Impact Area: Micro-entrepreneurship

When microcredit is coupled with effective business education, microentrepreneurs gain skills and knowledge, improve financial literacy, establish better business practices and increase their revenues.

GP's investments: Most microfinance institutions and cooperatives with credit programs already deliver standard orientation on credit policies and loan practices. Many of our partners-including the five that we've chosen specifically because of their excellent micro-entrepreneurship programs-go beyond this foundation to deliver substantive, targeted education.

Examples from our portfolio: GP partner COMIXMUL is an all-woman cooperative in Honduras that has created educational "ladders for the poor." All members have access to a training curriculum that starts with the basics in household finance and ends with certification in specific skills like baking, jewelry-making and salon services. For example, Nora, a baker and co-op member, has added custom orders and catering with help from COMIXMUL training. She now spends less time in a market stall, more time with her family and earns more.

What next : GP is continuing to define best practice in effective business education among microfinance institutions and cooperatives. We have identified several new partners with strong education programs in which we plan to invest in 2011-12.