Performance assessment and definition of improvement paths towards the double bottom-line of microfinance institutions: an application to The MC² network in Cameroon

Isabelle Piot-Lepetit () and Joseph Nzongang ()
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Isabelle Piot-Lepetit: Marchés, Organisations, Institutions et Stratégies d'Acteurs - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - INRA - Institut National de la Recherche Agronomique - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier
Joseph Nzongang: Faculté des Sciences Economiques et de Gestion - Université de Dschang

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Abstract: Microfinance institutions face a double bottom-line: financial sustainability and outreach to the poor. The objective of this paper is an assessment of the financial and social performance of village banks of the MC² (Mutuelles Communautaires de Croissance) network in Cameroon and guidance to both top and local managers helping them in their decision-making process in order to perform without trade-off between their double objective, i.e., to achieve their social mission in a sustainable manner. An analysis framework in three phases is developed. First, Data Envelopment Analysis (DEA) models are implemented for measuring efficiency, identifying best-practices, and setting benchmarking goals to less efficient MFIs. Then, a DEA operating frontier (DEA-OF) is designed to identify improvement paths, setting short-term goals towards their long-term target. Finally, DEA results are translated into indicators daily used by managers of village banks to provide them effective guidance in developing actions in accordance with their mission.

Keywords: financial performance; social performance; data envelopment analysis; community growth mutual funds; DEA operating frontiers; benchmarking; financial and social efficiency; performance indicator; improvement path; financial sustainability; outreach to the poor; microfinance; mission drift (search for similar items in EconPapers)
Date: 2017-07-13
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Published in International Conference on Operational Research for Development 2017 (ICORD 2017), International Federation of Operational Research Societies (IFORS). CAN.; International Federation of Operational Research Societies (IFORS). CAN., Jul 2017, Québec, Canada. 30 p

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02787906

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