MICROFINANCE PROGRAM
INCAE has worked with local and regional financial institutions, microfinance institutions, schools, governments, center for policy-making and others for over 40 years. It focuses on researching and offering training in order to improve access to financial services by the poorest sectors of society. Its end goal is to foster sustainable development in the Latin American region.
CLACDS works on two specific microfinance projects:
- Development, implementation and administration of the Portal de Microfinanzas (Microfinance Gateway in Spanish)
- Participation in the “Microfinance in Masters of Business Administration (MBA) Programs”
Portal de Microfinanzas
Microfinance Gateway in Spanish
INCAE Business School was selected by the Consultative Group to Assist the Poor (CGAP), a consortium of 33 entities supporting the microfinance industry, to launch its Microfinance Gateway website in Spanish. This website functions as a portal to facilitate the exchange of and access to information on the topic of microfinance. It is currently available in English, French and Arabic. Due to numerous requests for information in Spanish and considering that some of the site’s most-popular documents are in that language, CGAP decided to look for a partner in Latin America to introduce the website to the local market.
CGAP’s mission is to expand access to financial services for the poor in developing countries. With this objective, CGAP acts as a center for technical assistance and strategic advising for donors and the microfinance industry.
The Microfinance Gateway, www.microfinancegateway.org, managed by CGAP, receives some 45,000 visitors a month, coming from more than 100 countries in the world.
The project’s basic objective is to establish the Microfinance Gateway in Spanish as a source of information and knowledge for the microfinance sector in the Latin American region. In addition, CGAP hopes to scale up microfinance in Spanish-speaking countries through the new site.
INCAE will initiate the project with a market study to define what the region’s information needs are in the microfinance sector. It will then be able to create a series of effective services for the Spanish site. The Portal de Microfinanzas will be launched by the end of this year and will include the following services: a library where visitors can look for information on more than 40 topics related to microfinance, industry news, job announcements in the region, a list of regional events related to microfinance and general information on what microfinance services are and how they reach the poorest sectors of Latin American society.
For more information or to participate in the market study, please contact Program Manager, Connie Gonzalez, connie.gonzalez@incae.edu or Project Manager, Monica Solis, monica.solis@consultor.incae.edu.
INCAE Business School has been selected by the Consultative Group to Assist the Poor (CGAP) to launch its Microfinance Gateway website in Spanish. This project’s objective is to create an important information source on microfinance in Latin America. We have developed a survey that will take approximately 15 minutes. This survey will help us understand the region’s needs in terms of microfinance information and be able to create a better website in Spanish that is tailor-made to those needs. To participate in this market study, please fill out the following survey and send it by email or fax to Monica Solis: monica.solis@consultor.incae.edu or +(506) 433-9101. |
Microfinance in Masters of Business Administration (MBA) Programs
A Partnership between the Microfinance Management Institute and Leading Business Schools Worldwide
Program Description
CLACDS was selected by the Microfinance Management Institute (MFMI) to lead a worldwide capacity-building project entitled “Microfinance in MBA Programs” in Latin America . Working in collaboration with other top graduate management schools throughout the world, CLACDS and the MFMI will promote learning and global exchange on themes and challenges for microfinance management. The Microfinance Program at INCAE includes the development of various activities, for example research projects, faculty exchanges, regional meetings and student internships. Additionally, this program will advance CLACDS' mission to improve SME and rural development in Latin America through innovative and effective programs.
The MFMI was founded in November of 2003 and is a non-profit joint venture of the Open Society Institute and the Consultative Group to Assist the Poor of the World Bank to advance management training in the microfinance sector internationally. The Microfinance Program at INCAE has the specific goal to improve managerial education in the microfinance sector in Latin America through the development of several tools, activities and projects.
TopProgram Associates
INCAE is working directly with five other top graduate management schools around the world to support the “Microfinance in MBA Programs.” The other schools involved are:
- The University of Pretoria in South Africa
- The Asian Institute of Management in the Philippines
- The Institute of Rural Management Anand in India
- The Indian Institute of Management in Ahmedabad , India
- The Indian Institute of Mangement in Bangalore , India
- The University of Dhaka in Bangladesh
- The Fundacao Getulio Vargas in Brazil
- The National University of Mongolia in Mongolia
- The United States International University in Kenya
- The Moscow State University in Russia
Activities
Specifically, the Microfinance Program includes:
Click on each activity for more information
- Assessment workshops in five Latin American countries to determine the local managerial education needs of the microfinance sector
- Research projects
- Case studies
- Student internships
- Student fieldwork project
- Faculty exchanges
- New seminars and courses
- Other activities and programs
Assessment workshops
Between June and August 2004 INCAE co-sponsored a series of workshops in Nicaragua , Guatemala , Peru , Bolivia and Ecuador with key, local microfinance institutions and other universities and training institutions to determine the management training needs of the local microfinance sector.
