Strategies for Mitigating the Effects of Crisis in Microfinance Institutions in Ghana, Dr. Akorfa Ahiafor, Dr. Yvonne Doll and Prof. Rocky Dwyer
Dr. Akorfa Ahiafor, Dr. Yvonne Doll and Prof. Rocky J. Dwyer
Walden University, College of Management & Human Potential, Minneapolis MN
Purpose: The purpose of this qualitative, multiple-case study was to determine strategies, Ghanaian microfinance managers applied to mitigate the effects of crises to remain sustainable.
Design/methodology/approach: In this qualitative multi case study, participants encompassed Ghanaian MFC experts and consultants who were licensed MFCs, had extensive professional experience in an MFC operating in Ghana, and possessed five or more years of successful operations within the period of the study; and possessed comprehensive experience in implementing strategies to mitigate the effects of crises to remain sustainable.
Findings: Five themes emerged from the data analysis: governance, communication, fundraising, cost reduction, and business model strategies. Given microfinance crisis has threatened and eventually destroyed in some instances the positive impact of microfinance services in the past resulting in loss of investment, employment, and credibility, the findings from this study could bring relief to microfinance industry by enabling MFC leaders to develop strategies which mitigate the effects of crises on families and small businesses that do not enjoy the services of traditional banks will have increased access to banking services. Consequently, sustainable MFIs may support economic liberation and the empowerment of the productive poor, the vulnerable, and the economy at large.
Practical implications: This study may ensure that sustainable MFIs contribute to the survival of families and small businesses that do not enjoy the services of traditional banks. As well, crisis mitigation strategies in MFIs, might reposition MFIs and prepare prospective institutions to survive potential crises.
Originality/value: The implications of positive social change include the potential mitigation of crisis for successful microfinance management. In addition, the findings from the investigations may expose strategies for preventing loss of capital and investment of both investors and customers of MFCs and other microfinance institutions (MFIs).
Paper type: Research Paper
Keywords: crisis mitigation strategies; crisis communication; microfinance crisis; team leadership; crisis management.
Citation: Ahiafor, A., Doll, Y., Dwyer, Rocky. J. (2022): Strategies for Mitigating the Effects of Crisis in Microfinance Institutions (MFIs) in Ghana. World Journal of Science, Technology and Sustainable Development (WJSTSD), Vol. 19, No. 1, pp. 39–53.