2. Spiritual Transformation within the OI Network: Field Experience & Findings 7 th Annual Microenterprise Conference March, 2004 Suzy Salib-Bauer, Senior Technical Analyst Product Development Division, OI Network © Opportunity International, 2004; All rights reserved; do not copy or distribute without permission

3. Overview of Opportunity International 27+ partners in four regions 487,000 clients $224 avg. loan size $123M in total assets $84M in outstanding loans 2.65% arrears > 30 days

4. Mission & Motivation Mission: To provide microenterprise development services that enable clients to transform their businesses, families & communities, without regard to race, religion or gender. Motivation: To respond to Jesus Christ’s call to serve the poor.

5. “Triple Bottom Line” Outreach Sustainability Transformational Impact

6. Economic Social Political Spiritual “Any positive change in attitudes, awareness, or beliefs that results in a higher level of spiritual practice or understanding.”

7. Transformation – How To? Mission statement Loan officers training Weekly/Bi-weekly meetings Client Training modules Loan Officer Incentives Institutional Resources Evaluation & Monitoring

8. Client Impact Monitoring System (CIMS) Purpose: Measure transformational impact Compare performance Network-wide Use information for management decision- making

9. Pilot-Testing at SAT Initial assessment to establish baseline Quantitative survey with 581 clients Qualitative survey with 56 clients Results to shape monitoring system SAT basics: 16 branches across Ghana 41,000 clients 91% women 80% portfolio in Trust Banks

10. Pilot-Testing at SAT Indicators developed by SAT staff through participatory process with senior management and loan officers Church attendance Prayer and devotional life Leadership in church activities Tithing

11. Quantitative Survey Findings Not what was expected….

13. Quantitative Survey Findings

14. Possible explanations Need to appear “holy” to be credit worthy SAT’s Christian reputation growing Mature clients are busier with business

15. Open-ended Responses More trust in God – 17% More Christian business practices – 12% More patient with others – 12% More thankful to God – 11% More prayerful – 9%

16. Qualitative Findings Prior to joining SAT… Not attending church regularly “…Because I didn’t have money to pay tithe and offerings my attendance was poor.” – SAT client Not employing Christian business practices “Because I was not able to make ends meet, I cheated my customers. I inflated the prices of my goods.” – SAT client

17. Qualitative Findings Currently… Able to pay tithes and give special offerings “ God has been so good and with SAT’s help, I’m able to pay my tithe and this has made me feel good.” – SAT client

18. Qualitative Findings Increase in church attendance and leadership “I am now an active member of the church and even a leader of a group advising people on the need to serve God.” – SAT client “(Attending church) has made me stop certain evils, especially bitterness and backbiting.” – SAT client

19. Qualitative Findings Application of Biblical principles to business The church gives us a lot of training and advice…(for example) how and why we should refund monies overpaid to us by our customers.” – SAT client

20. As a result… Added questions to CIMS survey on Training in business ethics Participation in worship services Participation in other religious activities Strength of relationship with God

21. Spiritual Transformation In the past… Low self-esteem and little confidence (28) “ I felt that society looked down on our family, thinking we were lazy.” “I was always crying because I had little to do and little money.”

22. Spiritual Transformation In the past… Social isolation and shame (13) “My family members would not inform me of ceremonies or events because I had no money.” “My dignity as a woman was affected. You know there is no respect for the poor. I had no friends.”

23. Spiritual Transformation In the past… Conflict with family and children (7) “I used to beat my children in response to small provocations because I felt bad about my life. My children were withdrawn and they disobeyed me often.”

24. Spiritual Transformation In the present… Greater self-esteem and more confidence (25) Involvement in family functions (e.g. funerals, naming ceremonies, etc.) - (22) Help others in need (7)

25. Spiritual Transformation In the present… “I am now accorded so much respect and counted among the lots.” “Now when there is a problem my neighbors and family members inform me because they know that when I am not able to help in person, I can assist financially.”

26. As a result… Added questions to CIMS survey on: Self-confidence Participation in community activities Social Civic Worship/Religious Other Giving/donations Money or in-kind Overall quality of life

27. Network-wide Challenges Commercial pressures Systems/operations Management decision-making Rewards/recognition