1Lecturer (Accounting & Finance), College of Business & Economics, Dept. of Accounting & Finance, Debre Berhan University, Post Box-445, Debre Berhan, Ethiopia
2Lecturer (Accounting & Finance), College of Business & Economics, Dept. of Accounting & Finance, Debre Berhan University, Post Box-445, Debre Berhan, Ethiopia
Online published on 4 March, 2021.
The captioned research aims at determining the financial sustainability through the micro finance services. The research adopts quantitative approaches coupled with secondary sources of data from seven Ethiopian micro finance institutions out of 30 micro finance institutions using purposive sampling method. In order to find the effect of outreach on financial sustainability regression model has been applied. The independent variables are breadth of outreach, depth of outreach, cost of outreach as the main dimension of outreach and dependent variables of the study is financial sustainability measured as operational self-sufficiency. The finding reveals that there is a complement relation exists between outreach and financial sustainability of MFIs. Therefore, large and efficient MFIs can achieve the dual objectives i.e. reaching the target groups and become financially sustainable simultaneously.
Micro-Finance, Cost of Outreach, Operational, Self-Sufficiency, Breadth of Outreach, Depth of Outreach, Financial Sustainabilityand Ethiopian MFIs
