Microfinance institutions (MFIs) are usually driven by a twofold orientation defined by a set of financial and social aims. To date there is no consensus on how these two orientations are connected, nor on what is the best method to evaluate performance. The introduction of social elements to measure the degree of success in recent years led to several evaluation approaches with different combinations of social and financial standards. MFIs are constrained by limited budgets to carry out performance evaluations, and they might have to choose among different assessment methodologies. This study aims to identify the preferred standard-based methods to undertake microfinance performance evaluations in Bolivia. Our findings show that microfinance institutions focus mainly on assessment and rating; the SPI4 is the most widely used method to undertake performance evaluations, followed by credit rating. Most microfinance institutions conduct social performance evaluations in collaboration with external consultants.

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Schreiner, M., Matul, M., Pawlak, E. and Kline, S. (2014) ‘Poverty scorecards: lessons from a microlender in Bosnia-Herzegovina’, Poverty & Public Policy 6(4): 407–28 <https://onlinelibrary.wiley.com/doi/full/10.1002/pop4.86>.

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CERISE SPI4, <http://www.cerise-spi4.org/#/benchmarking/> [accessed 22 September 2018].

MicroFinanza Rating, <http://www.microfinanzarating.com/> [accessed 21 September 2018].

MicroFinanza Rating Reports, <http://www.microfinanzarating.com/index.php?option=com_wrapper&view=wrapper&Itemid=62&lang=en> [accessed 22 September 2018].

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The Smart Campaign, ‘Certification’, <http://www.smartcampaign.org/certification/certified-organizations> [accessed 22 September 2018].

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Truelift, ‘Recognition’, <https://sealofexcellence.wordpress.com/recognition/> [accessed 22 September 2018].

Armendáriz, B. and Szafarz, A. (2011) ‘On mission drift in microfinance institutions’, in B. Armendáriz and M. Labie (eds), The Handbook of Microfinance, pp. 341–66, Singapore: World Scientific.

Buyske, G. (2014) Microfinance Ratings Market Assessment [online], Washington, DC: Multilateral Investment Fund <http://idbdocs.iadb.org/wsdocs/getDocument.aspx?DOCNUM=38851310> [accessed 20 October 2018].

Consultative Group to Assist the Poor (CGAP) (2003) Microfinance Consensus Guidelines. Definitions of Selected Financial Terms, Ratios, and Adjustments for Microfinance, Washington, DC: CGAP.

Clark, H. and Sinha, F. (2013) Social Rating Guide [pdf], The Rating Initiative <https://sptf.info/images/social%20rating%20guide_english_nov%202014.pdf> [accessed 20 October 2018].

European Microfinance Platform (e-MFP) Microfinance and Environment Action Group (2016) The Green Index 2.0: An Innovative Tool to Assess Environmental Performance in the Microfinance Sector [online], European Microfinance Platform Brief No. 6 <http://www.e-mfp.eu/resources/green-index-20-innovative-tool-assess-environmental-performance-microfinance-sector-brief> [accessed 22 September 2018].

Economist Intelligence Unit (2016) Global Microscope 2016: The Enabling Environment for Financial Inclusion [online], The Economist Intelligence Unit <https://publications.iadb.org/handle/11319/7988> [accessed 22 September 2018].

MicroFinanza Rating (2016a) ‘Microfinance institutional rating’ [online], MicroFinanza Rating <https://www.mf-rating.com/pcategory/rating-services/> [accessed 20 October 2018].

MicroFinanza Rating (2016b) ‘Social rating methodology’ [online], MicroFinanza Rating <https://www.mf-rating.com/pcategory/rating-services/> [accessed 20 October 2018].

MicroRate (2014) Technical Guide: Performance and Social Indicators for Microfinance Institutions [pdf], MicroRate <http://www.microrate.com/media/downloads/2014/05/MicroRate_-Technical-Guide-20142.pdf> [accessed 20 October 2018].

Rosenberg, R. (2009) Measuring Results of Microfinance Institutions [online], Washington, DC: CGAP/World Bank, <http://www.cgap.org/publications/measuring-results-microfinance-institutions-minimum-indicators> [accessed 14 July 2018].

Schreiner, M. (2015) Simple Poverty Scorecard® Poverty-Assessment Tool Bolivia [pdf], Scorocs™ Simple Poverty Scorecard® <http://www.simplepovertyscorecard.com/BOL_2013_ENG.pdf> [accessed 20 October 2018].

Schreiner, M., Matul, M., Pawlak, E. and Kline, S. (2014) ‘Poverty scorecards: lessons from a microlender in Bosnia-Herzegovina’, Poverty & Public Policy 6(4): 407–28 <https://onlinelibrary.wiley.com/doi/full/10.1002/pop4.86>.

