Purpose– The assumption that microcredit alone can contribute to worldwide povertyalleviation is debated, the opponents voicing the need of non-credit services in addition togive the poor access to capital. Social intermediation services are argued to be essential inmaking a difference in a time where the impact of microfinance itself has been reappraised inseveral studies. Simultaneously, the shift to commercialization of the industry due to pressureto accomplish self–sustainability is inescapable; concerns over its benefits for the poor ispronounced. Some are suggesting positive effects, others argue there being negative effectsdue to the change in focus. The purpose of this study is to generate knowledge about theinfluence MFIs have in enabling individuals to be microentrepreneurs in Sri Lanka.Design/methodology/approach– This will be accomplished through investigating theconditions and terminology used by MFIs in relation to entrepreneurship and theirrequirements of training. The findings may be used as guidance to other MFIs andstakeholders, both nationally and globally, who wish to engage in this field. The study relieson qualitative methodology where multiple case studies were analyzed and the findings basedon primary data conducted from nine semi-structured interviews. The cases have beenselected according to theoretical sampling.Findings– Based on the findings and theories applied, it can be stated that the ambition of theMFIs in Sri Lanka is to contribute to the microentrepreneurs development. This isaccomplished by giving them microcredit, training and motivation to start a sustainablebusiness and thus rise out of poverty. The findings suggest that the MFIs have an importantrole, but that the responsibility following as a result of their influence is compromised. Theconclusion is that the MFIs do not acknowledge everyone to be entrepreneurs, and are lackingin providing the most optimal training and supply of microfinance services for theirmicroentrepreneurs to succeed. This is limiting the microentrepreneurs progress and excludesan unknown part of potential microentrepreneurs.Originality/value– The findings of this study can help us to understand how MFIs in SriLanka enable or restrict the microentrepreneur because of their expectations and otherconsequences due to the market of microfinance and the fundamental assumptions whichmicrofinance is based on. Our contribution provides context on what conditions andlimitations MFIs create for microentrepreneurs in rising out of poverty with the assistance ofmicrofinance. The findings may be used as guidance to other MFIs and stakeholders, bothnationally and globally, who wish to engage in this field. / Syfte– Antagandet att enbart mikrokredit kan bidra till världsomfattande fattigdomsbekämpningär omdiskuterat. Motståndarna uttrycker behovet av icke-kredittjänster utöver attge tillgång till kapital. Icke-kredittjänster hävdas vara avgörande för att göra skillnad i en tiddå mikrofinansens inverkan har blivit omprövad i flera studier. Samtidigt är övergången tillkommersialisering av mikrofinansindustrin, på grund av påtryckningarna att uppnå finansiellhållbarhet, oundviklig; oro över konsekvenserna av detta för de fattiga är debatterad. Någraredogör för de positiva effekter kommersialisering innebär och andra poängterar de negativakonsekvenserna av att förändra fokus. Syftet med denna studie är att skapa kunskap om detinflytande som mikrofinansinstitut (MFIs) har för att möjliggöra för individer att vara mikroentreprenöreri Sri Lanka.Design/metod/tillvägagångssätt– Detta kommer att åstadkommas genom att undersökavillkoren och terminologin i förhållande till entreprenörskap och MFIs krav på träning förderas mikrolåntagare. Studien bygger på en kvalitativ metod där flera fallstudier haranalyserats och resultaten är baserade på primära data utifrån nio semistrukturerade intervjuer.Fallen har valts ändamålsenligt enligt ett teoretiskt urval.Slutsatser– Utifrån studiens resultat och teorier kan det konstateras att MFIs ambition i SriLanka är att bidra till utvecklingen av mikroentreprenörer. Det görs genom att ge demmikrokredit, utbildning och motivation för att starta en hållbar inkomstgenererande aktivitetför att ta sig ut ur fattigdom. Resultatet visar på att mikrofinansinstituten har en viktig rollmen att det ansvar som MFIs har som följd av deras inflytande är försummat. Slutsatsen är attmikrofinansinstituten begränsar mikroentreprenörernas framgång och exkluderar en okänd delav potentiella entreprenörer då de inte erkänner alla som entreprenörer. De saknar även denoptimala träningen och utbud av mikrofinanstjänster för att få sina mikroentreprenörer attlyckas.Originalitet/värde– Resultatet av denna studie skapar förståelse för hur MFIs i Sri Lankamöjliggör eller begränsar mikroentreprenörer på grund av deras förväntningar och andraförutsättningar på grund av mikrofinansmarknaden och grundläggande antaganden sommikrofinanskonceptet bygger på. Vårt resultat bidrar till att tydliggöra vilka villkor ochbegränsningar mikrofinansinstituten skapar för mikroentreprenörer i att ta sig ut ur fattigdommed hjälp av mikrokredit. Resultaten kan användas som vägledning till andra MFIs ochintressenter, både nationellt och globalt, som vill engagera sig i detta område.Uppsatsen kommer fortsättningsvis att presenteras på engelska.

