implementation, this study provides actionable insights for directors seeking to enhance the sustainability of microfinance institutions. The implications of this research are far-reaching, offering valuable lessons for policymakers, practitioners, and academic scholars. It emphasizes the need for continuous capacity building and the development of governance frameworks that can evolve with the dynamic landscapes of developing economies. Ultimately, the study contributes to the broader discourse on sustainable development by elucidating how effective governance can empower microfinance institutions to drive socio-economic progress in developing countries.

This research investigated the performance of microfinance institutions (MFIs) with the focus of social media marketing as the predictor of the performance. The research was carried out in Dodoma City whereas a cross-sectional research design with involvement of 84 staff selected proportionately from MFIs’ strata was employed. Key informants were managers of the MFIs who were purposively selected. Data were collected using questionnaire and interviews. Analysis of qualitative data was undertaken by using adopting content analysis. Regarding quantitative data, application of descriptive statistics in form of percent, frequency and cases of occurrence in multiple responses fashion was carried out that was followed by further econometric analysis using and logit model to determine the performance of MFIs as contributed by social media as marketing strategies. The results indicated that WhatsApp, Instagram, Twitter and Facebook statistically were significant (p < 0.05) with positive relationship with increase in sales. The conclusion made from this research is that social media as marketing strategies positively influence the performance of MFIs. Serious investment in the usage of social media in marketing MFIs and their activities should be maximized for optimal performance.

Using the SCOPUS database, this paper conducts a systematic literature review to identify the drivers of financial profitability for both microfinance institutions (MFIs) and borrowers. Among the 174 papers reviewed, 39 addressed the profitability drivers of MFIs and borrowers. For, MFIs several factors stand out: financing for women and group credit, portfolio quality; client monitoring; appropriate active and passive interest rates; and control of operating costs. For borrowers, training in small business management; the generation of innovative and well-structured busi-ness ideas, access to microcredit and adequate passive interest rate, monitoring by MFIs and investment-focused credit, are found to drive profitability without jeopardizing their scope and depth of their operations. In this way the MFIs can grow and expand their services in a financially sustainable way, and better serve excluded individuals. These results may provide a valuable framework to MFIs and borrowers to consider in their activities. Additionally, the findings are valuable also to policymakers when designing microfinance policies aimed at poverty reduction. A possible conjecture resulting from this study is that the financial sustainability of microfinance does not lie in subsi-dization, but in the application of market rules. By identifying two sets of factors that drive profitability, for MFIs and for borrowers, this paper provides an interface that incorporates measurement indicators.

This research investigated the performance of microfinance institutions (MFIs) with the focus of social media marketing as the predictor of the performance. The research was carried out in Dodoma City whereas a crosssectional research design with involvement of 84 staff selected proportionately from MFIs’ strata was employed. Key informants were managers of the MFIs who were purposively selected. Data were collected using questionnaire and interviews. Analysis of qualitative data was undertaken by using adopting content analysis. Regarding quantitative data, application of descriptive statistics in form of percent, frequency and cases of occurrence in multiple responses fashion was carried out that was followed by further econometric analysis using and logit model to determine the performance of MFIs as contributed by social media as marketing strategies. The results indicated that WhatsApp, Instagram, Twitter and Facebook statistically were significant (p < 0.05) with positive relationship with increase in sales. The conclusion made from this research is that social media as marketing strategies positively influence the performance of MFIs. Serious investment in the usage of social media in marketing MFIs and their activities should be maximized for optimal performance. [ABSTRACT FROM AUTHOR]

Purpose. The purpose of this research is to propose a tool for designing a microcredit risk pricing strategy for borrowers of microfinance institutions (MFIs). Design/methodology/approach. Considering the specific characteristics of microcredit borrowers, we first estimate and measure microcredit risk through the default probability, applying a parametric technique such as logistic regression and a non-parametric technique based on an artificial neural network, looking for the model with the highest predictive power. Secondly, based on the Basel III internal ratings-based (IRB) approach, we use the credit risk measurement for each borrower to design a pricing model that sets microcredit interest rates according to default risk. Findings. The paper demonstrates that the probability of default for each borrower is more accurately adjusted using the artificial neural network. Furthermore, our results suggest that, given a profitability target for the MFI, the microcredit interest rate for clients with a lower level of credit risk should be lower than a standard, fixed rate to achieve the profitability target. Practical implications. This tool allows us, on the one hand, to measure and assess credit risk and minimize default losses in MFIs and, secondly, to promote their competitiveness by reducing interest rates, capital requirements, and credit losses, favoring the financial self-sustainability of these institutions. Social implications. Our findings have the potential to make microfinance institutions fairer and more equitable in their lending practices by providing microcredit with risk-adjusted pricing. Furthermore, our findings can contribute to the design of government policies aimed at promoting the financial and social inclusion of vulnerable people. Originality. The personal characteristics of microcredit clients, mainly reputation and moral solvency, are crucial to the default behavior of microfinance borrowers. These factors should have an impact on the pricing of microcredit. [ABSTRACT FROM AUTHOR]

