Dissertation presented for the Degree of Doctor of Philosophy at Stellenbosch University. / Thesis (PhD (Business Management))--University of Stellenbosch, 2010. / ENGLISH ABSTRACT: Uncertainty of continued donor funding poses a risk to microfinance operations worldwide, and this study explores the circumstances under which African microfinance institutions (MFIs) will consider commercial funding as a viable alternative source of funding. This research aims to identify the factors that are associated with successful access to private capital for pro-poor financial institutions. It examines the suitability of new opportunities for accessing fresh capital by MFIs for development and poverty reduction using commercialisation as an option. In a world awash in private capital, it is vital to harness the power of the private sector to solve key development challenges (World Bank, 2007). As microfinance institutions grow, they increasingly find themselves in need of additional capital to finance expansion of services to cover more poor communities. The study undertook a cross-country data analysis of 103 microfinance institutions to help provide understanding of the critical success factors that underpin successful access to commercial capital. The study also tested the hypothesis on the viability of commercial finances, and developed and tested a commercialisation success model for tapping commercial funds. The prediction model based on firm-level data from a sample of 21 African countries between 1998 and 2003, aims to minimise chances of failure and act as a screening system by investors as well as a selfassessment tool for MFIs intending to seek commercial capital. On examining the direct and indirect impact of firm-level success factors on commercialisation, the study identified key predictors of success and guidelines for MFI financing’s integration with the larger financial system. The study finds that certain critical success factors (CSFs) define minimum pre-conditions for microfinance institutions considering commercial funding as an alternative source of finance. There is evidence to suggest that the desire to tap into the capital markets and capacity to link with commercial investors is a realisable vision for African MFIs. The research evidence is instructive of widened financing options for MFIs and capacity to relax growth constraint in the industry. Based on the CSFs, the study suggests how MFIs can break free from 'captive' donor funding as a necessary platform for the switch to commercial finance in the industry. However, the findings also suggest the need for MFIs to satisfy the interests and requirements of prospective commercial investors to overcome new challenges. In particular, the results show that the extent of organisational formalisation and transparency in financial reporting are absolutely essential in drawing commercial lenders to invest in microfinance. In addition the study establishes the reasons why traditional approaches to financing microfinance cannot work any longer. There are some concerns on mission drift; in particular whether the poor gain from commercialisation, and under what circumstances their interests are taken care of in order to preserve the long-term social value of microfinance as a poverty reduction strategy. The study was carried out based on a rather limited time series data. However, the number of firms and the diversity is considered adequate for the study, as well as sample representation across Africa. The study also used views of 'thought leaders' as the source of information. Other personnel calibre may have had different suggestions. Perceptions were drawn from commercial lenders/investors of microfinance programmes based in Africa. Needless to say, any generalisation of CSFs beyond the African microfinance context should be made with caution. This study is probably one of the first attempts to explore the possibility of a linkage between microfinance and capital markets and it will be of interest to MFIs, commercial banks, international donors and investment funds with an interest in investing in the microfinance industry. The findings suggest that the speed of increase in financial leverage per country depends as much on the dynamism of the market, as it does on the level of development of the finance sector. The results indicate that commercial