A comparative analysis of the practice and performance of microfinance institutions in Nigeria

2017 ◽  
Vol 44 (11) ◽  
pp. 1522-1538 ◽  
Author(s):  
Abiola Ayopo Babajide ◽  
Joseph Niyan Taiwo ◽  
Kehinde Adekunle Adetiloye
Keyword(s):  
Best Practice ◽  
Sampling Procedure ◽  
Financial Sustainability ◽  
Microfinance Institutions ◽  
Content Type ◽  
Non Profit ◽  
For Profit ◽  
Multi Stage ◽  
And Performance ◽  
The Impact

Purpose The successful story of microfinance institutions is often tied to the practice and methods of credit delivery as evidence among international world class microfinance institutions across the globe. The purpose of this paper is to examine the impact of practice and methods of credit delivery employed by “non- profit” and “for-profit” microfinance institutions on financial sustainability and outreach programmes of the microfinance institutions in Nigeria. Design/methodology/approach The study adopts the survey research design and multi-stage stratified random sampling procedure to collect data from 372 senior management staff, managing directors and board members of microfinance institutions of both groups in Nigeria. Data collected were analyzed using descriptive statistics and multiple regressions analysis. Findings The findings suggest that the current practice and methods of credit delivery of microfinance in both “non-profit” and “for-profit” microfinance institutions have an inverse relationship with the financial sustainability and outreach programmes of the institutions. This study provides empirical evidence for the incessant failure of microfinance institutions in Nigeria. Research limitations/implications The study therefore recommends an immediate overhaul of the methodology and practice of microfinance institutions in the country to align with international best practice. Originality/value In spite of the huge literature on microfinance in Nigeria, there is not enough evidence to empirically prove that the practice of microfinance has affected the performance of the industry in Nigeria. This study sets out to fill that gap in the literature. The paper examines the practice of microfinancing in Nigeria vis-à-vis the performance of the microfinance institutions, categorized into NGO and microfinance bank “for-profit” institutions using international best practices from countries where microfinance is highly successful as a benchmark for deployment of microfinance in Nigeria, in order to proffer policy direction to stakeholders on steps to take to ensure viability in the microfinance subsector in Nigeria.

scholarly journals Revenue diversification and financial sustainability of microfinance institutions

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Peter Nderitu Githaiga
Keyword(s):  
Generalized Method Of Moments ◽  
Financial Sustainability ◽  
Microfinance Institutions ◽  
Revenue Diversification ◽  
Estimation Model ◽  
Data Set ◽  
Content Type ◽  
Method Of Moments Estimation ◽  
The Impact ◽  
Positive Effect

PurposeThis paper aims to investigate whether revenue diversification affects the financial sustainability of microfinance institutions (MFIs).Design/methodology/approachThe study uses a worldwide panel data set of 443 MFIs in 108 countries for the period 2013–2018 and two-step system Generalized Method of Moments estimation model.FindingsThe study finds that revenue diversification has a significant and positive effect on the financial sustainability of MFIs.Practical implicationsThe findings of this study actually offer important managerial and policy lessons on MFIs’ financial sustainability. Microfinance managers and policymakers should consider revenue diversification as a strategy through which MFIs can attain financial sustainability instead of overreliance on donations and government subsidiesOriginality/valueUnlike previous studies that examined revenue diversification in the context of banking firms, this study contributes to literature by examining the impact of revenue diversification of the financial sustainability of MFIs.