We use a database composed of 2,545 Microfinance Institutions (MFIs) worldwide for the period 2008–18 to explore the effect of a larger share of women's workforce on both staff wages and overall monetary compensation within MFIs. MFIs are different from other industries, as they are traditionally women‐centered, i.e. they have a significant share of women employees at every level of the corporate hierarchy and mostly serve women clients. Applying both traditional estimation methodology and techniques aimed at accounting for possible endogeneity among the main variables, we find that a higher proportion of women on staff significantly increases the average expense per worker (which also includes the incentive components of remuneration) while the effects are considerably smoothed (or not significant) on the base salary. This leads us to conclude that, unlike what is seen in other sectors of the economy, MFIs do not pay women less. Yet, significant positive effects of women in the workforce, especially on average overall monetary compensation, suggest that women are likely to exploit their superior skills and/or gender affinity advantages with customers of the same gender to enhance MFIs' efficiency and profitability, thereby achieving higher incentive compensation, mostly in the form of bonuses and other benefits. [ABSTRACT FROM AUTHOR]

Using the SCOPUS database, this paper conducts a systematic literature review to identify the drivers of financial profitability for both microfinance institutions (MFIs) and borrowers. Among the 174 papers reviewed, 39 addressed the profitability drivers of MFIs and borrowers. For, MFIs several factors stand out: financing for women and group credit, portfolio quality; client monitoring; appropriate active and passive interest rates; and control of operating costs. For borrowers, training in small business management; the generation of innovative and well-structured business ideas, access to microcredit and adequate passive interest rate, monitoring by MFIs and investment-focused credit, are found to drive profitability without jeopardizing their scope and depth of their operations. In this way the MFIs can grow and expand their services in a financially sustainable way, and better serve excluded individuals. These results may provide a valuable framework to MFIs and borrowers to consider in their activities. Additionally, the findings are valuable also to policymakers when designing microfinance policies aimed at poverty reduction. A possible conjecture resulting from this study is that the financial sustainability of microfinance does not lie in subsidization, but in the application of market rules. By identifying two sets of factors that drive profitability, for MFIs and for borrowers, this paper provides an interface that incorporates measurement indicators. [ABSTRACT FROM AUTHOR]

Since the institutionalization of microcredit as the flagship poverty alleviation program, its potential has been under constant scrutiny by practitioners and researchers. This article extends previous work by analyzing two issues: (a) whether microcredit has the potential to alleviate poverty and (b) whether the conclusion drawn from the first issue is sensitive to interest rate variations. We first theoretically show that there is reason to believe that microcredit has the potential to change the fortunes of poor communities. However, the direction of the change in fortunes is uncertain and depends on how costly microfinance institutions' financial services are perceived by the poor. We then test these theoretical assertions against data collected from 568 individuals from Northern Pakistan. By comparing various sub-groups using Ordinary Least Square and Binary Logistic regression analysis, our results reveal that higher interest rates more than offset the positive effects of microcredit on clients' income. We also discuss policy implications of the findings. JEL Classification : I30, G21, C61, E64. Plain language summary: This article addresses whether microcredit has the potential to alleviate poverty, and whether the conclusion derived to the first issue is sensitive to interest rate variations. For the purpose data were collected from six tehsil of Lower Dir Khyber Pukhtunkhwa, Pakistan and four MFIs. They are, Agricultural Development Bank/Zarai Taraqiati Bank (ZTBL), Bank of Khyber (BOK), Association of Behavioral Knowledge Transformation (ABKT), and Helping Hand (HH). The first two charge interest rate on loans while the later ones extend grants based on micro loan. Client of all these institutions are in thousands but 567 household received loan in the last 5 years. We found that the change in fortune can be in any direction, depending on how costly the financial services of the microfinance institutions are felt by the poor. Before closing, it is imperative to mention that the present study is conducted in one district of Khyber Pakhtunkhwa and do not cover the entire MFIs and NGOs of Pakistan. Moreover, the sampling method employed for data collection was convenient sampling and not random sampling. Hence further research with more sophisticated designs is needed to cover more MFIs and districts across Pakistan. [ABSTRACT FROM AUTHOR]