The following table shows the dates, countries, and co-sponsors for the meetings.
| INCAE Assessment Workshops | ||
|---|---|---|
| Date | City, Country | Co-sponsor |
| June 22, 2004 | Lima, Perú | FEPCMAC – Peruvian Federation of Municipal Savings and Credit Banks |
| June 24, 2004 | La Paz, Bolivia | Centro AFIN – International Center Supporting Financial Innovations |
| July 7, 2004 | Quito, Ecuador | RFR – Rural Financial Network |
| August 3, 2004 | Managua, Nicaragua | ASOMIF – Nicaraguan Association of Microfinance Institutions |
| August 5, 2004 | Guatemala City, Guatemala | REDIMIF – Guatemala’s Network of Microfinance Institutions |
a. Methodology
In order to analyze the specific training needs in each country's microfinance institutions, universities and other training institutions, INCAE formulated a series of four questions. This methodology allowed the participants to answer on an individual basis, while representing their organization and the realities of their country.
The four questions were:
1. What are the three principal internal aspects (in the microfinance institutions) and the three principal external aspects (outside) that have contributed to the success of the microfinance institutions in X country?
2. What are the three principal internal aspects (in the microfinance institutions) and the three principal external aspects (outside) that have been an obstacle to the further success of the microfinance institutions in X country?
3. If you had the chance to write God a letter and there were no limits on financial resources, what would you ask for (three wishes) to strengthen the microfinance institutions in X country?
4. What types of training programs would you recommend for X country to strengthen its microfinance institutions? (topic, participants and duration)
b. General Analysis of the Assessment
Overall, the participants from the Microfinance Institutions and training institutions in all five countries expressed interest in promoting and fostering the microfinance sector in Latin America . They noted that microfinance has become a “hot topic” in multilateral, financial and development institutions and recognized the high demand in Latin America for these services due to elevated poverty rates and an absence of government services.
Although the institutions differ in their scope, levels of experience, and access to resources and though the political, economic and social situations are different in each country, many shared similar characteristics and concerns. For example, all of the participants were motivated to help the microfinance sector in their country. They all expressed interest in promoting investment in training programs and recognized the need to develop new and better courses and seminars to serve the sector's needs. In addition, all expressed the need to better train those who would be doing the training and promote managerial instruction in various administrative topics, highlighting human resources and risk analysis.
The information shared by the participants in the five countries will be most helpful to INCAE's microfinance project. Particularly, their thoughts, concerns and experiences demonstrate and reinforce the need for programs like the MFMI project. The hope is that with this information in hand, INCAE will be able to design research tools, seminars and courses that can better prepare and serve the Latin America's microfinance sector through the funding and support given by MFMI and based on the first-hand knowledge shared by the participants.
A brief summary of the individual country results follows:
c. Guatemala’s MFI meeting
Guatemala 's microfinance institutions (MFIs) have the advantage of working in a virgin market with a large demand. Many opportunities for improvement, growth and expansion exist. Additionally, the sector has many young, motivated personnel devoted to further developing MF in the country.
Several factors have contributed to the sector's success so far, including national and international financial and institutional support, a high demand, devoted managers and good methodologies and strategic plans within the institutions. However, several obstacles also exist, including a lack of resources, training and know-how. Also, the country's current judicial regulations and governmental policies are more detrimental than helpful to the sector's growth.
The participants suggested several management programs that are needed in the sector, including decision-making, administration, marketing and credit analysis and evaluation. Additionally, they indicated interest in having programs that teach strategic development, customer service, human resource training and debt control. They also expressed interest in developing more internship and exchange programs between MFIs, studying the development of new products and managing microfinance guarantees, strategies and tools. They suggested these programs be directed toward financial managers, chiefs of operations, board members and credit analysts and indicated that the programs should last between three days and a week. Finally, they also suggested the creation of a microfinance certificate (roughly 6 months to one year of training, “diplomado” in Spanish).
