Microfinance is Hard

Microfinance is trendy.

Microfinance is sexy.

Microfinance is popular.

BUT . . . Microfinance is anything but easy.

In fact, according to Professor Loic Sadoulet, "Microfinance is HARD."

Professor Sadoulet paints a bleak picture for someone like myself who is thinking of jumping into the field head first. The numbers speak for themselves. According to Professor Sadoulet, in a universe of more than 10,000 Microfinance Institutions (MFIs) worldwide, only a relative handful (100-200) are self-sustainable. Only 1 - 2 % of all MFIs can support themselves independently!

The vast majority -- the other 98% -- require handouts (grant money, foundation money, government money, etc.) to keep operating.

Interestingly enough, this is not unlike what Professor Marc Labie had to say in his course earlier in the program. In fact, he went as far to say underinformed Microfinance donors and philanthropists can actually cause more harm than good.

So, what's a keen Microfinance neophyte like myself to do? Should I give up and focus my energies elsewhere? Does Microfinance belong on the "Good idea, but . . . " shelf?

Hmmmm.

Not just yet.

Sometimes jumping in head first is what one has to do.