Open AccessAnalysis of the Characteristics of Social Enterprises: The Case of Microfinance Institutions and Non-Profit Organizations Benefiting from Microcredit in Burundi
Author(s) -
Marie-Goreth Nduwayo,
Michel Sayumwe
Publication year - 2018
Publication title -
international journal of accounting and finance studies
Language(s) - English
Resource type - Journals
eISSN - 2576-201X
pISSN - 2576-2001
DOI - 10.22158/ijafs.v1n1p71
Subject(s) - microfinance , business , harmony (color) , contingency , non profit , adventure , modalities , marketing , economic growth , business administration , economics , art , linguistics , philosophy , social science , computer science , operating system , sociology , visual arts
The crisis that Burundi has experienced since October 1993 has led to the emergence of new associative mechanisms at the initiative of Burundian citizens around the same adventure: that of microcredit. Far from being a fad, microcredit has been the single source of financing for poor citizens by enabling them to engage in income-generating activities. For this, beneficiaries who are for the most part without material guarantee must not only group themselves in associations, but also align themselves with the constraints of the lessor. According to the theory of contingency, any organization can increase its performance to the extent that its strategy is in harmony with its environment. Our analysis considers the issue of strategic alignment from a new angle. We conclude that the adjustment of the NPOs members to the modalities of granting loans enables them to benefit from Microfinance Institutions which help to reach their main objectives and to promote a real organizational efficiency.