SEEP Network (2008) ‘Social performance map’, [online], Arlington, VA: SEEP Network <https://seepnetwork.org/Blog-Post/Social-Performance-Map> [accessed 20 October 2018].

Smart Campaign (2014) A Guide to Client Protection Assessments [pdf], The Smart Campaign <https://www.smartcampaign.org/storage/documents/Guide-to-Client-Protection-Assessments.pdf> [accessed 20 October 2018].

Smart Campaign (2016) Client Protection Certification Standards [pdf], The Smart Campaign <https://www.smartcampaign.org/storage/documents/Standards_2.0_English_Final.pdf> [accessed 20 October 2018].

The Rating Initiative (2012) Rating Guide [pdf], Social Performance Task Force <https://sptf.info/images/Rating%20Guide_English_20150825.pdf> [accessed 20 October 2018].

The Rating Initiative (2013) Social Rating Guide [pdf], Social Performance Task Force <https://sptf.info/images/social%20rating%20guide_english_nov%202014.pdf> [accessed 20 October 2018].

Trujillo, V. and Navajas, S. (2016) Financial Inclusion and Financial Systems in Latin America and the Caribbean: Data and Trends [online], Inter-American Development Bank <https://publications.iadb.org/handle/11319/8117> [accessed 20 October 2018].

Wardle, L. (2017) The Universal Standards for Social Performance Management Implementation Guide, Version 2 [pdf], Social Performance Task Force <https://sptf.info/images/usspm_impl_guide_english_20171003.pdf> [accessed 20 October 2018].

CERISE SPI4, <http://www.cerise-spi4.org/#/benchmarking/> [accessed 22 September 2018].

MicroFinanza Rating, <http://www.microfinanzarating.com/> [accessed 21 September 2018].

MicroFinanza Rating Reports, <http://www.microfinanzarating.com/index.php?option=com_wrapper&view=wrapper&Itemid=62&lang=en> [accessed 22 September 2018].

MIX Market, ‘Organization profiles’, <https://www.themix.org/mixmarket/profiles> [accessed 21 September 2018].

Poverty Probability Index (PPI), ‘PPI by country: Bolivia’, <https://www.povertyindex.org/country/Bolivia> [accessed 22 September 2018].

The Smart Campaign, ‘Certification’, <http://www.smartcampaign.org/certification/certified-organizations> [accessed 22 September 2018].

Truelift, ‘Pro-Poor Principles’, <https://sealofexcellence.wordpress.com/pro-poor-principles/> [accessed 22 September 2018].

Truelift, ‘Recognition’, <https://sealofexcellence.wordpress.com/recognition/> [accessed 22 September 2018].

Armendáriz, B. and Szafarz, A. (2011) ‘On mission drift in microfinance institutions’, in B. Armendáriz and M. Labie (eds), The Handbook of Microfinance, pp. 341–66, Singapore: World Scientific.

Buyske, G. (2014) Microfinance Ratings Market Assessment [online], Washington, DC: Multilateral Investment Fund <http://idbdocs.iadb.org/wsdocs/getDocument.aspx?DOCNUM=38851310> [accessed 20 October 2018].

Consultative Group to Assist the Poor (CGAP) (2003) Microfinance Consensus Guidelines. Definitions of Selected Financial Terms, Ratios, and Adjustments for Microfinance, Washington, DC: CGAP.

Clark, H. and Sinha, F. (2013) Social Rating Guide [pdf], The Rating Initiative <https://sptf.info/images/social%20rating%20guide_english_nov%202014.pdf> [accessed 20 October 2018].

European Microfinance Platform (e-MFP) Microfinance and Environment Action Group (2016) The Green Index 2.0: An Innovative Tool to Assess Environmental Performance in the Microfinance Sector [online], European Microfinance Platform Brief No. 6 <http://www.e-mfp.eu/resources/green-index-20-innovative-tool-assess-environmental-performance-microfinance-sector-brief> [accessed 22 September 2018].

Economist Intelligence Unit (2016) Global Microscope 2016: The Enabling Environment for Financial Inclusion [online], The Economist Intelligence Unit <https://publications.iadb.org/handle/11319/7988> [accessed 22 September 2018].

MicroFinanza Rating (2016a) ‘Microfinance institutional rating’ [online], MicroFinanza Rating <https://www.mf-rating.com/pcategory/rating-services/> [accessed 20 October 2018].

MicroFinanza Rating (2016b) ‘Social rating methodology’ [online], MicroFinanza Rating <https://www.mf-rating.com/pcategory/rating-services/> [accessed 20 October 2018].

MicroRate (2014) Technical Guide: Performance and Social Indicators for Microfinance Institutions [pdf], MicroRate <http://www.microrate.com/media/downloads/2014/05/MicroRate_-Technical-Guide-20142.pdf> [accessed 20 October 2018].

