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South Pacific Business Development Microfinance Network

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SPBD Solomon Islands Client Health Check-ups

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SOUTH PACIFIC BUSINESS DEVELOPMENT

To continue the efforts made in the SPBD network related to measuring the social impact of SPBD Microfinance microloans to women entrepreneurs in poverty, SPBD Samoa conducted an Impact Assessment Survey in the 3rd quarter of 2014. They collected and analyzed annual and weekly data related to client’s demographics, business income, household income, business expenses, household expenses, savings, etc. The data was collected from the clients’ loan applications, member annual profiles, personal interviews as well as their financial booklets.

The sample size of 197 clients, which represents 5% of all clients located in Upolu, was randomly selected. This sample selection covered various loan cycles, business types, age groups, and family members working in the micro business.

The key results were as follows:

  • Over 75% of the clients reported that family members were involved in the micro business that started with the SPBD Microfinance Scheme. It seems, therefore, that SPBD Intervention leads to family members beyond the entrepreneur being gainfully employed.
  • Business profits were higher for the businesses that had been in operation for a longer period of time. With continuous SPBD Micro Credit support, a Micro business continues to grow and generates increasing profit over time.
  • A majority of the clients reported that the Micro business contributes to more than 60% of the overall household income.
  • The trend shows that as the businesses grow with SPBD Microfinance Intervention, a majority of the clients also start saving more.

Going forward, the endeavor is to increase the sample size to 10% of the client base and look at other parameters like improvement in housing of our clients and childhood education.

This survey complements the Progress out of Poverty Index (PPI) conducted in SPBD Fiji to measure the outreach to households falling below the Fiji National Poverty Line conducted in the 3rd quarter of 2014 as detailed in previous issues of this newsletter.

Similar surveys to measure social impact of SPBD micro loans are planned in SPBD Tonga and SPBD Solomon Islands in 2015.

More information about South Pacific Business Development can be found here.