A review of the Grameen Today Pilot Program: A microfinance initiative

Commissioned by Grameen Australia and conducted by CSI Swinburne, this research reviews the Grameen Today Pilot Program , a microfinance initiative which provides small business loans, financial training and support to low-income entrepreneurial women who wish to generate income through enterprising activity.

This pilot program is the first of its kind in Australia, focused solely on low-income woman, and based on the Grameen Bank model. Developed in the late 1970s by economist, Professor Mohammad Yunus, with its origins in Bangladesh, The Grameen Bank model relies on a peer-group lending approach, high rates of loan recovery, and weekly member meetings to facilitate small group cohesion, offer support to members and encourage active outreach of new members through the group’s existing social networks.

The research aims to understand:

1. The financial, emotional, and social impacts of the Grameen Today Program on the entrepreneurial women who sought and obtained small loans to support their microenterprise.

2. The lessons emerging from Grameen Australia’s Pilot Program, particularly as regards to the challenges associated with adapting the Grameen Bank Model in a Global North economy.

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The review of the Grameen today pilot program

The final report provides a detailed analysis of literature relating to the adaptation of the Grameen Bank Model in two Global North countries - the UK and the US - by Grameen UK and Grameen America respectively.

CSI Swinburne researchers also conducted an online survey based on CSI Swinburne’s Community Service Outcomes Tree and interviewed several key stakeholders to understand the impacts of the program. These were:

1. Grameen Members: Entrepreneurial, low-income women, who had obtained a loan to support their microenterprise
2. Frontline staff from Grameen Australia who are responsible for delivering the Grameen Today Program
3. Senior representatives from two Australian not-for-profit organisations who provide financial support to low-income entrepreneurs.

Key findings and recommendations

1. There is space for a microfinance initiative in Australia that focuses on low-income, entrepreneurial women, primarily from a culturally and linguistically diverse (CALD) background.
2. Any Australian microfinance initiative must be capable of adapting to the demands of the Australian context.
3. Any Australian microfinance initiative looking to provide business loans to entrepreneurial low-income women should be based on reasonable, evidence-based expectations around outcomes and social impact.
4. Any Australian microfinance initiative looking to support low-income women must be easy to access, transparent and responsive to its members’ needs.
5. Microfinance initiatives, including Grameen Bank adaptations need to be accompanied by rigorous external evaluation made public and freely available so that the learnings can be shared internationally.