Adding training on financial management and gender equality to microfinance in Vietnam
Context
Throughout the Global South, women make tremendous economic contributions to their households. Microfinance – financial services to poor individuals – aims to empower women by influencing their decision-making power and enhancing their socio-economic status. However, studies have shown that microfinance support in the form of physical capital alone cannot help micro-enterprises become profitable, especially the ones owned by women. Researchers contend that hard skills such as business management are important to make an enterprise productive and profitable. Therefore, many microfinance organisations include business training programmes to improve enterprise outcomes.
Tao Yeu May Fund (TYM), a large microfinance institute in north Vietnam, has been imparting business trainings to its clients, in which it combines modules on gender issues and modules on business knowledge into one training program on gender and business.
In 2011, 3ie collaborated with researchers from University of Groningen, Wageningen University and Can Tho University to determine the socio-economic impact of the gender and business training provided by TYM to its female clients. The trainings provided by TYM are based on the Gender and Entrepreneurship Together Ahead for Women in Enterprise Training Package and Resource Kit, designed by the International Labour Organization, which have been modified according to Vietnam’s context.
The randomised controlled trial compared two treatment groups with a control group. In the first treatment group, female clients and their male partners were invited to join the trainings. In the second treatment group, only the women joined the trainings. There were no extra trainings in the control group.
Evidence
The study found that the combined gender and business training led to significant improvement of gender and business knowledge of the women who participated in the trainings. The improved knowledge resulted in improved business practices. The results were similar for the groups that included male partners and those that did not.
The study findings also found positive impacts of the trainings on business performance, such as improvements in profits and profit margins.
Evidence impacts
Type of impact: Change policies or programs
Decision makers use findings from an evaluation or systematic review to adjust their programming to fix targeting, cash transfer amounts, training modules or other factors that inhibit the policy or programme’s ability to achieve its intended impacts.
This is one of 3ie’s seven types of evidence use. Impact types are based on what we find in the monitoring data for an evaluation or review. Due to the nature of evidence-informed decision-making and action, 3ie looks for verifiable contributions that our evidence makes, not attribution.
Read our complete evidence impact typology and verification approach here.
Close windowEncouraged by the positive study findings, TYM has decided to integrate the trainings at their regular member meetings, beginning with financial training. TYM has also integrated gender training as part of the services offered to their clients. These trainings are part of a module developed by the International Labour Organization called the Gender and Entrepreneurship Together Ahead training. They are centred on promoting gender equality, developing women’s confidence, promoting basic enterprise management and identifying business opportunities.
Type of impact: Scale-up a program
When programs found effective are scaled up.
This is one of 3ie’s seven types of evidence use. Impact types are based on what we find in the monitoring data for an evaluation or review. Due to the nature of evidence-informed decision-making and action, 3ie looks for verifiable contributions that our evidence makes, not attribution.
Read our complete evidence impact typology and verification approach here.
Close windowSuggested citation
International Initiative for Impact Evaluation (3ie), 2020. Adding training on financial management and gender equality to microfinance in Vietnam [online summary], Evidence Impact Summaries. New Delhi: 3ie.
Evidence impact summaries aim to demonstrate and encourage the use of evidence to inform programming and policymaking. These reflect the information available to 3ie at the time of posting. Since several factors influence policymaking, the summaries highlight contributions of evidence rather than endorsing a policy or decision or claiming that it can be attributed solely to evidence. If you have any suggestions or updates to improve this summary, please write to influence@3ieimpact.org
Last updated on 16th November 2020