Strategy, Stakeholders and SMEs

14-10-2010 |

In September 2010 Triodos Investment Management organised the annual 2-day workshop for its investee partners. The workshop seeks to create an open atmosphere to discuss the developments and challenges of the microfinance sector. Managing Directors and Board Members from our microfinance partners in Peru, Colombia, Nicaragua, Uganda, Tanzania, Madagascar, Kenya, India, Pakistan, Cambodia and Indonesia engaged in lively debates on:

Stakeholder strategy and relationship management

While donors and social investors are still very active in the microfinance sector, new investors with a single-bottom line focus have arrived on the scene. In some cases these new investors are steering the conversation away from the double or triple bottom line perspective that MFIs traditionally had, influencing the mission and the vision of institutions. Workshop participants d iscussed various aspects of their relationship with stakeholders, going into detail through case studies on topics such as stakeholder management in times of high growth, the behaviour of stakeholders in times of distress, and the importance of having stakeholders with a long-term view.

Strategic differentiation by financing SMEs

Many MFIs have moved upscale by broadening their target clientele to the SME sector. Financing SMEs requires different skills and systems. In addition to raising new operational challenges, financing SMEs also requires reflection in the board room in order to ensure that the more diversified client and product portfolio continues to fit with the initial mission. During the second day of the workshop participants examined the implications of financing SMEs and how it can add to the mission of the company.