Abstract
Maximizing profitability is an important prerequisite for dealing with rising competition in
the microfinance industry and ensuring long term sustainability. While profitability measurement is more
commonly based on ratio analysis technique; the current study uses a non-parametric linear programming
tool, known as Data Envelopment Analysis (DEA) for this purpose. This study makes a contribution to the
existing research on the profitability of microfinance providers (MFPs), by investigating the Pakistan-based
operations of a set of MFPs. The results of the analysis reveal considerable potential for improvement in profit
efficiency of a number of selected MFPs.
Sadia Farooq. (2018) Performance Evaluation of Microfinance Providers Using Data Envelopment Analysis: The Profitability Perspective, Journal of Management Sciences, Volume 5, Issue 1.
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