| dc.description.abstract | This study investigates the impact of competitive aggressiveness on the growth of microfinance institutions
(MFIs) in Murang'a County, Kenya. In the dynamic landscape of the financial sector, MFIs face increasing pressure
to compete effectively while sustaining growth. Competitive aggressiveness, characterized by strategies aimed at
directly challenging competitors, introducing innovative products, and expanding market presence, has gained
prominence as a potential driver of growth in this context. To examine this relationship, the research employs a
mixed-methods approach, combining quantitative analysis of financial data with qualitative insights from key
stakeholders in the microfinance sector. The study analyses financial performance indicators, including loan
portfolio growth, outreach, profitability, and market share, over a five-year period. Additionally, in-depth interviews
and surveys are conducted with microfinance practitioners, regulators, and clients to gain a comprehensive
understanding of the competitive dynamics in Murang'a County. Preliminary findings suggest a strong correlation
between competitive aggressiveness and the growth of MFIs. Institutions that proactively engage in competitive
strategies tend to experience higher loan portfolio growth, increased outreach to underserved populations, improved
profitability, and an expanded market presence. However, the study also highlights the need for balanced
approaches, as excessive aggression can lead to risks and challenges in regulatory compliance and client protection.
The research outcomes have significant implications for both practitioners and policymakers in the microfinance
sector. By shedding light on the nuanced relationship between competitive aggressiveness and growth, this study
offers valuable insights for MFIs seeking to thrive in competitive environments while maintaining financial stability
and social impact. Additionally, regulators and industry stakeholders can use the findings to refine policies and
frameworks that encourage healthy competition and sustainable growth in the microfinance sector. | en_US |
