How to Initiate and Manage Microfinance Projects

Editor's Notes

• #47: ”Who knows about monitoring and evaluation (M&E)? What's your experience with it?” What: If I were to sum up M&E in a phrase, it would be: “It’s not enough to be good, you have to prove you are good.” Monitoring is regularly collecting data to track progress. Evaluation is usually a separate process where some kind of judgment is made as to how well goals are being met. Many donor organizations now require M&E for projects, and Rotary is no exception. Rotary Global Grants, for example, set aside a percentage of the total project budget for M&E. Likewise, the Rotary Foundation provides suggested project measures, based on a project’s area of focus.
• #48: Why? Evaluation is a practice that holds us accountable to hearing the voices of our stakeholders, from the inception of a project to its fruition If we don’t take into account stakeholder voices and consider what the impact of our services looks like for those receiving them, we face the risk of providing a service that is not meaningful or may even cause unintended results M&E is not just an end in and of itself. It meets a number of project stakeholder needs: - Has your program been effective? Donors can see a return on their investment and be assured of transparency. - Have you helped your entrepreneurs earn more money? Organizations can make use of results to determine best practices as well as areas for improvement. They can also demonstrate the effectiveness of their programming to funders. - Potential and current participants can better understand the rationale for being part of an initiative. When you use monitoring and evaluation tools you can learn the answers to these important questions and more.
• #49: Here’s how you do it: When looking at a microfinance initiative through a M&E lens, our first step is to think critically about the desired impact (or goals) of the initiative. Even if the project is years-old, this is a crucial step. While it may seem obvious what the goals of a micro lending initiative are (ex: to provide accessible credit to entrepreneurs) - the question remains: what do you hope to achieve by providing access to credit? What does this impact look like for borrowers? their businesses? their families? communities? The goals of your entrepreneurship project may include: · Empowerment and improved financial literacy: Build capacity of entrepreneurs, local organizations and community resources to provide economic opportunity to impoverished communities · Increased levels of entrepreneurship: Develop opportunities for creation of entrepreneurial endeavors · Economic growth and a transition out of poverty: Reduce the poverty level of the target community Specific metrics you may want to measure include: · The number of people who attended training class · The number of people who received loans · The average size of the loan · The loan payback rate · The number of businesses still thriving at the end of one year · Impact on the community in terms of revenue generated and jobs created · The impact on beneficiaries such as the number raised above the poverty level and the number of children remaining in school.
• #50: Different forms of evaluation Within the organization Third party And/or Participatory evaluation FROM GUIDEBOOK Here’s how you do it: · Compare expected goals to your data and evaluate the impact of your project on your beneficiaries and their community. · Investigate the variances (both positive and negative) so you can make changes where necessary. · Report status to your partners, your supporters and your beneficiaries. · Maintain the data to help determine trends, total life-cycle benefits and recommendations to others who would like to duplicate your project in their own communities. The goals of your entrepreneurship project may include: · Build capacity of entrepreneurs, local organizations and community resources to provide economic opportunity to impoverished communities · Develop opportunities for creation of entrepreneurial endeavors · Reduce the poverty level of the target community Specific metrics you may want to measure include: · The number of people who attended training class · The number of people who received loans · The average size of the loan · The loan payback rate · The number of businesses still thriving at the end of one year · Impact on the community in terms of revenue generated and jobs created · The impact on beneficiaries such as the number raised above the poverty level and the number of children remaining in school. You can find more information on Monitoring and Evaluation from The Rotary Foundation, your education, mentoring and funding partners, and the leadership of your target community. Expertise is also available from RAGM members who have executed successful microfinance projects.
• #51: You can find more information on Monitoring and Evaluation from The Rotary Foundation, your education, mentoring and funding partners, and the leadership of your target community. Expertise is also available from RAGM members who have executed successful microfinance projects.
• #54: Areas of focus - Promoting peace Today, 42 million people are displaced by armed conflict or persecution. Through our partnerships with several leading universities, Rotary Peace Fellows develop the skills to strengthen peace efforts, train local leaders to prevent and mediate conflict, and support long-term peace building in areas affected by conflict. We provide up to 100 peace fellowships per year at Rotary Peace Centers. Fighting disease More than 100 million people are pushed into poverty each year because of medical costs. We aim to improve and expand access to low-cost and free health care in underdeveloped areas. Our members educate and mobilize communities to help prevent the spread of major diseases such as polio, HIV/AIDS, and malaria. Many of our projects ensure that medical training facilities are located where the workforce lives. Providing clean water More than 2.5 billion people lack access to adequate sanitation facilities. At least 3,000 children die each day from diarrheal diseases caused by unsafe water. Our projects give communities the ability to develop and maintain sustainable water and sanitation systems and support studies related to water and sanitation. Saving mothers and children At least 7 million children under the age of five die each year due to malnutrition, poor health care, and inadequate sanitation. To help reduce this rate, we provide immunizations and antibiotics to babies, improve access to essential medical services, and support trained health care providers for mothers and their children. Our projects ensure sustainability by empowering the local community to take ownership of health care training programs. Supporting education Sixty-seven million children worldwide have no access to education and more than 775 million people over the age of 15 are illiterate. Our goal is to strengthen the capacity of communities to support basic education and literacy, reduce gender disparity in education, and increase adult literacy. Growing local economies Nearly 1.4 billion employed people live on less than $1.25 a day. We carry out service projects that enhance economic and community development and develop opportunities for decent and productive work for young and old. We also help strengthen local entrepreneurs and community leaders, particularly women, in impoverished communities.