The 7th Mindanao Microfinance Conference was held last March 22 and 23, 2011 at the Grand Ballroom of the Marco Polo Hotel in Davao City. Over 130 participants and guests came to attend the event.
Every year, MMC holds the Mindanao Microfinance Conference as part of its anniversary celebration. MMC was formally registered on March 25, 2004.
This year's conference theme was "Raising the Bar Towards Greater Social Impact" meant to highlight the social goals of microfinance.
The conference started on March 22 with Francis Kong delivering a two hour talk on the "Disciplines of Breakthrough Social Entrepreneurs". Prior to this, a pre-conference forum on microinsurance was conducted with Director Joselito Almario of the National Credit Council (NCC) as resource person.
MMC held its 7th Annual General Meeting in the evening of March 22. MMC had its election of new officers during the AGM. Siargao Bank, represented by Ms. Remedios Calderon, was elected as the new president of MMC for 2011-2012, replacing Spes Pauperum Foundation, represented by Fr. Arnel Celis. Other officers of MMC include Bansalan Cooperative (Vice-President) represented by Ernesto Mabunga, Serviamus Foundation (Secretary) represented by Ms. Norma Gejon, Cooperative Bank of Cotabato (Treasurer) represented by Mr. Guillermo Carisma, Jr. and Milamdec Foundation (Auditor) represented by Engr. Antonio Sevillano.
The second day of the conference was graced by very important personalities in the microfinance sector. The Key Note was given by Secretary Joel Rocamora of the National Anti-Poverty Commission (NAPC) followed by a representative from the Mindanao Development Authority (MINDA). Also speaking during the morning program was Mr. Christopher Tan of Grameen Foundation, who shared how the Progress out of Poverty Index may be used by MFIs. He was followed by Mr. Topper Coronel of the BAP Credit Bureau who shared about the importance of a credit bureau and how MFIs can avail of the service.
Mrs. Iluminada LE Cabigas was guest of honor and she spoke about the mission drift of MFIs and reminded participants to remain true to the mission of microfinance.
In the afternoon, PCFC, NLDC, MCPI, RBAP-MABS, and PinoyMe Foundation were given an opportunity to present their plans and programs for the microfinance sector in Philippines.
The event ended with a synthesis made by Prof. Ronald Chua of the Asian Institute of Management.
MMC recently launched its core capacity building program for MFIs called BRIDGES in simple ceremonies held at the Brokenshire Convention Center in Davao City last August 18-20, 2010.
MMC, in partnership with ICCO, has launched this project to support the growth and development of the microfinance sector in Mindanao and to help MFIs reach out to more poor families over the next three years.
Prof. Felix Bustos, formerly with the Asian Institute of Management and Mr. Ian Canlas of SGV Foundation joined the participants in the three day overview of the BRIDGES Program.
BRIDGES stands for Building Resources in Developing Greater Effectiveness of Social Enterprises. It is MMC's contribution as well to the promotion of social performance management, but will be focused more in the actual provision of technical assistance services to MFIs in helping them translate mission into action.
Understanding personal leadership helps us take that big step towards discovering who we are and where we want to go. Like any valuable tool, leadership must be thoroughly understood before it can effectively be engaged. Not only is it important to understand how to lead people, but also to know how to make good choices and how to lead projects.
Leaders of microfinance institutions play a big role in affecting social change. However, MFIs have slowly altered their ways from being socially effective to giving more focus on their financial operation. The essence of social responsibility for the MFIs in improving the lives of its employees, clients and the community is sometimes overlooked. Thus, a commitment to personal leadership will empower the leaders to achieve their social goals.
The Mindanao Microfinance Council will actively promote the development of microfinance in Mindanao through advocacy, information sharing and capacity building during its best practices forum. The 3rd Microfinance Best Practices Forum aims to bring together microfinance practitioners and industry stakeholders from the government and private sectors to discuss relevant issues, special topics of interests, and successful practices in the implementation of microfinance and poverty alleviation programs in the Philippines.