Economic freedom has central importance among the nations, however, Chinese economic freedom index declining continuously, leading to the several issues. Particularly, economic freedom is low among the Chinese female population. The world average of economic freedom index in 2022 based on 175 countries is 60 index points, but the Chinese index is 48. To address this issue, this study introduced green microfinance institutions based on Mayoux’s Feminist Empowerment Theory. The objective of this study is to examine the role of green microfinance institutions in women economic freedom in China. A survey questionnaire is used to collect data from female clients of microfinance institutions. 315 respondents responded to the survey and data analysis is carried out by using Structural Equation Modeling (SEM). Results of the study identified that, green microfinance institution’s services such as credit and insurance can facilitate green micro enterprises. The promotion of green micro enterprises causes to increase women economic security, leading to the economic freedom. Additionally, green microfinance policy is a critical factor to promote the positive relationship between green microfinance institution’s services and women economic freedom. Findings of this are helpful for the practitioners to increase women economic freedom in China by providing various services of green microfinance institutions. [ABSTRACT FROM AUTHOR]

Purpose: The paper explores the beliefs and perceptions of microfinance institution (MFI) managers about environmental threats and the role that green microfinance can play in mitigating them, to assess their influence on these institutions' engagement in green activities. Design/methodology/approach: Drawing on protection motivation theory, the study follows a qualitative case study approach, focusing on the MFIs of the developing country of Cabo Verde. Findings: Findings indicate that MFI managers understand and are aware of the environmental threats and identify their customers as the most vulnerable to them. They seem motivated to increase their green activity in the future as it is generally seen as effective in mitigating the problems. However, their response capacity is hindered by limitations such as a lack of financial conditions and technical environmental knowledge. Social implications: MFIs play an important role in promoting self-employment and breaking the poverty cycle, but their funds are also often used to develop environmentally damaging practices. Green microfinance can contribute to targeting a triple bottom line; considering together people, profit and the planet, provided implementation challenges are addressed. Originality/value: Although the environmental behaviour of MFIs has been previously studied, the understanding of the core beliefs of MFI managers that can support their environmental actions is still limited. Thus, the study contributes to advancing the knowledge of green microfinance by considering individual-level factors in understanding organisational greening. [ABSTRACT FROM AUTHOR]

Purpose: This paper examine whether social performance moderates the linkage between financial risk and financial performance in microfinance institutions (MFIs). The study focuses on the financial self-sufficiency and long-term sustainability of MFIs. Design/methodology/approach: The empirical study uses unbalanced panel data of 2,694 worldwide MFIs from 2009 to 2019. In the first step, the study inspects the impact of social performance and risk on financial performance, proxied as return on assets and operational self-sufficiency. In the second stage, moderated hierarchical regression is applied to test whether social performance moderates the relationship between risk and financial performance. Lastly, the study confirms the significant moderation effects with slope tests. Findings: The study detects robust evidence that financial risk is negatively related to financial performance. Though social performance exhibits a weak positive link with financial performance in silos, the evidence of its moderating effects on risk is mixed and significant. Social performance indicators, such as the borrower retention rate and female representation, positively moderate the relationship between financial risk and financial performance. The study documents that social performance impacts financial performance and operational self-sufficiency through risk moderation. Thus, social performance fosters the sustainability of these institutions over the long haul. Research limitations/implications: The study is relevant to academics and theorists to consider the stakeholder approach in microfinancing. In the context of stakeholder theory, the study advances the specific social responsiveness process, namely stakeholder engagement. Practical implications: The evidence that socially sensitive operations can curtail the adverse effects of credit risks on financial performance signify the required attention to social performance. For MFI managers and practitioners, the findings justify the business case for social performance. Stakeholder engagement, under the auspices of social responsiveness, acts as a risk-mitigation mechanism to eventually foster financial performance and self-sufficiency. Social implications: The study motivates MFIs to do more for their stakeholders and society by highlighting the benefits of social performance. Originality/value: The study reaffirms that social performance remains at the epicenter of the MFIs' mission and is an essential risk mitigation mechanism. The study adds to the extant literature on stakeholder engagement and its effects on MFIs. [ABSTRACT FROM AUTHOR]

