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Mission drift between the balance of social mission vs. financial performance of microfinance institutions
01.09.2022
Recently, many researchers have highlighted the imbalance between the financial and social missions of microfinance institutions (MFIs), which is considered to be the main objective of the research. Hence, the objectives of the current study were to identify the roots of mission drift and the reasons for high interest rates. In addition, the article was focused on the examination of the most efficient products of the sector. The research paper is conceptualized and based on primary data collection through field work, which has been analyzed using SPSS software. Secondary data has been collected mainly from peer-reviewed articles. As an improvement strategy, representatives of the sector should plan strategic campaigns to solve the situation. According to the results, though the strict regulations of the sector lead to stability in the market, changes regarding micro-savings or microinsurance regulation should be developed for future enhancement of MFIs in Armenia and in the Commonwealth of Independent States (CIS) region.