Social Performance of Microfinance Institutions Improving Economic Stability of Low-Income Individuals
Abstract
Right now, a lot of microfinance institutions (MFIs) are straying from their initial goal of reducing poverty. Considering social performance metrics as a means of addressing MFI development, the aim of this study is to identify and update significant social performance (SP) for micro-finance institutions (MFIs). Social performance metrics are more closely aligned with the organization's development and social objectives than regular performance metrics. Therefore, in order to identify critical social performance metrics that MFIs must meet in order to fulfill their social objectives, this study has examined earlier empirical research and consultancy reports pertaining to poverty reduction. This study also examines 125 MFIs that reported social performance in 2018 and 2023 using the Microfinance Information Exchange (MIX) database. According to the research, Therefore, this study offers guidance for future research in performance evaluation that balances social and financial goals in the microfinance sector. In order to support the conceptual literature that is now available, it is also a start toward performing additional research and suggesting regulation of MFIs' social performance. This will need additional empirical study utilizing micro-econometrics approaches in the future.
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