What is a network? The diversity of networks in microfinance today
Cook, Tamara | Isem, Jennifer
Throughout the development of the microfinance industry, network support organizations (NSOs) have played a critical role in launching new institutions, developing standards, wholesaling funds, providing technical services, implementing knowledge management, and leading policy reform efforts. Given their experience, NSOs can be an effective channel for donor microfinance. Donors with limited staff or technical capacity can leverage their funds by investing in well-managed networks. Such NSOs are often in a better position to provide microfinance institutions (MFIs) direct financial and technical assistance, to develop innovative products, and to advocate for policy change. Donors have found it difficult, however, to distinguish networks from one another because they encompass organizations that have as many differences as similarities. To address this difficulty, the Consultative Group to Assist the Poor (CGAP) and the Small Enterprise Education and Promotion (SEEP) Network invited network leaders and donors to a workshop in October 2002 to discuss the roles and comparability of networks. Subsequent consultation through April 2003, led to the development of a Network Support Organization Profile. This focus note describes the roles and features of 33 microfinance NSOs, based on their own self-reporting. The NSOs that participated in the study represent the most significant global and regional microfinance networks currently in operation. As the preceding analysis makes clear, great diversity exists both within and among microfinance NSOs and their networks. The results of these individual profiles have been regrouped into the consolidated profile to provide an overview of NSO types and activities, as of mid-2003. This note provides further analysis of the information collected within the self-profiles.
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