This thesis eschews an econometric approach to the analysis of microfinance initiatives in favour of a wider, political economy approach. It paints a picture of the international financial and socio-economic environment in which microfinance as a practice has developed since the mid-1970s, and the introduction outlines the political agendas that fuel the theoretical debate over development, and the manner in which the self-proclaimedly objective scientific rationale that underlines the dominant neoliberal hegemony is in reality no such thing. The introduction is followed by a methodological explanation of the necessity to examine microfinance in such a context, and then deals with the combination of approaches included in the thesis, sources, and data-collection methods of the fieldwork in Nicaragua. The next three chapters comprise the body of theoretical and literary evidence in support of this methodology, from the international down to the sectoral level within Nicaragua. Having located the Nicaraguan microfinance sector within a theoretical, international and national context, the subsequent chapter moves to examine the local context. The fieldwork in Nicaragua culminates in a combined map- and questionnaire-based exercise set in Masaya, a city some 27 kilometres roughly south of Managua, the capital. The chapter examines the structure and functions of two local microfinance organisations, FAMA and ADIM, and conducts a close examination of the population amongst which these microfinance organisations operate. The survey of the socioeconomy of households within the Masaya area concludes by casting doubts on, traditional methods of microfinance impact assessment, and suggests a different approach to studying microfinance. The thesis concludes by suggesting that the current vogue for envisaging microfinance initiatives as purely financial operations to be analysed as an accounting phenomenon is not only mistaken, but has potentially damaging consequences. The thesis argues that microfinance must be seen within local, national and international political contexts, and that doing so will help avoid costly errors. The thesis also suggests that the demand for new client-orientated initiatives will be assisted by taking the political economic reality into account, and by using methods such as those suggested by this thesis.

Magister Commercii - MCom / The aim of this study is to determine the extent to which the UN/OSCAL (United Nations Office of the Special Coordinator for Africa and the Least Development Countries) model of microfinance is being applied in the South African context, its scope for application and recommendations for implementation. The hypothesis is that, the better South African microfinance initiatives conform to the model, the more successful it will be in fulfilling the ultimate mission of microfinance which is to supply financial services to the poor by cutting the cost of outreach with beneficial effects on poverty.. / South Africa

Magister Artium - MA / According to Professor Muhammed Yunus, Nobel Prize winner in 2006 and the founder of the internationally acclaimed Grameen Bank in Bangladesh, microfinance is a viable solution to poverty alleviation among the poorest people residing in rural areas. Microfinance programs have led to poverty alleviation and empowerment of especially rural based women of developing societies, as they enable the poor to manage their finances and cope with unpredictable shocks and emergencies (Yunus, 2007). This research evaluated the developmental impact of microfinance on poverty alleviation and women empowerment. It assessed the impact of the existing microfinance programmes among the members of the three microfinance Savings and Credit Associations (SCAs) in the rural areas of the Caprivi region of Namibia. This study explored whether microfinance programs have helped their members to minimize financial vulnerability through diversification of income sources and accumulation of assets. The research employed both qualitative and quantitative research designs. Data were collected through different qualitative and quantitative techniques (in-depth individual interviews, faceto- face interviews, questionnaire and questionnaire schedule). Summary findings indicate that the SCAs has positively contributed to the socio-economic improvement in the living standards (contribution to livelihood – increased income, enhanced health, and food status), improved education/healthcare, women empowerment through micro enterprise training and skill development. However, SCAs are still struggling with challenges, such as lack of income, high default rates and unprofitable micro enterprises. This research makes several recommendations, including: MFIs should concentrate on women’s economic empowerment as their main aim, incentives should be provided to the MFIs to encourage savings and investment amongst the poor, and if microfinance is to be used as a promotional tool for credit and saving services for the poor, then the socio-economic consequences of micro-credit lending have to be re-investigated, especially when they negatively impact on poverty reduction.

