Comments for Microfinance Focus | Official Blog http://www.microfinancefocus.com/blog A Global magazine on microfinance and sustainable development Mon, 28 Dec 2009 00:48:44 +0000 http://wordpress.org/?v=2.9 hourly 1 Comment on Post Reform Period: Institutional Credit And Rural Poor by Aslam http://www.microfinancefocus.com/blog/2009/09/11/post-reform-period-institutional-credit-and-rural-poor/comment-page-1/#comment-1054 Aslam Mon, 28 Dec 2009 00:48:44 +0000 http://www.microfinancefocus.com/blog/?p=391#comment-1054 The profit motivated policies have directly and negatively impacted the performance of the banking system. Nice and informative article. Thanks. The profit motivated policies have directly and negatively impacted the performance of the banking system. Nice and informative article.

Thanks.

]]> Comment on Role of Marketing for the MFI by ADEMOLA ADEKOLA http://www.microfinancefocus.com/blog/2009/02/26/role-of-marketing-for-the-mfi/comment-page-1/#comment-1053 ADEMOLA ADEKOLA Sat, 26 Dec 2009 15:13:35 +0000 http://www.microfinancefocus.com/blog/?p=12#comment-1053 As a consultant involved in the promotion of porverty alleviation through microfinance,we beleive mrketing has a very good role to play even if not for profit.The main pre occupation of a microfinance personnel is to sensitize and convince the ignorant poor that their salvation lies in microfinancing.Ability to mobilise these poor in itself by specially designed product to win their confidence is a marketing function.Hence in conclusion the number of members in an MFI, the amount they collected as loans, or saved and the overall improvment in thier lives are all indications of how well they have been marketed. Thanks As a consultant involved in the promotion of porverty alleviation through microfinance,we beleive mrketing has a very good role to play even if not for profit.The main pre occupation of a microfinance personnel is to sensitize and convince the ignorant poor that their salvation lies in microfinancing.Ability to mobilise these poor in itself by specially designed product to win their confidence is a marketing function.Hence in conclusion the number of members in an MFI, the amount they collected as loans, or saved and the overall improvment in thier lives are all indications of how well they have been marketed.
Thanks

]]> Comment on THEY ARE BANKABLE : Reaching out to People with Disabilities by “They Are Bankable” – Inclusion Must Include the Disabled « http://www.microfinancefocus.com/blog/2009/09/11/they-are-bankable-reaching-out-to-people-with-disabilities/comment-page-1/#comment-1046 “They Are Bankable” – Inclusion Must Include the Disabled « Thu, 12 Nov 2009 20:06:45 +0000 http://www.microfinancefocus.com/blog/?p=394#comment-1046 [...] (the distinguished disabled persons rights organization), makes a passionate case in her recent Microfinance Focus op-ed for providing microloans and other financial services to people with disabilities. She argues that [...] [...] (the distinguished disabled persons rights organization), makes a passionate case in her recent Microfinance Focus op-ed for providing microloans and other financial services to people with disabilities. She argues that [...]

]]> Comment on No Social Mission? No Microfinance! by Microfinance in the short & long term « Africa | Critical Geography | Development Economics | Microfinance http://www.microfinancefocus.com/blog/2009/04/20/no-social-mission-no-microfinance/comment-page-1/#comment-1043 Microfinance in the short & long term « Africa | Critical Geography | Development Economics | Microfinance Sat, 10 Oct 2009 23:34:00 +0000 http://www.microfinancefocus.com/blog/?p=275#comment-1043 [...] reduces poverty, and whether MFIs will better serve clients by remaining charitably-oriented non-profits, or by transitioning to for-profit status.  The answer to the former question is looking [...] [...] reduces poverty, and whether MFIs will better serve clients by remaining charitably-oriented non-profits, or by transitioning to for-profit status.  The answer to the former question is looking [...]

]]> Comment on Micro financing need to focus on job creationon by Niraj Kumar http://www.microfinancefocus.com/blog/2009/07/29/micro-financing-need-to-focus-on-job-creationon/comment-page-1/#comment-1042 Niraj Kumar Sat, 10 Oct 2009 17:41:01 +0000 http://www.microfinancefocus.com/blog/?p=330#comment-1042 It's myth that microfinance can lead to substantial job creation. We see microfinance as panacea for all ills. We must understand the limitations of microfinance. Microfinance doesn't create economic opportunities by itself, rather it helps in exploiting the economic opportunities. Economic/Job opportunities can be created only through investment in business infrastructure and policy environment. Such large scale investments can only be made by state or big corporations. Unless we create substantial economic opportunities for poor, don't expect microfinance to do wonder. Bangladesh is classic example, where despite large coverage of microfinance services for nearly four decades, it hasn't made significant dent in poverty, as people mostly use microfinance for consumption smoothening and not for income smoothening due to limited economic opportunities, as state or corporations hasn't made enough investment to create such opportunities on large scale. It’s myth that microfinance can lead to substantial job creation. We see microfinance as panacea for all ills. We must understand the limitations of microfinance. Microfinance doesn’t create economic opportunities by itself, rather it helps in exploiting the economic opportunities. Economic/Job opportunities can be created only through investment in business infrastructure and policy environment. Such large scale investments can only be made by state or big corporations. Unless we create substantial economic opportunities for poor, don’t expect microfinance to do wonder. Bangladesh is classic example, where despite large coverage of microfinance services for nearly four decades, it hasn’t made significant dent in poverty, as people mostly use microfinance for consumption smoothening and not for income smoothening due to limited economic opportunities, as state or corporations hasn’t made enough investment to create such opportunities on large scale.