Guatemala 's MFIs have less years of experience; however, because of this they can learn from more-developed institutions in other countries. The participants in Guatemala expressed interest in basic training in a wide-range of areas. Unfortunately, they also highlighted the problem that many government officials do not adequately understand the sector, and therefore, they do little to promote it.
d. Guatemala’s Training Institution meeting
Guatemala 's MF sector has a high demand for many training services and programs. Although there are several institutions already offering courses, there is a great need to expand both the number of institutions and their services. Several factors have contributed to the institutions' success so far, including the chance to learn from previous experiences, openness to innovation, trained human resources and a high demand. Additionally, they have easier access to information and have formed strategic alliances. However, the institutions have yet to develop self-sustainability; they lack investment in training and there is a concentration of services in the capital city. Also, recent political and socio-economic situations have not been favorable to the sector's growth.
The participants suggested several training programs for financial managers and middle management based on the sector's needs in credit and risk analysis and administration, decision-making, operations and institutional performance. They also expressed interest in further developing teaching methods and studies about competitiveness and commercialization. Other topics of interest were issues related to governing MFIs, how to encourage savings and investment and how to foster the expansion of services to branch offices in the country's interior. These programs were suggested to last between one day and one week.
Guatemala 's training institutions expressed interest in designing programs to strengthen both their own organizations and the sector as a whole. They also identified the need to educate government officials about the MF sector's needs. Additionally, the country's political instability does little to promote the sector.
e. Nicaragua’s MFI meeting
Nicaragua 's MF sector has developed rapidly in the past few years and already has trained and motivated personnel who are devoted to improving the sector and providing better and more services. Additionally, many MFIs have realized the importance of investing in training because they recognize the need to have trained and dedicated managers who promote the institutions' missions and can coordinate and administer them well.
Nicaragua 's MFIs to date have been able to provide services relatively well to their clients given the current political situation, disorganization and poverty in the country. Most have expressed clear institutional visions and have been able to expand their services due to financial support from international organizations and a lack of services from the formal bank. Unfortunately, the government has not promoted favorable policies for the MF sector; there is a lack of training programs, equipment and technology; and there exists a culture of nonpayment and a negative image of the MFIs.
The participants suggested several training programs to foster management for financial directors and managers, executives and branch officers. The topics of interested included: human resource management, risk management, administration, strategic planning and fundraising. Additionally, they suggested programs to analyze market trends, to provide services in rural areas through the use of branch offices and to develop negotiation techniques. They also indicated interest in designing analysis tools, strengthening managerial leadership and administration, elaborating new products and improving internal controls. Another topic of interest was marketing. The participants suggested training programs on these topics should last one day to several weeks. The participants also placed special importance on developing a low-cost microfinance masters program.
Nicaraguan MFIs have relatively less years of experience; however, this has not deterred their growth or their success. There is a large demand for MF services and much motivation from the MFIs to continue developing their institutions by concentrating on training programs. The sector has reached a point in which some government promotion is needed for further growth and success.
f. Nicaragua’s Training Institutions meeting
Nicaragua's training institutions expressed concern for the lack of adequate management programs for the MF sector, but also expressed interest in improving future programs and seminars to serve the sector's needs. They realize the importance of offering more and better training programs if the sector is going to be successful in the future.
The institutions have dedicated managers and staff and international support in the form of strategic alliances. There is a high demand for services and the MFIs are interested in further investing in training. However, there also exists a lack of technological development, high costs of operation, political instability and a general lack of resources.
The participants suggested training programs for financial managers and middle management in the areas of strategic planning, financial analysis, marketing and publicity. Additionally, they expressed interest in improving the elaboration of training materials and standardizing “training for trainers.” They indicated these programs should last several months. The participants also would like to see more internship and exchange programs developed and suggested the elaboration of a masters program in microfinance.
Nicaragua 's MFIs expressed concern about adequately being able to serve the MF sector because they have seen an increase in the demand for products, services and training. There is an interest in developing internal capacities to not have to rely on outside, international financial support. However, the Nicaraguan government has not promoted the sector with its economic and political policies, which has inhibited more growth and success.
g. Bolivia’s MFI meeting
The greatest advantage for Bolivia 's MFIs is their years of experience working in the sector. Many organizations have been very successful, such as Bancosol, and their success has helped further promote the sector. Additionally, many have learned from their experiences and have been able to withstand political and economic turmoil in the country.