The 3rd Microfinance Best Practices Forum (MBPF) shall give emphasis to “Empowering the leader in affecting social change.” The two-day forum will bring together 150 microfinance experts and practitioners from the different microfinance institutions in the Philippines to share lessons and insights on effective leadership, people management, strategic market segmentation and going back to MFIs social dimension side. MFI support service providers will also be given a chance to present their products and services to generate new clients and for the MFIs to expand their networks.
Thus, the 3rd MBPF generally aims to strengthen the MFI industry in Mindanao thru its leaders in being agents of social change.
Objectives
The learning objectives of the 3rd Microfinance Best Practices Forum are:
To empower the microfinance leaders and stakeholders in affecting social change thru personal leadership
To highlight the importance of personal leadership in microfinance institutions thru sharing of best practices
To emphasize the need to understand how microfinance institutions can purposely affect the lives of microfinance clients
To identify and point out the future challenges and opportunities arising from the areas of financing and investment, technology and social development;
To understand the current situation of the MFIs in Mindanao and see how they could more effective in achieving institutional goals
To identify the channels, tools, and services that MFIs can utilize in achieving their social goals
To encourage partnership and cooperation in the Philippines among microfinance service providers, financiers and regulators in order to increase peer learning in microfinance.
THE 3RD MICROFINANCE BEST PRACTICES FORUM
WATERFRONT INSULAR HOTEL - DAVAO CITY, PHILIPPINES
In September 2008, the Mindanao Microfinance Council organized the 1st Microfinance Best Practices Forum (MBPF) in cooperation with the Visayas Association of Microfinance Institutions and in Partnership with the People's Credit and Finance Corporation and PinoyME.
The MBPF intends to bring together microfinance practitioners from all over the Philippines, and the various stakeholders in microfinance in one venue to discuss issues, topics of common interest, and successful practices in the implementation of microfinance and poverty alleviation programs.
Its objective is to bring people together to share information and resource linkages that will help microfinance managers in developing strategies and improving microfinance practice in the Philippines.
The 1st MBPF was about "Microfinance in Times of Crisis" and was held in Cebu City, Philippines on September 20, 2008. Resource speakers included Dr. Cayetano Paderanga who gave participants a briefing on the economic condition of the country and a background on the US financial crisis; Dr. Ana Maria Tabunda of Pulse Asia shared their findings on the coping behavior of the poor in times of crisis; and Mr. Joey Bermudez, former Chinatrust Bank president who explained to participants how the current financial crisis can affect the Philippine banking sector and how MFIs can prepare for a financial crisis.
The 2nd MBPF was held in Davao City on June 16, 2009. The event was once more co-convened with VAMI in partnership with PCFC and with support from SMART Communications, Nationlink, BDO, Land Bank of the Philippines and Country Bankers Life Insurance Corp.
The topic for the 2nd MBPF was about "Effective Governance and Management Practices". The keynote speaker for the forum was ABS-CBN Bayan Foundation President and former Dean of the Asian Institute of Management, Dr. Eduardo Morato, Jr. who shared with the audience his thoughts on how microfinance institutions can achieve "VSOP Fit" (vision-strategy-organization-people fit) in order to improve the effectiveness of organizations in achieving its objectives.
With the success of the Microfinance Best Practices Forum, MMC shall continue to work with other Philippine microfinance associations and MF service providers and funders to provide microfinance practitioners, in Mindanao and in other parts of the Philippines, the opportunity to learn and share best practices among each other. Through this program, MMC is able to fulfill its purpose of helping the microfinance sector improve the delivery of services to low income families most especially in Southern Philippines. Trully, by working TOGETHER, we can END POVERTY.
“Taking Mindanao Micro & Small Enterprises to the Next Level”
BACKGROUND AND RATIONALE
The Mindanao Micro and Small Enterpreneurs’ Summit and Trade Caravan is about providing opportunities for poor micro-entrepreneurs to take their livelihood projects to the next level and transforming it into growth-oriented micro and small enterprises. It is also about providing opportunities for bigger enterprises to establish broader networks and partnerships with smaller enterprises and tie-ups with MSME support service providers.