This study delves into the pivotal role of directors of microfinance banks in developing countries in implementing governance practices to ensure sustainability. As microfinance institutions strive to balance social impact with financial viability, effective governance emerges as a crucial factor for sustainable operations. The research investigates the strategies and frameworks adopted by directors of microfinance institutions to establish robust governance structures that promote long-term sustainability. Through comprehensive case studies and interviews with key stakeholders, the study identifies best practices and common challenges faced by microfinance bank directors in governance implementation. Key areas of focus include risk management, transparency, accountability, and stakeholder engagement. The findings highlight the critical importance of strong governance in mitigating risks, enhancing institutional credibility, and ensuring the alignment of financial and social objectives. Moreover, the research underscores the necessity for tailored governance models that consider the unique socio-economic contexts of developing countries. It reveals that adaptive governance strategies, which incorporate local cultural and regulatory nuances, significantly contribute to the sustainability and resilience of microfinance institutions. By bridging theoretical governance principles with practical implementation, this study provides actionable insights for directors seeking to enhance the sustainability of microfinance institutions. The implications of this research are far-reaching, offering valuable lessons for policymakers, practitioners, and academic scholars. It emphasizes the need for continuous capacity building and the development of governance frameworks that can evolve with the dynamic landscapes of developing economies. Ultimately, the study contributes to the broader discourse on sustainable development by elucidating how effective governance can empower microfinance institutions to drive socio-economic progress in developing countries. [ABSTRACT FROM AUTHOR]

Purpose: Despite being a Muslim-dominated country, Bangladesh has widely embraced traditional microfinance since its inception in the mid-1970s. However, Islamic microfinance, which has a lot to offer to the poor, is still in its infancy and has yet to gain momentum in the country. Therefore, the purpose of this study is to analyze the importance of Islamic microfinance and propose alternative Shariah-compliant microfinance models in Bangladesh. Design/methodology/approach: This study is based on the desk research method, which relies on existing literature to collect secondary data on key concerns of traditional microfinance programs. In addition, institutional-level secondary data were also collected from the Microcredit Regulatory Authority (MRA) of Bangladesh. Guided by the Maqasid-al-Shariah, this study then proposes several Islamic microfinance models to overcome selected challenges faced by the microfinance industry in Bangladesh. Findings: This study suggested three composite Shariah-compliant microfinance models, which are likely to help the underprivileged and thus ensure the achievement of the sustainable development goals in Bangladesh. The first model explained how the operational strategy of incumbent microfinance institutions (MFIs) could be restructured, while the second proposed the organizational strategies for establishing a new MFI. The third model used the notion of Sadaqah (charity) to address the multiple borrowing issues of the industry. Meanwhile, the successful transformation of the conventional microfinance industry to an Islamic one is dependent on the effective collaboration between the regulatory authorities, practitioners and MFIs. Originality/value: Albeit the paucity of literature on the topic, the findings of this study will guide policymakers/practitioners in designing relevant microfinance models to help transform conventional microfinance into Islamic microfinance in Bangladesh. [ABSTRACT FROM AUTHOR]

Drawing from 645 microfinance institutions across 56 countries, this paper examines the deposit‐borrowing dynamic of microfinance institutions' source of capital. We find that deposits and borrowings are substitutes rather than complements. We further find that the degree of substitutability is more pronounced among microfinance institutions operating in a developed financial sector where the level of information asymmetry is lower. Our findings represent novel contribution in understanding microfinance institutions' funding behaviour that supports its quest for further growth and long‐term sustainability. [ABSTRACT FROM AUTHOR]

The Micro, Small and Medium Enterprises (MSME) sector plays a vital role in the growth of the economies of developing countries. Similarly, microfinance facilities are crucial to MSMEs financial performance as they facilitate the growth and development of MSMEs. This study, therefore, investigates the effects of microfinance on MSME performance in Jos metropolis of Plateau State. The research design is descriptive and employs the survey method. Simple random sampling technique was adopted as a technique in selecting the 323 MSMEs that form the sample size of the study. A structured questionnaire was used in the collection of relevant data used for analysis. Data was presented through the use of frequency tables and Chi-square test was used to carry out the analysis. The study found that microfinance has a positive effect on sales revenue and profitability and non-current assets. The study recommends creating awareness especially for women on the importance of microfinance in entrepreneurship development. The study also recommends that the Plateau State government should set up and implement policies that will ease access to microfinance credit by MSMEs, especially from microfinance banks. The study also recommends the granting of more loans to women to increase the number of women engaged in entrepreneurship activities within Jos metropolis. [ABSTRACT FROM AUTHOR]

