In this video series-2, Hugh Allen, Founder of VSL Associates, Ltd discusses the emerging issues of community managed microfinance and their examples in the world. He further talks about where this methodology works best, and what are the risks we face as community managed microfinance moves forward. Going into the details, Hugh notices the industry’s caution that these institutions cannot adequately capitalise a development enterprise. Supporting this believe, Hugh puts forth the evidences that the community managed MFIs need external capital injection but it faces difficulty in getting any such flow of capital. Currently, he says is a position to wait and watch for community microfinance.