| editor's letter |
Editor's Letter
The Commitment to
Reach Everybody
By Lene Mikkelsen
The microenterprise industry can
boast almost 30 years of commitment
to supporting micro
and small enterprises throughout
the world. But huge parts
of the microenterprise population are
not being assisted in any way. Increasingly,
concerns are being voiced that the
population at the base of the economic
pyramid lacks access not only to economic
opportunities but also to the most
basic social services and infrastructure.
In other words, there is a need to do
more.
Part of the title for the 2005 Microenterprise
Forum pledged a “commitment
to reach everyone.” The Forum’s
agenda emphasized not only improving
services and products for existing micro
and small enterprises, but also expanding
access to these services and products to
underserved and marginalized populations.
This issue of MicroEnterprise
Americas explores the various issues
and challenges of extending economic
opportunities to all.
In recent years, the sector has come
to realize that microfinance institutions
(MFIs) alone cannot aspire to reach the
millions of clients and potential clients
of the markets in Latin America and the
Caribbean, and cannot achieve sufficiently
broad-based coverage.
Already, numerous commercial
banks have “downscaled” into the realm
of microfinance, but many more have
plans to, and one of the main features of
this magazine will deal with the how’s,
when’s and why’s of downscaling.
As donor funding has become less
readily available, MFIs are turning to
other means of funding. The magazine
discusses the various options, from
deposits to issuance of stocks and bonds.
The magazine this year presents the
first-time list of the TOP 100 MFIs in
Latin America and the Caribbean and
also features an article on recent developments
within the rating field and where
this relatively new industry is headed.
Even though some financial products
are successfully finding their way
to poorer and marginalized parts of the
population, knowledge of how to manage
newly acquired loans, payments and
interests is extremely important. Microfinance
Opportunities has developed
and implemented financial education
programs in many parts of the world, and
our article describes their experience in
Bolivia and other countries.
The Special Section of the magazine
focuses on access to markets, which
most microenterprises characterize as
the single most important challenge they
face after access to finance. One article
highlights value chains and linkages
as a means of providing better market
access; another article analyzes the pros
and cons of offering a protected public
procurement market for smaller enterprises;
a third feature offers arguments
in favor of developing associations and
other partnerships when facing outside
competition.
As in previous years, this issue also
presents articles on a variety of other
subjects, such as the use of technology
to link microenterprises with potential
investors through the Internet and setting
up a special “disaster” fund to assist
MFIs in affected areas.
Finally, the magazine portrays the
accomplishments of the four winners of
the Microenterprise Awards, and conveys
the commitment and resourcefulness
these winners display in their daily work
that set them apart from numerous other
institutions.
We hope you find all of the articles
interesting and informative, and that
you thoroughly enjoy this sixth issue
of MicroEnterprise Americas.
