September 11, 2011
 
As part of an ongoing effort to fully migrate risk ratings to our new and enhanced risk rating system, Kiva has conducted a re-assessment of the level of risk posed by this institution.
 
During this re-assessment, our analysts were able to gather updated operational and financial information about the institution, as well as speak with key members of the staff. 
 
Kiva's new risk rating system, which now includes half stars, has enabled us to display Micro Start's risk rating with a higher level of granularity. As a result, Micro Start's risk rating will now be displayed as 1.5 stars instead of 2 stars. 
 
We have prepared a blog post with more information on Kiva's new and enhanced risk rating system, along with a chart showing the relative magnitude of the overall changes for Kiva's portfolio.  To view that, please go here: http://www.kiva.org/updates/kiva/2011/09/07/kiva-risk-ratings-now-with-half-stars.html.
 
Micro Start has been informed of the change in the display of their rating on Kiva's website.
 
Original Partner Description

Micro Start, (Action des Femmes pour le Développement) is a microfinance institution based in Ouagadougou, Burkina Faso. It was founded by eight Burkinabe women, each of them experienced in microcredit or entrepreneurship. Eager to use their experience and commitment to help poor women entrepreneurs, the group founded Micro Start using their own capital, and started providing microcredit services to women entrepreneurs in 2000. Members of this original team continue to manage the organization’s day-to-day activities and drive it forward under the institution’s core values of solidarity, transparency, social justice, equality, and Christian faith.

Micro Start’s principal objective is to become a professional microfinance institution offering financial services, advice, and trainings in order to:

•    Create or reinforce the income-generating activities of Burkinabe women
•    Collect obligatory and voluntary savings in order to foster clients’ financial independence
•    Create or improve solidarity among solidarity group members
•    Provide women with access to necessary materials and equipment for their businesses
•    Build women entrepreneurs’ skills in management, business administration, etc.
•    Create jobs
•    Improve the living conditions of its clients’ communities

Micro start currently offers the following products to its clients:
•    Solidarity group loans: Micro Start’s leading loan product. Provided to self-selected groups of 2-10 women entrepreneurs. Starting loan amount is approximately $50.
•    Individual loans: Provided to female and male clients with larger capacities, many of whom have “graduated” from solidarity groups.
•    Motorbike loans: Provided to women and men who would like to purchase motorbikes. These motorbikes are important tools for entrepreneurs who must transport products to and from markets for sale.
•    Bicycle loans: Provided to women and men who would like to purchase bicycles.
•    Gas stove loans: Provided to clients who would like to purchase gas stoves in order to stop cooking with wood and charcoal (which is harmful to the environment).
•    Obligatory and voluntary savings accounts
 
Through its network of 5 branch offices, Micro Start serves the areas of Ouagadougou, Koupéla, Zorgho, Mogtédo, and Boulsa. True to its original purpose of serving poor women, Micro Start serves a 92% female client base with a continually evolving selection of appropriate, high-quality financial products and services.

Kiva HelpRepayment Performance on Kiva

    This Field Partner All Kiva Partners
  Start Date On Kiva Apr 21, 2011 Oct 12, 2005
Total Loans $743,425 $539,779,750
Amount of Raised Inactive Loans $0 $395,825
Number Of Raised Inactive Loans 0 277
Amount of Paying Back Loans $293,300 $111,481,150
Number Of Paying Back Loans 165 115,292
Amount of Ended Loans $450,125 $427,902,775
Number Of Ended Loans 560 549,684
Delinquency Rate 1.40% 3.29%
Amount In Arrears $3,412 $2,384,778
Outstanding Portfolio $243,609 $72,582,749
Number of Loans Delinquent 23 10,606
Default Rate 0.68% 1.01%
Amount of Ended Loans Defaulted $3,046 $4,334,868
Amount of Ended Loans $450,125 $427,902,775
Number Of Ended Loans Defaulted 9 14,050
Currency Exchange Loss Rate 0.00% 0.06%
Amount of Currency Exchange Loss $0 $298,028
Refund Rate 0.06% 0.82%
Amount of Refunded Loans $450 $4,417,000
Number Of Refunded Loans 1 4,864

Kiva HelpLoan Characteristics On Kiva

    This Field Partner All Kiva Partners
  Loans To Women Entrepreneurs 83.20% 74.09%
Average Loan Size $245 $417
Average Individual Loan Size $1,722 $656
Average Group Loan Size $904 $1,813
Average Number Of Entrepreneurs Per Group 4.7 8
Average GDP Per Capita (PPP) in Local Country $1,284 $3,463
Average Loan Size / GDP Per Capita (PPP) 19.05% 12.05%
Average Time To Fund A Loan 1.45 days 5.29 days
Average Dollars Raised Per Day Per Loan $168.37 $78.90
  Average Loan Term 9.4 months 10.05 months

Kiva HelpJournaling Performance on Kiva

    This Field Partner All Kiva Partners
  Total Journals 307 268,948
  Journaling Rate 40.27% 42.09%
  Average Number Of Comments Per Journal 0.01 0.09
  Average Number Of Recommendations Per Journal 0.00 2.06

Kiva HelpBorrowing Cost Comparison (based on 2011 data)

    This Field Partner Median for MFI Peers in Country All Kiva Partners
  Portfolio Yield 26.80% 26.80% 34.93%
  Profitability (Return on Assets) 4.9% 4.9% -1.11%
  Average Loan Size (% of Per Capita Income) 211.20% 67.30% 42.70%

Kiva HelpCountry Fast Facts

Field Partner Staff

Diana Biggs
Jean-Pierre Compaoré
Lydie Gnoumou
Rosine Mbainaissem
Marcelline Zouma