M Power Micro Finance: Early Battle for Survival

內容大綱
When M Power Micro Finance was founded in 2009 in the Indian state of Gujarat, a number of challenges in the microfinance market made it difficult for the company to survive. Just months after M Power’s founding, the microfinance industry was hit by a repayment crisis that eroded both profitability and confidence in the industry. With public sentiment turning against microfinance institutions, M Power’s bright growth prospects suddenly disappeared and its CEO struggled to keep the business afloat. The flow of funding into the microfinance sector dried up, and the management of funds had to be closely monitored on a monthly basis. The CEO’s woes were not over: some of his business partners left the organization as the situation worsened. The company’s future was uncertain. As the industry began to show signs of recovery in 2013, though, the CEO hoped to secure a financing deal and persevere.
學習目標
This case is suitable for both undergraduate and graduate courses. It can be taught as part of a course on entrepreneurship, new venture creation, financial services or microfinance. Objectives are:<ul><li> <br>To understand the process of planning and establishing a new business, specifically in the microfinance sector in India.</li><li> <br>To understand the underlying dynamics of the microfinance industry in India.</li><li> <br>To understand the gravity of the challenges posed by a business’s external environment.</li><li> <br>To emphasize the importance of short- and long-term funding for an organization.</ul></li>
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