Non-communicable diseases (NCDs) are a major contributor to the global burden of disease, increasingly impacting low-income and marginalised populations in low- and middle-income countries such as Sri Lanka. Microfinance could be a potential approach to target NCDs. Using an ethnographic approach with thematic analysis, this study explored the nexus between microfinance and NCD outcomes. In-depth interviews were conducted with 29 micro-loan borrowing women across 15 field sites within Puttalam district in Sri Lanka. The findings revealed that perceived increases in income from microfinance loans contributed to enhanced household health savings ability, enabling the purchase of medicines bought out-of-pocket and from privately owned pharmacies, and spending for NCD-relevant health emergencies and health-related transportation. Additionally, perceived income increases also influenced the behavioural risks, including the spending and consumption of food, and physical activity levels, both positively and negatively. The microfinance networks also influenced women’s perceived social support, psychological stress and coping mechanisms, and health information transmission, positively and negatively. The findings from this study provide important insights on how financial inclusion programs such as microfinance influence the health determinants and outcomes relevant to NCDs. This can help address ways to target both NCDs and inequities of socioeconomically disadvantaged and marginalised populations, particularly women.

The purpose of this study is to examine the impact of need for achievement (NFA) and board creativity on financial performance. Furthermore, it attempts to investigate the mediating role of board diversity between need for achievement and financial performance. The assessment and estimation of how need for achievement and board creativity is associated with financial performance has not been previously provided. Using a self-administered survey to sample the Tanzanian microfinance institutions (MFI), the research measurement scale was adopted from previous studies, and data were collected from 189 MFIs. Drawing from McClelland, Institutional, Upper Echelons and agency theories’ insights, the proposed conceptual model and associated hypotheses were formulated and tested using structural equation modeling. The empirical findings indicate that the need for achievement has a positive significant direct impact on financial performance. Also, the need for achievement has a positive significant impact on board creativity. Furthermore, board creativity has a positive significant impact on financial performance. Moreover, the study finds that board creativity positively mediates the relationship between need for achievement and financial performance. Therefore, this study has several empirical, theoretical, and practical implications and recommendations regarding the corporate governance literature, finance, and entrepreneurship practices.

The Sustainable Development Goals (SDGs) emphasize promoting and protecting women's rights and privileges. As a result, an increasing body of academic literature describes the various actions taken by different stakeholders to empower women. Amongst the initiatives implemented in many nations, microfinance and financial inclusion programs play a major role. This article aims to present an overview and synthesis of the research on the notion and practices of microfinance and its influence on entrepreneur women's empowerment. In order to do so, this study uses bibliometric techniques over a selection of papers extracted from the Web of Science database, to disentangle the knowledge structure of this academic field. According to our findings, the study of microfinance and women's empowerment is growing, with 470 publications, 963 authors, 67 nations and 36 research areas. Research topics include poverty reduction, gender issues in entrepreneurship, microfinance and women empowerment, and women in microcredit. An additional bibliographic coupling analysis has revealed the hottest research topics, showing the main gaps in the literature that suggest potential directions for future research.

