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. 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 adopted systematic random sampling method with an interval of 50 smes. Measuring the impact and social performance of microfinance. 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. 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. Impact assessment of micro finance microfinance loans. Microfinance was first trumpeted as a way to unleash the productive capacities of poor people dependent on selfemployment e. Microinsurance exploring ways to assess its impact. Impact assessment of technology adoption in microfinance. Household level microcredit leads to an increase in household income.
The study population consisted of all smes in nairobi. 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. An evaluation of microfinance programmes in kenya as. 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. Pdf impact assessment of islamic microfinance in india. 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. Access to financial services enables clients to build and change their mix of assets. Microfinance programme impact assessment 2003 united nations. Impact considers income growth, asset building, and reduction of vulnerability. Application guidance note, oct 01 impact assessment of microfinance. 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.
Impact and social performance assessment in microfinance an overview. Impact assessment of microfinance programmes, including lessons. Examine the roles of microfinance institution in reducing poverty. Microfinance a sobering assessment of microfinances impact. Impact assessment of technology adoption in microfinance in india. Effect of microfinance operations on poor rural households. 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. Microfinance as a poverty reduction toola critical assessment. 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 use of loans and deposit services can result in a diversification of income sources e. What is the evidence of the impact of microfinance on the. International labour office, social finance programme. Summary program impact assessment microfinance development program subprogram 2 i. Objectives of the study the specific objectives are to. 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. The results of the econometric estimates show that the availability of microcredit loans had positive and mildly significant impacts. 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.
International conference on rural finance research. 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. 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. 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. Pdf on apr 1, 2002, sam afrane and others published impact assessment of microfinance interventions in ghana and south africa. Analysis of the effects of microfinance on poverty reduction. Generally it is accepted that impact assessment ia is a critical element in further improving microfinance services and promoting innovation. The major challenge in impact assessment is generally to establish the link between change that has occurred through the microfinance programme. Is microfinance a good poverty alleviation strategy. Local economic development will also ensue, resulting in more employment opportunities, better life standards, and an increase in government revenues. Islamic financial intermediaries play a vital role in mobilising and circulating funds in the society, from the haves to havenots. Uncdf microfinance programme impact assessment main report february 2004 enterprising solutions global consulting page viii exploit these comparative advantages and contribute to microfinance results. The new microfinance handbook fills a critical gap in the current literature on financial inclusion.
Impact is about understanding how financial services affect the lives of poor people. 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. To date, most impact assessments have focused on microcredit programs rather than looking at a range of financial services. Oct 27, 2010 microfinance a sobering assessment of microfinances impact. 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. The introduction of participatory approaches to impact assessment has extended the methodological. Eda to design and carry out impact assessment of its microcredit. 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. 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 impact of microfinance on the development of small and. 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. It is an update of a comprehensive impact assessment literature survey released in 2005, which was sponsored by grameen. Impact assessment in microfinance companies impact assessment, it is a research carried out to identify the changes brought about by microfinance programmes. Therefore, the starting point was the overall goal of mfsp, stated as. 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. Social impact assessment of microfinance programmes.
It thus combines public and private interest approaches in assessing microfinance regulation. Impact assessment of microfinance semantic scholar. 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. The third relates to increasing our understanding of the ways in which the results of ia studies in. Towards a new protocol for collection and analysis of qualitative data. Controls were applied to address biases known to be associated with microfinance impact assessments. This study examines the impact of microfinance institutions in financing small scale enterprises for economic growth in nigeria. 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. Substantial poverty elimination and reduced vulnerability in india amongst users of microfinance services.
Pdf impact assessment methodologies for microfinance. Pdf impact assessment of microfinance interventions in ghana. Local economic development will also ensue, resulting in more employment opportunities, better life standards, and an increase in. The expression ab will give the net effects of unobserved characteristics affecting participation plus the microfinance impact. The impact of microfinance banks on economic growth in.
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. Microfinance is generally seen as a way to fix credit markets and unleash the productive capacities of poor people dependent on selfemployment. Since an islamic financial intermediary is the focal point of equitable financial redistribution at the basic level. Impact assessment of village community bank vicoba, a. Microfinance as a poverty reduction toola critical. In words of rossi and freeman establishing impact essentially is making a. Impact of microfinance services on financial performance. 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. 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. This paper is a survey of several significant microfinance impact assessment evaluations released or published between 2005 and 2010. Impact assessment of uncdf the pias confirmed that the underlying programme logic of the local development and microfinance programmes is largely sound. 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.
Also existing impact assessments have made an important contribution to understanding some of the complex interactions between microfinance interventions, livelihoods and different dimensions of. Incidentally, this also highlights the effect of not controlling for sample selection bias. The purpose of the study was to establish the impact of microfinance services on financial performance of smes in kenya. 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. Impact assessment is essentially about whether a programme is meeting its objectives. 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. 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. Ilo, 2015 microfinance for decent work working paper. Uncdf microfinance programme impact assessment main report. The impact of microfinance on the development of small and medium enterprises. Microfinance institutions mfis that provide financial services to the poor include, among others, donorsupported non. The following chart is a graphic representation of.
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