The Impact of Entrepreneur-CEOs in Microfinance Institutions: A Global Survey

Trond Randøy (), R. Øystein Strøm and Roy Mersland
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Roy Mersland: UIA - University of Agder

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Abstract: Microfinance is a global high-growth industry, in which entrepreneurship is prevalent and substantial. Based on the theoretical argument that microfinance entrepreneur-CEOs are "motivated agents" with a unique ability to hire and socialize mission-oriented staff, we hypothesize that these CEOs produce more sustainable microfinance institutions with better social performance and lower costs. This study utilizes data from 295 microfinance institutions in 73 developing countries, assessed between 1998 and 2010. Our empirical evidence suggests that entrepreneur-managed microfinance institutions feature higher social performance, greater financial sustainability, and lower costs.

Keywords: Microfinance; social entrepreneurship; motivated agents; founders; performance; nonprofit organizations; Microfinance social entrepreneurship motivated agents founders performance nonprofit organizations (search for similar items in EconPapers)
Date: 2015
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Published in Entrepreneurship Theory and Practice, 2015, 39 (4), pp.927-953. ⟨10.1111/etap.12085⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05220877

DOI: 10.1111/etap.12085

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