Private Enterprise and Financial Markets > Micro, Small and Medium Enterprise
Micro Enterprise, Development Review Vol.7 No.2
By SDS/MSM (01/05, En, Es)
As the microfinance industry evolves and microfinance institutions´ operations become more complex, there is a growing need for more sophisticated costing tools to monitor the wide array of services MFI offer. In the first article, Rochus Mommartz describes IMI´s experience in the implementation of Activity Based Costing Systems (ABC) for four leading MFI in Latin America. The article portrays the different phases in the design and implementation of ABC systems in these institutions, and points out the key factors to optimize the benefits from this costing tool. Mr. Mommartz is an advisor of IMI AG, assisting four MFI in Latin America with the implementation of ABC systems.
In the second article, Fermín Vivanco y Claudia Suaznábar, microfinance specialists at the Micro, small and medium division at the IDB, describe three financing schemes for small suppliers. Given the limitations faced by small suppliers to finance their working capital needs, the use of alternative financing mechanisms along the productive chain is a widespread practice. The article describes the cases of the financing of small artisans by exporters; the financing of agricultural producers with the backing of a supermarket wholesaler; and finally, the financing of coffee producers through their cooperative and a specialized international fund.
Last updated: 06/13/07
