Special Report for Entrepreneurship class, AGSB Sta Rosa

1. ATENEO GRADUATE SCHOOL OF BUSINESS Ateneo-Regis MBA Program ENTREPRENEURSHIP Section R27 Special Report: Grameen Bank By GERARDO P. GUTIERREZ Presented to PROFESSOR JORGE SAGUINSIN Jan 17, 2012

2. Outline: Introduction History of Grameen Bank Grameen Bank Objectives 16 Decisions Microcredit Process 10 Indicators Microfinance in the Philippines References

10. Regular contact and follow up between the MFI and the client Grameen Microcredit Process 5 Member group is required First 2 borrower repay in 6 weeks before next borrower is allowed to take a loan. 4 Final Repayment 12 weeks later Demand for a 2 nd loan over Php 1500 to buy a fridge) 2 Purchase of the ingredients Start of cooking & sale (Daily benefits amount Php 100) 1 Visit of Nanay celia to the MFI Meeting wit the Loan Officer Convinced, reception of a loan of Php 1,000 (+ Php 30 interest rate ) 3 Weekly Repayment ( 86 Php) Remaining money is used to buy food

13. Poverty in the Philippines In terms of the magnitude of the poor families, there was an increase of about 185,000 from 3.67 million in 2006 to 3.86 million in 2009. On the other hand, the magnitude of poor population increased by almost 970,000 Filipinos from 22.2 million in 2006 to 23.1 million in 2009. The latest official poverty data indicate that a Filipino needed Php974 in 2009 to meet his/her monthly food needs and Php1,403 to stay out of poverty. Both food and poverty thresholds increased by 26% from 2006 to 2009, compared to only 22% between 2003 and 2006. Consequently, a Filipino family of five needed Php4,869 monthly income to meet the basic food needs and PhP7,017 to stay out of poverty

15. Microfinance in the Philippines The National Anti-Poverty Commission (NAPC) was created by virtue of Republic Act 8425 or the “Social Reform and Poverty Alleviation Act” that became effective last June 30, 1998.

16. www.grameenfoundation.org/asia/philippines www.microfinancecouncil.org/