This study explores the problems facing the African continent in general and Gambia in particular. Specifically, it examines The Gambia\'s dependence on foreign aid, as a result of the Bretton Woods Institutions and the neoliberalization of Africa, and it juxtaposes the aforementioned with microfinance, as an alternative method for fighting poverty. Empirically, this work examines the potential effectiveness of Reliance Financial Services in Gambia\'s microfinance institution who are engaged in this burgeoning enterprise and that of the VISACAS, a grassroots microfinance organization in The Gambia. / Master of Public and International Affairs

Thesis (MDF (Development Finance))--University of Stellenbosch, 2010. / ENGLISH ABSTRACT: The purpose of this study is to determine the effects of the global financial, economic, and food price crises on microfinance institutions (MFIs), and on the microfinance industry in general as well as to illuminate microfinance‘s way forward in the medium-term (2-3 year) future. The research report took the form of an international survey representing the responses of 59 MFIs in 39 countries. It is unique in its focus on microfinance practitioners from MFIs of all sizes and profit orientations, and that it only sought responses from the six developing regions of the world—Latin American and the Caribbean, Eastern Europe and Central Asia, the Middle East and North Africa, Sub-Saharan Africa, South Asia, and East Asia and the Pacific. This report identifies 23 impacts of the crises and groups them into four classifications—client impacts, liquidity and profitability impacts, MFI growth and development impacts, and political and reputational impacts. This study demonstrates that the crises have affected MFIs around the world profoundly, and that MFIs have faced a resilient hierarchy of impact groups. Across MFI regions, sizes, ages, product offerings, registration status classifications, and affiliations, the four impact groups were shown to maintain the same order of severity, with client impacts being the category of biggest concern of MFI respondents. Also severe were liquidity and profitability impacts. The least severe categories of impacts were found to be MFI growth and development impacts and political and reputational impacts, respectively. Through quantitative and qualitative analysis of microfinance practitioner responses, this report establishes an overall ranking of the 23 impacts the global crises are having on the industry. The analysis has further revealed that Sub-Saharan Africa reported the highest impacts of the crises out of all the regions surveyed. The size of an MFI affects its resilience against the crises, with small MFIs being more severely affected than large MFIs. Age was found to have an inverse relationship with MFI impact ratings, and there were very few significant differences between for- and non-profit MFIs. This research report has demonstrated that the benefits afforded to MFIs by accepting deposits may have been over-promoted by industry observers during the early stages of the crises, as no apparent benefits have emerged from responses to this survey. The report concludes with a summary of respondent indications about the way forward for the microfinance industry.

Dissertation presented for the Degree of Doctor of Philosophy at Stellenbosch University. / Thesis (PhD (Business Management))--University of Stellenbosch, 2010. / ENGLISH ABSTRACT: Uncertainty of continued donor funding poses a risk to microfinance operations worldwide, and this study explores the circumstances under which African microfinance institutions (MFIs) will consider commercial funding as a viable alternative source of funding. This research aims to identify the factors that are associated with successful access to private capital for pro-poor financial institutions. It examines the suitability of new opportunities for accessing fresh capital by MFIs for development and poverty reduction using commercialisation as an option. In a world awash in private capital, it is vital to harness the power of the private sector to solve key development challenges (World Bank, 2007). As microfinance institutions grow, they increasingly find themselves in need of additional capital to finance expansion of services to cover more poor communities. The study undertook a cross-country data analysis of 103 microfinance institutions to help provide understanding of the critical success factors that underpin successful access to commercial capital. The study also tested the hypothesis on the viability of commercial finances, and developed and tested a commercialisation success model for tapping commercial funds. The prediction model based on firm-level data from a sample of 