Bolivia 's MFIs have experienced management, a high demand from their clients, and institutional and financial support from national and international institutions and the government. However, there is a need for more resources and new and better training programs. Additionally, the sector has suffered from tremendous political, economic and social instability and each day brings new actors into the sector—increasing competition and placing pressure on existing institutions to constantly change and improve their products and services.
The participants suggested training for MFI financial managers, middle management and department chiefs in the areas of risk and credit analysis, marketing, management and leadership and customer service. They also indicated interest in training in the following areas: negotiation, human resources and technology. The participants said that MFI management and management and characteristics of small and medium enterprises (SME) were particularly important. These programs should last between three days and one week. Finally, they expressed interest in developing some type of masters program with a focus on SME finance and management.
Bolivia 's MFIs have benefited from years of their own experience and that of other institutions'. Also, they have become models for many institutions in other countries wishing to develop MF branches or services.
h. Bolivia’s Training Institutions meetings
Bolivia's training sector also has many years of experience that have allowed it to further develop and define the sector's needs. However, in order to move forward, the institutions need more resources to offer better and new services and training programs.
Bolivia 's MFIs have well-trained teachers, an interest in and motivation to develop the sector, a high demand, institutional support and exchange programs. However, they lack sufficient resources for salaries and lack research and documentation to use as teaching materials.
The participants suggested seminars for the “training for trainers” and in the areas of marketing, risk analysis and technology advancement. They also encouraged the development of local research and investigation, business plans and public policies promoting the MF sector. Two other important areas for training programs were competitiveness and legal issues and their effect on the sector. These programs should be directed toward managers, middle management and regional officers and should last between one week and several months. Finally, the participants suggested the development of more exchange programs between MFIs and training centers and a microfinance certificate program.
Bolivia 's training institutions expressed much interest in developing programs to the certificate and masters levels. There is also interest in hiring better-trained teachers and making the sector more professional to be able to meet the needs and demands of the MFIs.
i. Ecuador’s MFI meeting
According to the participants, Ecuador 's MF sector is experiencing a boom in growth. It has many devoted personnel, a tendency to support openness and innovation, financial support from national and international organizations, and an unsatisfied demand for more MF services and products. However, training, operations and technology remain expensive; there is a lack of resources; and extreme political and social instability have prevented further growth and success.
The participants suggested several training programs for MFI general managers, department chiefs, supervisors, specialists and area promoters. They indicated interest in training in the following areas: marketing, operations, risk management, financial analysis and technology. Additionally, they suggested programs on management and leadership, customer service and information management. In addition, they hoped for more political stability, resources and know-how to foster MF sector growth. They emphasized the need to develop programs that would fit in with managers' schedules, indicating that programs needed to be short and intense, lasting several hours, a few days or a few weeks. They also suggested holding training programs in an intensive weekend schedule.
Even though Ecuador 's MFIs have developed quite successfully in a short period of time, there is an interest on their part to take the sector to another level by improving their institutions and products and becoming more self-sustainable.
Ecuador 's MFIs are experiencing a period of extreme growth. There is interest on the managers' part to adjust their institutions' strategic plans to improve competitiveness and better provide services to remote areas. This motivation, combined with their previous experience and the know-how of other institutions, can greatly contribute to the future development of the MF sector and their institutions' capacity to serve.
j. Ecuador’s Training Institutions meeting
The training institutions expressed interest in making Ecuador 's MF sector more professional and standardized. Due to the recent growth of the sector, there is a large demand for training programs and seminars. Fortunately, many of the institutions have experienced and knowledgeable teachers. However, there is also a lack of institutional support, financial resources and more qualified teachers to meet the demand.
The participants indicated interest in standardizing their training programs, especially those to “train the trainers.” They suggested topics such as microfinance administration and monitoring, planning and product handling. These programs would be directed toward MFI managers and trainers and would last between several weeks and several months. The goal of the programs would be to foster institutional growth and diffuse knowledge to more-isolated sectors and areas. The participants also suggested the creation of a microfinance certificate program and a masters degree to standardize curricula. Finally, they indicated interest in developing more exchange programs between MFIs and training centers.
Ecuador 's training institutions have encountered a period of growth, although they still lack sufficient resources to satisfy the demand. They are well-organized and would like to better serve their clients; therefore, there is an interest to further coordinate efforts and continue developing the sector in the future.
k. Peru’s MFI meeting
Peru 's MFIs are well-organized and have experienced success in a relatively short period of time. They have received both public and private institutional support, which has allowed them to expand their services to various parts of the country.