Microfinance institutions (MFIs) are critical in providing financial services to low-income individuals in developing countries, but challenges such as inadequate infrastructure, limited resources, and low financial literacy have affected effective service delivery. In Ghana, MFIs have adopted information and communication technology (ICT) and mobile banking/money solutions to address these challenges. This study uses qualitative and quantitative research methods to explore the impact of integrating ICT and mobile banking/money adoption on the efficiency, growth, and outreach of MFIs in Ghana. The findings reveal that the integration of ICT and mobile banking/money adoption positively impacts the efficiency, growth, and outreach of MFIs, loan repayment rates, and financial inclusion. However, effective utilization and adoption of these technologies face barriers such as limited ICT infrastructure, a lack of technical expertise, and insufficient awareness of the benefits of these technologies. Furthermore, the study shows that integrating ICT solutions into microfinance operations has a significant positive relationship with MFIs' growth and customer satisfaction rates. The study contributes to the literature on the adoption of ICT solutions in microfinance operations and provides insights into how MFIs can integrate ICT solutions into their operations to enhance their performance. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Small Business & Entrepreneurship is the property of Routledge and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Abstract This study aims to consolidate the available knowledge on gender diversity and its impact on the dual performance (social and financial) of Microfinance Institutions (MFIs). We specifically focus on MFIs due to their distinctive nature compared to other industries, being traditionally women-centered and having a substantial representation of women employees across all levels of the corporate hierarchy. To conduct this comprehensive analysis, we employed a systematic review approach, meticulously selecting 24 relevant papers from the Scopus and Web of Science databases. Our findings revealed that research on gender diversity in MFIs primarily focuses on the board level. However, existing studies present conflicting results, suggesting that the impact of gender diversity on MFI performance is nuanced and complex. This complexity stems largely from the varying roles women play within the organizational structure. Furthermore, our analysis highlights the influence of additional factors, such as the database used, the study's context, and its geographical location, on the reported outcomes. Notably, research on gender diversity at the managerial and loan officer levels remains scarce, presenting a significant gap in the current body of knowledge. To further illuminate this field, this study identifies the most influential papers on the topic of gender diversity in microfinance. Additionally, we provide a co-authorship network analysis, visualizing the connections between existing research. This analysis provides valuable insights and inspiration for future research endeavors in this critical area.

Promoting gender diversity at different organizational levels remains one of the hotly debated issues in recent years. Motivated by the paucity of research in this area, our study aims to investigate the impact of female managers on the credit risk of microfinance institutions (MFIs). We have collected data from 1004 unique MFIs across 96 countries, covering the period of 2010 to 2018, using the World Bank Mix Market data catalog. The data were then analyzed using several conventional tools and techniques, including endogeneity‐corrected estimators. The findings revealed that the presence of female managers lowers the credit risk of MFIs. The result mostly remains consistent and robust across different techniques and proxies. Therefore, promoting gender diversity at the managerial level could promote the long‐term sustainability of MFIs. [ABSTRACT FROM AUTHOR]

Research Question/Issue: This study investigates the impact of family governance, including founder directors and their ties to family members on the board, on the social performance of microfinance institutions (MFIs), a special kind of social enterprise with dual objectives. Research Findings/Insights: Using a dataset of 735 MFIs operating in Bangladesh from 2007 to 2017, we find that founder directors and board members with family ties to the founder have an adverse impact on MFIs' social performance. These findings hold when we perform several robustness tests and endogeneity tests. Theoretical/Academic Implications: We contribute to the corporate governance literature on MFIs and social enterprises in two ways. First, our findings suggest that, when MFIs are confronted with dual performance objectives, founder directors may "trade off" social outcomes in favor of economic outcomes and therefore adversely affect MFIs' social performance. Second, our findings extend the literature by showing that the presence of board members with family ties to founder directors also adversely affects MFIs' social performance. Practitioner/Policy Implications: This study suggests that MFIs' board composition influences their governance and ability to oversee their social and financial performance effectively. If MFIs' social performance is a major concern of national policy makers, then regulation should be put in place to limit board recruitment with family ties. [ABSTRACT FROM AUTHOR]

Maintaining an optimal level of liquidity remains a crucial agenda for firms to minimise liquidity risks. Therefore, the study aims to identify the drivers of liquidity by utilizing firm-level data of 1,544 microfinance institutions (MFIs), covering a total of 112 developing countries and a period of 2010–2018. The data were then analysed using conventional econometric tools and techniques. Among others, the study found that board size, portfolio quality, donations and size of MFIs have a positive effect on the liquidity of MFIs, while gender diversity at the board level, operational self-sustainability, staff productivity, legal status and gross domestic product (GDP) growth revealed a negative effect. After conducting several robustness checks, including alternative proxies, sub-samples and endogeneity-corrected techniques, our findings remain mostly consistent. Policy implications are further discussed. [ABSTRACT FROM AUTHOR]

