Impact assessment of micro finance microfinance loans. Access to financial services enables clients to build and change their mix of assets. The results of the econometric estimates show that the availability of microcredit loans had positive and mildly significant impacts. In order to hire a research firm with expertise in best practice impact assessment for microfinance sectors, a sample terms of reference tor is included in annex e. Objectives of the study the specific objectives are to. Local economic development will also ensue, resulting in more employment opportunities, better life standards, and an increase in government revenues. The case of taizhou, china xitian wang 1,2, the johns hopkins university, baltimore, md, usa may 10, 20 abstract this paper studies the impact of microfinance on the development of small and medium enterprises smes. The expression ab will give the net effects of unobserved characteristics affecting participation plus the microfinance impact.
Pdf on apr 1, 2002, sam afrane and others published impact assessment of microfinance interventions in ghana and south africa. Therefore, the starting point was the overall goal of mfsp, stated as. Uncdf microfinance programme impact assessment main report february 2004 enterprising solutions global consulting page viii exploit these comparative advantages and contribute to microfinance results. Impact assessment of uncdf the pias confirmed that the underlying programme logic of the local development and microfinance programmes is largely sound. Uncdf microfinance programme impact assessment main report. The use of loans and deposit services can result in a diversification of income sources e. Impact of microfinance services on financial performance. A theoretical framework and its application to uganda stefan staschen development studies institute london school of economics and political science submitted in candidacy for the degree of doctor of philosophy 2010. Impact assessment of technology adoption in microfinance in india.
A workplan for the evaluation of microfinance programmes in kenya as supported through the dutch cofinancing programme 129 b questionnaire for the client level impact assessment study of kenya women finance trust 143 c policies of dutch cfas regarding the provision of financial services by southern counterpart organisations 153. Social impact assessment methodology of data collection and impact analysis2 describe the data collection and impact analysis methodology used in the sia, including the data collection methods and analytical tools used e. Impact assessment in microfinance companies impact assessment, it is a research carried out to identify the changes brought about by microfinance programmes. Microfinance institutions mfis that provide financial services to the poor include, among others, donorsupported non. The major challenge in impact assessment is generally to establish the link between change that has occurred through the microfinance programme. Microfinance as a poverty reduction toola critical assessment. Microfinance programme impact assessment 2003 united nations. Oct 27, 2010 microfinance a sobering assessment of microfinances impact. Incidentally, this also highlights the effect of not controlling for sample selection bias. The third relates to increasing our understanding of the ways in which the results of ia studies in.
The second is about what mixes of impact assessment methods are most appropriate for any given study. Impact of microfinance on rural households in the philippines. This paper is a survey of several significant microfinance impact assessment evaluations released or published between 2005 and 2010. Controls were applied to address biases known to be associated with microfinance impact assessments. Uncdf microfinance and local governance interventions contribute to poverty reduction at the local level and to participation and empowerment, and there is indication of impacts. Impact assessment of technology adoption in microfinance. Microfinance was first trumpeted as a way to unleash the productive capacities of poor people dependent on selfemployment e.
The impact of microfinance banks on economic growth in. International conference on rural finance research. Application guidance note, oct 01 impact assessment of microfinance. International labour office, social finance programme. The case of iramba district frank girabi institute of resource assessment, university of dar es salaam, tanzania agnes elishadai godfrey mwakaje institute of resource assessment, university of dar es salaam, tanzania abstract over the past two decades, there has been a high. Impact assessment of village community bank vicoba, a. Substantial poverty elimination and reduced vulnerability in india amongst users of microfinance services. The main objective of this study was to test a hypothesis on whether there has been any significant impact of microfinance on agricultural productivity in tanzania with the case study of iramba district, singida region. Local economic development will also ensue, resulting in more employment opportunities, better life standards, and an increase in. Impact assessment of microfinance semantic scholar. Effect of microfinance operations on poor rural households. Pdf impact assessment of microfinance interventions in ghana.
Measuring the impact and social performance of microfinance. The purpose of the study was to establish the impact of microfinance services on financial performance of smes in kenya. Moving results into policies and practice moving results into policies and practice fao headquarters rome, italy 1921 march 2007 impact assessment of the microfinance programme in amhara region of ethiopiain amhara region of ethiopia by getaneh gobezie and carter garber. Impact assessment on bancamia in armenia, colombia a thesis submitted to aalborg univeristy in partial fulfillment of the requirements for the degree of master on development and international relations by jesus olano espinosa aalborg, denmark 31st of may 2012. An impact assessment of microfinance institutions on women.
Towards a new protocol for collection and analysis of qualitative data. Impact assessment impact on productivity, income and asset ownership a study undertaken by pitt and khandker 1996, 1998 using data from eightyseven 87 villages in bangladesh in 1991 92, estimated the marginal impact of credit on a number of welfare indicators. Towards a sustainable learning process linda mayoux1 september 2001 this paper is summarised in the november 2001 edition of enterpriseimpact news contents list of case studies of micro finance institutions currently on ediais site, or forthcoming summary section 1 introduction section 2. At a conference last week of leaders in microfinance, attendees focused on the nittygritty of the social impact of microlending, and the results of the discussions were both sobering and startling. This study examines the impact of microfinance institutions in financing small scale enterprises for economic growth in nigeria. Impact assessment of microfinance for sidbi foundation for micro credit sfmc phase 1 report july 2001 march 2002 by putting people first eda rural systems pvt ltd 107 qutab plaza, dlf qutab enclave1, gurgaon 122 002, india tel. Time series data from central bank of nigeria cbn report on the activities of microfinance institutions. Examine the roles of microfinance institution in reducing poverty. Household level microcredit leads to an increase in household income.