The Peruvian institutions have experienced personnel who know their clients' needs and have been able to adapt the institutions to those needs, and there is a high demand in the country due to elevated levels of poverty and the difficulty of accessing formal banks in rural areas. However, costs remain high, and some managers have lost sight of their institutions' missions. Peru has experienced some political and judicial instability and the market has begun to become saturated with MFIs.
The participants suggested training for MFI managers and department chiefs in credit technology, customer service, the identification of production chains and strategic management. They suggested that these programs last between one and two weeks. They also expressed interest in re-examining best practices and creating more internship opportunities in the institutions. Finally, they suggested developing a microfinance masters program.
Peru 's MFIs are varied, providing different products and services, working with different types of clients, and located in various parts of the country. However, they have been able to organize themselves and serve their clients successfully in a relatively short amount of time.
l. Peru’s Training Institutions meeting
Peru 's training institutions have reached a point in which they would like to further develop their ability to serve the MF sector. They want to develop programs and courses and would like to share these services with MFIs located outside of Lima.
Peru 's teachers are highly trained, they have developed relationships with other institutions and there is a high demand. Additionally, the country's infrastructure is well-developed, and the institutions have many materials to serve as teaching tools. However, there is a need for more teachers and to make training programs compatible to managers' schedules. Also, the participants reiterated the need for the institutions to develop a clear strategic vision and offer products and services outside of the capital city.
The participants suggested courses for institution managers on the diversification of services, “training for trainers,” risk control and management, and the development of new case and research studies.
Peru 's training institutions showed much interest in improving their capacity to serve better the MF sector. They also expressed interested in further training their own teachers.
m. Reponses
| Document | File associated | ||
|---|---|---|---|
| Guatemala |
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| Nicaragua |
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| Perú |
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| Bolivia |
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| Ecuador |
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Research projects
Through the Microfinance Program CLACDS has conducted several major research projects each year. All research documents will eventually be available in English and Spanish. The topics reflect trends in or touch upon innovative ideas for Latin America 's microfinance sector. INCAE selects the topics based on interest expressed by its faculty and other colleagues or microfinance institutions themselves.
In 2004 CLACDS researched two topics chosen by INCAE faculty and the MFMI. The first topic was the Formalization of Microfinance Institutions in South America . Professor Luis Noel Alfaro led this research project documenting cases of several institutions in Peru , Bolivia and Ecuador . This study analyzes the formalization process—challenges and benefits—for non-governmental organizations and informal banking institutions that choose to become formal, regulated financial institutions.
The second topic was an analysis of the asset base of Latin America 's rural poor and the potential to use these assets as collateral for microcredit loans. Professor Lawrence Pratt led this research project, which included field research in Colombia , Costa Rica and El Salvador and other countries in the region. This project expanded to include four separate studies: 1) legal banking codes in Central America and regulations for accepting or preventing livestock (specifically cows) and trees or tree plantations to be used as collateral, 2) a securitization process currently used in Colombia to title cows and use the title to secure a loan, 3) a survey of rural people's assets in El Salvador and Costa Rica to calculate their approximate wealth, and 4) a survey of 43 institutions in 12 Latin American countries about the actual practices of microfinance institutions in accepting livestock (specifically cows) and trees or tree plantations as collateral for microcredit.
In 2005 CLACDS also commissioned a general study on what training programs and publications are currently offered for the Latin American microfinance sector in the region. The final survey included some 50 organizations in 11 countries. The final data base included some 230 courses and 90 publications that are available to the Latin American microfinance sector. In addition, it also indicates courses and publications to be offered in the immediate future at the participating organizations.