21 African countries between 1998 and 2003, aims to minimise chances of failure and act as a screening system by investors as well as a selfassessment tool for MFIs intending to seek commercial capital. On examining the direct and indirect impact of firm-level success factors on commercialisation, the study identified key predictors of success and guidelines for MFI financing’s integration with the larger financial system. The study finds that certain critical success factors (CSFs) define minimum pre-conditions for microfinance institutions considering commercial funding as an alternative source of finance. There is evidence to suggest that the desire to tap into the capital markets and capacity to link with commercial investors is a realisable vision for African MFIs. The research evidence is instructive of widened financing options for MFIs and capacity to relax growth constraint in the industry. Based on the CSFs, the study suggests how MFIs can break free from 'captive' donor funding as a necessary platform for the switch to commercial finance in the industry. However, the findings also suggest the need for MFIs to satisfy the interests and requirements of prospective commercial investors to overcome new challenges. In particular, the results show that the extent of organisational formalisation and transparency in financial reporting are absolutely essential in drawing commercial lenders to invest in microfinance. In addition the study establishes the reasons why traditional approaches to financing microfinance cannot work any longer. There are some concerns on mission drift; in particular whether the poor gain from commercialisation, and under what circumstances their interests are taken care of in order to preserve the long-term social value of microfinance as a poverty reduction strategy. The study was carried out based on a rather limited time series data. However, the number of firms and the diversity is considered adequate for the study, as well as sample representation across Africa. The study also used views of 'thought leaders' as the source of information. Other personnel calibre may have had different suggestions. Perceptions were drawn from commercial lenders/investors of microfinance programmes based in Africa. Needless to say, any generalisation of CSFs beyond the African microfinance context should be made with caution. This study is probably one of the first attempts to explore the possibility of a linkage between microfinance and capital markets and it will be of interest to MFIs, commercial banks, international donors and investment funds with an interest in investing in the microfinance industry. The findings suggest that the speed of increase in financial leverage per country depends as much on the dynamism of the market, as it does on the level of development of the finance sector. The results indicate that commercial investors will be attracted by good financial returns and administrative efficiency (return on assets, cash-flow adequacy and operating expense ratio), transparent reporting and information disclosure and clarity, as well as low inflation levels. Investors will also be looking for larger, regulated and profitable MFIs with a low-risk profile for their investment portfolios. The study found strong support to the hypothesis that the commercialisation index (CI) is a better measure of successful commercialisation than the LMA (leverage multiplier added), given the variables used. In all cases, compelling evidence shows that the CI has more explanatory power and is an accurate predictor of two-year success in commercialisation as examined by logistic regression. These results suggest that the superior predictive abilities of the CI commercial rating rule could be explored to guide screening efforts for winners, investment decisions and other binary classification investigations. Specifically, the model can be useful in guiding successful commercialisation schemes in Africa because it provides MFIs with a structured approach for achieving sustainable commercial microfinance. / AFRIKAANSE OPSOMMING: Onsekerheid oor volgehoue skenkerbefondsing is ’n risiko vir mikrofinansieringsinstansies wêreldwyd, en hierdie studie ondersoek die omstandighede waaronder Afrika se mikrofinansieringsinstansies (MFIs) kommersiële befondsing sal oorweeg as ’n lewensvatbare, alternatiewe bron van befondsing. Hierdie navorsing poog om die faktore, wat met die suksesvolle toetrede tot private kapitaal van pro-arm finansiële instellings geassosieer word, te identifiseer. Dit ondersoek die gepastheid van nuwe geleenthede vir MFIs om vars kapitaal te bekom en as ’n opsie te gebruik vir ontwikkeling en die vermindering van armoede deur kommersialisasie. In ’n wêreld met oorvloedige