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All Myth and Ceremony? Examining the Causes and Logic of the Mission Shift in Microfinance from Microenterprise Credit to Financial Inclusion

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  • Philip Mader
  • Sophia Sabrow

Abstract

This contribution assesses the shift in the mission of microfinance from providing small loans for entrepreneurship to the broader agenda of financial inclusion. Three leading organisations' publications inform a discourse analysis, which allows the strategic shift to be analysed using two theoretical frames from organisational sociology: instrumental rationalism and sociological institutionalism. The proclaimed shift in strategy is found to consist less of rational innovation towards the aim of poverty alleviation than of “myth and ceremony” for the sake of organisational self-preservation.

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  • Philip Mader & Sophia Sabrow, 2019. "All Myth and Ceremony? Examining the Causes and Logic of the Mission Shift in Microfinance from Microenterprise Credit to Financial Inclusion," Forum for Social Economics, Taylor & Francis Journals, vol. 48(1), pages 22-48, January.
    • Handle: RePEc:taf:fosoec:v:48:y:2019:i:1:p:22-48
    DOI: 10.1080/07360932.2015.1056204
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    Cited by:

    1. Bajde, Domen & Chelekis, Jessica & van Dalen, Arjen, 2022. "The megamarketing of microfinance: Developing and maintaining an industry aura of virtue," International Journal of Research in Marketing, Elsevier, vol. 39(1), pages 134-155.
    2. Md Aslam Mia & Sunil Sangwan & A. H. M. Belayeth Hussain & Nurhafiza Abdul Kader Malim, 2022. "Rural–urban financial inclusion: Implications on the cost sustainability of microfinance lenders," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 1899-1911, September.
    3. Vincent Guermond, 2022. "Contesting the financialisation of remittances: Repertoires of reluctance, refusal and dissent in Ghana and Senegal," Environment and Planning A, , vol. 54(4), pages 800-821, June.
    4. Ozili, Peterson K, 2021. "Measuring financial inclusion and financial exclusion," MPRA Paper 107866, University Library of Munich, Germany.
    5. P. K. Priyan & Wakara Ibrahimu Nyabakora & Geofrey Rwezimula, 2023. "A bibliometric review of the knowledge base on financial inclusion," SN Business & Economics, Springer, vol. 3(2), pages 1-21, February.
    6. Ozili, Peterson K, 2020. "Contesting digital finance for the poor," MPRA Paper 101812, University Library of Munich, Germany.

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