The Impact of Entrepreneur-CEOs in Microfinance Institutions: A Global Survey

Trond Randøy*, R. Øystein Strøm*, Roy Mersland*

*Corresponding author for this work

Research output: Contribution to journalJournal articleResearchpeer-review


Microfinance is a global high-growth industry, in which entrepreneurship is prevalent and substantial. Based on the theoretical argument that microfinance entrepreneur-chief executive officers (CEOs) are "motivated agents" with a unique ability to hire and socialize mission-oriented staff, we hypothesize that these CEOs produce more sustainable microfinance institutions (MFIs) with better social performance and lower costs. This study utilizes data from 295 MFIs in 73 developing countries, assessed between 1998 and 2010. Our empirical evidence suggests that entrepreneur-managed MFIs feature higher social performance, greater financial sustainability, and lower costs.
Original languageEnglish
JournalEntrepreneurship: Theory and Practice
Issue number4
Pages (from-to)927-953
Number of pages27
Publication statusPublished - Jul 2015
Externally publishedYes

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