Title: Impact of economic transition on the outreach of microfinance sector

Authors: Samapti Guha; Chandralekha Ghosh

Addresses: Centre for Social Entrepreneurship, School of Management and Labour Studies, Tata Institute of Social Sciences (TISS), Mumbai New Campus, V.N. Purav Marg, Deonar, Mumbai-400088, India ' Department of Economics, West Bengal State University, North 24 Parganas Malikapur Berunanpukuria, Barasat, Kolkata, West Bengal 700126, India

Abstract: Microfinance institutions in different countries initiated the process of transformation from non-profit entity to not-for-profit entity after 2003-2004. Again in 2006-2007, there is a transition from not-for-profit entity to for-profit entity. First transition needed for scaling up operations and the second transition needed to achieve self-sufficiency to render the services to marginalized people. In this paper, MFIs in Bolivia, Mexico and India are studied to understand the nature of transition in microfinance sector. We have carried out exploratory factor analysis to understand social, financial and operational factors for the period 2006-2007 and 2012-2013. Further we have carried out confirmatory factor analysis to confirm the factors which influence outreach of women borrowers during these two different periods of transition. It is concluded that social and financial factors do not have any impact on outreach for the year 2012-2013 however it had influence in the 2006-2007.

Keywords: microfinance; outreach; self-sufficiency; confirmatory factor analysis; exploratory factor analysis; economic transition.

DOI: 10.1504/GBER.2023.132669

Global Business and Economics Review, 2023 Vol.29 No.2, pp.247 - 264

Received: 24 Nov 2021
Accepted: 21 May 2022
Published online: 07 Aug 2023 *

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