bronne van private kapitaal is dit lewensnoodsaaklik om die krag van die privaatsektor in te span om kern ontwikkelingsuitdagings op te los (World Bank, 2007). Soos mikrofinansieringsinstansies groei, het hulle ’n toenemende behoefte aan addisionele kapitaal ten einde die uitbreiding van dienste te kan finansier en om meer arm gemeenskappe te kan bereik. Die studie het data komende van 103 mikrofinansieringsinstansies uit verskeie lande ontleed om begrip van die kritiese suksesfaktore (KSFe), wat suksesvolle toegang tot kommersiële kapitaal onderskraag, te verkry. Die studie het ook die hipotese oor die lewensvatbaarheid van kommersiële finansiering getoets, en ’n model vir kommersialisasie-sukses ontwikkel en getoets om kommersiële fondse te bekom. Die voorspellingsmodel, wat gebaseer is op maatskappy-vlak data van ’n groep van 21 Afrika lande tussen 1998 en 2003, poog om die kanse op mislukking te minimeer en te dien as ’n siftingstelsel vir beleggers sowel as ’n selfondersoekmiddel vir MFIs wat beplan om kommersiële kapitaal te bekom. Deur die direkte en indirekte impak van maatskappyvlak suksesfaktore op kommersialisasie te bestudeer, het die studie sleutelvoorspellers van sukses asook riglyne vir die integrasie van MFI finansiering met die groter finansiële stelsel geïdentifiseer. Die studie bevind dat sekere KSFe minimum voorvereistes vaslê vir MFIs wat kommersiële befondsing as ’n alternatiewe bron van finansiering oorweeg. Daar is bewyse wat daarop dui dat die begeerte om toegang tot die kapitaalmarkte te verkry en die kapasiteit om met kommersiële beleggers te skakel ’n realiseerbare visie vir Afrika MFIs is. Die navorsing lewer insig wat aanduidend is van breër finansieringsopsies vir MFIs, en wat die beperkinge op groei in die industrie verslap. Gebaseer op die KSFe, stel die studie voor hoe MFIs uit die houvas van skenkerbefondsing kan loskom as ’n nodige stap vir die oorskakeling na kommersiële finansiering in die bedryf. Die bevindings dui egter ook op die behoefte van MFIs om aan die belange en vereistes van moontlike kommersiële beleggers te voldoen ten einde nuwe uitdagings te oorkom. Die resultate dui spesifiek daarop dat die mate van organisasie-formalisering en die deursigtigheid van finansiële verslagdoening noodsaaklik is om kommersiële uitleners te trek om in mikrofinansiering te belê. Verder bevestig die studie die redes waarom tradisionele benaderings tot die finansiering van mikrofinansiering nie meer kan werk nie. Daar is wel sekere bekommernisse oor die moontlike kompromittering van missie; in besonder is die vraag of die armes wel baat vind by kommersialisasie, en onder watter omstandighede daar na hulle belange omgesien word ten einde die langtermyn sosiale waarde van mikrofinansiering as ’n strategie vir armoede verligting te behou. Die studie is uitgevoer gegrond op tydreeksdata wat betreklik beperk is. Die aantal maatskappye en die diversiteit word egter as voldoende beskou vir die studie, asook dat die steekproef verteenwoordigendend was van lande regoor Afrika. Die studie gebruik ook die menings van ‘leierdenkers’ as ’n bron van inligting. Personeel van ’n ander kaliber mag verskillende voorstelle gehad het. Persepsies is verkry van kommersiële uitleners/beleggers van mikrofinansieringsprogramme wat in Afrika gebaseer is. Vanselfsprekend behoort enige veralgemening van die KSFe buite die Afrika mikrofinansieringskonteks met omsigtigheid gedoen word. Hierdie studie is waarskynlik een van die eerste pogings om die moontlikheid van ’n skakel tussen mikrofinansiering en die kapitaalmarkte te ondersoek en dit sal van waarde wees vir MFIs, kommersiële banke, internasionale skenkers en beleggingsfondse wat in belegging in die mikrofinansieringsbedryf belangstel. Die bevindinge dui daarop dat die spoed waarmee die effek van finansiële hefboom in ‘n land toeneem net soveel afhang van die dinamika van die mark as van die ontwikkelingsvlak van die finansiële sektor. Die bevindinge dui daarop dat kommersiële beleggers aangetrek sal word deur goeie finansiële opbrengste, administratiewe doeltreffendheid (opbrengs op bates, voldoende kontantvloei en die bedryfsuitgawe verhouding), deursigtige verslagdoening en duidelike openbaarmaking van inligting, sowel as lae inflasievlakke. Beleggers gee ook voorkeur aan groter, gereguleerde en winsgewende MFIs met ’n lae risikoprofiel vir hulle beleggingsportefeuljes. Die studie vind sterk ondersteuning vir die hipotese dat die Kommersialisasie-indeks (CI) ’n beter aanduiding van suksesvolle kommersialisasie is as die Leverage Multiplier Added (LMA), gegewe die veranderlikes wat gebruik is. In alle gevalle was daar sterk getuienis dat die CI ’n beter verduideliker is en ’n akkurate voorspeller is van die tweejaartermyn sukses in kommersialisasie soos deur middel van logistiese regressie getoets. Hierdie resultate dui daarop dat die superieure voorspellingsvermoëns van die CI se kommersiële beoordelingsreëls beproef kan word om die sifting van wenners, beleggingsbesluite en ander binêre klassifikasie ondersoeke te lei. Die model kan spesifiek nuttig wees om rigting te gee aan suksesvolle kommersialisasieskemas in Afrika omdat dit MFIs ’n gestruktureerde benadering gee tot die bereiking van volhoubare kommersiële mikrofinansiering.

