NEED OF MICROFINANCE AS STUDY TO BECOME GOOD MANAGER

The World Bank report on global poverty reveals that India has 421 million people
below the $1.25 a day mark in 1981, the number had gone upto 456 million by
2009. While there has been a decline in poverty ratio, the ranks of the poor are still
swelling.

Another literature, the Global Hunger Index prepared by International Food Policy
Research Institute (IFPRI) puts the number of hungry in India at 200 million – the
largest population of hungry in the world.

Poverty and hunger in India is alarming and to alleviate this situation, microfinance
as a subject in management can play a right role by identifying the poor and
lending small amounts of money so that the poor invests in income generating
activities, earn income, create assets and overcome poverty.

 More than 27% of the world’s undernourished population lives in India while
43% of the children in India under five years are underweight.

The objective of study of microfinance is to facilitate the growth process of a

microfinance organization through knowledge creation and skill building of the
microfinance professionals, to put in place the right systems and procedures, and
provide support to organizational building.

 The biggest challenge facing the Microfinance Sector is on HR front. The

Scale, Outreach and Impact dimensions of the growth process are to be
handled and managed through right type of talent available.

 The need is to create a conducive environment where management

education in microfinance is to be planned, designed and made available to
those who aspire to be professionals in the sector. This would fill the gap in
demand and supply of microfinance professionals.

Subjects which can be a part of microfinance management study:-

• Development and Poverty (General, household, women)

• Microfinance and relation to Development and Poverty: History, International

and National experience

• Typology of Microfinance: Microcredit, Microfinance, Plus Models

• Methods and Methodology: Individual lending, SHGs, Federations, Grameen,

etc.

• Operationalizing Microfinance; Mission, vision, Determination of Market and

Clients, Institutional constraints, Legal & regulatory constraints, Microfinance
Bill etc.
• Sustainability: Financial sustainability, Functioning within the market, Role of
Wholesalers, Banking institutions, Funders and Donors, Introduction to
financial ratios / Financial Management etc.