This study determined the impact of CARE Foundation’s micro-finance programs on its member-beneficiaries. The instrument used was as “self-rating” survey designed to draw out the perception of the member-beneficiaries on the impact of CARE’s programs and services to fourteen (14) important aspects of their socio-economic lives.
The study used a descriptive and narrative research design. Analysis and presentation of the results used an evaluation and assessment method mainly based on the averages of the responses of the respondents. Interpretation of the results was limited on the perspectives of the respondents who were member-beneficiaries of CARE.
The results of the study showed that the respondent member-beneficiaries believed there was a significant improvement in the socio-economic live of the respondents. Percentage share of “no” responses to the total responses was minimal. The results showed a 70-30 ratio for the improvement (YES) and no improvement at all (SAME) responses.
These findings led to the conclusion that CARE programs and services had a relatively significant impact on the lives of the CARE members in all fourteen (14) areas of concerns, notable of which were improvements in the quality of family life, family decision-making, social and spiritual lives, knowledge about family, self and business, dreams, personal happiness, education of the children and food on the table.
It is recommended that government and other agencies should provide an environment conducive to the success and expansion of microfinance in the country.
Table of Contents
BACKGROUND
CARE Programs and Services
Selection of CARE Members
CARE Performance
STATEMENT OF THE PROBLEM
HYPOTHESIS OF THE STUDY
SCOPE AND LIMITATION
SIGNIFICANCE OF THE STUDY
LITERATURE REVIEW
METHODOLOGY
RESULTS OF THE STUDY
IMPLICATIONS
Microfinance and Diminishing Returns
Group Lending
Micro-Saving and Micro-insurance
Gender Issues
MF Not for the Poorest of the Poor
MF and Education of Children
POLICY SUPPORT RECOMMENDATIONS
Research Objectives and Focus
This study aims to assess the perceived socio-economic impacts of the CARE Foundation's microfinance programs on its member-beneficiaries, specifically investigating improvements in their quality of life, business management, and personal development.
- Analysis of member-beneficiary profiles
- Evaluation of socio-economic life changes
- Comparison between first-time and repeat loan availers
- Investigation into the effectiveness of group lending models
- Review of micro-insurance and savings components
Excerpt from the Book
CARE Programs and Services
CARE carries its micro-finance program through the Group Model Loan. This model was designed based on the “Grameen” methodology (Grameen means village, rural, or countryside) which began its operations from a small research project in 1976 in Bangladesh by Professor Muhammad Yunus. The project was aimed at testing the hypothesis that if financial resources were made available to the poor, they could generate productive self-employment without external assistance.
The Grameen Bank Approach gives exclusive focus on the poorest of the poor. Borrowers are organized into small homogenous groups and granted special loans that are particularly suitable for the poor. The grant of loans is simultaneous with addressing the basic needs of the clientele. There is also an openness to expand loan portfolio to meet diverse development needs of the poor.
The CARE Group Loan Model targets the marginalized but economically active poor population, specifically women. It is a community-based lending methodology with memberships of 10 to 20 persons per batch to guarantee each other’s loans.
Summary of Chapters
BACKGROUND: Outlines the formation of the CARE Foundation in 2011 as a non-profit organization focused on assisting low-income Filipinos.
CARE Programs and Services: Details the Grameen-inspired group lending model, the mutual guarantee system, and supporting services like micro-insurance and entrepreneurial development.
Selection of CARE Members: Defines the criteria for membership, targeting economically active women in high-density communities.
CARE Performance: Reports operational data, including active membership numbers, loan disbursements, and portfolio health indicators as of May 2012.
STATEMENT OF THE PROBLEM: Defines the research questions focusing on respondent profiles and perceived socio-economic impact.
HYPOTHESIS OF THE STUDY: Presents the assumption of significant positive improvement in member lives, with greater gains for repeat loan recipients.
SCOPE AND LIMITATION: Clarifies the subjective, self-rating nature of the assessment and acknowledges its restriction to CARE beneficiaries.
SIGNIFICANCE OF THE STUDY: Describes the value of the research for the Board of Trustees, internal staff, and the broader microfinance industry.
LITERATURE REVIEW: Contextualizes poverty as a global phenomenon and reviews the role of microfinance as a poverty alleviation tool.
METHODOLOGY: Explains the survey-based descriptive research design and the 14-point socio-economic assessment instrument.
RESULTS OF THE STUDY: Presents findings related to age, family size, loan cycles, and the perceived impact on various life aspects.
IMPLICATIONS: Discusses broader challenges in microfinance, including asymmetric information, group dynamics, and policy requirements.
POLICY SUPPORT RECOMMENDATIONS: Proposes legislative and regulatory steps to strengthen the microfinance industry, including NGO formalization and consumer protection.
Keywords
Microfinance, CARE Foundation, Poverty Alleviation, Group Lending, Socio-Economic Impact, Self-Rating, Member-Beneficiaries, Grameen Methodology, Economic Empowerment, Micro-Insurance, Capital Build-Up, Entrepreneurial Development, Philippines, Sustainable Development, Financial Inclusion
Frequently Asked Questions
What is the primary focus of this study?
The study assesses the perceived impact of the CARE Foundation's microfinance programs on the socio-economic lives of its members through a self-rating survey.
What are the core thematic areas of the research?
Key themes include group lending models, the effectiveness of micro-insurance, the role of member savings, and the socio-economic transformation of women entrepreneurs.
What is the central research question?
The research asks if members perceive a positive difference in their socio-economic lives due to CARE's services and whether there is a difference between first-time and repeat loan recipients.
Which scientific methodology does the paper utilize?
The study uses a descriptive and narrative research design based on a self-rating survey instrument distributed to member-beneficiaries.
What topics are covered in the main section of the paper?
The paper covers the operational model of CARE, the profile of its respondents, performance metrics, and a broad discussion on microfinance implications and policy recommendations.
Which keywords define this work?
The work is characterized by terms such as microfinance, socio-economic impact, empowerment, group lending, and poverty alleviation.
How does CARE's "Mutual Guarantee" system function?
Members organize into small batches to guarantee each other's loans, creating a collective commitment to repayment which replaces the need for traditional collateral.
What is the "Capital Build-Up" (CBU) scheme?
The CBU is a mandatory savings mobilization scheme where members contribute 5% of their loan amount plus a weekly fee to help them accumulate capital for business growth.
What does the study suggest about the impact of microfinance on children?
The study recommends integrating incentive-based educational programs with business loans to ensure that beneficiaries can afford schooling for their children without sacrificing business growth.
- Quote paper
- Pascual de la Cruz (Author), 2012, CFI’S Microfinance Program: A Self-Rated Assessment, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/202397
