Andrew Young on the effectiveness of the NAB Microenterprise Loan program

The Centre for Social Impact’s Chief Executive Officer,Andrew Young, joined Joseph Healyin speaking at the National Australia Bank(NAB) and Centre for Social Impact (CSI) launch of ‘Small is the new big: Measuring the impact of NAB’s Microenterprise Loan program’.

The report details the research findings following a three-month study of 313 loan recipients, and economic modelling based on a cohort of 746 loan recipients.The findings reveal that the program has had a positive economic impact, generating $44 million in turnover and having an associated $2.5 million of benefit to community and government.

Andrew Young speaks about the program as an example of five big achievements: innovation; collaboration; building capacity; strong definition of outcomes; and effectiveness.

He says that on the basis of the age, personal situation and employment status of those engaged with the program, it was effective in helping ‘untapped young enterprising talent with the potential to create successful businesses’ – a great proportion of which have now become part of an economic solution, and have created their own social and economic value.

Innovation

Andrew Young says that he was unconvinced that microfinance would successfully translate to the developed world, and is pleased to stand corrected today. He points to Microenterprise Loan program as a great example of innovation – of the adaptation of a successful initiative in one place being transferred meet needs in another.

Collaboration

CSI’s CEO spoke of cross-sectoral collaboration, and NAB’s Microenterprise Loan program as a great example of business, government and community working together to achieve outcomes through the scheme’s partnership model.

Building capacity

“It’s not just about the cash, though I’m sure it helped,” said Andrew Young, as he pointed out participants largely stated that they attributed their success to the training and support provided. He stated that to be sustainable, the enterprises needed the confidence to keep thriving.

Definition of outcomes and measurement

“Strong definition, sophisticated measurement and transparent reporting of social outcomes is perhaps the Holy Grail of improving social impact in this country,” said Andrew Young, Chief Executive of CSI.

Effectiveness

“In short, it stacks up. It’s working,” said Andrew Young. He points to one of the most dramatic views of the program’s success on page 20 of the report, which details where the loan recipients have come from and where they are now. It is a clear illustration of how lives can be changed, and that the research didn’t look at the participants in a vacuum but as part of a wider family, community and economic construct to which they have contributed value.

Read the news article about the NAB Microenterprise Loan program launch.

Read a copy of the report.