Profitability and Social Performance of Microfinance Institutions: Empirical Evidence of Relations between Different Types of Variables

Abstract

Microfinance is often considered a "double bottom line" sector, which refers to organizations that take care of their financial side and their social responsibility, trying to give minimum coverage to both. An optimistic vision of microfinance programs as a new key for development considered that they had, in themselves, an important social value. This paper contributes to the study of the relations between variables linked to social and financial purposes of a wide database of Microfinance Institutions. The data reflect large differences between the entities, but no relation is found between the size, profitability and social performance of institutions.

Keywords: microfinance, financial institutions, development strategies

JEL Classification: G21, O16, F30