Non-communicable diseases (NCDs) are a major contributor to the global burden of disease, increasingly impacting low-income and marginalised populations in low- and middle-income countries such as Sri Lanka. Microfinance could be a potential approach to target NCDs. Using an ethnographic approach with thematic analysis, this study explored the nexus between microfinance and NCD outcomes. In-depth interviews were conducted with 29 micro-loan borrowing women across 15 field sites within Puttalam district in Sri Lanka. The findings revealed that perceived increases in income from microfinance loans contributed to enhanced household health savings ability, enabling the purchase of medicines bought out-of-pocket and from privately owned pharmacies, and spending for NCD-relevant health emergencies and health-related transportation. Additionally, perceived income increases also influenced the behavioural risks, including the spending and consumption of food, and physical activity levels, both positively and negatively. The microfinance networks also influenced women's perceived social support, psychological stress and coping mechanisms, and health information transmission, positively and negatively. The findings from this study provide important insights on how financial inclusion programs such as microfinance influence the health determinants and outcomes relevant to NCDs. This can help address ways to target both NCDs and inequities of socioeconomically disadvantaged and marginalised populations, particularly women. [ABSTRACT FROM AUTHOR]

The growth and financial sustainability of a firm is tied to its ability to retain existing and potential clients. On the contrary, the defection of customers has a huge implication on firms including microfinance institutions (MFIs), suggesting that the attainment of customer loyalty is an important strategy for MFIs to improve their performance. Hence, this study attempts to investigate the level of loyalty demonstrated by rural microfinance borrowers toward their respective service providers. To accomplish this, an unbalanced panel data, comprising 1101 unique MFIs and spanning the timeframe 2010–2018, were obtained from the World Bank database and thereafter subjected to conventional econometric techniques and a series of robustness tests, including endogeneity‐corrected methods, alternative proxies, and sub‐sample analyses. The findings indicate that rural microfinance borrowers generally demonstrate loyalty to their service providers, particularly when measured by borrower retention rates; however, these findings vary with the adopted techniques, sub‐samples, and proxies employed during the analysis. [ABSTRACT FROM AUTHOR]

This study was conducted to find out common knowledge in the empirical literature pertaining to the performance and efficiency of microfinance institutions (MFIs), as well as the areas that require more attention for future research. The systematic literature review (SLR) technique was applied and the article selection and findings were reported according to the PRISMA guidelines. 69 empirical journal articles between 2013 and 2023 were included from Scopus database. (1) Efficiency of MFIs (Financial & Social efficiency) (2) performance of MFIs (Social & Financial Performance), (3) sustainable performance of MFIs, were identified as the three most common knowledge clusters. The review established that efficiency and conventional performance analysis of MFIs differ in methodologies and perspectives. Further, it was found that performance assessment, efficiency measurement, productivity, sustainability, and outreach of MFIs are infrequently investigated areas. Financial efficiency, social efficiency, financial performance, and social performance of MFIs were also identified as averagely investigated, creating avenues for more future studies. Thus, the study emphasized the need for further research diversifying perspectives on overall MFI performance to ensure lasting success.

Purpose – The purpose of this paper is to evaluate the performance of Microfinance Institutions (MFIs) offering FinTech services. This study contributes to the existing literature on microfinance digitalization, financial inclusion and sustainable development. The study also takes into consideration a behavioral perspective through the efficiency evaluation process of MFIs offering FinTech services. Design/methodology/approach – The following study employs the Stochastic Frontier Analysis approach to estimate the operational and social efficiency scores of the 387 MFIs over the period 2005–2019. Then, it tries to consider factors influencing MFIs' efficiency and assess their effects. Hence, two separate models for operation and social efficiency introducing a set of factors, including FinTech proxies and overconfidence proxies, are tested. The first model for operational efficiency uses a random-effects estimator while the second one for social efficiency uses a fixed-effects estimator. Findings – The results show that innovative MFIs have weaker averages of operational efficiency than non-innovative ones but higher averages of social efficiency. This was justified by the fact that innovative MFIs are more socially oriented. Further, findings of this study depict that the proxies of FinTech affect negatively the level of operational efficiency of MFIs. They also depict a negative relationship between FinTech proxies and the level of social efficiency. These results hold through robustness tests. Originality/value – The highlight of this study is that it takes heed of the indirect effect of technological innovation on the efficiency of MFIs. It has been proved that it moderates the impact of managerial overconfidence (manifested by excessive risk-taking, viz., high levels of PAR30, LGR and NIM) on the level of both operational and social efficiencies. 研究目的 – 本文旨在對提供金融科技服務的微型金融機構的表現作出評價。我們的研究, 就現有之學術文獻而言, 在以下課題之探討上作出了貢獻: 微型金融的數字化、普惠金融、以及可持續發展。本研究亦以行為主義觀點, 對微型金融機構提供之金融科技服務的效率作出評價。 研究方法 – 本研究使用隨機邊界分析法的理念, 去估計有關的387間微型金融機構於2005年至2019年期間、經營方面和社會方面的效率分數; 繼而嘗試找出影響微型金融機構效率的因素, 並評估這些因素的影響。為此目的, 研究人員分別測試兩個模型, 一個是探究運作方面的效率, 另一個則探究社會方面的效率。兩個模型內均放入一系列的因素, 其中包括金融科技代理和過度自信代理。探究運作方面的效率的模型使用了隨機效果估算器, 而探究社會方面的效率的模型則使用了固定效果估算器。 研究結果 – 研究結果顯示、具創新精神的微型金融機構, 在運作方面的效率的平均值上,較沒具創新精神的為弱, 而社會方面的效率的平均值卻較高。這個結果是合理的, 因為具創新精神的微型金融機構會更著眼於社會。另外, 研究結果描繪了一個現象, 就是: 金融科技代理會對微型金融機構的運作效率水平產生負面影響; 我們也看到、金融科技代理與社會方面的效率水平之間的關聯是負面的; 這些研究結果、均通過穩健性檢驗。 研究的原創性 – 本研究最突出之處為研究人員關注科技之創新會間接影響微型金融機構的效率。研究人員證明了於微型金融機構整合金融科技服務是會緩和管理上的過度自信給運作和社會兩方面的效率水平帶來的影響 (管理上的過度自信、顯露於過度的風險承擔, 即是, PAR30(貸款組合風險-30日)、LGR(貸款增長率) 和NIM(淨息差) 處於高水平)。