Financial disclosure and performance of microfinance institutions

2014 ◽  
Vol 10 (3) ◽  
pp. 314-337 ◽  
Author(s):  
Shakil Quayes ◽  
Tanweer Hasan
Keyword(s):  
Financial Performance ◽  
Least Squares ◽  
Least Squares Method ◽  
Financial Disclosure ◽  
Microfinance Institutions ◽  
Content Type ◽  
Three Stage Least Squares ◽  
And Performance ◽  
The Impact ◽  
The Relationship

Purpose – The purpose of this paper is to analyze the relationship between financial disclosure and the financial performance of microfinance institutions (MFIs). Design/methodology/approach – The paper utilizes ordinary least squares method to analyze the impact of disclosure on financial performance, an ordered probit model to investigate the possible effect of financial performance on disclosure and utilizes a three-stage least squares method to delineate the endogenous relationship between disclosure and financial performance of MFIs. Findings – The paper finds that better disclosure has a statistically significant positive impact on operational performance of MFIs; second, it also shows that improved financial performance results in better financial disclosure. Keeping the endogenous nature of the relationship between disclosure and performance, the paper uses a three-stage least squares method to show that disclosure and financial performance positively affect each other simultaneously. Research limitations/implications – The paper attempts to delineate a positive association between better disclosure on financial performance of MFIs, which can be used for developing a better disclosure policy by management, formulating more effective guidelines for disclosure by the stakeholders and mandating more appropriate laws and uniform disclosure practice by regulators. Originality/value – This is the first study that uses a large number of MFIs from 75 countries; second, it uses a uniform scale of designating a disclosure rating (assigned by MIX Market) to show the relationship between disclosure and performance. Finally, it uses three-stage least squares method to address the possible endogeneity between disclosure and performance.

Leadership styles and organizational learning in UK for-profit and non-profit sports organizations

2017 ◽  
Vol 25 (4) ◽  
pp. 596-612 ◽  
Author(s):  
Majd Megheirkouni
Keyword(s):  
Organizational Learning ◽  
Leadership Styles ◽  
Transactional Leadership ◽  
Target Population ◽  
Survey Method ◽  
Content Type ◽  
Non Profit ◽  
For Profit ◽  
Sports Organizations ◽  
The Impact

Purpose The purpose of this study is to investigate the transformational and transactional leadership styles and organizational learning at for-profit and non-profit sports organizations, and the impact of these leadership styles on enhancing organizational learning in these sports organizations. Design/methodology/approach A quantitative questionnaire survey method was adopted. The data were collected from for-profit and non-profit sports organizations in the UK. Findings Management by exception-active in transactional leadership and idealized leadership in transformational leadership seem to be equally important for facilitating organizational learning. The results also revealed significant differences between for-profit and non-profit sports organizations in leadership styles and organizational learning. Research limitations/implications The generalizability of the results for different sports settings or different countries must be examined, given that only some sports organizations under the umbrellas of non-profit and for-profit sectors were used as the target population. The research is limited to the use of moderating variables, such as motivation, organizational structure, culture and innovation, that might attenuate this effect. This study contributes to the field by investigating the direct relationship between leadership styles and organizational learning in a sports setting. Originality/value The originality of this study is its advances of sports leadership research that is linking leadership styles and organizational learning in for-profit and non-profit sports organizations.

scholarly journals New evidence on accelerator performance based on funding and location

2020 ◽  
Vol 29 (3) ◽  
pp. 217-234 ◽  
Author(s):  
Lydia Cánovas-Saiz ◽  
Isidre March-Chordà ◽  
Rosa Maria Yagüe-Perales
Keyword(s):  
Scale Up ◽  
Developed Countries ◽  
Business Incubators ◽  
Policy Makers ◽  
Content Type ◽  
For Profit ◽  
Managerial Implications ◽  
And Performance ◽  
The Impact ◽  
First Time