Rosenberg, R. (2009) Measuring Results of Microfinance Institutions [online], Washington, DC: CGAP/World Bank, <http://www.cgap.org/publications/measuring-results-microfinance-institutions-minimum-indicators> [accessed 14 July 2018].

Schreiner, M. (2015) Simple Poverty Scorecard® Poverty-Assessment Tool Bolivia [pdf], Scorocs™ Simple Poverty Scorecard® <http://www.simplepovertyscorecard.com/BOL_2013_ENG.pdf> [accessed 20 October 2018].

Schreiner, M., Matul, M., Pawlak, E. and Kline, S. (2014) ‘Poverty scorecards: lessons from a microlender in Bosnia-Herzegovina’, Poverty & Public Policy 6(4): 407–28 <https://onlinelibrary.wiley.com/doi/full/10.1002/pop4.86>.

SEEP Network (2008) ‘Social performance map’, [online], Arlington, VA: SEEP Network <https://seepnetwork.org/Blog-Post/Social-Performance-Map> [accessed 20 October 2018].

Smart Campaign (2014) A Guide to Client Protection Assessments [pdf], The Smart Campaign <https://www.smartcampaign.org/storage/documents/Guide-to-Client-Protection-Assessments.pdf> [accessed 20 October 2018].

Smart Campaign (2016) Client Protection Certification Standards [pdf], The Smart Campaign <https://www.smartcampaign.org/storage/documents/Standards_2.0_English_Final.pdf> [accessed 20 October 2018].

The Rating Initiative (2012) Rating Guide [pdf], Social Performance Task Force <https://sptf.info/images/Rating%20Guide_English_20150825.pdf> [accessed 20 October 2018].

The Rating Initiative (2013) Social Rating Guide [pdf], Social Performance Task Force <https://sptf.info/images/social%20rating%20guide_english_nov%202014.pdf> [accessed 20 October 2018].

Trujillo, V. and Navajas, S. (2016) Financial Inclusion and Financial Systems in Latin America and the Caribbean: Data and Trends [online], Inter-American Development Bank <https://publications.iadb.org/handle/11319/8117> [accessed 20 October 2018].

Wardle, L. (2017) The Universal Standards for Social Performance Management Implementation Guide, Version 2 [pdf], Social Performance Task Force <https://sptf.info/images/usspm_impl_guide_english_20171003.pdf> [accessed 20 October 2018].

CERISE SPI4, <http://www.cerise-spi4.org/#/benchmarking/> [accessed 22 September 2018].

MicroFinanza Rating, <http://www.microfinanzarating.com/> [accessed 21 September 2018].

MicroFinanza Rating Reports, <http://www.microfinanzarating.com/index.php?option=com_wrapper&view=wrapper&Itemid=62&lang=en> [accessed 22 September 2018].

MIX Market, ‘Organization profiles’, <https://www.themix.org/mixmarket/profiles> [accessed 21 September 2018].

Poverty Probability Index (PPI), ‘PPI by country: Bolivia’, <https://www.povertyindex.org/country/Bolivia> [accessed 22 September 2018].

The Smart Campaign, ‘Certification’, <http://www.smartcampaign.org/certification/certified-organizations> [accessed 22 September 2018].

Truelift, ‘Pro-Poor Principles’, <https://sealofexcellence.wordpress.com/pro-poor-principles/> [accessed 22 September 2018].

Truelift, ‘Recognition’, <https://sealofexcellence.wordpress.com/recognition/> [accessed 22 September 2018].

Armendáriz, B. and Szafarz, A. (2011) ‘On mission drift in microfinance institutions’, in B. Armendáriz and M. Labie (eds), The Handbook of Microfinance, pp. 341–66, Singapore: World Scientific.

Buyske, G. (2014) Microfinance Ratings Market Assessment [online], Washington, DC: Multilateral Investment Fund <http://idbdocs.iadb.org/wsdocs/getDocument.aspx?DOCNUM=38851310> [accessed 20 October 2018].

Consultative Group to Assist the Poor (CGAP) (2003) Microfinance Consensus Guidelines. Definitions of Selected Financial Terms, Ratios, and Adjustments for Microfinance, Washington, DC: CGAP.

Clark, H. and Sinha, F. (2013) Social Rating Guide [pdf], The Rating Initiative <https://sptf.info/images/social%20rating%20guide_english_nov%202014.pdf> [accessed 20 October 2018].

European Microfinance Platform (e-MFP) Microfinance and Environment Action Group (2016) The Green Index 2.0: An Innovative Tool to Assess Environmental Performance in the Microfinance Sector [online], European Microfinance Platform Brief No. 6 <http://www.e-mfp.eu/resources/green-index-20-innovative-tool-assess-environmental-performance-microfinance-sector-brief> [accessed 22 September 2018].