Papers
| Document | File associated | ||
|---|---|---|---|
| Legal Codes for Costa Rica’s Financial Sector |
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| Anexo 1. General rules on Risk Classifications, SUGEF |
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| Anexo 2. Financial Institution Information and Rules, SUGEF |
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| Anexo 3. Law to Promote Agronomy and Fishing |
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| Anexo 4. Forestry Law 7575 |
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| Anexo 5. Central Bank’s Organic Law, SUGEF |
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| Anexo 6. Organic Law of the National Banking System |
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| Anexo 7. Decree 25734 MINAE |
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| Anexo 8. Contact information for financial entities, SUGEF |
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| Anexo 9. Entities that finance agricultural, fishing and rural activities |
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| Anexo 10. Lumber prices MINAE |
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| Legal Codes for Central America’s Financial Sector |
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| Anexo 1. Law on Financial Supervision |
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| Anexo 2. Law of the Regulatory Board |
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| Anexo 3. Organice Law of the Regulatory Board |
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| Anexo 4. Law of Banks and Financial Groups |
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| Anexo 5. General Banking Law |
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| Anexo 6. Banking Law |
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| Anexo 7. Forestry Law |
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| Anexo 8. Nicaragua’s Forestry Law |
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| Anexo 9. El Salvador’s Forestry Law |
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| Anexo 10. Law of Environmental Protection |
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| Anexo 11. Environmental Law |
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| Anexo 12. El Salvador’s Environmental Law |
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| Anexo 13. Organic Law |
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| Anexo 14. Ley orgánica del Banco Central |
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| Anexo 15. Código de comercio |
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| Securitization in Colombia |
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| Rural Poor’s Assets in El Salvador and Costa Rica |
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| Data from surveys clean |
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| Survey of MFI Practices |
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| Tabulaciones |
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| Report on MF Training in Latin America |
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| MATRIZ |
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Case studies
The Microfinance Program also supports case study writing each year. The cases, written by INCAE professors and researchers, are used in the classroom and shared with other training institutions and universities. All case studies are translated into English and Spanish and document experiences in microfinance institutions throughout Latin America . Specifically, the case study may be on the general operations of a microfinance institution or may focus on a specific area of a microfinance institution, for example, its marketing or competitive strategy. The idea is to use these case studies to disperse information on the microfinance sector throughout all of INCAE's classes, and not only in the class specifically on microfinance.
The 2004 case studies are presented in the following table.
| 2004 Microfinance Case Studies at INCAE | ||||||
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| Institution | Country | Professor | File associated | |||
| Fundación Corona | Colombia | Luis Sanz |
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| Fundación WWB | Colombia | Felipe Pérez |
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| ACORDE | Costa Rica | Mauricio Jenkins |
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| Profund International | Latin America | Luis Noel Alfaro |
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| Banco Solidario de Ecuador | Ecuador | Víctor Donaire |
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The 2005 case studies are presented in the following table.
| 2005 Microfinance Case Studies at INCAE | |||||
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| Institution | Country | Professor | File associated | ||
| BancoSol | Bolivia | Enrique Ogliastri |
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| Fundación Mujer | Costa Rica | Francisco Leguizamón |
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| FINCOMUN | México | Luis Noel Alfaro |
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| Agora Partnerships | Nicaragua | Luis Sanz |
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| Ostras del Pacífico | Nicaragua | Luis Sanz |
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| Fundación José Nieborowski | Nicaragua | Roy Zúñiga |
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The 2006 case studies are presented in the following table.
| 2006 Microfinance Case Studies at INCAE | |||||
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| Institution | Country | Professor | File associated | ||
| Bancolombia | Colombia | Felipe Perez |
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Student internships
Through the Microfinance Program CLACDS partially subsidizes three-month internships for students in the INCAE Masters program between their first and second years. Many microfinance institutions could benefit greatly from having an intern, especially one at the MBA level, working with them; however, many also do not have the necessary financial resources to be able to hire one. The idea of this component of the Program is to subsidize the cost of the internship. This is a win-win situation because the institutions benefit from the students' work and the students benefit from the opportunity to work first-hand in the microfinance sector.
In 2004 INCAE financed two internships in Costa Rica .
| 2004 Internships | ||
|---|---|---|
| Institution | Country | Work |
| ACORDE – focused on urban microcredit | Costa Rica | Evaluation and redesign of internal programs |
| Banco de Costa Rica – state bank | Costa Rica | Study on microfinance sector in Costa Rica and exploration of possibility of starting microfinance services and products |
In 2005 INCAE financed five internships in Latin America.
