Performance Of Selected Microfinance Institutions In Ethiopian A Balanced Scorecard Approach

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This study analyze the performance of selected microfinance institutions in Ethiopianusing arnbalanced score card (BSC) performance analysis approach which integrate both financial andrnnonfinancial metrics.rnThe BSC framework of the study developed using a total of 20rnperformance indicators which were equally categorized under the 4 BSC perspectivesrn(financial, customer, internal business process and learning and growth). The developedrnframework applied to purposively selected8 MFIs operating in Ethiopia which have head officernin Addis Ababa and report to Association of Ethiopian Microfinance Institutions (AEMFI)rnstarting from 2007-2012 consecutively.rnQuantitative research approach adopted and primary data collected using five scale Likert andrnsecondary data obtained from AEMF used. A total of 10 microfinance experts, 110 staffs andrn60 clients participated in the study. The analysis is done using descriptive statistics and SPSSrnversion 21 used. The findings of the study shows based on financial performance results, onrnaverage the institutions reviewed were sustainable with high relative productivity and lowrnprofitability. The average nonfinancial performance was also high, indicating that the studiedrninstitutions were highly performing in nonfinancial measures likewise the financial.rnBeside the performance results the findings of this study confirmed the relationship assumptionrnof BSC perspectives and it shows positive correlation among them. The study concludesrncomprehensive performance is observed when measured in a collective way. So, EthiopianrnMFIs suggested paying attention on the use of BSC as a performance measurement tool andrnalso hub to specified performance indicators that needs enhancement.rnKey words: - Microfinance, Performance and BSC

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Performance Of Selected Microfinance Institutions In Ethiopian A Balanced Scorecard Approach

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