small enterprise foundation
Firstly, field staff may not require clients to use their savings to pay other clients’ debt. This programme provides individual loans at less than half SEF’s interest rate. 2001. "[C]ompetition is beginning in Limpopo and as SEF expands to the Eastern Cape." Therefore, for SEF's cost of serving one borrower, AMF could provide 22 bednets covering approximately 40 people with nets for a little over 2 years.61 It is plausible that each person receiving a loan from SEF benefits much more than they would from a bed net, but we doubt that they benefit proportionally to the higher cost. M-CRIL, "Social Rating of SEF (2008)," Pg 6. … Unlike almost all MFIs worldwide SEF has not just accepted the PPI but has carried out extensive field tests to try to verify that (1) the PPI gives reliable results and (2) can be implemented by staff who do not have the highest levels of education. being required to repay loans for group members who fail to repay): 44%. Branch Managers have one component that is paid monthly and another which is paid fortnightly. “GiveWell: At one point in the past, you conducted surveys to see why clients have dropped our. This rate does not treat loans that were repaid late (by mid-2011) differently from loans that were repaid on time. In at least one area, however, access to other sources of credit has resulted in clients' taking out more loans than they are able to repay (see "Other issues" section below). 2011. We used the estimation method given by Rosenberg 1999, Pg 20: Annual loss rate (ALR) = [(1 - collection rate) / (loan term)] * 2, SEF's average loan term is 0.435 years. These are not easy to come by and also require a really large amount of capital. In this way, SEF has designed an ‘early warning system’ to detect problems before they become systemic and harmful to the MFI as well as its clients." "Centre leadership complained of staff undermining decisions taken in the centre about loan sizes and allowing clients to have larger loans even after the centre had agreed otherwise." It was founded by John de Wit in 1992. The Small Enterprise Foundation (SEF) is not-for-profit, pro-poor microfinance institution that works towards the eradication of poverty by creating a supportive environment where credit and savings services foster sustainable income generation, job creation and social empowerment. Email to GiveWell, March 6, 2012. Small Enterprise Foundation, "Executive Summary: Dropout/Arrears Study Research," Pg 3. This work is licensed under a Creative Commons, The Wrong Donation Can Accomplish Nothing, Your Dollar Goes Further When You Fund the Right Program, process to distribute $250,000 in funds to an economic empowerment organization in Sub-Saharan Africa, key questions for evaluating microlending charities, SEF has provided what we consider a reasonably strong argument, Small Enterprise Foundation: South Africa’s premiere pro-poor microlender, A simple poverty scorecard for South Africa, SPM in practice: The Small Enterprise Foundation (South Africa), Teaching entrepreneurship: Impact of business training on microfinance clients and institutions, Small Enterprise Foundation data (1995-2009), http://www.mixmarket.org/mfi/sef-zaf/report?rid=rxvRLbjA, http://blogs.cgdev.org/open_book/2011/03/interest-rates-by-region.php, Measuring Microcredit Deliquency: Ratios Can Be Harmful to Your Health, Analysis of % of loans per loan type for all active clients, http://www.sef.co.za/annual-financial-statements, Executive summary: Dropout/arrears study research, Midterm Evaluation – Technical Learning Conversations, Social performance standards report (2008), A poverty assessment of the Small Enterprise Foundation on behalf of the Consultative Group to Assist the Poorest, International Comparison Program tables of results, http://www.who.int/bulletin/volumes/87/11/08-056580/en/index.html. World Health Organization, "World Malaria Report (2011)," Pg 28. In the first report, covering the period between April 2008 and September 2009, SEF's drop out rate (calculated monthly) varied between 18% and 24%,14 and in the second report, covering the period between April 2010 and September 2011, SEF's dropout rate varied between 16% and 22%.15 SEF defines its dropout rate as the number of clients who completed a loan in the six months prior to a given date and did not take out a subsequent loan in that period or within one month following the end of the six month period divided by the total number of clients who completed a loan in the six months prior to the end of the period.16, SEF's dropout rate, especially recently, is well below the 28% average of dropout rates for microfinance institutions that report this data,17 but still seems substantial. “GiveWell: At one point in the past, you conducted surveys to see why clients have dropped our. GiveWell first review of SEF was in 2009, but the review was subsequently updated multiple times with the most recent update being in March 2012. SEF now operates seven branches in the Eastern Cape in rural villages between Butterworth and Mthatha. The Small Enterprise Foundation (SEF) is a pro-poor microfinance institution (MFI) that was founded in 1992. "We have instituted steps to address such issues. Baumann 2003, Pg 27. "Cost per borrower: 128 (USD)" Cost per borrower = (Operating Expense / Average Number of Active Borrowers). Dropouts tend to be unhappy about having to bear other people's debt. We'd also look for a creative way to collect savings to reduce cost; right now the costs appear prohibitive.” John de Wit, phone conversation with GiveWell, January 19, 2012. 