Evaluating Discrepancies Between Expected and Actual Results in Microfinance Programs

Abstract

Abstract This study aims to investigate an unexplored dimension of microfinance industry in Pakistan by analysing the social performance of Microfinance Providers (MFPs) in terms of finding the gaps between stated and actual outcomes. The study employs qualitative content analysis, to explore the vision and mission of 27 MFPs (Microfinance institutions and Microfinance banks) and success stories of microfinance borrowers published on the official websites of MFPs. The results of content analysis revels financial inclusion, social and economic development, poverty alleviation, and empowerment as prominent themes stated in the strategic statements. The major findings of the study suggest that vision and mission statements are aligned in stating the expected outcomes of microfinance, whereas, few gaps between actual and expected outcomes are reported in terms of their focus. Among various themes; MFPs have focused financial inclusion and empowerment the most, while borrowers’ success stories highlighted the business expansion and improved living standard as the prominent outcomes of microfinance.