CHAPTER 3

METHODOLOGY

Data Collection

Interview Secondary Data

Characteristics

Formal Bank Formal non Bank Non Formal

Scheme Comparison

Screening Counseling Controlling

Analyzing

Conclusion

Figure 3. 1 Methodology

3.1 Data Collection

The first step to compare is data collection. At this stage data will be
collected from institution that conduct or involve in micro finance
activity. Finding the institution and collecting data is the main activity in
this stage. The data are gathered from interview and secondary data. The
data that are needed the most are company or institutions profile, target
market for the micro finance programs, the scheme that are being
implemented from input through output, Non Performing Loans/Funds,
and the reason why Non Performing Loans/Funds exist. These data is
crucial in analyzing the scheme.

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3.2 Characteristics
In Indonesia there are three types of Micro finance institutions. After the
data gathered we then categorize the institution based on the status of
institutions. We can see the pattern arise from this categorize and the
different of approach. How profit oriented company approach and try to
help poor people is different with institutions that purely social
movement.

3.3 Scheme Comparison

After we have understood the philosophy and the target market for the
programs then we can compare schemes. We categorized the scheme that
have the same goals and target together and look at the scheme applied.
The comparison will look from the screening process, controlling process
and Non Performing Loan to see how the effectiveness of the programs.

3.4 Analyzing
The scheme characteristic can have different achievement to the MFI. We
will analyze the result, to see what are the advantage and the
disadvantage of the steps in the scheme. Also what is the impact of the
activity did MFI apply in the scheme that relates to the achievement of
MFI objectives

3.5 Conclusion
Conclusion of the research is that we try to see which the scheme that is
suitable for each target segment and look is there a chance to improve the
applied schemes. We also see are the scheme suitable with their target
market or there are other better scheme that are being applied by other
institutions.

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