Enterprise Development & Microfinance
formerly Small Enterprise Development
Volume 21, Number 4, December 2010
‘MFIs are a good mechanism to address issues of children’s work (child labour) and contribute positively to the well-being of children'
RICHARD CAROTHERS, RICHARD RINEHART and ERIC V. EDMONDS
Savings accounts for young people in developing countries: trends in practice
RANI DESHPANDE and JAMIE M. ZIMMERMAN
Recently, savings initiatives for young people have been garnering increasing attention within the development community for their perceived potential to promote both youth development and financial inclusion. This paper surveys current practice to better understand the diverse range of youth savings initiatives under way in developing countries, and the actors promoting them in a range of forms for various objectives. It also gathers the little evidence available on the extent to which such savings initiatives are fulfilling their perceived dual development potential. The paper ends with key questions that must be answered with further research and practical experimentation, before this development potential can be confirmed.
YouthInvest: A case study of savings behaviour as an indicator of change through experiential learning
JENNIFER GURBIN HARLEY, ADIL SADOQ, KHADIJA SAOUDI, LEAH KATERBERG and JENNIFER DENOMY
The burgeoning youth population worldwide and associated challenges of economic integration, particularly in the Middle East and North Africa (MENA), have created the need for innovations in programming to support young people’s economic participation. This article focuses on one aspect of economic inclusion – savings – that has positive impacts beyond the targeted activity. Using the YouthInvest project as a case study, this article will look closely at ways in which behaviour change is possible through experiential learning for youth in Morocco. Early indicators have been found of increased savings behaviour of young people aged 15–24 after having been trained in the areas of life skills and financial education, using an experiential teaching approach. YouthInvest is a MasterCard Foundation funded project being implemented by MEDA in Morocco. Over the course of the ‘100 Hours to Success’ training, 96 per cent of participants surveyed in a recent field study have started saving and more than half of those grew their savings during the training period. These young people are more selfconfident than they were before the training, are planning for the future, and are more likely to increase their incomes.
Emerging guidelines for linking youth to financial services
LARA STORM, BETH PORTER and FIONA MACAULAY
Access to appropriate financial services can play a critical role in enabling young people to navigate the challenges and opportunities they face, regardless of their employment or educational status. This paper discusses: 1) the results of a global survey conducted in 2009 by Making Cents International; and 2) findings of leading NGOs and financial institutions which are pioneering youth-inclusive and youth-specific financial products. The outcomes of the survey findings and lessons learned have been synthesized into six ‘Emerging Guidelines’ for linking young people to financial services. Existing concerns are explained regarding defining and achieving impact, sustainability, scale and a favourable regulatory environment as it relates to youth-inclusive financial services. The paper concludes with practitioners’ visions for this nascent field by 2020.
Skill-building and employability training for disadvantaged young people in India: Experience of Gram Tarang Employability Training Services
DECHIRAJU NARASIMHA RAO, ABHINAV MADAN and EDAKKANDI MEETHAL REJI
Young people in India make up 19 per cent of the population and, despite growing demands for skilled employees, the unemployment rate is at 50 per cent for youth across the country. Traditional approaches to preparing people for employment have had very low levels of success, with some students dropping out of programmes, and others unable to find employment despite completing training. This article describes the experience of Gram Tarang Employability Training Services Ltd (GTETS) in providing skills development and employability training to disadvantaged young people in India. Unlike the traditional models of skills training by public and private institutions, GTETS adopts a market-led business model that improves upon quality of curriculum, infrastructure, qualifications of faculty, industry interface to ensure placement, and cost sharing of the training programmes to make it affordable and sustainable.
Financial Promise for the Poor: How Groups Build Microsavings edited by Kim Wilson, Malcolm Harper and Matthew Griffith