This document outlines an assignment to analyze the case study of Akhuwat, a Pakistani microfinance nonprofit. The assignment asks the student to describe conventional microfinance institutions and how Akhuwat differs in its business model and use of social collateral instead of physical collateral. It also asks the student to analyze Akhuwat's strategies to minimize expenses, criticisms of its financial model, and how it was still able to grow successfully.
This document outlines an assignment to analyze the case study of Akhuwat, a Pakistani microfinance nonprofit. The assignment asks the student to describe conventional microfinance institutions and how Akhuwat differs in its business model and use of social collateral instead of physical collateral. It also asks the student to analyze Akhuwat's strategies to minimize expenses, criticisms of its financial model, and how it was still able to grow successfully.
This document outlines an assignment to analyze the case study of Akhuwat, a Pakistani microfinance nonprofit. The assignment asks the student to describe conventional microfinance institutions and how Akhuwat differs in its business model and use of social collateral instead of physical collateral. It also asks the student to analyze Akhuwat's strategies to minimize expenses, criticisms of its financial model, and how it was still able to grow successfully.
1. What is a microfinance institution? Describe the origins and business model of
a conventional microfinance institution. 2. What is Akhuwat? What are the similarities and differences between Akhuwat and a conventional microfinance institution? 3. Differentiate the concept of social collateralization from the practice of keeping collaterals by conventional financial institutions. 4. What strategies did Akhuwat use to minimize its operational expenses as compared to other microfinance institutions? How feasible/sustainable are these strategies for expansion? 5. Why was Akhuwat criticized for its financial model? How was Akhuwat able to perform and grow exceptionally well despite these criticisms?