Open AccessAnalysis of the Profile of non-profit Organizations Receiving Funding by a Microfinance Institution: the Case of Burundi
Author(s) -
Marie-Goreth Nduwayo,
Michel Sayumwe
Publication year - 2018
Publication title -
business and economic research
Language(s) - English
Resource type - Journals
ISSN - 2162-4860
DOI - 10.5296/ber.v8i3.13421
Subject(s) - microfinance , institution , business , non profit , financial institution , not for profit , profit (economics) , finance , accounting , economic growth , business administration , economics , political science , law , microeconomics
In this study, we analyze the profile of burundian non profit organizations (NPOs) receiving funding from a microfinance institution. We focus on the concept of strategic alignment as developed by Henderson and Venkatram (1999) which assumes that the corporate performance is related to the management skills. We analyze the modes of operation of Burundian NPOs which benefit from microcredit. We observe that they reflect an appropriate financing strategy. In fact, our study concludes that the income-generating activity flows a well-defined profile that ensures an adaptation for the NPOs. While the microcredit institution has a financial role, it also contributes to satisfy basic needs for survival of the NPOs members.