Sustainable Microfinance - Balanced Scorecard's added value for ...

The main factors that negatively affect the move toward a sustainable model, so far
identified are (Evers and Jung, 2007; Guichandut and Underwood, 2007):
1. Difficult and little developed market place;
2. Sector immaturity;
3. Presence of subsidies.
According to Jung, et al. (2009) financial and non-financial services should be
considered as separate cost centres when developing such a model. The financial
operations may become sustainable in the long run, but the Business Development
Services (BDS) for disadvantaged target groups will remain liable on subsidies.
Figure 2.5: Social Inclusion of Enterprise Development (Molenaar, 2010)
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2.5 Business Development Services
2.5.1 Introduction
Data indicates that approximately 98 percent of
European companies are small businesses
(SBs). Of these small firms, 91 percent are
micro-firms, employing less than 10 individuals,
while 50 percent are sole proprietorships (see
figure 2.6 and table 2.1) (European
Commission, 2007). Moreover, as the industrial Figure 2.6: Types of Enterprises
(European Commission, 2007)
Elmar Hoogendoorn 20
Sustainable Microfinance