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Sustainability and Outreach: the Goals of Microfinance

In: Microfinance

Author

Listed:
  • Gianfranco Vento

Abstract

The financial sustainability of microfinance projects and institutions consists mainly in finding a balance between the profit gained from the projects and the cost of carrying them out. This variable is taken into great consideration by MFIs, donors and investors who bring financial support to microfinance and the various stakeholders. In pursuing the goal of sustainability the conditions are created so that the results obtained may continue over time and, ultimately so that the initiatives and institutions are self-sufficient from outside contributions. The sustainability of microfinance programmes is traditionally related to the social benefit that derives from them, usually meant, though not exclusively, as the ability to reach the poorest sector of the population. Such concept of ‘depth’ of intervention is called outreach in specialist terminology.

Suggested Citation

  • Gianfranco Vento, 2006. "Sustainability and Outreach: the Goals of Microfinance," Palgrave Macmillan Studies in Banking and Financial Institutions, in: Microfinance, chapter 4, pages 54-70, Palgrave Macmillan.
    • Handle: RePEc:pal:pmschp:978-0-230-62758-1_4
    DOI: 10.1057/9780230627581_4
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