MFIs that have reached a minimum scale and are in a position to generate surpluses, are well positioned to take advantage of the opportunities that have emerged in recent times. However, for MFIs which are small – with a clientele of less than 50,000, the opportunities have also brought several challenges. Well capitalized MFIs which have the size and form to attract funding will be in a position to scale up their operations rapidly, sometime at the cost of small MFIs. This M2i paper explores critical factors that will determine the sustainability of small MFIs and hence are factors that should guide their future roadmaps.
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