]]> Comment on Can Microfinance End Poverty? by Abhishek Sharma http://www.microfinancefocus.com/blog/2009/08/24/can-microfinance-end-poverty/comment-page-1/#comment-1037 Abhishek Sharma Fri, 02 Oct 2009 21:08:08 +0000 http://www.microfinancefocus.com/blog/?p=352#comment-1037 I also feel , that this time MFI is not helping in alleviate poverty but at some extant they do.In north India i specially feel that money borrowed for their business always go in their consumption bucket.In some cases if borrowed amount is too much that will "open a Door for the poverty" or heavy debts for the borrower. But MFI customer has too much debts from money lenders and from their relatives with high interest rate ,If they are taking money from the MFI and repay their old debts that cycle will help in to come out from debts vicious cycle. And the capital which was taken from the MFI for their business was actually not invested .This time focus is on Credit and only Credit cant help to come out from poverty cycle. We have to come out with some module of landing money that will focus on low-income and poor households, business related needs or planned Expenses needs that means we have to focus on Micro finance not on Micro credit. I also feel , that this time MFI is not helping in alleviate poverty but at some extant they do.In north India i specially feel that money borrowed for their business always go in their consumption bucket.In some cases if borrowed amount is too much that will “open a Door for the poverty” or heavy debts for the borrower.
But MFI customer has too much debts from money lenders and from their relatives with high interest rate ,If they are taking money from the MFI and repay their old debts that cycle will help in to come out from debts vicious cycle.
And the capital which was taken from the MFI for their business was actually not invested .This time focus is on Credit and only Credit cant help to come out from poverty cycle.
We have to come out with some module of landing money that will focus on low-income and poor households, business related needs or planned Expenses needs that means we have to focus on Micro finance not on Micro credit.

]]> Comment on Can Microfinance End Poverty? by Jerome http://www.microfinancefocus.com/blog/2009/08/24/can-microfinance-end-poverty/comment-page-1/#comment-987 Jerome Mon, 14 Sep 2009 05:59:10 +0000 http://www.microfinancefocus.com/blog/?p=352#comment-987 I would agree that MF is a limited strategy and in its best form will accomplish just what you describe. Unfortunately, this is often not the case. There is no mechanism in place to build this bridge between the MF (the informal sector) and the traditional banking sector. I would agree that MF is a limited strategy and in its best form will accomplish just what you describe. Unfortunately, this is often not the case. There is no mechanism in place to build this bridge between the MF (the informal sector) and the traditional banking sector.

]]> Comment on Can Microfinance End Poverty? by Jerome http://www.microfinancefocus.com/blog/2009/08/24/can-microfinance-end-poverty/comment-page-1/#comment-986 Jerome Mon, 14 Sep 2009 05:56:29 +0000 http://www.microfinancefocus.com/blog/?p=352#comment-986 It depends upon the profile of the borrower and their business. Most are sustenance borrowers who are pushcart, or sell from their pockets. Microfinance can be of help to them as they can buy in larger quantities and gain economics of scale. A small percentage actually have the ability and potential market to grow into a real viable enterprise. This is where the GAP in Microfinance exists. Where the end of the MF lending prevents business expansion. This is where Micro Venture Capital and the microUP model is promising. It depends upon the profile of the borrower and their business. Most are sustenance borrowers who are pushcart, or sell from their pockets. Microfinance can be of help to them as they can buy in larger quantities and gain economics of scale. A small percentage actually have the ability and potential market to grow into a real viable enterprise. This is where the GAP in Microfinance exists. Where the end of the MF lending prevents business expansion. This is where Micro Venture Capital and the microUP model is promising.

]]> Comment on Can Microfinance End Poverty? by Mark http://www.microfinancefocus.com/blog/2009/08/24/can-microfinance-end-poverty/comment-page-1/#comment-983 Mark Sun, 13 Sep 2009 20:30:07 +0000 http://www.microfinancefocus.com/blog/?p=352#comment-983 The point of MF is to help the unserved or undeserved gain access to financial tools/resources to move forward in life. Its ultimate goal is to graduate the poor into the formal financial sector (mainstream banks). The point of MF is to help the unserved or undeserved gain access to financial tools/resources to move forward in life. Its ultimate goal is to graduate the poor into the formal financial sector (mainstream banks).

]]> Comment on Can Microfinance End Poverty? by Alex Douglas http://www.microfinancefocus.com/blog/2009/08/24/can-microfinance-end-poverty/comment-page-1/#comment-950 Alex Douglas Wed, 09 Sep 2009 02:25:37 +0000 http://www.microfinancefocus.com/blog/?p=352#comment-950 How do people in developed countries span this gap? In the US, you have to get money from friends and family to start a small business that venture capitalists aren't interested in. We also need to ask how many micro businesses would be viable as a larger business. Are businesses started with micro loans just part of a safety net, or are they efficient? How do people in developed countries span this gap? In the US, you have to get money from friends and family to start a small business that venture capitalists aren’t interested in.

We also need to ask how many micro businesses would be viable as a larger business. Are businesses started with micro loans just part of a safety net, or are they efficient?

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