PurposeSeed accelerators (SAs) appear as a more advanced version of business incubators. These for-profit organizations in exchange of equity, help setting new start-ups by providing mentoring and funding during its first months. Due to their emergent nature, the impact and expectations of SAs remains largely unknown. Therefore, the purpose of this study is to throw new light on this field by empirically assessing for the first time the performance and prospects of these organizations through a survey of 116 SAs.Design/methodology/approachA model based on the Business Incubators literature is built with four categories covering size, location, age and profitability variables, leading to two hypotheses to be tested empirically over a survey of 116 SAs.FindingsSome remarkable findings arise after implementation of both bivariate and multivariate analysis. The results confirm a higher size and performance in the US and in the oldest SAs at statistically significant levels.Research limitations/implicationsThe study is not free from limitations but the findings make a contribution to the still scarce existing literature on SAs, and provide some managerial implications to their stockholders, to investors and to entrepreneurs.Practical implicationsThe findings concerning performance indicators are especially helpful for investors, primarily concerned with the percentage return on investment factor, the period and the investment rounds needed to achieve exit. Another key issue is the SA's role as an employment seedbed. At first glance, the amount of employment, both overall and per company, might seem small given the young age of these firms. The impact of SAs on the generation of new employment is difficult to measure as it usually takes place in further stages of development of the tenant companies, the so-called scale-up process. Nonetheless, at present, the number of new companies being born is remarkable and, in terms of employment, the results are indeed promising. Our findings also offer important implications for entrepreneurs, venture investors and policy-makers. To entrepreneurs, our findings offer insight on the expectations to hold in the accelerator programs.Social implicationsFor policy-makers and would-be accelerator founders, our results support the idea shared in the literature that accelerators can be an effective entrepreneurial intervention, even in small entrepreneurial ecosystems, compared to the strongest entrepreneurial hubs (Hallen et al., 2017).Originality/valueSAs are a very recent phenomenon which is blooming all over the world, especially in developed countries. SAs are therefore considered a key agent in the prospects of any entrepreneurial ecosystem. However, no studies have so far analysed the impact and performance of this emerging instrument. This is precisely the main purpose of this paper, to offer for the first time an approximate and exploratory assessment on the impact and prospects of SAs, based on a database.

Microfinance institutions' risk and governance in Sub-Saharan Africa

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Haileslasie Tadele ◽  
Helen Roberts ◽  
Rosalind Whiting
Keyword(s):  
Financial Risk ◽  
Risk Measures ◽  
Generalized Least Squares ◽  
Sub Saharan Africa ◽  
Microfinance Institutions ◽  
Content Type ◽  
For Profit ◽  
Sub Saharan ◽  
Female Director ◽  
The Impact

PurposeThe purpose of this study is to explore the impact of MFI-level governance on microfinance institutions' (MFIs’) risk in Sub-Saharan Africa (SSA).Design/methodology/approachThe study uses data from a sample of 151 MFIs operating in 21 SSA countries during 2005–2014. The Feasible Generalized Least Squares (FGLS) regression model is applied to investigate the relationship between MFI level governance mechanisms and risk.FindingsThe study provides new evidence that board characteristics have differential effects on for-profit (FP) and not-for-profit (NFP) MFI risk. Board independence reduces credit risk of NFP MFIs. Foreign director presence increases MFI failure risk. Furthermore, greater female director representation reduces (increases) FP (NFP) financial risk whereas female CEOs are associated with higher (lower) FP (NFP) financial risk.Originality/valueThe paper contributes to existing literature on microfinance governance and risk, by exploring the impact of governance on MFI risk based on MFIs profit orientation. In addition, the study uses three different risk measures unlike previous microfinance studies.

Consumers’ intention to donate to two children’s charity brands: a comparison of Barnardo’s and BBC Children in Need

2015 ◽  
Vol 24 (2) ◽  
pp. 134-146 ◽  
Author(s):  
Nina Michaelidou ◽  
Milena Micevski ◽  
Nikoletta Theofania Siamagka
Keyword(s):  
Theoretical Model ◽  
Design Methodology ◽  
Brand Image ◽  
The Other ◽  
Content Type ◽  
Non Profit ◽  
Income Levels ◽  
For Profit ◽  
Consumer Intentions ◽  
The Impact