2) PPI interviews would be conducted in all 16 TCP branches. THE SMALL ENTERPRISE FOUNDATION is located in TZANEEN, Limpopo, South Africa and is part of the Social Assistance Industry. THE SMALL ENTERPRISE FOUNDATION has 70 total employees across all of its locations and generates $26.84 million in sales (USD). Meet the women who inspire us. This is currently SEF’s most serious competitor." The Small Enterprise Foundation (SEF) is a not-for-profit, pro-poor microfinance institution working towards the eradication of poverty by creating a supportive environment where credit and savings services foster sustainable income generation, job creation and social empowerment. The third decision was made in recognition of the fact that reliable addresses, or directions, for finding clients do not exist in most of SEF’s areas of operation...As Figures 3 and 4 demonstrate, this modus operandi yielded a representative sample of TCP clients by PWR score and client age, when compared with the underlying TCP population as of June 2007...By providing members of the Survey Team with lists of twice as many clients as needed, their reliance on SEF’s loan officers skewed the pilot’s sample towards TCP clients in loan cycle 1 – also referred to as ‘entering clients’ – as Figure 5 confirms." "It is compulsory for every client to save at every fortnightly meeting but clients may withdraw whenever they wish. The Small Enterprise Foundation (SEF) is a microfinance institution (MFI) operating primarily in the Limpopo province of South Africa. Small Enterprise Foundation, "Executive Summary: Dropout/Arrears Study Research," Pg 1. Small Enterprise Foundation, "Drop-Out Study.". "26 There are some questions, however, about whether staff consistently implement these systems as intended.27. $1 divided by 0.61 to adjust for the differences in price levels between South Africa and the U.S. is $1.64. 3) Each member of the Survey Team would be given a list of twice as many TCP clients as they would be required to interview, randomised by PWR score and client age. The Small Enterprise Foundation (SEF) is a microfinance institution (MFI) operating primarily in the Limpopo province of South Africa. 2009. de Wit, John. A 2007 survey of 79 dropouts gave the following reasons:20, SEF interviewed 17 dropouts in 2009 to determine why dropout rates had increased.21 The main reason given for dropping out was distrust of staff members who used clients' savings to pay group loans without the clients' knowledge, required clients to attend long fortnightly meetings, and were even accused of committing fraud.22, In early 2012, Small Enterprise Foundation reported that they had not conducted any dropout surveys in the past two years. With that said, we do feel that the takeaways from this examination are sufficient not to prioritize re-opening our investigation of this organization at this time. 22 bednets cover 40 people because each bednet typically covers 1.8 people. We also have general concerns about charities' potential diversion of skilled labor and/or interference with government responsibilities. John de Wit, email to GiveWell, March 6, 2012. We have some concerns about whether its clients are benefiting from the loans, but we feel that SEF stands above other microfinance institutions we've found in assessing and addressing these questions. SEF: Not in the last 2 years. Head - Sales & Marketing - IT Enterprise Software Sales. 4,267,166. life-changing loans disbursed since our founding. During this I was very pleased with the very positive feedback on the pilot which was received from a whole range of our managers who had observed these skills development sessions taking place with clients. M-CRIL, "Social Rating of SEF (2008)," Pg 7. The study focuses particularly on the benefits, disadvantages and challenges obtained from The Small Enterprise Foundation (SEF) microcredit village programmes (Micro Credit Programme (MCP) and the T'shomisano Credit Programme (TCP)). Requirements. This South African corporation or company article is a stub. See John de Wit, email to GiveWell, December 27, 2011 and John de Wit, email to GiveWell, January 29, 2012. M-CRIL, "Social Rating of SEF (2008)," Pg 13. In our view, an organization that consistently collects, assesses and shares important information is a better bet for a donor than one that does not. Donations as a % of revenues: We consider this metric for microfinance institutions to check the degree to which they still require donations to meet their obligations. Although long-lasting insecticide-treated bed nets are manufactured to last five years, they tend to decay under use and are expected to last. The minimum amount that must be saved is set at a low R10 per person per fortnight. SEF: We currently facilitate savings with banks, but don't take them ourselves. In mid-2009, SEF interviewed 30 clients "to investigate reasons for SEF’s increased arrears and dropout rate since January 2009.". The first SME Policy was formulated in 2005 with a view to creating an enabling environment for the SME sector development. She told us that M-CRIL sends evaluators to meet with representatives of the organization and gather data for their report. For more information on calculating interest rates for microfinance banks, see Langeman 2010. John de Wit, email to GiveWell, July 13, 2010. “Have we started offering any other services besides loans (e.g. Small Enterprise Foundation, "Extract from Draft PPI Pilot Survey," Pgs 4. This search returns results from both GiveWell's main site and from the GiveWell Blog. “While clients are encouraged to save at each of their fortnightly meetings they may also withdraw their savings whenever they wish.” Data from Small Enterprise Foundation, "Client Savings.". 1,987 Small Enterprise Foundation jobs available on Indeed.com. 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