Indicator of Social Impact Measurement in Microfinance: A Thematic Review

Social impact measurement quantifies the social impacts of interventions, initiatives, and programmes to help stakeholders understand and evaluate their social contributions. It identifies, collects, and analyses data to assess social consequences and inform evidence-based decision-making and resource allocation. For example, microfinance and Islamic microfinance, which aim to alleviate poverty, increase financial inclusion, and develop marginalised groups, require social effect monitoring. To determine whether MFs and IMFs have had an actual and positive difference, it is necessary to assess what the key indicators are for measuring the effectiveness of microfinance and Islamic microfinance. Therefore, this study was inspired by the idea that what are the indicators to measure microfinance and Islamic microfinance in order to know effectiveness and performance. Thus, the aim of this thematic review is to synthesise the previous studies related to the key indicators to measure the effectiveness of microfinance and Islamic microfinance from 2018 to 2023 using ATLAS.ti 23. A thematic analysis approach that is useful to code and deeply interpret the identified common themes. The results contribute to future studies on social indicators and can guide educators, researchers, and practitioners in this field.