The Single Biggest Challenge for Microfinance

Abstract:

The paper highlights the importance of training and capacity building and how it still remains the single biggest challenge in the microfinance sector. The paper stresses that in line with private sector business, MFIs need to start seeing training as an investment rather than expense. To achieve this they need to pay more attention to training and capacity development as a part of an integrated HR management that also includes HR retention.

Apart from this, those financing/ supporting training need to re-assess what they finance and how they evaluate it – to move away from counting “number of attendees” at a training to the “impact of that training” – in terms of changes that occur within MFIs. Also, given the sheer scale of capacity building required, there is a need to use technology and develop new methods of distance and e-learning.

Tags: Training , Capacity building, Human resource management, Staff retention, Microfinance, MFIs, E-learning, Graham AN Wright, MicroSave, Microfinance institution