Investing in Microfinance: Making Money, Making a Difference

Purpose – These last three years, the global reputation of microfinance has been damaged by some major crises, notably in India. The Microfinance Investment Vehicles (MIVs), funded by public money and socially inclined investors, are believed by observers to be part of the causes of the crises (von Stauffenberg & Rozas, 2011). As a consequence, they now have to demonstrate their commitment to the social mission of microfinance. This chapter aims at putting forward the debate on MIVs’ ability to effectively contribute to the social mission of microfinance by analyzing how they integrate social performance in their investment decisions. Methodology/approach – Analysis of interviews with microfinance fund managers based on a framework of recognized impediments to a socially responsible approach in investing. Findings – While social performance is recognized by respondents to be an important topic for the industry, fund managers still do not give a strong role to social criteria in investment decisions. The findings of the qualitative analysis in the chapter demonstrate that this is linked to a number of major impediments such as the tendency to believe that microfinance is social per se, the lack of standardization in social performance tools, and also a loose regulation regarding social reporting. Research limitations/implications – The findings of the study are limited due to the relatively small sample size and the focus on fund managers’ answers only. Future research could investigate the viewpoints of different stakeholders in the investment process, such as the back investors of microfinance funds or the regulatory institutions. Originality/value – To the best of our knowledge, this is the first attempt to get insights on the impediments to a stronger focus on social performance by MIVs, with the application of a recognized framework from the Socially Responsible Investment (SRI) literature.

Some faith-based NGOs (FBOs) encourage their constituencies to consider pro-social investments, conscious consumption patterns, long-term volunteering, and other potentially transformative experiences. The range of such activities encouraged by 50 FBOs, mostly in the United States, suggests that US-based FBOs ask less of their constituents than do European FBOs, and offer them more limited means of expressing solidarity. The practice of encouraging social investment in microfinance funds or even in projects of the FBO itself is beginning to grow in the United States. Nelson profiles several FBOs that motivate high levels of constituent engagement, arguing that volunteering, education, personal spiritual disciplines, and community engagement are all involved in creating a culture of service and solidarity.

© 2014 Vilnius Gediminas Technical University (VGTU) Press. This article is concerned with contribution of microfinance investment funds to a sustainable financial portfolio. With regard to the dependence of microfinance funds’ returns on the performance of stock and fixed income markets in developed and emerging economies we find slightly negative correlation when measured by the portfolio beta measure. Our regression analysis confirms that returns on investment in microfinance investment funds exceed the returns on the market portfolio. This result together with reported near-to-zero beta estimates as a proxy for the systematic risk may be taken to be a clear financial advantage of an inclusion of microfinance assets in a portfolio compared to pure stock or bond portfolios. The results based on CAPM beta and Jensen’s alpha are confirmed by mean-variance spanning test. We show that the socially responsible investors may invest into microfinance without sacrifice with respect to pure financial indicators.

Like other developing countries, microcredit in Vietnam has been recognized as an important credit source of the poor, who need capital but are normally by-passed by commercial banks. However, the provision of credit to the poor is challenged by the existing tradeoff between depth of outreach and financial sustainability. In this study, Principal Component Analysis and Propensity Score Matching were used to assess whether microcredit reaches the poor and its role in poverty reduction. The Microfinance Fund and Community Development (MFCD), a microfinance institution in Northern Vietnam was selected as a case study. The research has shown that microcredit successfully reaches the poor households as 67% of credit recipients belong to the last three bottom groups. The observed poverty targeting is consistent with the mission of the microfinance institution. In addition, the provision of microcredit has positive but statistically insignificant impact on household income and expenditure. This study suggests that unless access to additional resources should be made available to the poor, a small amount of credit alone could be insufficient to reduce poverty.