This research examined whether microfinance-assisted developmental mechanisms can integrate ecological objectives alongside social and economic ones—thus promoting sustainability. The specific focus was to test the ability of microenterprises operated by community-entrepreneurs in supporting local ecosystem services. To this end, the research: elucidated the nature and dynamics of linkages between communities and the local ecosystems with the lens of coupled social-ecological systems, i.e. illustrated ecological modernization of microenterprises in a developing country context; tested how community-based enterprises transform upon application of green microfinance strategy; and then recognized how social learning is promoted through such community-based intervention mechanisms, e.g. microfinance. The research used case study and participatory approaches. The case study comprised two components: i) a green microfinance program, and ii) communities in a riparian, and a wetland ecosystem in Bangladesh engaged in entrepreneurship. The major tools that the study employed for data collections were: household surveys, participatory land -use surveys, semi-structured interviews, key informant interviews, focus group discussions, multi-stakeholder workshops, field observations, and document reviews. The research findings reveal that the green microfinance strategy, in the short and medium terms, catalyzes entrepreneurial and social innovations, and combine the embedded economic and social objectives of the classic microfinance with the new ecological objectives towards sustainability. The strategy applied by Microfinance Institution (MFI) and adopted by community enterprises transformed the ventures—helping them to go green and reducing greenhouse gas emission. Besides, the partnerships that occur between non-governmental organization (NGO) and community-based organization (CBO) in the process of implementing developmental programs—result social learning and innovations in the communities. The research review found grassroots developmental initiatives as an evolving phenomenon over time. With this view, and with its observation through this cross-sectional study, the research proposes a framework entitled ‘community-based developmental enterprise (CBDE)’. The framework proposes community level entrepreneurial ventures, associated NGO-MFIs, CBOs and other development partners to consider ecosystem services and wellbeing components in entrepreneurial design and actions. / October 2016

Le principal objectif de cette thèse est d’apporter, à travers divers essais et analyses empiriques,des éléments de réponses quant au rôle du secteur informel sur le marché du travail et la pauvretéà Madagascar, et tout particulièrement à Antananarivo, sa capitale. La thèse est organisée enquatre chapitres. Le premier chapitre présente les méthodologies d’appréhension du secteurinformel à Antananarivo : l’enquête 1-2-3 en deux phases sur le secteur informel et laconsommation des ménages, ainsi que l’élaboration de déflateurs spécifiques des agrégatséconomiques du secteur informel. Le second chapitre présente les spécificités du secteur informelà Antananarivo. Le troisième chapitre est consacré aux relations entre les activités informelles et lemarché du travail. Le quatrième et dernier chapitre s'intéresse aux liens entre secteur informel etpauvreté. La thèse aborde les dimensions économiques et sociales susceptibles de justifier despolitiques d’appui au secteur informel dans le cadre de la lutte contre la pauvreté : la contributiondes activités du secteur informel à l’incidence de la pauvreté et l’impact de l’exercice de ce typed'activités sur le bonheur individuel. Ces analyses conduisent à s’intéresser à ses caractéristiques,sa dynamique, ses faiblesses, les obstacles à son développement et les aides souhaitées par lesopérateurs, en particulier les besoins en microcrédit. Des analyses complémentaires sontproposées quant au choix d'exercer un travail indépendant et aux discriminations sur le marché,notamment dans sa dimension formelle/informelle. / The main purpose of this thesis is to provide, through various articles and empirical analysis, someresponses about the role of the informal sector in labor market and poverty