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can cover their full cost, through adequate interest spreads, relentless focus on
efficiency, and aggressive enforcement of repayment’ (Littlefield and Rosenberg,
2004). An opposite perspective is: ‘MFIs that focus on financial self-sufficiency bear
the burden of proving that they are truly reaching the very poor. If not, then they are
pushing the microfinance industry to abandon its value-based roots, and concern for
the poor, however earnest, can be become simply an excuse to make a buck.’
(Woller, Dunford and Warner, 1999).
2.4.1 Microfinance Institutions Goals
One of the main goals of European MFIs is to become sustainable over the long run
(Jayo et al., 2008). The outcomes of the working paper are average for the European
Union (see figure 2.4) there is however a difference between Western Europe and
CEE. In CEE, where microfinance was introduced after the fall of the wall, MFIs
traditionally focus on profitability, scale and sustainability (Hartarska et al., 2006). In
Western European, on the other hand, MFIs have a strong focus on social inclusion
and pay less or almost no attention to profitability (Evers and Jung, 2007).
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2.4.2 Microfinance Institutions Modes
According to Pollinger, et al. (2007) there are three different modes in which MFIs
operate:
• Survival;
• Sustainability;
Figure 2.4: Future Goals of European MFIs (Jayo et al., 2008)
• Self-sufficiency.
Elmar Hoogendoorn 17
Sustainable Microfinance