In April 2015, the Multilateral Investment Fund (MIF), a member of the Inter-American Development Bank (IDB) Group, commissioned the research team to prepare a report on the effectiveness of some recent venture capital (VC) fund investments in Latin America. This report contains the research team's findings. This report focuses on three funds in which the MIF has invested. Using these funds as case studies, chosen to represent different investment approaches and company stages, the team explores two dimensions of impact: first, the direct impact of fund managers on portfolio companies is considered, and then the indirect impact created by portfolio companies in their communities and the region is examined. In addition to addressing the broader question of impact, the report also profiles two investments from each fund's portfolio. In these "minicases" the ways in which the fund managers add value to their companies are presented. In this way the MIF continues to examine its performance and share its lessons with others who seek to reduce poverty and improve the economic vitality of Latin America and other emerging countries.

In April 2015, the Multilateral Investment Fund (MIF), a member of the Inter-American Development Bank (IDB) Group, commissioned the research team to prepare a report on the effectiveness of some recent venture capital (VC) fund investments in Latin America. This report contains the research team's findings. This report focuses on three funds in which the MIF has invested. Using these funds as case studies, chosen to represent different investment approaches and company stages, the team explores two dimensions of impact: first, the direct impact of fund managers on portfolio companies is considered, and then the indirect impact created by portfolio companies in their communities and the region is examined. In addition to addressing the broader question of impact, the report also profiles two investments from each fund's portfolio. In these "minicases" the ways in which the fund managers add value to their companies are presented. In this way the MIF continues to examine its performance and share its lessons with others who seek to reduce poverty and improve the economic vitality of Latin America and other emerging countries.

In April 2015, the Multilateral Investment Fund (MIF), a member of the Inter-American Development Bank (IDB) Group, commissioned the research team to prepare a report on the effectiveness of some recent venture capital (VC) fund investments in Latin America. This report contains the research team's findings. This report focuses on three funds in which the MIF has invested. Using these funds as case studies, chosen to represent different investment approaches and company stages, the team explores two dimensions of impact: first, the direct impact of fund managers on portfolio companies is considered, and then the indirect impact created by portfolio companies in their communities and the region is examined. In addition to addressing the broader question of impact, the report also profiles two investments from each fund's portfolio. In these "minicases" the ways in which the fund managers add value to their companies are presented. In this way the MIF continues to examine its performance and share its lessons with others who seek to reduce poverty and improve the economic vitality of Latin America and other emerging countries.

In April 2015, the Multilateral Investment Fund (MIF), a member of the Inter-American Development Bank (IDB) Group, commissioned the research team to prepare a report on the effectiveness of some recent venture capital (VC) fund investments in Latin America. This report contains the research team's findings. This report focuses on three funds in which the MIF has invested. Using these funds as case studies, chosen to represent different investment approaches and company stages, the team explores two dimensions of impact: first, the direct impact of fund managers on portfolio companies is considered, and then the indirect impact created by portfolio companies in their communities and the region is examined. In addition to addressing the broader question of impact, the report also profiles two investments from each fund's portfolio. In these minicases the ways in which the fund managers add value to their companies are presented. In this way the MIF continues to examine its performance and share its lessons with others who seek to reduce poverty and improve the economic vitality of Latin America and other emerging countries.

In April 2015, the Multilateral Investment Fund (MIF), a member of the Inter-American Development Bank (IDB) Group, commissioned the research team to prepare a report on the effectiveness of some recent venture capital (VC) fund investments in Latin America. This report contains the research team's findings. This report focuses on three funds in which the MIF has invested. Using these funds as case studies, chosen to represent different investment approaches and company stages, the team explores two dimensions of impact: first, the direct impact of fund managers on portfolio companies is considered, and then the indirect impact created by portfolio companies in their communities and the region is examined. In addition to addressing the broader question of impact, the report also profiles two investments from each fund's portfolio. In these minicases the ways in which the fund managers add value to their companies are presented. In this way the MIF continues to examine its performance and share its lessons with others who seek to reduce poverty and improve the economic vitality of Latin America and other emerging countries.