in Madagascar, with afocus on the case of Antananarivo. The thesis is organized in four chapters. The first one presentsmethodologies for investigating the informal sector in Antananarivo : the 1-2-3 survey in two stepson the informal production units and household consumption, and the development of economicaggregates deflators in the informal sector. The second chapter of this thesis presents thecharacteristics of the informal sector in Antananarivo. The third chapter is devoted to relationshipsbetween the informal and the labor market. The fourth and final chapter is dedicated to the analysisof the role of the informal sector on poverty. The thesis examines the social or economic interestsjustify the informal sector support in the fight against poverty: the contribution of informal sectoractivities on the incidence of poverty and the impact of exercise of informal activity on the individualhappiness. This leads to focus the analysis on its characteristics, dynamics, weaknesses, barriersto its development and aid desired by the operators, in particular the need for microcredit.Complementary analyses are also provided concerning the choice of self-employment anddiscrimination on the labor market along a formal/informal line.

Abstract Most microloan applicants in Nigeria are denied access to financial services by the commercial banks because of the high risk involved in granting loans to an individual without tangible assets to offer as collateral. The purpose of this qualitative multiple case study was to explore small business owners' understanding of suitable funding options from microfinance banks in Nigeria to sustain their businesses beyond the first 5 years. An investigation was conducted on how small business owners could obtain information on funding options most suitable to sustain their business. Guided by the ethical banking operations framework theory, the strategies business owners had used was explored to understand available funding options. A homogenous sampling strategy was used to purposefully identify and select the microfinance applicants who had similar experiences using different funding options. Fifteen customers of microfinance institutions (MFIs) participated in semistructured interviews. Additional data on MFIs was obtained from established secondary sources. Yin's 5-step process was used to analyse the data, with member checking and triangulation used for validation. Key findings emerged on lack of appropriate entrepreneur training, inadequate financial management, skills gap, and inability to interpret the bank's information on loan procedures. This revealed the need to develop ways for small business owners to more easily access information on loan options. MFIs may use the findings of the study to enhance access to their financial services and promote the growth of MFIs to increase sustainable economic growth for both owners and the local communities they serve. Positive social change may be promoted through financial empowerment and job creation.

Thesis (LLM. (Management and Law)) -- University of Limpopo, 2013 / Rural areas of Zimbabwe suffered acute shortage of banking services. Conventional banks feared high transaction costs and lack of collateral associated with this market segment. This research aimed at evaluating impact of microfinance on rural farming sector. Finding out the general banking and microfinance situation, appraising scheme impact and making recommendations were the research’s objectives. A descriptive research design was used. A population of 3,400 members constituting 289 Investment Groups (IGs) was used. Quota and purposive sampling were used to select 20 IGs and 154 individual respondents. Sample survey, Focus Group Discussions (FGD) and Key Informant Interviews (KII) were data collection methods. The survey findings showed that the five Department For International Development’s (DFID’s) Sustainable Livelihoods Approach (SLA) asset bases increased more for the treatment than the control groups, signifying microfinance impact. Wealth ranking, meant to triangulate survey results, depicted upward mobility of groups; old ones transcending to rich categories while the new moved into top poor rank, also demonstrating impact. Further, scheme achieved women empowerment basing on their numerical predominance and improved self-confidence, signifying impact. The study recommends that Farmers’ Association of Community self-Help Investment Groups (FACHIG) resuscitated its savings component using the Self-Help Group (SHG) thrift approach to ensure scheme sustainability. In addition, climate change, a phenomenon which increased droughts, could have dampened impact. However, the research did not delve into this area, compelling a future study.

