Feedback Form
Home Features Mastermind Forums About Advertise Blog Network Contact Be An Author

Is MicroStart a Successful Microfinance Strategy for UNDP?

Is MicroStart a Successful Microfinance Strategy for UNDP?

When MicroStart began, its designers were attempting to develop a program that would fit well with UNDP's strengths and weaknesses. They decided to focus on new institutions, recognizing UNDP's presence in many countries where microfinance was still new, as well as the limits on UNDP's ability to provide grants. In order to compensate for the lack of experience of country office staff, they developed a project blueprint that they hoped would prevent some of the most likely errors UNDP offices with little microfinance background might make.

These were good choices. The focus on young organizations in new countries fills a niche that other donors have neglected. Some of the major donors who promote microfinance have chosen to support institutions who already have a proven track record and established client base. Other donors prefer to fully fund and provide technical assistance to an institution they fund from scratch. There is virtually no significant or systematic support for institutions that are "home grown" or young and/or small. This is particularly true in countries new to microfinance. Providing technical assistance via an international technical service provider and a small grant for operating losses and loan capital is an important market niche in such countries. In countries where microfinance is fairly well developed however, MicroStart will have to identify its niche and value-added differently. For example, in the Philippines its main contribution may be in introducing ASA's efficient operating systems.

As for the original blueprint, it was a good way to start, but, as this evaluation has showed, MicroStart is already beginning to outgrow it. Ultimately, SUM must rely on the decision-making capacity of the country offices, simply because of their day-to-day presence. In recognition of the need to allow greater country-level decision making, SUM has already taken steps to increase MicroStart's flexibility.

A. UNDP Country Offices

UNDP country office staff have, by and large, proven themselves capable of managing MicroStart.

Country office staff are especially important for coordinating the various levels of players involved in MicroStart. They have played an important role in ensuring that relationships work and the process moves ahead smoothly. It is doubtful that advisory boards, TSPs, and the executing agencies would have been able to achieve positive outcomes without the significant coordinating efforts by UNDP country office focal points.

Generating a feeling of ownership towards MicroStart is a very important consideration. Facilitating ownership at all levels is something that SUM sees as crucial. In the countries visited, SUM appears to have been successful in this endeavor. Perhaps the most important contribution has been in SUM’s effort to build the capacity of the country office focal person and of the advisory board. Access to capacity building opportunities has been crucial to instilling confidence and generating ownership. Examples of important activities are the various study tours and participation in the Boulder, Colorado courses on microfinance. Increased knowledge and experience enhances ability to make sound decisions. However, this only happens with time, while the most important decision affecting the success of MicroStart happen at the beginning (choice of TSP and MFIs) before the country office and the advisory board have gained sufficient capacity. For this reason, SUM's new capacity building program will be very important.

For the successful oversight of a MicroStart program, the country office should identify a staff person with time to focus on MicroStart. It appears to require a minimum of half time during the planning stage and first few months of implementation, and quarter time thereafter. It is also important that the country office recognizes the need for the TSP to have freedom to make technical judgments -- particularly on MFI and LTSP selection.

Country Offices (especially Resident Representatives) are interested in the bigger picture of their overall UNDP strategy as it relates to the country, particularly as it relates to poverty issues. The information and guidance SUM provides on the role of microfinance in poverty alleviation is especially valuable.

B. The Role of SUM

Like a parent raising children, as MicroStart matures, SUM's role evolves with the increasing capacity of the country offices. At first, SUM was the developer, promoter, and arbiter of MicroStart. Increasingly, however, SUM can evolve into a longer term role as service provider and center of technical expertise. SUM has already done some important things to improve the operation of MicroStart:

Increased flexibility
Identified key areas for SUM intervention
Launched new capacity building program
Identified desire to build learning agenda about how to support local organizations (see box).

A Learning Agenda for SUM/Microstart
SUM has noted that it wishes to be a center for learning about how to support young MFIs. Here are some suggested topics, it may wish to explore, using the Microstart programs as a learning laboratory:


Getting the right people into microfinance. Who starts MFIs? Who should start them? How?
Analysis of the origins and early stages of highly successful MFIs: what are common characteristics of breakthroughs?

What makes technical assistance relationships work? Analysis of various models and of TSP performance.

MIS systems for young MFIs. Is a paper-based system like ASA's the best route for a very new organization? What computerized products are suitable for very small organizations?

Credit unions: should they receive grants?

Best practices and internal procedures for Government financing apexes.

These are in addition to themes SUM has already identified, including impact and gender.




As a service provider, SUM's focus should be on getting its staff into countries developing MicroStart more often, being responsive to needs from the field as they arrive, developing guidance on critical issues (see next section for suggestions) and providing opportunities for exchange of experience among country offices and among TSPs.

As a technical office, SUM's plate is more than full with the capacity building initiative for country offices, the learning agenda, and its information dissemination function.

In the recent stringent budget setting facing UNDP, SUM may also need to take on a larger role in raising funds through other donors.

C. Recommendations

SUM should plan for greater autonomy for MicroStart at the country office level, through the dual strategy of capacity building and of SUM input at fewer, but more critical points in the process.


MicroStart: Finding and Feeding Breakthroughs
Midterm Evaluation
Prepared for UNCDF/SUM
10 December 1999
Elisabeth Rhyne and Jill Donahue





Is MicroStart a Successful Microfinance Strategy for UNDP - To learn more about this author, visit United Nations Capital Development Fund's Website.