| 2005 Internships | ||
|---|---|---|
| Institution | Country | Work |
| Fundación para el Desarrollo de la Microempresa (FUDEMI) – focused on urban microcredit | Nicaragua | Institutional diagnostic, organizational proposal, and reporting documents to serve as the basis for a Strategic Business Plan |
| FINANCOOP – focused on rural microcredit | Ecuador | Develop strategic business plans for four non-regulated cooperatives giving microcredit in rural areas of Ecuador |
| Centro AFIN – focused on management education | Bolivia (La Paz) | Market study for microfinance training needs in South America |
| Fundación para el Desarrollo de Base (FUNDEBASE) – focused on rural and microcredit | Costa Rica | Help formulate the institution's business plan. Write finance/grant proposals and present them to donor organizations |
| Caja Los Andes Procredit – MFI turned bank in 2005 | Bolivia (Santa Cruz) | Work in the Bank’s Foreign Trade department |
In 2006 INCAE financed seven internships.
| 2006 Internships | ||
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Institution |
Country |
Work |
Banco Procredit, Caja los Andes |
Bolivia |
Analysis on factors and/or causes for decline in clients in Cochabamba’s credit market |
LEAD |
India |
Prepare business plan, financial analysis, asset management |
Fundación Covelo |
Honduras |
Working with CERTEC, an affiliated institution that provides technical support, training and business development for SMEs in Honduras |
FINDESA – Financiera Nicaraguense de Desarrollo |
Nicaragua |
Doing local market research to better understand clients and market potential |
Banco Estado Microempresas |
Chile |
Working in several departments in the Banco Estado in Chile with microbusiness services and products |
REDMICROH |
Honduras |
Work on business plans and ethics codes for REDMICROH network members |
Fundación Mujer |
Costa Rica |
Analyze local microfinance market and explore possibilities to become a second-tier woman’s bank |
Student fieldwork projects
Second-year students at INCAE are required to do a two-month fieldwork project, a management consulting practice, strategic analysis in some company in Latin America or abroad. Through the Microfinance Program CLACDS offers a subsidy to at least one group of students that chooses to do their fieldwork in a microfinance institution in Latin America.
In 2004 CLACDS awarded the funds to an INCAE group working in one of Nicaragua 's largest microfinance institutions, ACODEP. In 2005 CLACDS awarded funds to two INCAE groups, one working in the FUNDESPE microfinance institution in Quetzaltenango, Guatemala, and one working in the Procredit bank in San Salvador, El Salvador.
In 2006 CLACDS awarded funds to two INCAE groups, one working in FUNDECOR in Costa Rica and one working in the FUNDESER microfinance institution in Nicaragua.
ACODEP
FUNDESPE
Procredit Bank
FUNDECOR
FUNDESER
Faculty exchanges
The Microfinance Program allows INCAE faculty to participate in exchanges between INCAE and other institutions. These exchanges include teaching classes, workshops and seminars and will be elaborated based on the relationships INCAE develops with other universities and training institutions working with the microfinance sector in Latin America . In addition, it allows faculty and specialists to come to INCAE to teach in the Masters program and seminars.
New seminars and courses
Currently, INCAE offers a microfinance class for its second-year students. In 2005 56 of 74 total students took the class; in 2004, 56 of the total 88 students took it, making it one of the most popular at INCAE. Using new case studies and research projects developed in the Microfinance Program, INCAE has introduced the microfinance topic in more of its Masters classes.
Based on the results of the assessment workshops that INCAE sponsored between June and August 2004 to determine the management training needs of the microfinance sector in five Latin American countries, CLACDS has begun developing a new series of seminars, workshops and classes. This new material has been and will be used in the regular Masters program, Executive Masters program and Executive Seminars program at INCAE.
Other activities and programs
In addition to the other specific projects listed, INCAE hopes to continue supporting and addressing managerial education needs in the Latin American microfinance sector through the development of new activities and programs.
Specifically, INCAE has begun to develop a network of microfinance institutions and training institutions to encourage dialogue and information exchanges between these two parts of the microfinance sector. In the assessment workshops INCAE found that many times the training institutions offering programs and seminars did not know the microfinance institutions' specific needs. This network would encourage communication between the parts so that the needs could be addressed more efficiently and directly. INCAE will continue to work with leaders and institutions to develop programs and activities that address the training needs of Latin America 's microfinance sector.
Contact Information
For more information please click on the link below to send an email to the CLACDS Microfinance Program at INCAE, or you may contact INCAE directly.
Contact the Microfinance Program
Connie González
CLACDS– American Center for Competitiveness and Sustainable Development
INCAE
PO Box 960-4050
Alajuela, Costa Rica
Telephone: (+506) 437-2200
Fax: (+506) 433-9101
Email: connie.gonzalez@incae.edu