International Journal of Business and Management Study
Author(s) : PR. MUSTAPHA CHAMI, SARA LEBBAR
Microfinance industry is a key sector in supporting inclusive development. However, this sector suffers from high costs worldwide. Very few studies focused on decreasing microfinance cost and support processes of needy entrepreneurs  to whom are assimilated the majority of microcredit holders. This work aims to assess Microfinance institutions’ (MFI’s) performance and to analyze their cost structure. The innovative idea is to provide a financial offer in adequacy to these institutions’ and to microcredit beneficiaries’ needs through a network structure. It emerges from the analysis that, the cost of microfinance is high and consists mainly of operating expenses. MFI’s apply high interest rates in order to cover their expenses and compensate their losses. Microcredit beneficiaries, over-indebted, cannot pay-off their debts. This fact leads to reducing of the long term profitability of these institutions. A network structure through non-profit incubators might reduce of microfinance institutions’ transaction costs and encourage them to provide a favorable offer to a sustainable inclusive growth.