Enterprise development support service for the microfinance clients
CMF also provides enterprise development support to the microfinance clients through financial literacy, enterprise management, and technical skills for different trades. Enterprise development support refers to the purely technical services for the entrepreneurs. Technical services are provided from the start (production) to market phase. Enterprise Development Support Services (EDSS) includes enterprise development services to micro entrepreneurs through MFIs to ensure that the return on micro investment made by the clients is profitable. The higher the return on investment, the higher will be the loan repayment rate; and this increases the sustainability of microfinance services. Some MFIs ignore this credit plus approach but CMF encourages all MFIs to provide both financial services and enterprise or business development services to their clients to increase their productivity and enable them to utilize financial services repeatedly. EDSS develops micro-entrepreneur by giving technical input and linking them with concerned stakeholders. The micro-entrepreneur is the person who runs or owns the micro-enterprise. The operator is normally required to handle marketing, production and financial management. EDSS develops technical human resource for proper use of loan and for operating small-scale business. Micro-finance service alone is not enough to establish micro-enterprises for the MFIs clients; they also need other services such as market access, input supply, technology and product development, training and technical assistance, infrastructure, policy/advocacy and linkages with market channels. In this context, microfinance service providers need to be integrated with business development services for sustainable economic development of the clients. This strategy links a wide range of business development services to MFIs and MF organizations through technical assistance, market research and enterprise development for sustainable microfinance.