Technical Guide for the Analysis of Microenterprise Financial Institutions

This Technical Guide was developed to provide rigorous analytical methods and standards for the design, management, monitoring and evaluation of finance institutions specialized in servicing micro and small enterprises.

This guide is a management and evaluation tool that not only establishes a technical basis for the analysis of microenterprise finance institutions, but also the design of the externally-funded programs through which they are supported. The guide covers the following topics:

• Data preparation:
  • Presenting raw data;
  • Adjusting data;
  • Calculating a base for financial performance indicators.
  • Financial analysis:
• Level of cost coverage;
  • Cost-structure analysis;
  • Analysis of operational cost structure.
• Analyses of operational efficiency:
  • Analysis of historical data;
  • Productivity analysis of program operations.
• Target group orientation:
  • General indicators for target group orientation;
  • Distribution of portfolio by gender and economic activity;
  • Analysis of the financial product;
  • Interpretation of the data.
• Interpreting the results:
  • Credit technology;
  • Credit terms;
  • Management information systems.