In April 2015, the Multilateral Investment Fund (MIF), a member of the Inter-American Development Bank (IDB) Group, commissioned the research team to prepare a report on the effectiveness of some recent venture capital (VC) fund investments in Latin America. This report contains the research team's findings. This report focuses on three funds in which the MIF has invested. Using these funds as case studies, chosen to represent different investment approaches and company stages, the team explores two dimensions of impact: first, the direct impact of fund managers on portfolio companies is considered, and then the indirect impact created by portfolio companies in their communities and the region is examined. In addition to addressing the broader question of impact, the report also profiles two investments from each fund's portfolio. In these minicases the ways in which the fund managers add value to their companies are presented. In this way the MIF continues to examine its performance and share its lessons with others who seek to reduce poverty and improve the economic vitality of Latin America and other emerging countries.

In April 2015, the Multilateral Investment Fund (MIF), a member of the Inter-American Development Bank (IDB) Group, commissioned the research team to prepare a report on the effectiveness of some recent venture capital (VC) fund investments in Latin America. This report contains the research team's findings. This report focuses on three funds in which the MIF has invested. Using these funds as case studies, chosen to represent different investment approaches and company stages, the team explores two dimensions of impact: first, the direct impact of fund managers on portfolio companies is considered, and then the indirect impact created by portfolio companies in their communities and the region is examined. In addition to addressing the broader question of impact, the report also profiles two investments from each fund's portfolio. In these "minicases" the ways in which the fund managers add value to their companies are presented. In this way the MIF continues to examine its performance and share its lessons with others who seek to reduce poverty and improve the economic vitality of Latin America and other emerging countries.

ABSTRACTEvidence-based program registries (EBPRs) are essential tools in prevention science, providing structured evaluations of intervention effectiveness to guide policymakers and practitioners. While established registries such as Blueprints for Healthy Youth Development and Xchange have been instrumental in cataloging evidence-based programs, Latin America has lacked a region-specific repository tailored to its unique prevention challenges. Evidencia Viva was developed to address this gap by systematically assessing and classifying substance use prevention programs implemented and evaluated in Latin America. The initiative draws from established EBPR models, employing rigorous inclusion criteria and a multidisciplinary expert review process to evaluate intervention efficacy. Programs are categorized into five tiers, ranging from beneficial to potentially harmful, ensuring that decision-makers have access to transparent and reliable information. The registry’s initial assessments include interventions from Brazil, Chile, Colombia, Guatemala, Mexico, Peru, and Uruguay, highlighting both effective and ineffective programs. Notably, programs like Unplugged and Keepin’ It REAL have demonstrated positive impacts, while others, such as PROERD (the Brazilian adaptation of DARE) and #Tamojunto, have shown limited or even negative effects. Despite its potential to strengthen evidence-based prevention in the region, Evidencia Viva faces challenges, including the limited number of rigorously evaluated programs, disparities in research capacity across Latin American countries, and the need for sustained funding to ensure long-term viability. Evidencia Viva contributes to the accessibility and dissemination of validated interventions, supporting informed policymaking and more effective substance use prevention strategies. However, ensuring its sustainability will require continued investment in research capacity, funding, and regional collaboration.