Cette thèse contribue à analyser dans quelles mesures les coopératives financières concourent à laréduction de la pauvreté.De ce point de vue, nos analyses ont porté aussi bien sur l’adéquation du cadre conceptuel de cesinstitutions que sur leurs impacts sur les sociétaires. Par rapport au fonctionnement, nos analysesmontrent dans le cas du Bénin, que les principes coopératifs sont globalement appliqués. Toutefois, ellessont confrontées à des problèmes de viabilité financière et de gouvernance liés à la croissance dusociétariat.En ce qui concerne leurs impacts sur les sociétaires, nos résultats suggèrent dans le court terme, que lecaractère intégré de ces institutions s’est avéré globalement pertinent. Par rapport à la dimensionfinancière, il ressort des résultats obtenus que le crédit communautaire contribue favorablement àl’accroissement du revenu des ménages, à la promotion de l’investissement en capital humain des enfants àtravers à l’accroissement des dépenses d’éducation et de santé, mais avec une portée relativement faible.Par contre, le crédit communautaire n’a pas eu d’effet sur l’accroissement de l’épargne. Par rapport à ladimension non financière, nos résultats suggèrent que les services non financiers offerts exercent à traversle statut de sociétariat, une influence favorable sur la constitution du revenu des ménages bénéficiaires ducrédit coopératif.Dans le même ordre d’idées, du point de vue de la mobilité économique, les résultats suggèrent à courtterme, une mobilité des ménages bénéficiaires relativement faible et liée à l’état initial de bien-Être. Defaçon comparative, les résultats suggèrent dans une certaine mesure qu’il y a eu une mobilité ascendanteélevée au niveau des ménages bénéficiaires comparés aux non bénéficiaires. Sur un horizon de long terme,nos résultats suggèrent une convergence très lente des sociétaires vers l’état de bien-Être supérieur si lescoopératives ne subissent pas de mutation en termes de stratégie de réduction de la pauvreté.Par ailleurs, de l’analyse de l’influence du degré de la contrainte de crédit révélée par les sociétairesbénéficiaires du crédit communautaire, il ressort que l’existence de la contrainte de crédit du côté del’offre ne semble pas avoir influencé le niveau de vie des bénéficiaires ayant jugé la valeur du montant ducrédit obtenu « insuffisante ou très insuffisante », dans le court terme. Par contre, par rapport auxbénéficiaires qui ont jugé la valeur du montant du crédit obtenu « suffisante », nos résultats suggèrent dansun premier temps, l’existence d’un biais de sélection et dans un second temps, que la chance de sortir de lapauvreté est plus faible pour cette catégorie de bénéficiaires comparée au reste de la population quipossède les mêmes caractéristiques mais qui s’estiment très contraints « crédit obtenu très insuffisant » oupartiellement contraints «crédit obtenu insuffisant ».En somme, nos résultats soulignent que le caractère intégré des coopératives peut contribuer à lacroissance économique et l’amélioration du bien-Être sociétaires pauvres et vulnérables, mais à conditionque ces structures définissent clairement une stratégie dans ce sens et qu’elle soit étalée sur un horizon detemps bien défini. En outre, pour y parvenir, ces institutions nécessitent d’être appuyées par des dotationsexternes ou d’autres programmes complémentaires au regard de leur mode endogène de mobilisation deressources qui pourraient donner lieu à des contraintes apparentes de crédit. / This thesis contributes to analyze the extent to which financial cooperatives contribute to povertyreduction. From this point of view, our analysis focused on both the adequacy of the conceptualframework of these institutions and their impact on members. As for their operation, our analysis showsin the case of Benin that cooperative principles generally applied. However, they face problems offinancial sustainability and governance related to the growth of membership.With regard to their impact on shareholders, our results suggest that in the short term, the integratednature of these institutions has proven globally relevant. As for the financial dimension, it appears fromthe results that the community loan contributes positively to the growth of household income, theincrease of investment in human capital for children through higher education and health spending, butwith a relatively small range. However, the community loan had no effect on the growth of savings. As forthe non-Financial dimension, our results suggest that non-Financial services offered exercise through thestakeholder-Status, a positive influence on the formation of the income of households that arebeneficiaries of the cooperative loan.In the same vein, in terms of economic mobility, our results suggest, in short-Term a relatively lowmobility of recipient households which is also related to the initial state of well-Being. In other