Sustainability of Business Development Services: Evidence from the Sri Lankan Microfinance Sector

Ruwan Abeysekera ()
Additional contact information
Ruwan Abeysekera: Department of Finance, Faculty of Commerce and Management Studies, University of Kelaniya, Sri Lanka

Journal of Enterprising Culture (JEC), 2020, vol. 28, issue 01, 81-91

Abstract: This study explores the issues faced by Microfinance Institutions (MFIs) in Sri Lanka in sustaining their business development services (BDS) and the strategies that they use to overcome these issues. A multiple case study methodology was used in the study to conduct an in-depth examination of six microfinance institutions in Sri Lanka. The findings show that MFIs in Sri Lanka face issues such as lack of donor money, central bank regulations, and low client demand for BDS which hinder the financial sustainability of BDS in MFIs. MFIs therefore, employ several strategies to circumvent these issues, including the use of coupon systems, charging a fee from the client, obtaining commission from the buyers for market linkages, and linking credit to the BDS programme in order to sustain their BDS programmes. The findings are useful to microfinance practitioners, policy makers and contribute to the knowledge domain of microfinance.

Keywords: Business development services; microfinance; sustainability; microfinance institutions (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.worldscientific.com/doi/abs/10.1142/S0218495820500041
Access to full text is restricted to subscribers

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:wsi:jecxxx:v:28:y:2020:i:01:n:s0218495820500041

Ordering information: This journal article can be ordered from

DOI: 10.1142/S0218495820500041

Access Statistics for this article

Journal of Enterprising Culture (JEC) is currently edited by Teck-Meng Tan

More articles in Journal of Enterprising Culture (JEC) from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().