investors will be attracted by good financial returns and administrative efficiency (return on assets, cash-flow adequacy and operating expense ratio), transparent reporting and information disclosure and clarity, as well as low inflation levels. Investors will also be looking for larger, regulated and profitable MFIs with a low-risk profile for their investment portfolios. The study found strong support to the hypothesis that the commercialisation index (CI) is a better measure of successful commercialisation than the LMA (leverage multiplier added), given the variables used. In all cases, compelling evidence shows that the CI has more explanatory power and is an accurate predictor of two-year success in commercialisation as examined by logistic regression. These results suggest that the superior predictive abilities of the CI commercial rating rule could be explored to guide screening efforts for winners, investment decisions and other binary classification investigations. Specifically, the model can be useful in guiding successful commercialisation schemes in Africa because it provides MFIs with a structured approach for achieving sustainable commercial microfinance. / AFRIKAANSE OPSOMMING: Onsekerheid oor volgehoue skenkerbefondsing is ’n risiko vir mikrofinansieringsinstansies wêreldwyd, en hierdie studie ondersoek die omstandighede waaronder Afrika se mikrofinansieringsinstansies (MFIs) kommersiële befondsing sal oorweeg as ’n lewensvatbare, alternatiewe bron van befondsing. Hierdie navorsing poog om die faktore, wat met die suksesvolle toetrede tot private kapitaal van pro-arm finansiële instellings geassosieer word, te identifiseer. Dit ondersoek die gepastheid van nuwe geleenthede vir MFIs om vars kapitaal te bekom en as ’n opsie te gebruik vir ontwikkeling en die vermindering van armoede deur kommersialisasie. In ’n wêreld met oorvloedige bronne van private kapitaal is dit lewensnoodsaaklik om die krag van die privaatsektor in te span om kern ontwikkelingsuitdagings op te los (World Bank, 2007). Soos mikrofinansieringsinstansies groei, het hulle ’n toenemende behoefte aan addisionele kapitaal ten einde die uitbreiding van dienste te kan finansier en om meer arm gemeenskappe te kan bereik. Die studie het data komende van 103 mikrofinansieringsinstansies uit verskeie lande ontleed om begrip van die kritiese suksesfaktore (KSFe), wat suksesvolle toegang tot kommersiële kapitaal onderskraag, te verkry. Die studie het ook die hipotese oor die lewensvatbaarheid van kommersiële finansiering getoets, en ’n model vir kommersialisasie-sukses ontwikkel en getoets om kommersiële fondse te bekom. Die voorspellingsmodel, wat gebaseer is op maatskappy-vlak data van ’n groep van 21 Afrika lande tussen 1998 en 2003, poog om die kanse op mislukking te minimeer en te dien as ’n siftingstelsel vir beleggers sowel as ’n selfondersoekmiddel vir MFIs wat beplan om kommersiële kapitaal te bekom. Deur die direkte en indirekte impak van maatskappyvlak suksesfaktore op kommersialisasie te bestudeer, het die studie sleutelvoorspellers van sukses asook riglyne vir die integrasie van MFI finansiering met die groter finansiële stelsel geïdentifiseer. Die studie bevind dat sekere KSFe minimum voorvereistes vaslê vir MFIs wat kommersiële befondsing as ’n alternatiewe bron van finansiering oorweeg. Daar is bewyse wat daarop dui dat die begeerte om toegang tot die kapitaalmarkte te verkry en die kapasiteit om met kommersiële beleggers te skakel ’n realiseerbare visie vir Afrika MFIs is. Die navorsing lewer insig wat aanduidend is van breër finansieringsopsies vir MFIs, en wat die beperkinge op groei in die industrie verslap. Gebaseer op die KSFe, stel die studie voor hoe MFIs uit die houvas van skenkerbefondsing kan loskom as ’n nodige stap vir die oorskakeling na kommersiële finansiering in die bedryf. Die bevindings dui egter ook op die behoefte van MFIs om aan die belange en vereistes van moontlike kommersiële beleggers te voldoen ten einde nuwe uitdagings te oorkom. Die resultate dui spesifiek daarop dat die mate van organisasie-formalisering en die deursigtigheid van finansiële verslagdoening noodsaaklik is om kommersiële uitleners te trek om in mikrofinansiering te belê. Verder bevestig die studie die redes waarom tradisionele benaderings tot die finansiering van mikrofinansiering nie meer kan werk nie. Daar is wel sekere