ISSN: 2225-8329
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Since dawning as methodical approach, microfinance is termed as one of the utmost anti-poverty mechanisms which is discharging financial and associated services to underprivileged who(s) were kept at surface by conventional financial institutions. However, sustainability of microfinance institutions (MFIs) is also imperative for sustainable economic development of the outreach and institution itself. To secure sustainability, every so often, MFIs are more accentuating on financial mission instead social mission inducing mission drift. The study aims corroborating the position of sustainability and mission drift in MFIs with the context of empirical reviews. This is a review study adopts re-examining the determinants of mission drift and its impact on sustainability of MFIs in alleviating poverty, from the course of existing and prominent research works and literatures. The study reveals that financial self-sufficiency (FSS), operational self-sufficiency (OSS), operational efficiency (OE) and wide coverage of depth and breadth of outreach warrants sustainability of MFIs and absence of subsidized fund, commercialization, higher average loan size, lack of innovations and supervisory measures, scaling up process and lower coverage of depth and breadth of outreach etc. pave the way for mission drift. We recommend that bigger outreach, vibrant and comprehensive regulatory policy, organizational commitment and true outreach base help achieving social mission as well as financial mission of MFIs.
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In-Text Citation: (Bhuiyan, et. al., 2020)
To Cite this Article: Bhuiyan, A. B., Kassim, A. A. M., Ali, M. J., Saad, M, Rus, A. D. M. (2020). Microfinance Institution’s Sustainability and Mission Drift: An Empirical Review. International Journal of Academic Research in Accounting, Finance and Management Sciences. 10(3), 349-364.
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