Matching Outreach and Financial Sustainability An Assessed Accounting Framework in Evaluating Performance of Microfinance Project

Abstract

The theoretical framework, consisting of the
traditional literature on performance is contextualized according
to the specific rationale that characterizes the microfinance
operation. Performance evaluation, moreover, is not a new
subject matter in microfinance. On the international level,
different models of evaluation have been developed over the
course of the last years. This work proposes an alternative
performance measure for microfinance. The innovative force is
inspired with respect to three specific requirements: the first is
the strict derivation of the classical doctrine on performance
analysis – that assures the rigorousness and reliability; its
adaptability to formal institutions, including non-profit
organizations that are less formal and complex; the need to find a
correct balance between the two dichotomous objectives that
characterize microfinance, that is the financial sustainability and
outreach.