Toward an Integrated Approach to Microfinance: Sustainability in Bolivia and Peru

"This study takes as its basis the premise that achieving a balance between the financial sustainability and the social impact of an organization is one of the most significant goals of microfinance. Based on this assumption, the primary research question of this study is: what approach to service delivery is most effective in helping an MFI achieve a balance between financial well-being and social impact? Financial well-being is a broad category; thus this paper focuses on financial sustainability, defined as an organization’s ability to reach its target population while covering administrative and other costs.* In seeking to answer this question, I conducted research for two months in Peru and Bolivia, surveyed a wide variety of integrated and non-integrated MFIs, and collected qualitative data from field observations and interviews with microfinance stakeholders. I sought their perspective on their organization’s specific approach to service delivery as well as their views on the tradeoff between solvency and social mission."--from page 22