EMN 2008-2009 Overview - Réseau Européen de la Microfinance

80%
70%
60%
50%
40%
35%
20%
10%
0%
Graph 35: Microlender mission statements
Microenterprise
promotion
When mission statements and institutional
type are compared, variances in focus can
be observed. The primary focus of NGOs
and foundations is on social inclusion and
poverty reduction. CDFIs, credit unions
and cooperatives combine social inclusion
and poverty reduction with microenterprise
promotion, whereas the non-bank financial
institutions are mainly concerned with
microenterprise promotion. Ninety percent
of Saving Banks state that their mission is job
creation, and banks of all institutional types
primarily concentrate on microenterprise
7.2 Impact
Job creation Social
Inclusion
and poverty
reduction
Financial
inclusion
Thanks to the combined efforts of the EMN
Social Performance Working Group of the
EMN, questions regarding the measurement
of MFI social impact in Europe were
expanded with the objective of deepening the
understanding of the context as well as the
method of social performance in institutions.
60% of organisations stated that measuring
social impact on their clients’ lives was one of
the activities they carried out. The different
Small Women
and Medium empowerment
enterprise
(SMe) promotion
Minority
empowerment
promotion. Lastly, governmental bodies
mainly focus on SME promotion.
Comparing mission statements to the average
value of loans disbursed by microlenders that
supplied data on total loans and value of loans
disbursed in 2009, organizations that focused on
financial inclusion and SME promotion disbursed
loans above the average loan size (11,415 euros).
Institutions that listed their primary focus as
SME promotion disburse loans 38% higher than
those that listed their focus as social inclusion
and poverty reduction (8,031 euros).
Table 6: EU mission statements compared to 2009 average loan value
other
Mission Statement Average 2009 loan value in euros
Social inclusion and poverty reduction 8,031
Microenterprise promotion 9,620
Job creation 10,334
Financial inclusion 11,732
SMe promotion 13,021
methods used for the measurement of social
impact vary, but the most utilized methods are
individual interviews with clients (30%) and
staff/loan officer observations (28%). These
two methods were also the most commonly
used in the last edition of the survey for years
2006-2007, where the percentages were 55% for
both the staff and officer observations and the
individual interviews with clients. A relatively
small percentage of institutions (11%) outsource
impact evaluations to third party specialists. In
both the present and previous surveys, the least
used method is the focus group.
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