Microfinance Institution Consulting Project:
2005 - 2006
Many people who have worked overseas speak of the transformational effect it has had on their world view and personal lives. CGC believes that having such an experience is integral to developing a lifelong interest in development issues and truly becoming a global citizen. To provide an avenue to such an experience for Chicago Booth students, the CGC organized a consulting project with a microfinance institution ("MFI") in Cambodia.
Specifically, the CGC Consulting Team’s goal was to help the MFI to chart a long term plan to refine its strategy and improve operations to better serve Cambodian micro-entrepreneurs. In a country like Cambodia, a "micro-loan" of as little as $300 can enable an entrepreneur to set up a business that will support a family and provide needed funds for their children's schooling. This group is typically underserved by what we think of as traditional financial service institutions, and MFIs fill that service gap by providing small loans at reasonable rates of interest. Now that many MFIs have established a strong record of performance, the industry is moving towards further institutionalizing and broadening the services provided.
Our consulting project spanned the Autumn and Winter quarters of the 2005-2006 academic year. During that time, student volunteers worked to identify the major issues and opportunities for MFI going forward – and learned a great deal about the microfinance environment of Cambodia along the way. The team worked with the MFI to select specific initiatives important to its driving goals and charted a path to their implementation.
The project culminated with a week-long trip to Cambodia over the 2006 spring break to complete the project and present the team’s findings. The team’s project was well received. It ultimately enabled the MFI to better meet the needs of Cambodian micro-entrepreneurs needing loans to grow their business, which had significant impact on the community. CGC's strategy and initiatives are still in place today! |
