Suneeta Sathye

Sustainability and outreach in microfinance institutions in India: an ethical analysis

Abstract We use an ethical analysis framework to explain the tensions that microfinance institutions (MFIs) face in following ethical practices when faced with the competing objectives of financial sustainability and social outreach. The extant view is that these institutions have to resort to unethical practices such as usury interest rates and forced loan collections to survive. After a case study of five MFIs, we find that this is not the case, and competing objectives can very well be achieved following ethical practices. This article is set against the background of suicides by microfinance borrowers in India.

Factors influencing the intention to use of mobile value‐added services by women‐owned microenterprises in Fiji

We investigate the factors influencing the intention to use mobile value‐added services in the Pacific island of Fiji. Technology adoption literature suggests that perceived usefulness and perceived ease of use influence intention to adopt new technology. However, behavioral research suggests that intention to adopt is influenced by social norms. We investigate the impact of these 3 constructs on behavioral intention to use mobile value‐added services in Fiji—a country that has some unique characteristics such as the culture of “sharing” and “reciprocity.” We surveyed 74 women microentrepreneurs and found that the predominant driver of intention to adopt technology in collectivist societies such as Fiji is social influence. It was found that social influence also impacts perceived usefulness and perceived ease of use and through these the intention to adopt. Accordingly, in societies such as Fiji, policy makers and industry need to engage social organizations/networks for advancement of technology adoption.

Mobile Value Added Services and Micro Enterprises: Industry Challenges and Policy Barriers in a Small Pacific Island Country

Worldwide, mobile phones are rapidly changing the approach and strategies for micro, small and large businesses alike. Yet, little remains known about policy and infrastructure constraints that might impede their use for growth of businesses, especially in the case of microenterprises in developing economies. We address this gap in the literature. Focusing on a small Pacific island economy, we survey 74 women enterprises via semi-structured interviews and a number of key stakeholders spanning the government, mobile network and financial institution sectors to understand both demand and supply perspectives. Appropriate policy framework, supporting infrastructure and adequate ecosystems are required for rapid uptake of mobile value added services by women owned micro enterprises in Fiji. A significant number of women micro entrepreneurs are willing to embrace mobile value added services if these were made available with adequate security and at reasonable cost.

Indian Microfinance and Codes of Conduct Regulation: A Critical Examination

This chapter deals with an unusually large and critical sector as microfinance. The conduct of a large segment of the microfinance sector in India has been governed by the codes of conduct (CoC) and fair practices developed by the sector associations and the Reserve Bank of India (RBI), the central bank of the country. Many different tool kits have also been introduced by donors, investors and international financial agencies, apparently, to help microfinance entities adopt what has come to be known as ‘responsible microfinance practices’. Along with ensuring workable competition among microfinance institutions (MFIs), all the codes and other standards emphasise protection of client interests. CoC has assumed increased importance in microfinance regulation, given the reluctance of both the state and the central bank to come up with a definite statutory regulatory framework to supervise the functioning of MFIs. However, there is considerable ambiguity about the enforcement of the code and compliance by MFIs. The authors of the chapter take a critical look at the role of CoC in promoting responsible business practices and orderly growth among MFIs in India.