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Evaluating Mission Drift in Microfinance

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  • Gaamaa Hishigsuren

    (Mennonite Economic Development Associates)

Abstract

The article contributes to a better understanding of implications of scaling up on the social mission of microfinance programs. It proposes a methodology to measure the extent, if any, to which a microfinance program with a poverty alleviation mission drifts away from its mission during rapid scaling up and presents findings from a field research using the proposed methodology at Activists for Social Alternatives (ASA), a microfinance organization that serves poor women in rural India. The findings indicate that mission drift is not a result of deliberate decisions by the management or board but rather is a result of the challenges posed by the scaling-up process. At times, changing trends in social outcomes were not obvious, and management was not aware of the changes indicated by the proposed measures of social performance.

Suggested Citation

  • Gaamaa Hishigsuren, 2007. "Evaluating Mission Drift in Microfinance," Evaluation Review, , vol. 31(3), pages 203-260, June.
    • Handle: RePEc:sae:evarev:v:31:y:2007:i:3:p:203-260
    DOI: 10.1177/0193841X06297886
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    References listed on IDEAS

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    1. Mark Schreiner, 2002. "Aspects of outreach: a framework for discussion of the social benefits of microfinance," Journal of International Development, John Wiley & Sons, Ltd., vol. 14(5), pages 591-603.
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    1. Kausar Yasmeen & Mohd Zaini Abd Karim, 2014. "Impact of Interaction Term between Education and Loan Size on Women’s Decision Making," Journal of Entrepreneurship and Business Innovation, Macrothink Institute, Journal of Entrepreneurship and Business Innovation, vol. 1(1), pages 123-141, June.
    2. Weber, Olaf & Ahmad, Adnan, 2014. "Empowerment Through Microfinance: The Relation Between Loan Cycle and Level of Empowerment," World Development, Elsevier, vol. 62(C), pages 75-87.
    3. Dilruba Khanam & Muhammad Mohiuddin & Asadul Hoque & Olaf Weber, 2018. "Financing micro-entrepreneurs for poverty alleviation: a performance analysis of microfinance services offered by BRAC, ASA, and Proshika from Bangladesh," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 8(1), pages 1-17, December.

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