This thesis analyses the cost of credit in the micro-finance industry in South Africa. The study situates micro-lending agreements within the law of contract, beginning with an examination of contractual fairness in terms of the common law: the fundamental principle of freedom of contract that underpins the common law of contract; the principle that agreements contrary to public policy should not be enforced; and the impetus given by constitutional values that inform public policy. In regard to moneylending transactions, common law usury law will be explained. The study then goes on to trace the origins and rapid growth of the micro-finance industry which was made possible by its exemption in 1992 from the Usury Act 73 of 1968. The upshot of this development was that registered micro-lenders have for nearly 14 years charged excessive interest rates, and continue to do so. The dire socio-economic impact of these high interest rates on individual consumers and lowincome communities is then demonstrated: how borrowers of small loans soon become over-indebted; the loss of billions of rands every year to low-income communities in the form of interest on micro-loans. The study then shifts to the legislative response to the need for consumer protection in regard to consumer credit. The extensive credit law review process is explained, resulting ultimately in the National Credit Act 34 of 2005, which allows the Minister to prescribe limits on interest rates and fees in all sectors of the consumer credit market. The prescribed limits on the cost of credit in the micro-finance sector are thoroughly explained and analysed, with particular reference to the implications of each element of the credit costing structure, and the combined impact of the total cost of credit on different types and sizes of loans. The envisaged maximum interest and fees will markedly alter the positions of micro-lenders and consumers, and receive careful analysis. The study closes with a summary of findings in the thesis, which includes suggested amendments to the National Credit Regulations and a review of possible legal challenges to the high cost of credit on smaller loans.

The rise of microfinance in South Africa as a development trajectory has dismissed ideas that small business enterprises have no significant contribution to the economic growth and development of the country. The primary objective of the study is to assess the impact of microfinance service providers on the success and sustainability of small business enterprises in the Nelson Mandela Bay. By applying descriptive statistics, 2 ordinary least square regression analyses as well as correlation matrix; the results reveal that microfinance has a positive and significant impact on the success and sustainability on small business enterprises in the Nelson Mandela Bay. The research findings hold a variety of implications for Government and policymakers. The study recommends that the microfinance sector must be under good governance through the microfinance regulatory and supervisory structures, since the sector contributes a great deal towards one of the most important objectives of the Post-Apartheid Government. Further, small business entrepreneurs must be well exposed to the requirements, standards and norms which govern the financial sector. This is particularly important in terms of the National Credit Act provisions.