words, thefrequency of mobility is upward for all states of welfare for all recipients, except for the poorestshareholder households. Compared to non-Beneficiaries, our results suggest in some ways, a high upwardmobility for beneficiary households. Over a longer term, our results suggest a very slow convergence ofmembers to a state of higher well-Being when the cooperatives are not subject to change in their povertyreduction strategies.In addition, the analysis of the influence of the degree of credit constraints revealed by the shareholderswho were beneficiaries of the community loan, shows that the existence of credit constraints in the supplyside does not seem to have influenced the living standards of beneficiaries who rated the value of the loanreceived as "insufficient" or "very insufficient" in the short term. But, compared to recipients who foundthe value of the loan received "sufficient", our results suggest at first, the existence of a selection bias andin a second step, the chance to escape poverty is lower for this category of beneficiaries compared to therest of the population with the same characteristics but who feel very constrained ("loan received is veryinsufficient") or partially constrained ("loan received is insufficient".)In total, our results highlight that the integrated nature of cooperatives can contribute to economic growthand improve the welfare of poor and vulnerable members, provided that these cooperatives clearly definea strategy in that direction and spread it over a defined period of time. In addition, to achieve this, theseinstitutions need to be supported by external grants or other complementary programs, when oneconsiders their endogenous mode of resource mobilization.

Abstract Title: Client Information Needs of MFIs: A Case Study of ASA Bangladesh Author: Juber Ahmed Academic Advisor: Dr. Klaus Solberg Søilen Department: School of Management, Blekinge Institute of Technology Course: Master Thesis in Business Administration Purpose: To enrich the knowledge base of client’s needs of financial services and assessing the tools MFIs used to collect clients’ information and how they utilized the information for developing new products and services or modifying existing products and services or their terms and conditions to meet the needs of financial services of their clientele. Also how MFIs organized and managed the information and how they categorized their clients using that information. Method: The investigation conducted from both a theoretical and an empirical point of view. The deductive approach used for the study and the case study method deployed. I studied ASA which is an MFI renowned in Bangladesh and beyond. At first, I had gone through a secondary research for collecting a number of successful methods and standard types of information used by successful MFIs from existing literature. In primary research, I interviewed 10 Managers (Assistant Directors) for ASA to determine which of the methods found in the literature were more effective for collecting clients’ information for them and also asked them to add their ideas to the list. At last I asked interviewees to rate the methods and results presented in this paper. Theory: This study was an exploratory one where I discussed the related aspects for the study - Microfinance, Client Assessment, Clients of Microfinance, Information needs and Management Information System. Findings: The study showed that ASA utilized client information for developing their credit products and services and based on number of loans taken by the clients they categorized their clients and modified or developed new products and services for each category of clients. Although ASA executed several tools for collecting client information but the managers think that their staffs’ collection of information from regular meeting with clients was more effective than others for modifying products’ terms and conditions and modifying or developing new products and services to their women and small enterprise clients. The conducted study also revealed that in ASA impact study was necessary to know clients’ overall level of satisfaction but management needed specific information on what aspects of ASA and its credit products and services clients preferred and did not prefer and the reasons of the preferences. Also they needed action plan to address clients’ specific concerns, so they needed the information on a continual basis and they were successful to achieve this continuous flow of information. For ASA, the best way to get this type of information would be through client satisfaction Focus Group Discussions (FGDs), although they utilized several tools but not often as discussed in part 3 in chapter 5. ASA owned an MIS (AMMS) for monitoring and managing clients’ information and they utilized this to categorize their clients based on the collected information about their