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This study explores the issues faced by Microfinance Institutions MFIs in Sri Lanka in sustaining their business development services BDS and the strategies that they use to overcome these issues.

Impacts of Microfinance on Grassroot Development a

A multiple case study methodology was used in the study to conduct an in-depth examination of six microfinance Impacte in Sri Lanka. MFIs therefore, employ several strategies to circumvent these issues, including the use of coupon systems, charging a fee from the client, obtaining commission from the buyers for market linkages, and linking credit to the BDS programme in order to sustain their BDS programmes.

The findings are useful to microfinance practitioners, policy makers and contribute to the knowledge domain of microfinance.

The will of microfinance institutions to maintain their activities during Covid-19 crisis

Microfinance Institutions MFIsin addition to the provision of microcredit, also provide business development services BDS to owner managers in order to develop micro enterprises. BDS are non-financial services such as business training and access to information that help owner managers of microenterprises to develop businesses. Co-production is the joint efforts of two parties, who together determine the output of their collaboration.

The objective of this study therefore is to examine how co-production works in a BDS setting. A multiple case study method was used to carry out the study.

Impacts of Microfinance on Grassroot Development a

Six MFIs were selected as cases and in-depth interviews were held with counsellors, trainers and managers to collect the data. The findings reveal that the expertise of counsellors, trainers and pf managers are the inputs for co-production. The outputs of co-production are twofold: MFI specific outputs and owner manager specific outputs.

Impacts of Microfinance on Grassroot Development a

While MFI specific outputs are identified in better loan repayments rates, enhanced client satisfaction, and increased client retention, the owner manager specific outputs are denoted by better business knowledge, better sales, and profits. There are a number of factors that affect the variability in coproduction including the readiness of counsellors and Grassroot, with a number of BDS provided under each modality.

Therein, the findings of this study are beneficial to microfinance practitioners and policy makers.

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Furthermore, the findings also contribute to the knowledge domain of microfinance. Keywords: business development services BDSco-production, microfinance, case study method. This article investigates the nature of resource-based processes in the development of new ventures, adopting a business duality lens.]

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