Summary of Micro Finance

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Microfinance Performance
Summary
7.1 Introduction
This chapter proposes a model of performance analysis for microfinance programmes and institutions in order to evaluate actual or expected programmes. Performance evaluation approach should be considered from two distinct perspectives:
1) The first approach is related to the performance of a single project managed adopting a perspective like that of project financing, as could occur in the case of non-formal institutions, mainly an NGO
2) Other performance evaluation relates to an MFI that handles significant operative volumes, and reasons from the vantage point of a portfolio of projects

7.2 Performance Analysis
7.2.1 Performance Features
Performance analysis is the process of evaluating the actual results produced by a project, or by an institution, in relation to the results that were expected. The foundation of performance evaluation is the availability of data relative to each area of management and to the individual operations of each area. The performance evaluation is a process based on complementary, yet diverse, information related to the operation of singular aspects of management. It permits us to satisfy three main objectives:
• To formulate ex ante realistic expectations of the available resources
• To monitor over time the management operational ability to achieve the objectives;
• To evaluate ex post the results achieved
An efficient system of evaluation must have the requisite characteristics for achieving the following objectives:
• The comparability of performance in time
• The comparability of performance in space
• The comparability of performance with respect to a benchmark
7.2.2 Microfinance performance
In microfinance institution, the performance is measured by the outreach, unlike from economic-business perspective, which measured the performance from the profit.
In…...

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