Does the Institution Provide Education?

• To succeed in business, entrepreneurs funded through a microfinance institution may need financial advice. Evaluators should ask whether the institution provides adequate financial counseling and education to the entrepreneurs. Evaluators should then question whether the institution should implement a business course that teaches skills such as budgeting, planning and managing a business. They should also question whether entrepreneurs would benefit from more one-on-one financial counseling or from mentoring. An experienced entrepreneur who has succeeded through the program might mentor a new one.
  
  

What Cultural Factors Affect Entrepreneurs?

• Evaluators should also ask how cultural factors may influence entrepreneurs' decision to take part in the program, as Anis Ahmad Dani says in the book "Assets, Livelihoods, and Social Policy." The microfinance institution might need to conduct an outreach campaign to make loans or other forms of financial aid more socially acceptable. Likewise, evaluators should question whether a particular demographic, like younger men, participates more from the program than other demographics. If so, the institution might engage in an outreach campaign for women, elderly people or other marginalized individuals.
  
  

Does the Institution Use Funds Efficiently?

• Evaluators should conduct a thorough audit of the institution's finances to ensure they are reported accurately. They should question whether any conflicts of interest exist. For instance, a board member might unfairly channel loans to himself or his friends. Then, evaluators should question whether the institution makes wise decisions in distributing funds, asking whether entrepreneurs benefit from the sums given to them.
  
  Evaluators should also question whether each funding decision ultimately helps to fulfill the institution's mission, like earning profits for shareholders or benefiting the local society. For instance, a sustainable farm might provide inexpensive, healthy food for a community while providing an income for a family. Regardless of the institution's mission, evaluators should always question whether projects have harmed or improved society and the environment.
  
  

Does the Institution Have Adequate Expertise?

• The evaluator should question whether the institution's employees have adequate expertise to serve their target population. She should question whether the institution provides adequate training for staff and retains qualified employees. The evaluator should question whether the board of directors has clearly defined the institution's goals and objectives. She should also consider whether the organization's leaders have structured the institution wisely by creating departments to handle specific tasks and delegating responsibilities to capable individuals. She should consider how closely the institution works with people from the target population, as doing so will help the institution to understand their needs and influences.