Inhibitors to Success: Education
Inhibitors to Success: Education
business is lack of education. Most borrowers of microfinance are incurring debt and operating a
business for the first time. And, as we know, the responsibilities that go along with these two
endeavors are great. It requires understanding the fundamentals of credit and how to manage a
complex business. Without the appropriate support and education, a borrower can find herself
unable to manage a growing business, which can contribute to backsliding into poverty and/or
defaulting on a loan. Providing adult literacy and/or financial literacy modules to microfinance
clients can therefore represent a long-term investment in the well-being of the client and the MFI
that serves them, even if it increases costs in the short run. In addition, facilitating higher
educational attainment among clients’ children, arguably a more cost-effective and realistic goal
in most cases, can help ensure that at least one household member involved with the family
business is literate, and that a wage-earning offspring is available to support a client when they
reach old age.
Because these three factors, among others, are key impediments to a borrower’s success
in the microfinance context, it only makes sense that microfinance incorporates some prevention
and mitigation measures into its business model. Improving the health of clients as well as
helping the poor to prevent and/or respond more effectively to these inhibiting factors can
contribute to sustainability at both the client level and the institution level. A healthy client is
more capable of managing her business and generating income for her family. This income
generation translates to an increased ability to make payments on the microfinance loan. This
improved repayment should benefit the lender as much as it does the borrower – leading to a
cycle of economic strength for both.
Microfinance: A Platform for Social Change
by Marge Magner
March 2007
Grameen Foundation
Inhibitors to Success Education - To learn more about this author, visit Grameen Foundation's Website.
Like this article? Share it with your friends
The third critical factor that prevents some borrowers from sustaining a successful
business is lack of education. Most borrowers of microfinance are incurring debt and operating a
business for the first time. And, as we know, the responsibilities that go along with these two
endeavors are great. It requires understanding the fundamentals of credit and how to manage a
complex business. Without the appropriate support and education, a borrower can find herself
unable to manage a growing business, which can contribute to backsliding into poverty and/or
defaulting on a loan. Providing adult literacy and/or financial literacy modules to microfinance
clients can therefore represent a long-term investment in the well-being of the client and the MFI
that serves them, even if it increases costs in the short run. In addition, facilitating higher
educational attainment among clients’ children, arguably a more cost-effective and realistic goal
in most cases, can help ensure that at least one household member involved with the family
business is literate, and that a wage-earning offspring is available to support a client when they
reach old age.
Because these three factors, among others, are key impediments to a borrower’s success
in the microfinance context, it only makes sense that microfinance incorporates some prevention
and mitigation measures into its business model. Improving the health of clients as well as
helping the poor to prevent and/or respond more effectively to these inhibiting factors can
contribute to sustainability at both the client level and the institution level. A healthy client is
more capable of managing her business and generating income for her family. This income
generation translates to an increased ability to make payments on the microfinance loan. This
improved repayment should benefit the lender as much as it does the borrower – leading to a
cycle of economic strength for both.
Microfinance: A Platform for Social Change
by Marge Magner
March 2007
Grameen Foundation
Inhibitors to Success Education - To learn more about this author, visit Grameen Foundation's Website.
Like this article? Share it with your friends
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Dianne CramptonDianne Crampton is an executive leadership coach, team culture consultant, author and president of TIGERS Success Series, Inc. Dianne has been helping CEO's and Executives connect their employees to their core values and goals for over 20 years using the trademarked TIGERS team culture process, which stands for trust, interdependence, genuineness, empathy, risk and success. To download a free white paper on behaviors that build strong teams and behaviors that will predictably tear them down go here. Dianne's contribution to the 2010 Pfeiffer Consulting Journal (an imprint of John Wiley and Sons Publishers) entitled TIGERS Hearted Teams is available in November 2009. Her new book TIGERS Among Us: 5 Winning Business Team Cultures And Why, Three Creeks Publishing will release in March 2010. To receive publishing discounts, subscribe to the free TigerTracks Newsletter here. - Visit Dianne Crampton's Website |
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Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) In five years, Canadian-born entrepreneur Jay Kubassek went from selling mufflers at a Midas franchise to revolutionizing Internet marketing with the 2004 launch of CarbonCopyPRO, a online marketing education company, now worth over $20 million with customers in over 160 countries.
As an independent film producer, his upstart film fund Aliquot Films is currently producing a films with Spike Lee and Abel Fererra (starring Ethan Hawke and Dennis Hopper.)
Jay's entrepreneurial spirit is irrepressible. He’s the owner of five companies, a professional speaker and trainer, international real estate developer/investor, extreme sport enthusiast and emerging philanthropist. Jay resides in NYC with his wife Jamie, son Milo and dog Cooper. Visit Jay's official website: www.JayKubassek.com - Visit Jay Kubassek's Website |
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Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
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Linda RichardsonLinda Richardson is the Founder and Executive Chairwoman of Richardson, a global sales training and performance improvement company. As a recognized leader in the industry, she has won the coveted Stevie Award for Lifetime Achievement in Sales Excellence and she was identified by Training Industry, Inc. as one of the “Top 20 Most Influential Training Professionals.” Ms. Richardson is credited with the movement to Consultative Selling and is the author of ten books on selling and sales management, including Sales Coaching — Making the Great Leap from Sales Manager to Sales Coach, and Stop Telling, Start Selling. She teaches sales and management at the Wharton Graduate School of the University of Pennsylvania and the Wharton Executive Development Center. Linda is a frequent speaker at industry and client conferences, has been published extensively in industry and training journals, and has been featured in numerous publications, including The Wall Street Journal, Forbes, Nation’s Business, Selling Power, Success, and The Conference Board Magazine. Learn more about Richardson's sales training and performance improvement solutions at http://www.richardson.com web - Visit Linda Richardson's Website |
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