Abstract

This study investigates the outreach and financial performance of microfinance institution in case of seka cokorsa woreda in seka town of jimma zone. The purpose of this study is to appraise the performance of seka town MFIs in terms of various criteria such as outreach to the poor and financial sustainability through comparing with each other. The MF industry as a whole is challenged by the need to reach the poorest customers and at the same time being financially self sufficient. Although the industry as a whole is growing at a faster pace still the two critical questions of reaching the poor and building a financially sustainable MF industry that walk on their own leg freely are empirical questions. This research paper, although will not solve these crucial questions, will at least contribute to the other researchers, practitioners and policy makers by showing where the seka#x2019;s MFIs are lying on the outreach to the poor, sustainability, and a couple of other performance dimensions. Secondary and primary are used in conducting this paper. Those data for the research was taken from some written material, website and sample respondents. For data analysis, we were use descriptive statistics, graphs and charts. There some factors that affect micro finance institution not to perform its objectives effectively and efficiently. The study also includes the presence of several challenges that constrain the MFIs operation not to be efficient.