Date of Completion


Degree Type

Honors Thesis - Campus Access


Business Administration (BADM)

First Advisor

Dong Chen, Ph.D.


Microfinance is a growing system that has been used to reduce poverty by allowing people who do not have sufficient credit to access financial services. The success of this program derives from features such as solidarity lending, cost-recovery interest rates, a focus on income-generating activities, innovation, and borrower profiling. With the recent introduction of for-profit microfinance institutions, there arise potential pitfalls that may make the entire industry ineffective. Without systems in place to manage growth, a clearly defined mission, and good practice, the industry will lose its ability to attract investment and help the poor in the world. It is necessary for the industry to return to those factors that led to its success and gain greater management and oversight through owners and the board of directors at these institutions.