Microfinance institutions’ operational self-sufficiency in sub-Saharan Africa: empirical evidence
Laxmi Remer () and
Additional contact information
Laxmi Remer: CBS International Business School
Hanna Kattilakoski: CBS International Business School
International Journal of Corporate Social Responsibility, 2021, vol. 6, issue 1, 1-12
Abstract The topic of financial sustainability in microfinance institutions has become more important as an increasing number of Microfinance Institutions (MFIs) seek operational self-sufficiency, which translates into financial sustainability. This study aims to identify factors that drive operational self-sufficiency in microfinance institutions. To accomplish this, 416 MFIs in sub-Saharan Africa are studied and several drivers for operational self-sufficiency are empirically analyzed. Results indicate that these drivers are return on assets, and the ratios total expenses/assets and financial revenues/assets. The results imply that MFIs should encourage cost-management measures. They also reveal that there may not be a significant tradeoff in self-sufficiency and outreach. These findings will enable microfinance institutions worldwide to sharpen their institutional capabilities to achieve operational self-sufficiency and also provide policymakers with more focused tools to assist industry development.
Keywords: MFI; Microfinance institution; Operational self-sufficiency; Financial sustainability; Outreach; Financial inclusion; Africa (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1186/s40991-021-00059-5 Abstract (text/html)
Access to the full text of the articles in this series is restricted.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:spr:ijocsr:v:6:y:2021:i:1:d:10.1186_s40991-021-00059-5
Ordering information: This journal article can be ordered from
Access Statistics for this article
International Journal of Corporate Social Responsibility is currently edited by René Schmidpeter and Samuel O. Idowu
More articles in International Journal of Corporate Social Responsibility from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().