Sustainable Microfinance - Balanced Scorecard's added value for ...

OE through friends and family and a lot of subordinated loans. A while ago I had one that could get a loan
from a bank, but that is extraordinary.
OE One of the pit holes of advisory services is that they focus too much on the financial aspect. Of course
it is important that the plan is financially feasible, if you do not cover your costs it is end of story.
OE I always say; 'the financials are the foundation of your plan'. It should not be the drive
OE Financials on the side, only facilitating. It is important but should not be the drive.
OE that they can life from the money they make is only an additional advantage
MB most entrepreneurs do not have an idea of what they want to get out of it financially, do not consider
the opportunities, but only look at what they will need to be able to live.
MB Calculate back to what does that mean for the wages they charge for the product or the amount they
have to produce.
MB you can help a starting entrepreneur a lot by setting financial targets.
MB The financials is not only about how to setup your business, but also about explaining.
MB Make it comprehensible what all the costs are, make it comprehensible what insurances they will need,
or not.
MB develop a sort of assertiveness, about all those aspects. That in the end, what you will have earned will
also be up to you, to decide how you are going to spent / invest it.
MB people do not realize, how long they will have to for wait money and what they have to pay themselves
MB The financial administration is something you have to focus on, navigate. I think that a lot of those
entrepreneurs lack that information
MB Financials are than not the drive but just facilitating
CS Explain, make it comprehensible, in a way that they understand what all the costs are.
CS The budget has to be accurate
CS Reach a curtain break-even-point
CS most pit holes for entrepreneurs are that they want to make money; that is their target. How, is a
question they answer later.
AP That is an issue, the data quality. No so much that the customers will lie about that. But for example,
the person that fills in the form does that together with the loan officer of the MFI.
AP If the loan officer has a personal interest, due to financial incentives, he might reflect the situation of
the customer differently. Maybe part of the loan officers’ income depends on the percentage of women,
or poor people, that is easier to deceive.
AP There financial education is much more useful, to make sure people do not take on to much debt.
AP the focus will now be more on financial education, because there is a bubble growing under the
microfinance market. The first priority is to prevent over-indebtedness.
AP The average [Dutch] starters is already happy when he has a decent accounting system, they usually
hire someone for that.
Elmar Hoogendoorn 114
Sustainable Microfinance