bekommernisse oor die moontlike kompromittering van missie; in besonder is die vraag of die armes wel baat vind by kommersialisasie, en onder watter omstandighede daar na hulle belange omgesien word ten einde die langtermyn sosiale waarde van mikrofinansiering as ’n strategie vir armoede verligting te behou. Die studie is uitgevoer gegrond op tydreeksdata wat betreklik beperk is. Die aantal maatskappye en die diversiteit word egter as voldoende beskou vir die studie, asook dat die steekproef verteenwoordigendend was van lande regoor Afrika. Die studie gebruik ook die menings van ‘leierdenkers’ as ’n bron van inligting. Personeel van ’n ander kaliber mag verskillende voorstelle gehad het. Persepsies is verkry van kommersiële uitleners/beleggers van mikrofinansieringsprogramme wat in Afrika gebaseer is. Vanselfsprekend behoort enige veralgemening van die KSFe buite die Afrika mikrofinansieringskonteks met omsigtigheid gedoen word. Hierdie studie is waarskynlik een van die eerste pogings om die moontlikheid van ’n skakel tussen mikrofinansiering en die kapitaalmarkte te ondersoek en dit sal van waarde wees vir MFIs, kommersiële banke, internasionale skenkers en beleggingsfondse wat in belegging in die mikrofinansieringsbedryf belangstel. Die bevindinge dui daarop dat die spoed waarmee die effek van finansiële hefboom in ‘n land toeneem net soveel afhang van die dinamika van die mark as van die ontwikkelingsvlak van die finansiële sektor. Die bevindinge dui daarop dat kommersiële beleggers aangetrek sal word deur goeie finansiële opbrengste, administratiewe doeltreffendheid (opbrengs op bates, voldoende kontantvloei en die bedryfsuitgawe verhouding), deursigtige verslagdoening en duidelike openbaarmaking van inligting, sowel as lae inflasievlakke. Beleggers gee ook voorkeur aan groter, gereguleerde en winsgewende MFIs met ’n lae risikoprofiel vir hulle beleggingsportefeuljes. Die studie vind sterk ondersteuning vir die hipotese dat die Kommersialisasie-indeks (CI) ’n beter aanduiding van suksesvolle kommersialisasie is as die Leverage Multiplier Added (LMA), gegewe die veranderlikes wat gebruik is. In alle gevalle was daar sterk getuienis dat die CI ’n beter verduideliker is en ’n akkurate voorspeller is van die tweejaartermyn sukses in kommersialisasie soos deur middel van logistiese regressie getoets. Hierdie resultate dui daarop dat die superieure voorspellingsvermoëns van die CI se kommersiële beoordelingsreëls beproef kan word om die sifting van wenners, beleggingsbesluite en ander binêre klassifikasie ondersoeke te lei. Die model kan spesifiek nuttig wees om rigting te gee aan suksesvolle kommersialisasieskemas in Afrika omdat dit MFIs ’n gestruktureerde benadering gee tot die bereiking van volhoubare kommersiële mikrofinansiering.

Made available in DSpace on 2014-12-17T14:20:22Z (GMT). No. of bitstreams: 1 KaioCF_TESE.pdf: 2055508 bytes, checksum: af97c934fb8084a910e093ed34d79c49 (MD5) Previous issue date: 2011-09-30 / The aim of this thesis was to investigate the evolution of the socio-occupational status in Rio Grande do Norte from 2001 to 2008, based on the characterization of the socio-economic status of this State from the analysis of labor market norte-rio-grandense . The study, specifically, drew a comparison between the dynamics of the labor market in Rio Grande do Norte and the capital city, Natal. From this perspective, the purpose was to make a relationship between the social division of labor and its effects on the socio-spatial division, represented in the "macro scale" by the federal unit and the "micro level" for the capital; locus of economic and population concentration. The collection of data on the labor market had as a major source PNAD/IBGE, characterizing the labor market in many ways: people of working age, economically active population and employed and unemployed people, classified by age, sex, color, education, income and social protection condition. However, as for the socio-occupational division, we follow the methodology used by the research group on national television, based in IPPUR /UFRJ, called Monitoring of the Metropolis," which rallied twenty-four groups that aggregate the occupations found in the PNAD/IBGE, in eight groups of socio-occupational categories, according to the similarity between them. It was used in the socio-spatial cutting two relevant discussions, which