Impact is about understanding how financial services affect the lives of poor people. Microfinance a sobering assessment of microfinances impact. Islamic financial intermediaries play a vital role in mobilising and circulating funds in the society, from the haves to havenots. Towards a sustainable learning process linda mayoux1 september 2001 this paper is summarised in the november 2001 edition of enterpriseimpact news contents list of case studies of micro finance institutions currently on ediais site, or forthcoming summary section 1 introduction section. I am particularly pleased with the explicit focus on consumers and their needsthis, together with the onset of technologybased delivery models, has been the most important shift in the microfinance field over the past 15 years. An evaluation of microfinance programmes in kenya as. This program impact assessment pia estimates the costs and benefits of the microfinance development program mdp subprogram sp 2 highlighting the importance of the sector and adjustment costs required. The study adopted systematic random sampling method with an interval of 50 smes. Following a discussion of the varying objectives of ia it examines the choice of conceptual frameworks and presents three paradigms of impact assessment. The study population consisted of all smes in nairobi.
The impact of microfinance on the development of small and. It thus combines public and private interest approaches in assessing microfinance regulation. Impact and social performance assessment in microfinance an overview. Impact assessment of microfinance programmes, including lessons. Social impact assessment of microfinance programmes. Impact assessment of technology adoption in microfinance in india page 9 in other countries, atm networks are being rolled out by a number of banks and have been tested by a handful of microfinance institutions as well. Is microfinance a good poverty alleviation strategy. Microfinance is generally seen as a way to fix credit markets and unleash the productive capacities of poor people dependent on selfemployment. Most of the costs and benefits are borne by the providers and users of the services, but there may also be important side effects, or what economists. The new microfinance handbook fills a critical gap in the current literature on financial inclusion.
Pdf impact assessment methodologies for microfinance. Microfinance as a poverty reduction toola critical. I am particularly pleased with the explicit focus on consumers and their needsthis, together with the onset of technologybased delivery models, has been the most important. The introduction of participatory approaches to impact assessment has extended the methodological. For the gates foundationfunded impact assessment of microfinance, the irismicrofinance opportunities team developed a preliminary causal model based on existing literature that links use to impact. Microfinance as a poverty reduction tool a critical assessment 3 thus, there is broad agreement about the need for complementary factors for microfinance to have some positive impact on. Eda to design and carry out impact assessment of its microcredit. Pdf impact assessment of islamic microfinance in india. To date, most impact assessments have focused on microcredit programs rather than looking at a range of financial services. The following chart is a graphic representation of.
Impact assessment of microfinance in sri lanka a household survey of microfinance clients in 5 selected promis partner microfinance institutions november 2010 sri lankan german development cooperation promis promotion of the microfinance sector. Also existing impact assessments have made an important contribution to understanding some of the complex interactions between microfinance interventions, livelihoods and different dimensions of. The impact of microfinance on the development of small and medium enterprises. An impact assessment of microfinance institutions on women entrepreneurs in small and medium enterprises smes a case study of sinapi aba trust theophilus tei ayanou saah rachel odame michael mensah agnes anane appau bachelor thesis economics finance publish your bachelors or masters thesis, dissertation, term paper or essay.
Summary program impact assessment microfinance development program subprogram 2 i. Over the last decade microfinance impact assessment studies have increasingly moved away from single method approaches hossain, 1988, fuglesang and chandler, 1986 to multimethod or pluralist approaches hulme and mosley, 1996, mustafa et al. Analysis of the effects of microfinance on poverty reduction. It is an update of a comprehensive impact assessment literature survey released in 2005, which was sponsored by grameen. Ilo, 2015 microfinance for decent work working paper. This thesis develops a public interest methodology for assessing the impact of regulatory reforms in microfinance, applies this methodology to the case study of uganda and explains the results by analysing the political economy of policy change. Towards a sustainable learning process linda mayoux1 september 2001 this paper is summarised in the november 2001 edition of enterprise impact news contents list of case studies of micro finance institutions currently on ediais site, or forthcoming summary section 1 introduction section 2. Wright1 abstract when examining the income impacts of microfinance programmes, it is important to recognise that there is a significant difference between increasing income and reducing poverty. In words of rossi and freeman establishing impact essentially is making a.
Generally it is accepted that impact assessment ia is a critical element in further improving microfinance services and promoting innovation. Microinsurance exploring ways to assess its impact. Social impact assessment of microfinance programmes by s akbar zaidi and haroon jamal, sarah javeed and sarah zaka, with support from shafi ahmed, mansab ali, riaz hussain and amima sayeed. What is the evidence of the impact of microfinance on the. Impact considers income growth, asset building, and reduction of vulnerability. Since an islamic financial intermediary is the focal point of equitable financial redistribution at the basic level.588 1351 994 516 1377 588 237 1099 210 672 313 1294 892 954 875 1089 652 184 1141 1192 772 1439 1114 79 355 692 290 383 462 1423 838 912 1322 1131