Impact of capital investment to survival of microfinance companies in a volatile environment.
- Author
- Gatsi, Advocate
- Title
- Impact of capital investment to survival of microfinance companies in a volatile environment.
- Abstract
-
Microfinance institutions (MFIs) play a crucial role in providing financial services to the poor and unbanked population in developing countries. Traditional banks neglect informal sector and the poor in which microfinance firms bridge the difference. However, they operate in a challenging environment, and their survival is often threatened by various risks. That is, volatility of the external environment which downsized business operations through fluctuation exchange rates, stiff regulations and inflation which erodes money value. This study aims to investigate the impact of capital investment on the survival of MFIs in a volatile environment.
The study uses data from Microfinance companies in Zimbabwe in a period from 2010 up-to-date and applies statistical analysis to test the hypotheses. A sample of 220 potential respondents, only a sample of 73 respondents was used using systematic sampling by selecting respondents at regular intervals, taking each third person. . Graphs, tables and charts were used to illustrate and clearly explain the effect of capital investment. The results show that capital investment positively influences the survival of MFIs, and this effect is stronger in a volatile environment. They must prioritize investing in portfolio that brings best results from scarce resources. Therefore, it is recommended that MFIs should prioritize capital investment to enhance their resilience and sustainability in the face of risks. - Date
- 2022
- Publisher
- BUSE
- Keywords
- Micro Finance
- Capital Investments
- Supervisor
- N/A
- Item sets
- Department of Accountancy
Part of Impact of capital investment to survival of microfinance companies in a volatile environment.