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The curse of limited growth among Lebanese microfinance institutions
01.09.2019
With 13 microfinance institutions (MFIs) operating in Lebanon the sector is witnessing limited growth. This article aims to determine the reasons behind such limited growth using a survey method to rank and prioritize factors affecting growth and profitability, followed by suggested solutions. The results have shown that, in fact, several factors are hindering MFI growth. “Increased competition” and “legislation and regulatory framework” rank highest, followed by lack of capital to lend to clients. Building awareness and better and stronger regulation rank highest among the suggested solutions. We believe that such results have important implications for policy makers and practitioners alike.