number of loans. Conclusion: This study revealed that ASA served only women and small enterprise clientele that included the vulnerable non-poor and could contribute to the profitability of ASA. There was no attempt to diversify the products to include all poor that should be the goal of microfinance to alleviate poverty. Moreover client treated as individual client but the loans used to fulfill household or family needs of the clients. There were tools for collecting information on household about impact of credit programs participation but they took seldom effort for collecting information of the household money management or in other words how they utilized the loans for variety of household needs. There is lack of access to a variety of financial services for poor clients, even though MFIs are mostly serving vulnerable non-poor instead of taking consideration of all categories of poor. It revealed from the study that MFIs could gain long term success by serving specific market segment but it should not be only focus of MFIs, their initiative should be to include all poor in their clients profile with a priority to a specific market segment. This could help them to become sustainable and to minimize risks by spreading it in different market segments. The study found that ASA considered FGDs as an effective tool for collecting clients’ information as their staffs and managers were familiar with this tool, moreover it was cost effective for them. It observed that they seldom followed Tool Selection Process and it was the top management that decided over the tools, the decision might influence by internal and external interest groups and the competition. MFIs should organize client information in a way so that they could be able to manipulate the specific client information to serve client better and to take effective decision, although it is imperative to argue that they may like to serve the wealthier clients. This research paper is also presenting some important findings from existing literature of microfinance and a number of recommendations based on the study experience and scholars opinions from existing microfinance study that may help MFIs to prepare themselves to adopt client-oriented approach by utilizing client assessment tools to fulfill the needs of financial services of their clients that may hopefully include all poor irrespective of their categories.

Aujourd’hui, il ne s’agit plus seulement aux institutions de microfinance d’accorder des crédits mais de s’assurer que leurs activités contribuent bien au développement économique et social des territoires. Ainsi, pour améliorer leur performance totale, les institutions de microfinance sollicitent des structures susceptibles de les accompagner dans le processus d’identification et de formulation des besoins mais aussi, pour la mise en place d’actions concrètes pour leur réalisation. Plusieurs organismes de développement et prestataires offrent donc de l’accompagnement technique aux institutions de microfinance. Ce travail de thèse a pour objet d’appréhender le modèle d’accompagnement technique des institutions de microfinance en interrogeant à l’aide de grilles d’entretien des salariés d’organismes de développement en France, des consultants, des salariés d’IMF, des membres du Conseil d’Administration d’IMF, des structures étatiques au Burkina Faso et au Sénégal. Cette démarche nous a permis de noter que : l’accompagnement est toujours à réinventer en fonction du contexte et de la réalité spécifique de chaque organisation, aucun accompagnement ne se ressemble et un bon accompagnement est un accompagnement participatif qui crée de la valeur ajoutée, un changement, une évolution constatée qui doit prendre en compte tous les enjeux, les implications de la demande de l’institution de microfinance, être un accompagnement sur mesure. / Nowadays, it is no longer just microfinance institutions to grant credit but to ensure that their activities contribute to the economic and social development of territories. Thus, to improve their total performance, microfinance institutions solicit structures that can support them in the process of identification and formulation of needs but also, for the implementation of concrete actions for their achievement. Several development organizations and service providers therefore offer technical support to microfinance institutions. This Thesis work aims to formalize the process of technical support for microfinance institutions by interviewing stakeholders. This approach allowed us to note that: support is always reinvented according to the context and the specific reality of each organization, no support is alike and good support is a participatory support that creates added value, a change, an evolution noted that must take into account all the issues, the implications of the request of the microfinance institution, be a tailored accompaniment.