The Institutions of Microfinance Between Social Approach and Value Creation Approach: Case of Microcredit Associations

Abstract

This study examines the ability of microfinance institutions (MFIs) to reconcile financial performance and social utility, a crucial issue in the context of the social economy. A mixed-method approach was adopted, combining conceptual analysis and a field survey of three major MFIs in Casablanca. Data were collected from questionnaires administered to employees and beneficiaries, and analyzed using SPSS v21 software to assess the relationships between financial performance, social impact and MFI professionalization.

The results show that MFIs can balance these two objectives. Employees recognize the importance of social utility while maintaining viable financial practices, and beneficiaries, mostly women in precarious situations, report a positive impact on their living conditions. However, challenges remain, such as the risk of over-indebtedness and the need to improve the adequacy of services.

These findings highlight that the professionalization of MFIs and the integration of rigorous management are essential to maximize their social impact and ensure their financial viability. The study recommends strengthening internal control systems and promoting financial education programs to ensure a sustainable balance between social and financial objectives.

Keywords : Social utility, Microfinance, Microcredit, Social performance, Financial profitability

Classification JEL : G21

Paper type : Empirical Research