In the Philippines, micro, small and medium enterprises (MSMEs) comprises 99.6% of the country’s total enterprises and contributes 30-32% of the country’s GDP. Micro-enterprises alone make up 91% of the total enterprises in the Philippines.
MSMEs also play an important role in job creation and poverty reduction as they provide employment to 70% of the Philippine’s labor force. In poor regions and rural areas, MSMEs are sometimes the only source of employment and MSMEs tend to employ poor and low-income workers. According to the World Bank, MSMEs are the largest provider of employment in most countries and a major source of technological innovation.
The challenge now is not just to create more micro and small enterprises, but also to transform them into growth oriented enterprises to positively contribute to the country’s over-all economic growth.
Microfinance institutions (MFIs) play the lead role in developing the micro and small enterprise sector in the country, particularly focusing on low-income households. However, microfinance alone is not enough to uplift the poor from poverty, and so, MFIs began providing and/or facilitating enterprise development services as well for their respective clients as part of their programs.
The intention is to help induce the growth of its member-clients and to encourage them to move from the livelihood-subsistence level and graduate them to micro and small enterprises.
Understanding this need and in support of its member MFIs efforts, the Mindanao Microfinance Council organized its first regional Micro-Entrepreneurs Summit and Trade Fair last April 4-5, 2009 in Butuan City. This event was participated in by MMC member-MFIs and their clients in the CARAGA Region. The Micro-Entrepreneurs’ Summit is also one of the major activities of the Mindanao Microfinance Year (April 2009 – March 2010).
Taking-off from the success of the first Micro-Entrep Summit, MMC is now organizing the Entrep Summit and Trade Caravan in Cagayan de Oro City on October 19-21, 2009 and in Davao City on November 18-20, 2009 plus a series of smaller local trade fairs in Zamboanga City, Dipolog City, and General Santos City in early 2010.
The Entrep Summit and Trade Caravan will culminate in a major gathering in Davao City on March 2010, at the closing ceremonies of the Mindanao Microfinance Year.
With the growing importance of MSMEs in Mindanao, MMC realized the need of conducting this Entrep Summit and Trade Caravan which offers a good opportunity for micro and small entrepreneurs to showcase and promote their products and services, to access information and knowledge about successful practices, and to establish a network to help facilitate exchange and access to more market opportunities.
Different organizations are expected to participate in the event representing microfinance institutions (MFI), MFI clients, development agencies, and other NGOs. Also invited to participate are other entrepreneurs and corporations that would benefit in participating in a network of micro-small entrepreneurs and service providers. This summit aims to encourage greater collaboration among micro and small entrepreneurs and service providers in improving the marketing of products and services of MSME’s.
OBJECTIVES
This Mindanao Micro and Small Entrepreneurs’ Summit and Trade Caravan specifically aims to achieve the following objectives:
1. To promote the products and services of micro and small entrepreneurs in Mindanao.
2. To facilitate the exchange of ideas and practices among entrepreneurs
3. To build a network and expose participants to broader market opportunities
4. To foster collaboration between big and small enterprises
THE PARTICIPANTS
The Micro and Small Entrepreneurs Summit and Trade Caravan hopes to bring together a diverse group of participants both at the local and national level composed of the following:
MFIs Member MFIs of MMC will be the main movers of the event. Other partners will also be invited to participate.
Each MFI is expected to send two to five of its officers and/or staff to participate in the activities and program. A minimum of 15 MFIs are expected to participate in each area where the summit and trade caravan will be held.
Micro-Entrepreneurs Each participating MFI is expected to bring five to ten entrepreneur-clients to participate in the trade fair as exhibitors or participants in the program. Approximately 75 to 100 micro-entrepreneurs are expected to participate.
Small and Medium Enterprise Owners The trade fair is open to local small and medium enterprises for them to promote their products or services. Approximately 10 to 15 local enterprises are expected to participate in each area where the trade caravan will be held.
