Empirical Study on the Key Influencing Factors and Development Mechanisms for the Sustainability of Microfinance Institutions Based on a Survey of Chinese Microcredit Companies

Microfinance institutions (MFIs) play a significant role in financial-inclusion and poverty-alleviation activities. A critical challenge facing MFIs is of how they all can build their own capacity for sustainable healthy development. By using the data from pilot survey 65 microcredit companies Zhejiang, China, this paper explores factors affecting activities by principal component analysis analyzes key Influencing development performance with variance multi-regression model. The results indicate that four operational technology, external environment, financial condition, institution size have positive effect on economic sustainability MFIs, while adjusted has an insignificant performance, which means MFI greater impact than performance.