Although microfinance organizations are generally considered as inherently ethical, recent events have challenged the legitimacy of the sector. High interest rates and the excessive profitability of some market leaders have raised the question of how to define a fair profit level for social enterprise. In this article, we construct a fair profit framework based on four dimensions: profitability, social mission, pricing, and surplus distribution. We then apply this framework using an empirical sample of 496 microfinance institutions. Results indicate that satisfying (...) all four criteria is a difficult, although not impossible, task. According to our framework, 24 MFIs emerge as true double bottom line organizations. These MFIs are characterized by higher outreach to women, lower portfolio risk, and higher productivity in high-density environments such as South Asia. We argue that excessive profits can be better understood relative to pricing, the outreach of the MFI, and organizational commitment to clients in the form of reduced interest rates. (shrink)

Based on Vallerand’s dualistic model of passion, this study theorizes and empirically examines the temporal dynamics of two types of entrepreneurial passion in female entrepreneurs, harmonious entrepreneurial passion and obsessive entrepreneurial passion, and examines the mechanisms by which entrepreneurial effort0 and fear of failure influence the temporal dynamics of entrepreneurial passion. Using data collected from a three-wave, lagged survey of female entrepreneurs, we employed Mplus to build a latent growth model for entrepreneurial passion and built a cross-lag model of the (...) relationship between entrepreneurial passion, entrepreneurial effort, and fear of failure. We found that female entrepreneurs’ HmEP and ObEP present different temporal dynamics. Furthermore, the temporal dynamics of HmEP are achieved through changes in entrepreneurial effort, whereas the temporal dynamics of ObEP are achieved through changes in current entrepreneurial effort and fear of failure in the next stage. Therefore, due to traditional gender stereotypes and varying motivations to engage in entrepreneurship, the two entrepreneurial passions have different dynamic evolution processes. Our results underscore the importance of effort and fear of failure in stimulating the dynamics of female entrepreneurial passion. (shrink)

Based on a unique data set on US direct microloans, we study the funding determinants of interest-free peer-to-peer crowdlending aimed at borrowers in the US. By performing logistic regressions on funding success and Tobit regressions on the reversed funding time, the existence of a social underwriting by a third-party trustee and information in the description texts fostering the investors’ trust are shown to be the main predictors of successful funding. Regarding social impact, the possibility to empower women and groups of (...) borrowers appeals to the investors, whereas empowerment of the family or community beyond the borrowers themselves appears to remain unappreciated. When examining the vulnerability of the borrowers as a predictor, the results manifest differences amongst the attitudes of the investors towards social impact. In the subsample of non-endorsed loans, the investors appear to prefer to support borrowers with an immigration background. In contrast, this is not the case with endorsed loans. (shrink)

This article examines the relationship between women entrepreneurs’ job autonomy and work–life balance, with a particular focus on how this relationship might be augmented by environments that discriminate against women, whether socio-economically, institutionally, or culturally. Multisource data pertaining to 5334 women entrepreneurs from 37 countries indicate that their sense of job autonomy increases the likelihood that they feel satisfied with their ability to balance the needs of their work with those of their personal life. This process is particularly prominent when (...) they operate in countries characterized by discriminatory socio-economic and institutional conditions, though a mitigating instead of invigorating effect arises in culturally discriminatory settings. For business ethics scholars and practitioners, these findings indicate how the extent to which women entrepreneurs, seeking to combine professional and private responsibilities, derive benefits from initiatives aimed at enhancing their job-related freedom critically depends on whether they operate in adverse external environments. (shrink)