Abstract
<p><em>The crisis that Burundi has experienced since October 1993 has led to the emergence of new associative mechanisms at the initiative of Burundian citizens around the same adventure: that of microcredit. Far from being a fad, microcredit has been the single source of financing for poor citizens by enabling them to engage in income-generating activities. For this, beneficiaries who are for the most part without material guarantee must not only group themselves in associations, but also align themselves with the constraints of the lessor. According to the theory of contingency, any organization can increase its performance to the extent that its strategy is in harmony with its environment. Our analysis considers the issue of strategic alignment from a new angle. We conclude that the adjustment of the NPOs members to the modalities of granting loans enables them to benefit from Microfinance Institutions which help to reach their main objectives and to promote a real organizational efficiency.</em><em></em></p>
Highlights
In many countries, Micro Finance Institutions (MFIs) have emerged as an important mechanism for providing small loans to low-income people in order to enable them to create income-generating activities (Yunus, 2007)
We propose to analyze the common characteristics of microfinance institutions and NPOs that benefit from microcredit in Burundi, even if apparently these two categories of companies do not have the same objectives
Based on the primary data collected and the extensive research conducted in microfinance, we summarize below six specific interventions of Burundian MFIs with its target population plus the monitoring of microcredit beneficiaries. 5.2 Specificities Relating to Financing Arrangements Beyond the very positive aspects mentioned in the first point, the amounts of credit granted by microfinance institutions are generally low
Summary
Micro Finance Institutions (MFIs) have emerged as an important mechanism for providing small loans to low-income people in order to enable them to create income-generating activities (Yunus, 2007). This article aims to show that members of Burundian non-profit micro-credit (MFI clients) are productive entities serving their specific purposes. To achieve their goals, they must take out a loan to carry out an income-generating activity. They must take out a loan to carry out an income-generating activity In this sense, these nonprofits are financial shells intended to collect financial resources and make them available to members. These nonprofits are financial shells intended to collect financial resources and make them available to members These are organizations that follow their own logic in order to achieve a specific goal (which is generating revenue).
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