Catalysing Capacity Development: Assessing the Need for Training

This note identifies training and capacity development as the biggest challenge that microfinance faces in India.It presents the findings of a study that aimed to:

• Analyze the need for training and capacity development;
• Identify the optimal structure and contents of training courses;
• Identify the organizations/institutes best placed to deliver training in the different parts of the country.

It describes the following methodology of the study:

• Focus-group discussions;
• Individual in-depth interviews;
• A qualitative survey questionnaire.

The note presents the following key findings and recommendations of the study:

• Selecting training courses: There is a need to:
  • Develop a system to assist microfinance institutions (MFIs) in diagnosing key issues and assessing and prioritizing needs;
  • Use participatory methods to help MFIs understand the role that capacity building plays in the overall development of the organization;
  • Sequence courses, so that MFIs implement the more basic courses first.
• Method:
  • Training courses should follow the basic adult-learning best practices, like group exercise, summary discussions and practical examples;
  • Participatory learning is very effective in driving change within the organization;
  • Training should combine classroom learning with on-site, follow-up technical assistance.
• Other findings: There is a need to:
  • Develop an integrated curriculum for microfinance in India;
  • Develop comprehensive, easy-to-use training packages;
  • Carefully select training centers.