are inter-related and were characterized as crucial points in developing the research problem: the former was related to the influence of the hegemony of merchant capital in the labor market in Rio Grande North and, the latter, it referred the socio-economic relations between the territory and the variable occupation. Lastly, the results all indicated that in Rio Grande do Norte, as a peripheral state, has suffered the devastating influence of the hegemony of capital purely commercial basis, where "wealth" of capitalism is generated through the sphere of mere movement of goods and services rather than a productive process due to the social relations of production more advanced. We have a little advanced economic structure, with a tertiary sector that has propagated under-employment or disguised unemployment. Similarly, the agricultural sector has been presented as an example of greater social degradation of working conditions in the state. The secondary sector, in turn, also was not behind this uncertainty; on the contrary, confirmed that condition, with poor levels of income, low education of the workforce and a high degree of social helplessness, even in the state capital, space full urban area, which although always appear with a favorable condition compared to Province, in practically most of the variables studied, was also reflected at the same time the author of a structurally underdeveloped condition / O objetivo da tese foi verificar a evolu??o da estrutura s?cio-ocupacional no Rio Grande do Norte no per?odo de 2001 a 2008, tendo por base a caracteriza??o da estrutura s?cio-econ?mica do estado a partir da an?lise do mercado de trabalho norte-rio-grandense. O estudo, mais especificamente, tra?ou um comparativo entre a din?mica do mercado de trabalho no Rio Grande do Norte com a da capital, Natal. A finalidade a partir dessa perspectiva foi fazer uma rela??o entre a divis?o social do trabalho e seus efeitos sobre a divis?o s?cio-espacial, representado na escala macro pela unidade federativa e na escala micro pela capital; l?cus de concentra??o econ?mica e populacional. A coleta de dados sobre o mercado de trabalho teve como fonte principal de pesquisa a PNAD/IBGE, caracterizando o mercado de trabalho em diversos aspectos: pessoas em idade ativa, popula??o economicamente ativa e pessoas ocupadas e desocupadas, classificadas por faixa de idade, sexo, cor, escolaridade, renda e condi??o de prote??o social. Por?m, quanto a divis?o s?cio-ocupacional, seguimos a metodologia utilizada pelo grupo de pesquisa em rede nacional, com sede no IPPUR/UFRJ, denominado de Observat?rio das Metr?poles , que reagrupou vinte quatro grupos que agregam as ocupa??es encontradas na PNAD/IBGE, em oito grupos de categorias s?cio-ocupacionais, segundo a semelhan?a existentes entre elas. Utilizou-se no corte s?cio-espacial duas discuss?es relevantes, que se inter-relacionaram e se caracterizaram como pontos cruciais na elabora??o da problem?tica de pesquisa: a primeira, foi em rela??o ? influ?ncia da hegemonia do capital mercantil no mercado de trabalho no Rio Grande do Norte e, a segunda, se referiu justamente ? rela??o s?cio-econ?mica entre o territ?rio e a vari?vel ocupa??o. Finalmente, quanto aos resultados obtidos, tudo nos indicou que o Rio Grande do Norte, como um estado perif?rico, sofre a influ?ncia devastadora da hegemonia do capital de base meramente mercantil, onde a riqueza do capitalismo ? gerada por meio da esfera da mera circula??o de mercadorias e servi?os e n?o de um processo produtivo decorrente de rela??es sociais de produ??o mais avan?adas. Temos uma estrutura econ?mica pouca avan?ada, com um setor terci?rio que propaga sub-empregos ou desempregos disfar?ados. Da mesma forma, o setor agr?cola se apresentou como exemplo maior de degrada??o social das condi??es trabalhistas no estado. O setor secund?rio, por sua vez, tamb?m n?o ficou atr?s dessa precariza??o, muito pelo contr?rio, ratificou aquela condi??o, com prec?rios n?veis de rendimentos, baixa escolariza??o da m?o de obra e elevado grau de n?o prote??o social; mesmo na capital do estado, espa?o plenamente urbano, que apesar de aparecer sempre com uma condi??o favor?vel em compara??o a unidade federativa, em praticamente boa parte das vari?veis estudadas, foi tamb?m reflexo e ao mesmo tempo autora de uma condi??o estruturalmente subdesenvolvida.