Purpose – This paper aims to examine consumers’ non-profit brand image, brand typicality and past behaviour as determinants of intention to donate to two children charity brands. Design/methodology/approach – Data for this study were obtained from two separate studies via a questionnaire, both in the context of two children charities, one for Barnardo’s and the other for BBC Children in Need charity. A theoretical model is developed, tested and compared across the two charity brands. Findings – Findings highlight that different factors influence intentions to donate time and money according to the charity brand. Brand typicality is a key determinant of time donations, while the impact of non-profit brand image dimensions on time and money donations differs across the two charities. Past behaviour affects intentions to donate money in both charities but impacts time donations in only one of the two charities investigated. Research limitations/implications – The study examines specific dimensions of non-profit brand image across two different charity brands and offers theoretical insights about the value of brand image in a non-for profit context in shaping consumer outcomes (i.e. consumer intentions to donate). Originality/value – The study sheds further light into the notion of typicality put forward by Michel and Rieunier (2012) for two children’s charity brands that differ in terms of their strength and income levels and examined past behaviour as a determinant to donate to charity brands.

Organisational change in local sport clubs: the case of Flemish gymnastics clubs

2016 ◽  
Vol 6 (2) ◽  
pp. 158-181 ◽  
Author(s):  
Jochen Perck ◽  
Jo Van Hoecke ◽  
Hans Westerbeek ◽  
Diane Breesch
Keyword(s):  
Quality Assurance ◽  
Quality Management System ◽  
Organisational Change ◽  
Similar System ◽  
Data Set ◽  
Content Type ◽  
Non Profit ◽  
Paired Samples ◽  
And Performance ◽  
The Impact

Purpose – The purpose of this paper is to examine the impact of the quality assurance system IKGym (Quality Management System for Gymnastics Clubs), on professionalisation, homogenisation and organisational performance in a sample of gymnastics clubs affiliated to the Flemish Gymnastics Federation. Design/methodology/approach – Data were drawn from a sample of 55 non-profit local Flemish gymnastics clubs, evaluated twice by IKGym between 2004 and 2010. Using a longitudinal analysis of quantitative data of the IKGym data set a paired samples t-test was conducted to measure the impact of IKGym on the sample of gymnastics clubs. Besides, the Pitman-Morgan test was conducted to measure if the gymnastics clubs have become more isomorphic because of IKGym. Findings – First, the results identify different levels of progression towards professionalisation between various quality and performance targets of the gymnastics clubs and depending on the structural design types of these clubs. Second, it was found that during the organisational change the sample of clubs also started to resemble each other more. However, this homogenisation process seems restricted to the organisational management and strategic planning of the clubs and appears especially to clubs belonging to the volunteer structure. Third, the present study also indicates that IKGym has influenced clubs to perform better. Originality/value – IKGym is considered as a pioneering project where a federation stimulated their clubs to professionalise by means of a system of quality assurance. Several federations and sporting leagues (Deutsche Bundesliga, English Premier League; Belgian Basketballiga, etc.) followed this lead and introduced a similar system to evaluate and direct the management of their clubs.

The hologram effect in entrepreneurial “social commercial” enterprises

2011 ◽  
Vol 18 (4) ◽  
pp. 655-672 ◽  
Author(s):  
Denise Crossan ◽  
Pat Ibbotson ◽  
Jim Bell
Keyword(s):  
Social Economic ◽  
Methodological Approach ◽  
Third Sector ◽  
Classification Systems ◽  
Content Type ◽  
Social Good ◽  
Non Profit ◽  
For Profit ◽  
Measurement Framework ◽  
And Performance

PurposeThe paper's purpose is to present qualitative findings describing entrepreneurial differentiations between non‐profit organisations along a social economic continuum. The paper aims to focus on those non‐profit organisations classified as “social” and those more entrepreneurial behaving organisations classified as “social commercial”.Design/methodology/approachThe data were taken from recent research examining current classification systems and performance measurement indicators applied to not‐for‐profit and for‐profit organisations in an Irish regional context. Having reviewed the extant literature on classification systems and measurement indicators for non‐profit organisations, the social economic continuum model and theoretical measurement framework were developed. In order to test the models, the study employed a pragmatist mixed methodological approach; employing quantitative surveys and in‐depth interviews.FindingsThe paper presents key entrepreneurial differentiating themes between “social” and “social commercial” organisations, and discusses the triggers that produce a “hologram” effect or style of management in the third sector.Practical implicationsThe identification of entrepreneurial themes allows for the analysis of the non‐profit organisations from overly social in their activities and presentation, to overly economic in their behaviour. It allows for a greater understanding of the management processes employed by non‐profit organisations to create social value and meet their social aims and purpose.Originality/valueThe paper carries out a unique inter‐sector comparison of non‐profit organisations to determine entrepreneurial differentiations amongst non‐profit businesses employing entrepreneurial methodologies and behaviours to achieve social good.

