Mohammed Yunus is the founder of the concept of microfinancing. His initial impetus to provide financing to individual small family owned businesses in India and elsewhere inspired a movement that has spread across the world with some controversy as to the real benefits of such financing. See the founder’s website for some background on microfinancing.

Scenario: You were recently hired by a nonprofit organization that is headquartered in Montreal, Canada. This organization, Beacon of Hope (BOH), had a mission of providing financing to businesses who wished to start a business in developing countries. Two years ago, they changed their mission to providing microfinancing to individuals in developing countries who want to start up a small business in their own country. The first two countries they focused on were Angola and Ghana. After two years in operation, it has become apparent that a change is necessary.

Angola: evaluate the organization’s current process addressing the following concerns:

Here are some of the reported problems: -Only 225 applications were received from prospects concerning each of the two countries. At the 2-year mark, the expectation was 1200 applications for each. -The application processing time is taking 4–6 months. The original goal was 2 months.

-Only 100 applications have been approved for each country, and the average loan is $10,000.

-The most recent report shows that only 15% of the businesses funded are still in operation. -Accessing the microfinancing funds has proven problematic using in-country banks.

-Accounting for the expenditure of funds by BOH has been difficult to track.

-Loan delinquency is a major concern due to business failure.

Checklist: Evaluate the business change process by researching and addressing the following: Provide an overall assessment of the existing program and what needs to be changed to be viable.

Analyze the likely reasons that the application processing time for microfinancing is taking 4-6 months.

Identify the stakeholders who should be involved in this change management process and explain BOH’s responsibility towards these stakeholders.

Explain how you will evaluate success once your proposed plan is in place.