Abstract Gender equality and women’s empowerment are major concerns under Goal 5 of the United Nations' Sustainable Development Goals to be achieved by 2030. Therefore, microfinance institutions in developing nations have been working on these issues by providing loans to married women and others in need. As a result, this paper focuses on one such microfinance institution in Ethiopia, called ACSI (Amhara Credit and Saving Institution), and its role in fostering economic independence for married women and their involvement in various public social schemes. The study utilized a qualitative approach, collecting data through in-depth interviews (26), focus group discussions (1), and life histories from ACSI experts (4) and key informants from Women's and Children's Affairs (6). Specifically, the study focused on married women in Basona Werana Woreda and examined the impact of ACSI's credit services on their social conditions. The empirical findings of the study reveal that the social condition of married women clients has improved due to the credit services provided by ACSI. Women's social empowerment indicators have shown positive changes after utilizing the credit services. However, the study also identified challenges faced by the institution, such as a lack of adequate transportation means and a shortage of personnel to reach remote residents and fulfill their mission of improving the situation of vulnerable low-income and productive poor resident women. Additionally, cultural attitudes pose significant challenges to the social empowerment of women. The empirical implementation of this study provides insights into the achievements and hurdles that need to be addressed in enhancing economic security for married women through microfinance initiatives.

Purpose. The purpose of this research is to propose a tool for designing a microcredit risk pricing strategy for borrowers of microfinance institutions (MFIs). Design/methodology/approach. Considering the specific characteristics of microcredit borrowers, we first estimate and measure microcredit risk through the default probability, applying a parametric technique such as logistic regression and a non-parametric technique based on an artificial neural network, looking for the model with the highest predictive power. Secondly, based on the Basel III internal ratings-based (IRB) approach, we use the credit risk measurement for each borrower to design a pricing model that sets microcredit interest rates according to default risk. Findings. The paper demonstrates that the probability of default for each borrower is more accurately adjusted using the artificial neural network. Furthermore, our results suggest that, given a profitability target for the MFI, the microcredit interest rate for clients with a lower level of credit risk should be lower than a standard, fixed rate to achieve the profitability target. Practical implications. This tool allows us, on the one hand, to measure and assess credit risk and minimize default losses in MFIs and, secondly, to promote their competitiveness by reducing interest rates, capital requirements, and credit losses, favoring the financial self-sustainability of these institutions. Social implications. Our findings have the potential to make microfinance institutions fairer and more equitable in their lending practices by providing microcredit with risk-adjusted pricing. Furthermore, our findings can contribute to the design of government policies aimed at promoting the financial and social inclusion of vulnerable people. Originality. The personal characteristics of microcredit clients, mainly reputation and moral solvency, are crucial to the default behavior of microfinance borrowers. These factors should have an impact on the pricing of microcredit.