This study was undertaken to examine the issues relating to risk and loan portfolio management in Microfinance institutions in Uganda. The first objective of this study was to establish the extent of governance in MFIs in Kampala, by looking at the overall management of these institutions, assessing how decision are made, and looking at how they are staffed. The second objective is to establish the variables that best explain management of Micro-Finance Institutions (MFIs). The third objective is to identify the risk management of loan portfolios and lastly to provide recommendations based on the findings. The researcher used explanatory and survey research designs. A minimum sample 114 participants from 50 MFIs was used in data collection and analysis. The researcher employed principle component analysis (PCA) basing on Eigen values to identify variables above mean-scores and the nodes on the scree plot (ordered eigenvalues) denotes the number of variables that best explain the dimensions and conclusion on each variables was drawn basing on mean values of descriptive statistical analysis. Furthermore the orthonormal loadings display of the variables is employed basing on the first principle component that identified the names of variables above the mean score and final variable is drown basing on descriptive statistical analysis using mean scores focusing on those above the mean. The analysis is based on three dimensions of assessments, namely; Governance, Human capital and Risk Management. In general 227 variables were observed from the 3 dimensions, however by employing the PCA the researcher was in position to come up with those that best explain the 3 dimensions and in summary 29 out of 131 variables were identified by the PCA that best describes governance, 17 out of 72 variables were extracted that best explain what is taking in place in human capital whilst 5 out of 24 variables were extracted in relation to risk management. Furthermore conclusions are drawn by employing descriptive statistical analysis basing on mean scores of the variables identified by the PCA. Therefore out of the 29 variables identified by PCA on governance dimension, 19 variables on average have mean scores above 3 signifying good performance in those areas. Therefore the strength of MFIs under governance is seen in the following areas; The MFIs surveyed have strong board that is professionally ethical and knowledgeable in the area of managing financial institutions. They are performing better in the area of decision making, they do make timely decisions, and the board keeps on monitoring management and making sure that strategies agreed upon are properly implemented. The board is well committed in filing tax returns which is a legal requirement to all taxpaying institutions. However 10 variables showed sign of weakness because they have mean scores on average below 3. Management of MFIs need to strengthen its self in the area of allowing individual initiative in decision making, recognition of management committees in place, this smoothen the operations of the institution and lastly the board need to mentor the management, most of the personnel managing these institutions lack skills in managing the entity. On the side of human capital management, 17 variables identified by PCA, basing on their mean scores, 13 have mean scores above 3 showing good performance of MFIs. In this case the strength of MFIs lies in having educated human resources in place; MFIs gave the ability to exploit the available opportunities more especially targeting low income earners that for long have been neglected. However mores is needed under human capital dimension more especially in those areas where on average their mean scores was below 3 such as training programs where the respondents revealed that the type of training obtained does not match with the job requirements therefore they do not benefit from these programs. There is still a lot of bureaucracy within the management that slows the operations of the MFIs. This is further explained by having directors commuting as loan officers. Failure to accept risk exposes the entire institution to a vague of collapse. The last dimension is risk management and in this way, 5 variables were identified by the PCA, and basing on their mean scores, 3 variables showed good progress and that is having performance management system in place, there are limited complaints from the clients about the MFIs services offered and lastly all employees are given access rights to organisation resources, the loan schemes are open to all employees and no discrimination in service delivery, however 2 variables were identified with mean scores below 3 showing weaknesses within the systems. Therefore MFIs have to improve technologies used in their operations; the use of file carbines, off line computers exposes the institution to high degree of risk. There is need to strengthen their distribution channels so that the financial services offered reach out to clients at ease. Specifically the research study identified various risks like systematic risk, operational risk, credit risk, counterparty risk and legal risk in that they do affect the gross loan portfolio in MFIs and policy measures have been recommended to mitigate such risks in financial institutions. These risks can be mitigated by; • Having Internal control systems of checks and balances • Hedging of transactions through advance booking and paying cash in advance. • Diversification of portfolio, through investing in as many assets possible • Continuous reminder of their obligations and making a fall up of clients and as well insuring the loans. • Investors are encouraged to form a network of partners in the business • Continuous engagement of a legal adviser to the institutions. The study contributed to better understanding of risk management in MFIs, that no single variable can be relied upon to explain effective management of risks but however in this study three dimensions play a crucial role in management of risks. The MFI management should focus on having an internal audit function operating independently in that financial controls should be regularly updated to cope with the changing environment. Audit committee of the board should be complete enough to supervise and regulate internal control systems, written policies in the organization should be effectively implemented with clear division of responsibilities of middle to top managers and lastly Segregation of powers and authority need to be strongly emphasized as a way of enhancing proper management of risks in MFIs.

The first chapter of this thesis is an introduction to issue of microfinance. This chapter is about characteristic, targets and social importance of microfinance loans and about birth and history where microfinance started to help and who is founder of microfinance. There is also describing of today's microfinance market, the distribution and characteristics every single microfinance regions: number of microfinance institution, gross loan portfolio and another main attribute for every region. The aim of next chapter is to review actual trends which are typical for microfinance sector. The most important trends are new products, separation microfinance institutions for profit and non-profit institutions, financial sources, rising regulation of microfinancial institution and changing quality of gross loan portfolio in time. The last chapter is about the quality of loan portfolio selected states from Latin Amerika and Asia where the impact of internal and macroeconomics variables to quality of gross loan portfolio is tested by regression model.

This diploma thesis focuses on microfinance, it's basic characteristics and general principles of it's function. It introduces microfinance approaches, development of microfinance, microfinancial services and microfinance providers. Two largest microfinance institutions in Bangladesh, Grameen bank a BRAC, illustrate how microfinance works, helps to empower the poor and reduces their poverty in one of the poorest countries in the world.

In the fields of development and public health, the decisions of the rural poor are often treated as simple, unanimous, and driven by cultural preconceptions and beliefs. This is particularly the case for sub-Saharan Africa, where a dehistoricizing tendency presupposes an ontological link between an African culture and its tendency to interpret the world through the lens of belief. Generally, household activities are not seen as the kinds of modes of objectifying social practice that are the outcome of complex historical struggles over representation, and pre-disposing cultural factors are presumed to be the key determinants of household behavior. The three papers that constitute this alternative-format, article-based dissertation interrogate these assumptions. Although they address diverse subjects (the rise of West African Pentecostalism; the logic of treatment-seeking behavior in Benin; credit and savings strategies in rural Mali), they share a methodological concern with close analysis of the complexity of household decision-making in the moment, study over time, and attention to local concerns in the context of larger social transformations. In both medical and economic contexts, this approach demonstrates not only that behavior is primarily determined by enabling factors, but that the cultural factors that do condition behavior can be understood as creative, rational, and instructive of larger concerns, rather than merely as an impediment to development goals.