Like this article? Share it with your friends

Article Feedback
 Article Feedback No article feedback found.
  Leave Your Feedback
article feedback

Article Feedback
Anne Barr
Anne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website

Leanne Hoagland-Smith
Are 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

George Ludwig
George Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website

Kim Castle
With nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website

Jeff Foster
WebBizIdeas.com is a Minneapolis website design company founded to help people start an internet business by providing them with website, business, and internet resources that help foster the growth of successful online businesses and develop innovative Internet business ideas.  We specialize in internet consulting & internet marketing
- Visit Jeff Foster's Website

Stephanie Robey
Stephanie Robey is President and CoFounder of Pivot Positive, LLC - an Internet marketing business focused on helping people start work at home ventures. Previously, she was employed at The Search Agency with over 20 years experience in graphic design and 10 years experience in online marketing. She was responsible for launching the Conversion Path Optimization (CPO) unit where she and her team have conducted hundreds of optimization tests for online companies across multiple verticals.

She is a successful entrepreneur having started and sold 2 companies and remains on the board of directors of the third, PhotoSpin.com   Stephanie began her career in the direct marketing realm creating and producing direct mail for many of the major cable television companies and directly attributes her understanding of Internet marketing to those early offline experiences.  Stephanie is a graduate of San Diego State University with a BFA in Graphic Arts and also holds an Executive MBA from the Graziadio School of Business and Management at Pepperdine University.

Read Steph's Blog
Meet Steph and Dave
Sign up for our Free 7-Day BootCamp: Self Employed & Rich
- Visit Stephanie Robey's Website


To learn more about the Evan Elite Author Program please contact us.

About The Author


United Nations Capital Development Fund
(Visit United Nations's Website) The United Nations Capital Development Fund (UNCDF) is a UN organization mandated by the UN General Assembly and its Executive Board to provide capital assistance first and foremost to the Least Developed Countries (LDCs). UNCDF invests in LDCs in order to support their efforts to reduce poverty and achieve the Millennium Development Goals, especially in its two main product lines - Micro finance and Local Development. UNCDF is part of the UNDP-group and hosts the UN Advisors Group on Inclusive Financial Sectors.

United Nations Capital Development Fund is a Platinum author on EvanCarmichael.com
About The Author

View Author Blog
View Author Blog

View Author Video
View Author Video

Free Downloads


United Nations Capital Development Fund's

Complete
List Of
African-Accounts
Articles

Name
Email
If you enjoyed this article, get United Nations Capital Development Fund's Complete List of African-Accounts Articles For FREE!

More United Nations Capital Development Fund
Are Small Capital Grants Worthwhile
Jeffrey Sachs Elizabeth Littlefield and William Easterly Speak at NYU The Role of Microfinance in Achieving the MDGs Is Highlighted
Is MicroStart a Successful Microfinance Strategy for UNDP
Microfinance Where We Are Now And Where We Are Headed
MFI Performance in Countries Visited A Few Numbers
Recommendations
Overall Conclusions and Main Messages MicroStart Finding and Feeding Breakthroughs
Microfinance 2015 Panel Focuses on the Future and Outlook of Microfinance
Can Technical Service Providers Add Significant Value
What keeps MicroStart from selecting more highperforming organizations
Free Downloads


 
 
 


Evan Elite Authors
Leanne Hoagland-Smith  
Casey Gollan  
George Ludwig  
Evan Elite Authors

Become An Author
Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details.
Become An Author

Evan's Latest Video
Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media
Evan's Latest Video

Business Opportunities
"Learn straight from Evan how you can Make a Full Time Income (And More) from a Website"

How to Start An Online Business

Click Here To Learn More
Business Opportunities



Evan's Newsletter
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
Name:
Email:
Evan`s Newsletter

Free Downloads
Building Business Relationships Icon Building Business Relationships
Make Money Online Icon Make Money Online
Speed Business Networking Icon Speed Business Networking
QuickBooks Self Quiz Icon QuickBooks Self Quiz
Managing the Unimaginable Icon Managing the Unimaginable
Free Downloads - Complete List

Entrepreneur Tools and Guides
Top 50 Debt Blogs
Top 50 Debt Blogs
Learn To Get Out Of Debt
 
Choose A PR Topic
Choose A PR Topic
Press Release Builder
 
Entrepreneur Tools and Guides

SEO For Africa
SEO For Africa
Sarah Akinpelu Lagos State, Nigeria,
Sarah Akinpelu
Lagos State, Nigeria
SEO For Africa

If I Were A Startup...
Dana Zita, > $2.5 Mil in revenues
Dana Zita
> $2.5 Mil in revenues
Brian Scudamore, $200k to $8 Mil in 5 years
Brian Scudamore
$200k to $8 Mil in 5 years
If I Were A Startup... - Complete List

Famous Entrepreneurs
Giorgio Armani, Giorgio Armani S.p.A.
Giorgio Armani
Giorgio Armani S.p.A.
King Gillette, The Gillette Company
King Gillette
The Gillette Company
Famous Entrepreneurs - Complete List

Entrepreneur Advice
Guy Kawasaki, The Art of the Start
Guy Kawasaki
The Art of the Start
T. Harv Eker, Millionaire Mind
T. Harv Eker
Millionaire Mind
Entrepreneur Advice - Complete List

Popular Articles
(Premium Authors)

     How SEO and Website Translation will Effect your Online Marketing Strategy
By Orad Elkayam
     Search Engine Optimization (SEO) as a Business Strategy
By Orad Elkayam
     Software Localization vs. Game Localization
By Orad Elkayam

Have A Suggestion?
Toronto Salsa Classes / Toronto Salsa Lessons Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
Have A Suggestion?

More Evan Carmichael
More Information