Economist Intelligence Unit (2016) Global Microscope 2016: The Enabling Environment for Financial Inclusion [online], The Economist Intelligence Unit <https://publications.iadb.org/handle/11319/7988> [accessed 22 September 2018].

MicroFinanza Rating (2016a) ‘Microfinance institutional rating’ [online], MicroFinanza Rating <https://www.mf-rating.com/pcategory/rating-services/> [accessed 20 October 2018].

MicroFinanza Rating (2016b) ‘Social rating methodology’ [online], MicroFinanza Rating <https://www.mf-rating.com/pcategory/rating-services/> [accessed 20 October 2018].

MicroRate (2014) Technical Guide: Performance and Social Indicators for Microfinance Institutions [pdf], MicroRate <http://www.microrate.com/media/downloads/2014/05/MicroRate_-Technical-Guide-20142.pdf> [accessed 20 October 2018].

Rosenberg, R. (2009) Measuring Results of Microfinance Institutions [online], Washington, DC: CGAP/World Bank, <http://www.cgap.org/publications/measuring-results-microfinance-institutions-minimum-indicators> [accessed 14 July 2018].

Schreiner, M. (2015) Simple Poverty Scorecard® Poverty-Assessment Tool Bolivia [pdf], Scorocs™ Simple Poverty Scorecard® <http://www.simplepovertyscorecard.com/BOL_2013_ENG.pdf> [accessed 20 October 2018].

Schreiner, M., Matul, M., Pawlak, E. and Kline, S. (2014) ‘Poverty scorecards: lessons from a microlender in Bosnia-Herzegovina’, Poverty & Public Policy 6(4): 407–28 <https://onlinelibrary.wiley.com/doi/full/10.1002/pop4.86>.

SEEP Network (2008) ‘Social performance map’, [online], Arlington, VA: SEEP Network <https://seepnetwork.org/Blog-Post/Social-Performance-Map> [accessed 20 October 2018].

Smart Campaign (2014) A Guide to Client Protection Assessments [pdf], The Smart Campaign <https://www.smartcampaign.org/storage/documents/Guide-to-Client-Protection-Assessments.pdf> [accessed 20 October 2018].

Smart Campaign (2016) Client Protection Certification Standards [pdf], The Smart Campaign <https://www.smartcampaign.org/storage/documents/Standards_2.0_English_Final.pdf> [accessed 20 October 2018].

The Rating Initiative (2012) Rating Guide [pdf], Social Performance Task Force <https://sptf.info/images/Rating%20Guide_English_20150825.pdf> [accessed 20 October 2018].

The Rating Initiative (2013) Social Rating Guide [pdf], Social Performance Task Force <https://sptf.info/images/social%20rating%20guide_english_nov%202014.pdf> [accessed 20 October 2018].

Trujillo, V. and Navajas, S. (2016) Financial Inclusion and Financial Systems in Latin America and the Caribbean: Data and Trends [online], Inter-American Development Bank <https://publications.iadb.org/handle/11319/8117> [accessed 20 October 2018].

Wardle, L. (2017) The Universal Standards for Social Performance Management Implementation Guide, Version 2 [pdf], Social Performance Task Force <https://sptf.info/images/usspm_impl_guide_english_20171003.pdf> [accessed 20 October 2018].

CERISE SPI4, <http://www.cerise-spi4.org/#/benchmarking/> [accessed 22 September 2018].

MicroFinanza Rating, <http://www.microfinanzarating.com/> [accessed 21 September 2018].

MicroFinanza Rating Reports, <http://www.microfinanzarating.com/index.php?option=com_wrapper&view=wrapper&Itemid=62&lang=en> [accessed 22 September 2018].

MIX Market, ‘Organization profiles’, <https://www.themix.org/mixmarket/profiles> [accessed 21 September 2018].

Poverty Probability Index (PPI), ‘PPI by country: Bolivia’, <https://www.povertyindex.org/country/Bolivia> [accessed 22 September 2018].

The Smart Campaign, ‘Certification’, <http://www.smartcampaign.org/certification/certified-organizations> [accessed 22 September 2018].

Truelift, ‘Pro-Poor Principles’, <https://sealofexcellence.wordpress.com/pro-poor-principles/> [accessed 22 September 2018].

Truelift, ‘Recognition’, <https://sealofexcellence.wordpress.com/recognition/> [accessed 22 September 2018].

The Microfinance Game: Experiencing the dynamics of financial inclusion in developing contexts

Sierra, Javier

Rodríguez-Conde, María-José

The International Journal of Management Education, Vol. 19 (2021), Iss. 3 P.100540

https://doi.org/10.1016/j.ijme.2021.100540 [Citations: 1]