Project Pakistan Model: Micro-enterprise
part of the program is implemented
through the formation of the Development
Organizations (DO), which are
community based, volunteer organizations
(men and women). They are given training
in community management skills. There
are two aspects of this program:
2. Skills training for income generation
Micro-credit is based on the premise that people who really need access to financial
resources are the very people who are denied that access by large financial
institutions. The notion that these people are high risk in terms of recovery
of loans has been proven wrong by many such programs run all around the world.
This is partly due to the fact that the loans are administered and managed by
the people in the community. The salient features of the program are:
- DO passes a resolution
and approves credit for one or more of its members through an agreement of
80% of its members.
- HDF Social Organizer
appraises the request. Following points are closely observed:
a. Whether the potential
borrower is skilled enough to run the enterprise.
b. Whether the potential borrower has a business plan or not. This includes
market survey and market analysis to find out the exact demand for the product
or services that will be provided by the proposed business.
c. Whether the borrower has a financial plan for the business or not.
d. Whether there is a management plan in place.
e. Whether there is a production plan in place or not, in cases where a product
has to be produced.
f. In many cases some skills training is provided to ensure the success of
the proposed busines
- The required product
is purchased from the vendor by HDF.
- The product is sold to
the borrower at a mutually agreed price.
- All the required legal
paper work is completed.
- A recovery schedule is
handed to the borrower and the DO.
- The recovery process
- Another very important
aspect of these DOs is that they encourage saving by the community member.
These savings are then used for internal lending. This is another way of reducing
dependency on the outside sources
HDF conducts training workshops
to develop skills or enhance the existing skills of the community members who
show an interest to acquire these skills for income generation. So far these
work shops have been carried out in the following areas:
a. Garment sewing
d. Food preservation
e. Live stock training
f. Enterprise management training
g. Computer skills
Date/Time Last Modified: 6/17/2002 4:29:48 PM
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