Qualitative Phase: Management of Factors Affecting and Discriminating Sustainability

In this chapter four out of the seven efficient and sustainable Microfinance Institutions (MFIs) identified in the intermediate participant selection phase of the study, are interviewed by the author. These interviews mark the beginning of the qualitative phase of the study. This phase aims to understand about the managerial aspects of the factors that affect and discriminate the sustainability of Indian MFIs. As per the findings of the quantitative phase, Growth Factor, Portfolio Risk Factor, Development Factor and Institutional Factor are the significant factors found to affect the sustainability of Indian MFIs and Cost Efficiency Factor is found to discriminate the sustainability of Indian MFIs. The intent of undertaking the interviews in this phase of the study, is to understand how these four efficient and sustainable MFIs are managing these five determinant and discriminate factors, found significant in the quantitative phase. The strategies used by these MFIs to manage these five factors are documented for the reference of other MFIs in the sector. Prior to the discussion on the strategies used to manage the five factors, confirmation is sought from the MFI managers about the observed relationships shared by the factors with Operation Self-Sustainability (OSS) ratio, as seen significant in the quantitative phase of the study.