Calmeadow Metrofund: A Canadian Experiment in Sustainable Microfinance
This case study explores some of the lessons learned by Canada's largest microloan fund, Calmeadow Metrofund in an attempt to shed light on the reasons why the viability of microfinance as a sustainable and effective strategy for promoting economic development has not been so successful in more developed countries.
Calmeadow's thorough testing of this stand-alone microloan model yielded a great deal of information about the market for microfinance in more developed countries, as well as the effectiveness of a minimalist approach in meeting the financial needs of microentrepreneurs in such a market. It is hoped that the insight gained into what works, what does not, what might work, and why will be useful in supporting microfinance or community economic development in a developed country.The report concludes that:
- Even though Calmeadow is withdrawing from domestic microlending, its experiment with sustainable microfinance continues;
- Due to its pioneering efforts, there is a solid legacy of heightened awareness and acceptance that credit is an important tool in stimulating economic development for those at the margins.