Microfinance: The Impact of Multiple Borrowings of Microcredit among Clients of Microfinance Institutions in Central Uttar Pradesh Region of India

2016 ◽  
Vol 6 (2) ◽  
Author(s):  
Zain Mehdi
Keyword(s):  
Interest Rates ◽  
Financial Services ◽  
Private Equity ◽  
Uttar Pradesh ◽  
Microfinance Institutions ◽  
Non Profit ◽  
Loan Contracts ◽  
For Profit ◽  
The Poor ◽  
The Impact

Microfinance is the supply of loans, savings, and other basic financial services to the poor. Beginning of the microfinance movement is most closely associated with the economist Muhammed Yunus, who in the early 1970's was a Professor in Bangladesh. In the midst of a country-wide famine, he began making small loans to poor families in neighboring villages in an effort to break their cycle of poverty. The study has focused on the repayment problems of loans to be taken by the clients of ‘For Profit Making Microfinance Institutions (MFIs)’. Micro financing has boomed in recent years. Though founded as non-profit institutions, Indian Microfinance industry has been turbocharged by private – equity firms, nearly doubling in the year ended March 31, 2008 delivering $ 2.5 billion loans. Many microfinance lenders have recently registered as for – profit finance firms with the Reserve Bank of India, giving them wider access to funds but limiting them to ‘reasonable’ interest rates. Those rates are still high – between 20% and 40% annually, according to the Consultative Group to Assist the Poor, or CGAP, hosted at the World Bank location. This creates the need for multiple borrowings. In this research, the researcher has used the regression analysis to study the effect of Age, Gender, Number of Dependent and Education level due to multiple loan contracts. Further, the relationship between variables taken in this research has been analyzed such as income of respondents and amount of loans. The findings show that actually, the multiple borrowings of clients of MFI’s are not benefiting them and in reality they are affecting their livelihood.

Mission statements and performance in non-profit organisations

2015 ◽  
Vol 15 (5) ◽  
pp. 759-774 ◽  
Author(s):  
Bhavesh S. Patel ◽  
Lorne D. Booker ◽  
Hazel Melanie Ramos ◽  
Chris Bart
Keyword(s):  
Online Survey ◽  
Mission Statements ◽  
Organisational Commitment ◽  
Organisational Performance ◽  
Content Type ◽  
Non Profit ◽  
And Performance ◽  
The Impact ◽  
The Relationship

Purpose – This study aims to explore the relationship between mission statements and organisational performance in non-profit organisations. It also examines the role of organisational commitment in moderating that relationship. Design/methodology/approach – Invitations were sent to a network of non-profit organisations inviting them to complete an online survey. Usable responses were obtained from 117 respondents from 30 countries. Hierarchical regression was used to test the hypotheses. Findings – The findings suggest that mission statements have a significant positive relationship with organisational performance. Also, organisational commitment, particularly affective commitment, moderates the relationship between mission statements and organisational performance. Research limitations/implications – The results confirm that the relationship between mission statements and organisational performance is complex. The study of intervening variables is a worthwhile program of research. Practical implications – The findings suggest that non-profit organisations can improve performance by communicating their mission and building emotional commitment to their cause. Originality/value – This is one of the first studies to examine the role of organisational commitment in influencing the relationship between mission statements and performance. This study contributes to our understanding of the impact of mission statements on performance in non-profit organisations.

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