Impact Survey Report of the Mercy Corps International Microcredit Program Bosnia-Herzegovina

This paper presents the data, recommendation and conclusion of the impact survey conducted by Mercy Corps International for their two and half year old microcredit program in Bosnia-Herzegovina.

The organization selected three hypotheses regarding the program:

• It is meeting its target group;
• It increases household wellbeing;
• It improves the assisted businesses.

For comparative study, they interviewed both clients as well as non clients. The survey showed that:

• The program was indeed meeting its target group - income level less than KM 250.00, women - 48% of new clients;
• The impact on the businesses of the clients was quite pronounced, with the older clients making more changes to their businesses;
• The clients showed a positive impact on proceeds from their businesses.

However, the survey did not reveal any significant household impact. The author believes that this may be due to various reasons such as sample size, program duration, client war-torn surroundings etc. The author suggests that this hypothesis be re-tested.

The analysis of individual interviews and overall data revealed:

• Many clients took loan from more than one source when it was clearly prohibited;
• Few clients did not fit the guidelines for target population;
• Status of the businesses of the older clients was unclear.

The author recommends more investigation into the above and states that the program is fulfilling its main goal of:

• Assisting in income generation of economically active disadvantaged people;
• Contributing to the regeneration of communities.