Managers’ Motives For Transformation Of Nonprofit Organization Into A For-Profit Organization On The Example Of Microcredit Organization

The paper is aimed at establishing managers’ motives for the transformation of a non-profit organization into a for-profit organization on the example of micro- credit organization (MCO), as well as managers’ views on whether the MCO transformation from a non-profit into a for-profit one will cause problems in the implementation of the MCO’s vision and mission, problems in the cooperation with Banking Agency, problems in employees’ adjustment to managers’ plans. In B-H, micro-credit organizations operate as non-profit organizations. Pursuant to recent legal solutions in B-H, micro-credit organizations can be transformed into for-profit organizations. The decision and motive for the transformation include MCO managers’ expectation that the transformation into a for-profit organization will result both in an increase in the MCO’s profi tability and in an increase in the market share, the number of clients and the reduction of poverty. The study will use primary research among MCO managers, other stakeholders, chambers of commerce, employment agencies, and other bodies related to MCO operations. Scientific analysis will establish motives for the transformation and managers’ expectations related to the MCO profitability, market share, number of clients and reduction of poverty.