[email protected] partner microfinance foundation youth project case study from bosnia and...
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Partner Microfinance FoundationPartner Microfinance Foundation
Youth projectYouth project
Case Study from Bosnia and HerzegovinaCase Study from Bosnia and Herzegovina
[email protected] www.e-mfp.eu
280.946280.946 450,612,226.01 450,612,226.01 EUR EUR
35.63335.633
----------------------------------
17,21%17,21%
255255
----------------------
131131
5353
Partner Microcredit FoundationPartner Microcredit Foundation
Basic indicators as of September 30Basic indicators as of September 30thth 2011 2011No. of loans disbursed from the
beginning of the
operations
Total amount of disbursed loans from
the beginning of the
operations
Active clients------------------
% of youth clients
No. Of employees _________
Loan Officers
No. Of branch offices
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Why?- Lack of work experience;- Mismatch of education system, national qualifications framework and labour market needs;
Youth unemployment
rate in B&H
58%58%
% of youth who would leave
B&H if they can
57% 57%
% of youth (15-29) who live with their parents
8585%%
% of married couples (up to 30
years) do not have their own place
93%93%
% of youth that are members of youth organizations
2%2%
Youth in Bosnia and HerzegovinaYouth in Bosnia and Herzegovina
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To increase self-employment opportunities for young people in Bosnia and Herzegovina, by providing complimentary
market-oriented business training business training for youth clients in addition to loans.
To increase self-employment within Partner’s clients
To enable youth clients to obtain practical knowledge and skills in order to sustain their businesses
To measure the usefulness of training
and impact on business sustainability
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The project included about 400 young entrepreneurs who will randomly be divided in the following four groups:
1. 100 youths with a maximum maturity and a maximum loan amount2. 100 youths who are offered to extend their loan term to 60 months3. 100 youths who are offered to extend their loan term to 60 months AND
increase their loan size to app 5000 Eur.4. 100 youths who receive the loan as specified in 1) and are offered free
business training
Total of: 445 clients- 2/3 received a comprehensive business training + financial literacy- 1/3 control group The randomization was stratified by gender, baseline financial literacy
level, industry, and baseline profits
Monitoring & EvaluationThis project conducted a randomized experiment designed to
assess the impact of increasing maturity and loan size on business investment and growth.
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Passivnes of the youth in B&H YP are not focused on a survey Very complex and time consuming organization of
BT Declaratively ready to start-up own business Not realistic in planning Difficulties in motivating the clients to attend BT
(small allowances) The financial crisis may affect the final IMPACT study
Youth project / Market research CHALLENGES
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36% new businesses shot down Improved business practices (17%) Encourages new business investments (11%) More capital growth (15% but 54% in some
subgroups) Separation of business from personal accounts Refinance the loans under more favorable terms Obtain new loans with lower loan installments Improvements in business performance and sales
Findings from the World Bank’s study on Partner’s clients stating that the development of practical business skills can influence the following:
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Monitoring and Evaluation for Youth Workforce Development Projects
www.cyesnetwork.org
“The Impact of Business and Financial Literacy for Young Entrepreneurs: Evidence from Bosnia and Herzegovina”
by The World Bank Development Research Group Finance and Private Sector Development Team April 2011
www-wds.worldbank.org
Selma Cilimkovic, Market Research officer