Microfinance means “programme that extend small loans to very poor people for self employment projects that generate income in allowing them to take care of themselves and their families” (Microcredit Summit, 1997). The World Bank has recognized microfinance programme as an approach to address income inequalities and poverty. The microfinance scheme has been proven to be successful in many countries in addressing the problems of poverty. The World Bank has also declared 2005 as the year of microfinance with the aim to expand their poverty eradication campaign. The main aim of the paper is to assess the potentials of Islamic financing schemes for micro financing purposes. The paper argues that Islamic finance has an important role for furthering socio-economic development of the poor and small (micro) entrepreneurs without charging interest (read: riba’). Furthermore, Islamic financing schemes have moral and ethical attributes that can effectively motivate micro entrepreneurs to thrive. The paper also argues that there is a nexus between Islamic banking and microfinance as many elements of microfinance could be considered consistent with the broader goals of Islamic banking. The paper, first, introduces the concepts of microfinance, and presents a case for Islamic microfinance to become one of the components of Islamic banking. The paper then discusses, the potentials of various Islamic financing schemes that can be advanced and adapted from microfinance purposes including techniques to mitigate the inherent risks. Finally, the paper concludes with the proposals to accommodate the Islamic microfinance within the present Islamic banking structure. 2. Principles of Microfinance Microfinance grew out of experiments in Latin America and South Asia, but the best known start was in Bangladesh in 1976, following the wide-spread famine in 1974. Advocates argue that the microfinance movement has helped to reduce poverty, improved schooling levels, and generated or expanded millions of small businesses. The idea of microfinance has now spread globally, with replications in Africa, Latin America, Asia, and Eastern Europe, as well as richer economies like Norway, the United States, and England. Among the features of microfinance is disbursement of small size loan to the recipients that are normally micro entrepreneurs and the poor. The loan is given for the purpose of new income generating project or business expansion. The terms and conditions of the loan are normally easy to understand and flexible. It is provided for short term financing and repayments can be made on a weekly or longer basis. The procedures and processes of loan disbursements are normally fast and easy. Additional capital can also be given after the full settlement of the previous loan.

PURPOSE Economic and social-behavioral changes over the last two decades in Latin America and the Caribbean (LAC) are associated with increases in the regional cancer burden. We aim to describe the National Cancer Institute–funded extramural research portfolio with collaborators in the LAC between fiscal years 2014 and 2018 and compare project numbers by site with subregional cancer burden. METHODS This analysis included National Cancer Institute–funded extramural projects with LAC collaborators from fiscal years 2014 to 2018 from the National Institutes of Health IMPAC II database. Projects were stratified by Pan American Health Organization’s Latin American subregions, tumor sites, and regional site-specific rates of cancer incidence and mortality using Globocan 2018 estimates. To better understand subregional variations in cancer incidence and mortality, this analysis focused on the top 5 sites of incidence and mortality in LAC after breast and prostate cancer. RESULTS Between fiscal years 2014 and 2018, 108 projects with LAC collaborators were funded. Project collaborators came from 22 countries in the region, and projects covered 20 tumor sites. The Southern Cone had the most projects funded, followed by the Central American Isthmus and Mexico, Andes, Latin Caribbean, and non-Latin Caribbean—this was roughly proportional to subregional populations. Variation exists at the subregional level for the top 5 cancers when comparing incidence and mortality with subregional project counts. Disparities between projects and incidence by tumor site were the largest for colorectal, lung, and uterine cancers. Disparities between projects and mortality by tumor site were the largest for lung and uterine cancers. Disparities between projects and both components of cancer burden by subregion were the largest for the Latin Caribbean and non-Latin Caribbean. The number of funded projects for Kaposi sarcoma and non-Hodgkin lymphoma largely outpaced both incidence and mortality in every subregion. CONCLUSION This analysis suggests that projects’ alignment with cancer burden is variable by subregion, provides an understanding of cancer research funding by site, and highlights areas of interest for additional investigation, training, and collaboration in LAC.

Latin America has very good conditions for microfinance; the macroeconomic growth which Latin America had shown in the recent years created favourable conditions for the microfinance institutions' favorable conditions and its development. Profitability of the microfinance sector presents an attractive market for the financial institutions which already have a have strong position in the market. The purpose of this work is to focus on the current situation and performance of the microfinance sector while identifying some of the reasons that affect the microfinance institutions in this region. The work also provides a view on the microfinance industry development to get a better description of the sector. The microfinance institutions are earning an undeniable importance in the process of the regional development and represent an important factor in the alleviation of poverty and insecurity for large segments of the population. The work is based on information from relevant sources that allow us to identify the current status of microfinance in Latin America, especially in these times when the crisis affects also the region's economic dynamism.