Myths in Microfinance

PROGRESS IN INTERNATIONAL BUSINESS RESEARCH, M. Feldman & G. Santangelo, Emerald, 2008

Posted: 19 Dec 2010 Last revised: 11 Jan 2011

See all articles by Roy Mersland

Roy Mersland

University of Agder

R. Øystein Strøm

OsloMet - Oslo Metropolitan University

Date Written: 2008

Abstract

Microfinance – the provision of financial services to the poor – is high on the public agenda. We discuss and evaluate three myths regarding microfinance based on new data from rated microfinance institutions (MFIs). The first myth is that an efficient MFI needs to be shareholder owned; second that its governance should first and foremost address the potential conflict between owners and managers; and third that MFIs are drifting away from their poorer customers towards serving the wealthier. The data do not support any of these myths. We conclude that microfinance is a viable business model.

Keywords: Microfinance, ownership, mission drift, governance, global study

JEL Classification: G21, O16

Suggested Citation

Mersland, Roy and Strøm, Reidar Øystein, Myths in Microfinance (2008). PROGRESS IN INTERNATIONAL BUSINESS RESEARCH, M. Feldman & G. Santangelo, Emerald, 2008. Available at SSRN: https://ssrn.com/abstract=1709424

Roy Mersland

University of Agder ( email )

Serviceboks 422
N-4604 Kristiansand, VEST AGDER 4604
Norway

HOME PAGE: http://www.uia.no/microfinance

Reidar Øystein Strøm (Contact Author)

OsloMet - Oslo Metropolitan University ( email )

P.O. Box 4
Oslo, 0130
Norway
+47 97968500 (Phone)

Here is the Coronavirus
related research on SSRN

Paper statistics

Abstract Views
321
PlumX Metrics