Growth, Profit & Compensation in Microfinance: How much is too much?
Discussions over the levels of growth, profit and compensation in microfinance can no longer be avoided. Whilst considered features of a commercially successful business, questions arise as to how responsible the motive for profit is when “all this wealth and compensation comes directly from the pockets of those living at the bottom of the economic pyramid” (Chuck Waterfield, 2012).
Growth, profit and compensation levels may be considered essential for the financial sustainability of MFIs, but how much is too much? “It is time for the microfinance industry to make some hard decisions”.
What are your thoughts on growth, profitability and compensation in microfinance? Post your comments below!