Drew Tulchin
Partner, Social Enterprise Associates
drew@socialenterprise.net

“Microfinance and the Double Bottom Line: Measuring Social Return for the Microfinance Industry and Microcredit with Education Programs”

Paper Abstract:
Microfinance’s value as a development tool is well established, with average annual growth over 30% and more than 66.7 million clients.[1] However, supply falls fall short of demand. Currently, annual cash requirements are estimated at $5 billion while available donor funding is gauged below $1 billion.[2] Most private investors consider microfinance too risky, limiting cash flow potential from there. One investing segment aligns well with microfinance: Socially Responsible Investing, a $2.4 trillion industry growing 15% annually. They value the combination of financial return and positive social impact, termed the Double Bottom Line (DBL). Microfinance also offers both, Institutions benefit from promoting their DBL, but there are few tools to do so effectively. This leads to greater emphasis on just financial results. This paper presents an analytical framework for microfinance to consider the double bottom line and how microfinance might access these investors. The framework is particularly applied to microcredit with education programs as a specialized sub-segment of microfinance. Increasing the use of DBL in microfinance is a valuable addition to industry best practices, but the idea is in its infancy, so more voices and contributions are required to achieve better progress and viable solutions in this area.

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Biography:
Drew Tulchin, Managing Partner, defines his career in starting and building new ideas in the for-profit and non-profit sectors in the United States and abroad. Drew brings more than a decade of experience overcoming "Doubting Thomases" to achieve successful results and lasting organizations.

His professional experience includes work with non-profit microfinance institutions, for-profit international finance companies, networks, US non-bank lenders (CDFIs), and capital sources. He has written more than two dozen business plans for for-profits, social enterprises, and non-profit revenue generating programs. Prisma Microfinance’s co-written plan was a Global Social Venture Competition award winner and was published. Private sector experience extends to start-ups, a Bluetooth wireless firm and Shopforchange.com; socially responsible businesses (Working Assets Long Distance); and community non-profits. He began his career in National Community Service, first as a VISTA (US domestic equivalent to Peace Corps) and then an AmeriCorps Team Leader with the East Bay Conservation Corps in Oakland, California.

Drew received his MBA from the University of Washington in Seattle. He received his BA, Cum Laude, double major in History and International Relations from Washington University in St. Louis. His studies included a year abroad at Sussex University, UK.

Drew currently is working with Grameen Foundation USA, managing their High Growth Partners Project, as well as contributing to a CGAP funded social indicators measurement action research effort.