Large Corporations Big organizations and corporations are also expected to participate, particularly those that stand to benefit in building up networks with smaller local enterprises and with MFIs.
BDS Facilitators and Service Providers Local and national organizations providing enterprise development assistance to MSMEs will also be invited to attend and participate in the event.
Government Agencies and LGUs Local and national government agencies to be invited are those that have active programs promoting MSMEs and those that benefit from tie-ups with local MFIs.
THE EVENT
The Summit and Trade Caravan is a three-day event with the first day devoted to the opening ceremonies, messages of guest speakers (mostly local officials), presentation of government agencies with MSME programs, and presentation of corporate sponsors.
The second day is devoted to livelihood skills training wherein participating micro-entrepreneurs can gain new business ideas or enhance existing skills. Product development clinics / workshops will also be conducted through-out the day to help the participating entrepreneurs improve their products and its marketing.
The third day is devoted to presentations of successful entrepreneurs who can give practical recommendations or ideas to participants on how to improve their enterprises and their entrepreneurial skills. BDS facilitators / providers will also be given the opportunity to share and discuss with participants their services during this day.
In between activities and after the day programs, special activities will be held to attract the general public to visit the trade fair area.
The venue was selected to accommodate a large audience. The event itself is open to the public and an estimated three to five thousand visitors are expected to visit the trade fair area.
MMC will be promoting the event Mindanao wide through local media networks and through direct invitations to selected business establishments and associations in Cagayan de Oro and Davao Cities and in surrounding regions.
INVITED BUSINESS SECTORS:
The following companies / business sectors are invited to participate:
1. Packaging and Printing companies 2. Franchisers 3. Information and Communications Technology service providers 4. Banking and Finance 5. Agriculture products and services 6. Training and Livelihood Skills / Vocational Schools 7. Food / Food Processing Sector 8. Dealers / Distributors / Networking 9. Insurance / Remittance Services 10. Novelty Item manufacturers /Decors / Furnitures
The Mindanao Microfinance Council (MMC) aims to contribute significantly to the reduction of poverty in Mindanao. This is the common social goal that each MMC member is committed to achieve.
With this social goal in mind, MMC members have collectively committed to reach one million microfinance clients by the end of 2013 and to make a difference in the lives of poor families by helping them alleviate themselves from poverty through credit and other financial and non-financial services to support their livelihood and small enterprises.
Beyond credit delivery, MMC members have also began delivering supporting services particularly focusing in developing the capabilities of clients and providing business development and community development support.
The ultimate outcome of these efforts is to create more wealth (economic, social, spiritual, intellectual wealth, etc.) for the poor family enabling them to send children to school, provide better nutrition, maintain better health and living conditions, and ensure a better future.
It is also hoped that through the collective efforts of MMC members and partner organizations, we will begin to see an end to poverty in Mindanao. Mindanao is identified as having the most number of poorest regions/provinces in the Philippines. By working together to effectively deliver microfinance, enterprise development support services, and other financial and non-financial services to low-income households, MMC members hope to contribute to the reduction of poverty in the region. A reduction of poverty in Mindanao will bear a significant impact in the over-all efforts at the national level to reduce poverty.
To support this campaign and to achieve the desired outcomes, MMC recognizes the need to build stronger institutions that will deliver finance and capability development programs to the poor.
But the biggest constraint is institutional capacity. If MMC members are to achieve the goal, the need to improve organizational capacities is paramount.
To support its members in their efforts, MMC has launched a project aimed at supporting capacity development with special focus on helping MFIs (as social enterprises) to achieve social objectives (managing social performance) and other institutional objectives under the concept of TOTAL PERFOMANCE MANAGEMENT. The project, Building Resources in Developing Greater Effectiveness of Social- Enterprises or BRIDGES, is designed to help develop institutional capacity focusing on People, Systems, Strategies, Products, Structure, Shared Values.
By assisting MFI members in developing and strengthening their organizations, it is expected that there will be better service delivery and hopefully, the common end of supporting poor families in their efforts to alleviate themselves from poverty can be achieved.
