Micro and small enterprises (MSEs) in India, particularly women-owned businesses, continue to face significant barriers in accessing formal credit. These include limited access to tailored financial products, inadequate working capital support, and a lack of suitable digital financing channels. To address these challenges, MSC supported a high-impact initiative with India’s Principal Financial Institution (FI) for MSMEs to design and roll out digital enterprise financing solutions. The project aimed to unlock access to affordable credit and enterprise support services for MSEs—particularly women-owned enterprises—through technology-enabled, paperless financing models.
A key innovation under this initiative was the design of a digital, invoice-based financing (IBF) product tailored for fair price shop (FPS) dealers. In partnership with the Department of Food and Public Distribution (DFPD), the solution helped FPS owners access working capital credit against verified purchase invoices. This financing mechanism supported the transformation of over 500,000 FPS outlets into Jan Poshan Kendras (JPKs)—nutrition-focused retail points offering affordable, non-PDS food products.
In collaboration with the Principal FI, MSC led the development and pilot of the IBF solution. The product was iteratively tested and refined to address the liquidity constraints of FPS dealers, enable real-time credit access, and integrate it seamlessly with partner platforms. One pilot partner is now scaling the product across states, based on evidence generated through MSC’s engagement.
This initiative contributes to the Gates Foundation’s broader goal of driving inclusive financial access for underserved enterprises. Insights from this project inform future investments and policy efforts to build sustainable, tech-enabled credit solutions for women entrepreneurs and rural enterprises.
The Gates Foundation commissioned this project.
Across sub-Saharan Africa, many women who run small and informal businesses struggle to access affordable, productive credit. The impact of COVID-19 worsened this, limiting women’s ability to grow their enterprises and improve their livelihoods.
To address this, MSC developed a clear business case to expand microfinance solutions tailored to women-led businesses. We began by looking at what works, drawing lessons from successful models in Asia, Latin America, and parts of Africa. Our research focused on what enables financial institutions to deliver meaningful credit to women, which included supportive policies, strong delivery models, relevant partnerships, and products that can scale.
From over 130 financial institutions reviewed in Kenya and Uganda, we identified five with strong potential: KCB Kenya, BRAC Uganda, FINCA, Stanbic Kenya, and Stanbic Uganda. MSC partnered with each one to co-design and test credit products for small-scale women entrepreneurs. We supported them through every step, from shaping the product concept and testing prototypes, to developing pricing strategies and exploring alternative ways to assess creditworthiness.
We also provided guidance on how to unlock low-cost, long-term capital to support future growth through second-tier financing mechanisms.
This work has helped lay the foundation for financial products that meet the real needs of women entrepreneurs, offering both impact and sustainability.
The Gates Foundation commissioned this project.
As climate risks intensify, vulnerable populations in countries like Nigeria and Bangladesh face growing challenges to their livelihoods. Frequent and unpredictable disasters, such as droughts, floods, and cyclones occur with increasing frequency and unpredictability, rapidly eroding household resilience. Traditional climate interventions often overlook financial strategies at the household level. CGAP recognized this gap and partnered with MSC and Decodis to explore how low-income communities cope with these shocks and the role financial services play in their response.
MSC and Decodis conducted a comprehensive demand-side study in Nigeria and Bangladesh to generate firsthand insights into how vulnerable households experience and respond to climate events. The study used a mix of qualitative and quantitative research methods in both countries to capture detailed insights into financial behavior during and after severe weather events. The research documented how households prepare for and recover from climate shocks, the financial tools they use, such as microfinance, remittances, and mobile money, and what services they wish they had to support adaptation. MSC and CGAP then held a series of workshops to discuss the findings.
The research offered rich insights into the lived experiences of climate-affected communities and how they build and lose resilience between events. It highlighted gaps in financial services and guided stakeholders on how to design responsive climate-aligned financial products. These insights are shaping CGAP’s broader efforts to align financial inclusion strategies with climate adaptation goals.
Consultative Group to Assist the Poor (CGAP) commissioned the project.
The eastern Indian state of Bihar offers significant potential to use aquaculture and fisheries as a means to improve nutritional outcomes, enhance food security, and create diversified and sustainable livelihood opportunities, particularly for women-led community groups. MSC recognized this potential and conducted an in-depth baseline study to inform strategic interventions and guide investment in the state’s fisheries sector.
MSC employed a mixed-methods approach that combined quantitative and qualitative research tools for actionable insights. The study covered 12 districts in Bihar and included a quantitative cross-sectional survey of more than 1,200 fish-farming households, focus group discussions (FGDs) with both men and women, and key informant interviews (KIIs) with sector experts and community leaders.
The study seeks to understand in detail the current state of aquaculture, women’s empowerment in the sector, and the health and nutrition profiles of households engaged in aquaculture and fisheries livelihoods. MSC used baseline findings to align and contextualize the interventions under this investment. These tools are now being used in the endline assessment to track changes and progress in the parameters. A final assessment is underway to evaluate the program’s progress and achievements against its objectives.
The Gates Foundation commissioned the project.
Women-led micro and small enterprises (wMSEs) in Kenya’s open-air and cross-border markets face constant barriers in accessing and using digital financial services (DFS). These include limited access to tailored financial products, inadequate digital infrastructure, and restrictive gendered social norms.
To address these challenges, MSC implemented an action research program to identify practical pathways to increase DFS adoption among wMSEs. The project sought to uncover how digital financial solutions could meaningfully improve women entrepreneurs’ economic and financial lives in these informal trade environments.
In collaboration with financial service providers, MSC built and tested use cases that highlighted the potential of digital solutions such as savings, credit, payments, and insurance, for wMSEs. We pilot tested and refined products to generate practical insights for scale-up. As a result, one partner is now pursuing regulatory approval to launch DFS products tailored to this segment, while another has successfully rolled out cross-border payment services based on MSC’s findings.
This project supports the Bill & Melinda Gates Foundation’s Financial Services for the Poor (FSP) vision of improving women’s access to and usage of DFS by 2030. The insights help FSP refine its investment strategy and shape future interventions that expand financial inclusion for women entrepreneurs.
The Bill & Melinda Gates Foundation commissioned this project.
MSC conducted a scoping study to provide the Bangladesh Bank with relevant insights to support the cashless agenda and build strategies to achieve targets in the Smart Bangladesh Plan 2041.
MSC used the Payment-Ecosystem Profile Framework (PEFP) to assess Bangladesh’s economic and digital activities thoroughly, through the lens of the country as a microcosm in terms of digital readiness, inclusivity, infrastructure, literacy levels, and the availability of digital channels. We used rigorous secondary data analysis and qualitative methods to identify and profile distinct customer segments within the microcosm.
We conducted stakeholder consultations, including workshops and focused group discussions, which played a pivotal role to shape pilot initiatives tailored to the Bangladesh Bank’s solutions. We facilitated a pilot on the microcosm to test and refine the identified solutions. We identified detailed insights and actionable recommendations derived from user segmentation, qualitative insights, and pilot testing, all of which contributed to Smart Bangladesh initiatives in Singair.
Based on the pilot result, the Bangladesh Bank can revise or adopt draft policy guidelines, run concept tests, work with relevant departments, and guide the Government of Bangladesh to achieve different aspects of the Smart Bangladesh agenda.
The Gates Foundation commissioned the project.
