1. Data Processing and Analysis

2. “Do we have a market?”

3. Session 5 Objectives The participants will learn: How to process survey interviews How to analyze the data gathered by the different tools How to assess whether an area has a good microfinance market or not

4. Two Parts of Session 5 Part 1: Processing the survey interviews using: Handout 1 – Tabulation Sheet & Summary Tables Part 2: Analyzing the data: Handout 3 provides a format for the market research report.

5. Processing Survey Interviews Part 1

6. Handouts and other requirements Handout 1 will be used for primary data tabulation and for processing summary tables You will need a computer unit with excel software to use the tool. However, without a computer, you can process the data manually.

7. Encoding activity and preparation of data tables Using the questionnaires that the trainees completed: Demonstrate manual processing of data using Handout 1 and summarizing results using Handout 2. Repeat the exercise using the computer and Excel spreadsheet.

8. Analyzing the Data Part 2 Tool: Handout 3 Sample Report in Handout 4

9. What Is A Good Microfinance Market? Has “enough” potential clients Has limited competitors lending to microenterprises Has stable business environment with limited risk factors

10. What Should Be The Minimum Market Size? The trade area should have enough potential clients for, at least, two Account Officers (AO). Optimum load for an AO doing weekly pick-up collection is about 150 This workload can be higher or lower depending on: Distance of area from the bank, and how dispersed clients are Whether clients pay at the bank or not Frequency of collection

11. What Should Be The Minimum Market Size? Sample: Assume a client drop-out rate of 10% To compute for total number of new clients, use formula: Total No. of New Clients = (150 clients per AO * 2 AOs)/(1- Drop out rate) The total number of new clients that the two AOs should bring to the bank over a period of, say, two years should be 333 microenterprise operators.

12. What Should Be The Minimum Market Size? Assuming that the total number of ME operators who want to borrow and are eligible for loans are 25% of the total The minimum ME population should be 1,333 Total ME Pop. = 333/0.25 = 1,333

13. Competition in the Microfinance Market Serious MF players - can be a bank, cooperative, lending investor or NGO with sufficient resources in large-scale microfinance operation Has a track record of at least three years of viable microfinance operation Present client outreach of other MF players covers communities targeted by your bank

14. What Are The Critical Risk- Mitigating Factors? Household income sources are diversified Little or no distinct seasonal income fluctuations Occurrence of natural calamities not frequent No impending local government policy or action that would disrupt the normal operations of microenterprises No competition from a credit program of the local government or other government entity.

15. What Are The Critical Risk-Mitigating Factors? No frequent disturbances in, or major threats to, the local peace and order situation Low rate of migration Home ownership is widespread Experience of the bank and other institutional lenders in lending to the people has been satisfactory

16. What Are The Critical Risk-Mitigating Factors? Potential clients who do not have previous or current experience borrowing under subsidized, government-assisted credit programs

17. THANK YOU!