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.Similar thoughts have been expressed by Charles Handy, management thinker and social philosopher, rated in many quarters, as being next only to Peter F. Drucker. The purpose (focus) of a business has been discussed in paragraph 2 above. A company whose objective is profit maximization will have a different focus one in which its leadership and management are obsessed with financial goals thereby misdirecting most efforts into financial context (reflected in, among others, regular meetings to discuss profitability, continuous analysis of profitability statements, etc.) rather than other important business objectives and resulting in a culture which can only be self defeating in the long run.

Irregular repayments may jeopardize access to new loans. 'If those borrowers who are prompt with repayments are not provided with fresh credit, there may be possibility of increase in delinquency. Any sustained slowdown in supply of funds usually leads to galloping delinquency.'

Sources of Funds

Source of traditional MFI funding has been hit - grants by foundations. Some of the big foundations have survived a 30% loss in their endowments since they had invested their monies in equities. Currency fluctuations during the crisis have hit MFIs dependant on foreign currency loans. MFIs in the emerging economies of Eastern Europe and Central Asia that depended on foreign funds were hit by unanticipated local currency depreciation. Burdened with dollar liabilities, relatively credit worthy MFIs are now finding it difficult to get loans, Brian Cox, Executive Director, MFX Solutions, a firm that helps MFIs hedge against exchange rate fluctuations said. (Consumers prefer socially responsible brand, 2007)

Private Equity investors look at hard growth numbers and these organisations threw up incredible growth figures, year after year. 'What drives investors is the double bottom line approach. The returns are comparable with the risk and returns of mainstream assets, but in addition to it - there are social benefits,' Brad Swanson, managing partner at Developing World Markets (DWM), a socially oriented investment bank. At the height of the crisis, it closed two funds, equity and a debt fund in the last six months. One of the investors of the equity fund is US pension fund Teachers Insurance and Annuity Association, College Retirement. Equities Fund (TIACREF). Swanson said, 'TIACREF made it clear to us that they expect serious returns as they would from a mainstream asset.'

In the play of economies of scale, returns are huge for the relatively small amounts that venture capitalists invest. Even at the height of the crisis, SKS Microfinance, one of the largest MFIs in India sealed a $75 million deal in November 2008 with Sandstone, a US hedge fund. Now as a part of its borrowing plan for next fiscal, SKS will be the first nonbanking financial company (NBFC) in India to issue commercial paper to raise short-term funds.

Difficult market conditions have ensured that MFIs use new strategies to cut borrowing costs. Last month, another Indian MFI, Equitas securitised its assets. In securitisation cash flow producing financial assets are pooled, packaged 本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。