Empirical Study on the Key Influencing Factors and Development Mechanisms for the Sustainability of Microfinance Institutions Based on a Survey of Chinese Microcredit Companies

Jiming Li (), Xiaoxi Li and Jile Wang
Additional contact information
Jiming Li: Institute of Digital Finance, Hangzhou City University, Hangzhou 310015, China
Xiaoxi Li: School of Business, Hangzhou City University, Hangzhou 310015, China
Jile Wang: School of Business, Hangzhou City University, Hangzhou 310015, China

Sustainability, 2023, vol. 15, issue 12, 1-13

Abstract: Microfinance institutions (MFIs) play a significant role in financial-inclusion and poverty-alleviation activities. A critical challenge facing MFIs is of how they all can build their own capacity for sustainable and healthy development. By using the data from the pilot survey of 65 microcredit companies in Zhejiang, China, this paper explores the factors affecting MFIs activities by principal component analysis and analyzes the key Influencing factors and sustainable development performance with the analysis of variance and multi-regression model. The results indicate that four key factors of operational technology, external environment, financial condition, and institution size have a significant positive effect on the economic sustainability performance of MFIs, while the adjusted institution size has an insignificant positive effect on operational sustainability performance, which means that key factors of MFI sustainability have a greater impact on economic sustainability performance than operational sustainability performance.

Keywords: microfinance institutions; sustainable development; key influencing factors (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.mdpi.com/2071-1050/15/12/9817/pdf (application/pdf)
https://www.mdpi.com/2071-1050/15/12/9817/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:15:y:2023:i:12:p:9817-:d:1175102

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().