In addition to conducting company and country risk analysis, the investment team assesses clients using MOTIV, a proprietary tool that helps determine whether the goals of potential investees are aligned with Grameen Foundation’s social mission. Although the tool has been customized to fit within our organizational mission, we recommend that like-minded investors utilize similar scoring tools to rigorously score social returns and welcome inquiries from interested parties that wish to learn more about our methodologies.
MOTIV comprises five focus areas with a total of 40 indicators.
M – Mission & Organizational Commitment
O – Outreach
T – Transformational Impact/ Treatment of Clients
I – Investment Opportunity for the Poor/ Innovation
V – Verification & Measurement
M - Mission & Organization Commitment:
High impact is only possible because of deep organizational commitment. Therefore the mission and vision of the enterprise represents the starting place for our analysis.
O – Outreach:
The number of people or families that organizations work with is important for any analysis, but we seek to go beyond simply “how many” and explore both who the enterprise is working with and what that relationship looks like.
T - Transformational Impact:
We collaborate with enterprises that possess the potential to catalyze transformation impact in the marketplace and become tomorrow's "Industry Pioneers" with innovative business solutions that are scalable, replicable, and provide access to new markets.
I - Investment Proposition for the Poor:
We evaluate the Investment Proposition from the perspective of the end constituent at the Bottom of the Pyramid (BOP). This ranges from creating livelihood opportunities for a micro-franchisee entrepreneur with a "business in a box" concept to increasing financial inclusion through innovative electronic payment solutions. Items assessed as part of this process may include determining the internal rate of return on investment for the end constituent, incremental income potential for the opportunity, entry costs and availability of financing.
V - Verification & Measurement:
Whether it's a social enterprise or a microfinance institution, businesses that claim to help the global poor must be able to objectively measure social performance. We typically require adoption of a social performance measurement tool such as the Progress out of Poverty Index® (PPI®) to keep institutions focused on serving the poor, while simultaneously providing enterprises valuable business intelligence about their customers that will allow them to improve their products and services.
Note: Grameen Foundation's MOTIV Tool is available in two different versions, one is tailored to social enterprises, and one is tailored specifically to microfinance institutions (MFIs). In addition to the mission, outreach and verification focus areas, the MFI version also focuses on Treatment of Clients (T), incorporating many of the Client Protection Principles, and the Innovation & Value-Add of the institution (I).
* MOTIV is a proprietary tool developed by the Grameen Foundation and not a third-party social rating. For questions about our methodology or to schedule a demo of the tools, contact Stephanie Simpson, Portfolio Management & Impact Assessment Officer, at capitalmarkets [at] grameenfoundation.org