Measuring performance of social and non-profit Microfinance Institutions (MFIs): An application of multicriterion methodology

Microfinance Institutions (MFIs) are special financial institutions of both social and nonprofit nature whose performance has been traditionally measured by means of financial ratios. However, performance rankings are usually based on a single criterion, so the performance measure varies according to the criterion used. This paper proposes a multicriterion methodology based on goal programming that simultaneously considers different categories involved in the performance of Microfinance Institutions. The paper is illustrated by a sample of Latin American MFIs.Bartual Sanfeliu, C.; Cervelló Royo, RE.; Moya Clemente, I. (2013). Measuring performance of social and non-profit Microfinance Institutions (MFIs): An application of multicriterion methodology. Mathematical and Computer Modelling. 57(7-8):1671-1678. doi:10.1016/j.mcm.2011.11.010S16711678577-

Financing micro-entrepreneurs for poverty alleviation: a performance analysis of microfinance services offered by BRAC, ASA, and Proshika from Bangladesh

Microfinance services have emerged as an effective tool for financing microentrepreneurs to alleviate poverty. Since the 1970s, development theorists have considered non-governmental microfinance institutions (MFIs) as the leading practitioners of sustainable development through financing micro-entrepreneurial activities. This study evaluates the impact of micro-finance services provided by MFIs on poverty alleviation. In this vein, we examine whether microfinance services contribute to poverty alleviation, and also identify bottlenecks in micro-finance programs and operations. The results indicate that the micro-loans have a statistically significant positive impact on the poverty alleviation index and consequently improve the living standard of borrowers by increasing their level of income