1. 4th “University Meets Microfinance”
Workshop
Introduction to the “Microfinance Plus” concept
Didier Krumm, PlaNet Finance
October, 22nd 2010
University of Bergamo
Project co-financed by the
European Commission

2. 2
Overview
1. Microfinance plus concept
2. Build microentrepreneurs capacities
1. Microfinance and Education
2. Microfinance and Health
3. Strengthen the economic activities
1. Value Chain
2. Microfinance and Environment

3. 3
1. The “Microfinance Plus” concept (1/2)
MICRO-ENTREPRENEURS
MICROFINANCE
HEALTH
Business Skills
Gender issues
Illiteracy
Market access

4. 4
1. The “Microfinance Plus” concept (2/2)
Build microentrepreneurs
capacities
Strengthen the economics
activities
Microfinance Plus strategy
Sustainable income-generating activities and financial autonomy
Microentrepreneurs
Families
Communities
Income-generating activities
Small businesses
Targets

5. 5
2. Build capacities
2.1. Microfinance and education
 Inequalities in access to financial services, combined with
cultural, social or gender inequalities, provokes phenomena
of exclusion.
 Development of the skills and qualifications of
microentrepreneurs can improve their working conditions
and levels of business profitability.
Main objectives of Microfinance and education:
– Develop the skills of microentrepreneurs through training,
particularly in the areas of management and financial control;
– Support microentrepreneurs in their projects, and conduct
or facilitate programs which build their capacity.
Key figures
Distribution of
out-of-school
children by region,
2008
• 46% in Sub-Saharan
Africa
• 27% in Southern
Asia
• 4% in developed
Regions
Proportion of
own-account and
contributing family
workers in total
employment, 2009
Projections
• Southern Asia
84 % of women
74 of men
• Sub-Saharan Africa
84% of women
71% of men
Source: MDG Report, 2010

6. 6
2. Build capacities
2.2. Microfinance and health
 Illnesses and pandemics represent both one of the
causes and one of the consequences of situations of
poverty and precariousness.
 Improving the health of populations is therefore an
essential condition of sustainable development.
Main objectives of Microfinance and health:
– Provide access to adapted microfinance products
for people with illness or disability;
– Prevent diseases by providing critical information to
microentrepreneurs and conduct awareness campaigns;
– Develop micro-insurance solutions.
Key figures
Proportion of children
under age five who are
Underweight 2008
• 46% in Southern Asia
• 27% in Sub-Saharan
Africa
• 26% in developing
regions
Under-five mortality rate
per 1,000 live births,
2008
• 144‰ in Sub-Saharan
Africa
• 74‰ in Southern Asia
• 72‰ in developing regions
• 6‰ in developed regions
Source: MDG Report, 2010

7. 7
3. Strengthen economic activities
3.1. Value chain
 For many microentrepreneurs, market conditions are very unfavorable:
– too many intermediaries,
– not enough outlets,
– concentration of similar activities in the same area
– increased competition.
 Value chain = “the full range of activities that are required to transform a product
or service from conception to markets and consumers” (Netherlands
Development Organization SNV)
 Inclusion of small entrepreneurs in local, national and global value chains, in
order to increase production, income and employment opportunities for them.
Main objectives of Microfinance and Value chain:
– Analyze, organize and strengthen the value chain through microfinance;
– Structure groups of small- producers and SMEs in order to ensure
that they capture maximum value for their resource inputs.

8. 8
3. Strengthen economic activities
3.2. Microfinance and environment
 Nearly 1.6 billion people worldwide without access to basic
energy services, with significant consequences on the
health.
 This situation compromises the development of income
generating activities and slows the entrepreneurial
capacity of the inhabitants.
 Economic activities often engender the deterioration of the
environment and dramatically change the ecosystems on
which some economic activities rely.
Main objectives of Microfinance and environment:
– Link poverty alleviation to the protection of the environment;
– Leverage the existing infrastructure of an MFI to implement programs
which make positive impacts in the areas of renewable energy, waste
management and biodiversity.
Key figures
Proportion of population
using an improved
water source,
2008
• 50% in Oceania
• 60% in Sub-Saharan
Africa
• 87% in Southern Asia
• 84% in developing
regions
• 100% in developed
regions
Source: MDG Report, 2010

9. Let’s share your experience and
knowledge !
Project co-financed by the
European Commission