MICROFINANCE

ABSTRACT

Ameen s.a.l. and Al Majmoua of Lebanon, two opposing microfinance players as a non-profit and a profit-oriented institution, on their profitability while operating in Lebanon, were studied. To sketch a wide-ranging viewpoint on the subject, the following were carried out : Analyses of the comparative advantages based on published balance sheets and financial statements, centred on: Profitability; Risk tolerance and Trends in gaps for clientele, loan size, industry preference, geographical distribution; techniques in the conduct of microfinance activities: mobile banking; and method or methods that best describes how microfinance best supports to rebuild and develop Southern Lebanon.

The data from the published balance sheet and financial statement of Ameen s.a.l. and Al Majmoua of Lebanon were computed using Microsoft Excel for Analyses of variance and regression analysis. The results showed that Ameen s.a.l. and Al Majmoua ended with generating profit from their microfinance activities. Thus, significantly Al Majmoua was influenced by Ameen s.a.l. because Al Majmoua is registered as non-profit entity.