Upload
jonah-long
View
215
Download
0
Tags:
Embed Size (px)
Citation preview
When you have no money……how do you get capital for business?
Co-operative EconomicsSelf Help GroupsHow to Get Capital for Business?Also known as:
Credit CooperativesPaluwagan (Philippines)Cash-go-round (Uganda)Bayanihan Banking System (Manila)Mandal (India)
Why Self-Help Groups?
If people have work, the family will be happy
If people have work, they will support the church
If people have work, they can become leaders in the church (qualification of a leader – he must manage his household well).
What is a Self-Help Group? 8-25 adults (usually 10)
Usually women Better in a homogenised
people with close social ties Contributing weekly to a
common fund Once it has grown, giving
that fund to one member to start a business
Structure of a Self-Help Group They elect their leaders They give a name for a group They decide to save a certain amount
(usually Rs50 per month) A savings account is opened in the group
name and operated by the leaders jointly They gather once a week and discuss the
family problems, social issues, health issues
Problems with Self-Help Groups Q. There are many emergencies that disrupt
savings A. Establish two common funds, one saving for
business, the other for emergency needs
Beyond Self Help Groups…
Once a group has demonstrated Capacity to Save Ability to manage finances, budget, repay loans
They can seek a micro-finance program that will grant larger loans based on their demonstrated credit Keep all the records so you can show your credit-
worthiness
Taking Loans
After three months They will have Rs15,000 they can start to take a loan from their own
group fund They should repay this money with a small
interest to increase the fund
Record Keeping
Individual pass book Savings register Cash book Loan register General register Minutes book Attendance register
What Businesses can they start Candle-making Fruit jiuce, Fruit Jam,
Pickles Cleaning powder Flower Garenng Computer education Pepsi ice cream Mobible tea cart Watch repairing centre Sarees rolling Coffee making unit Wire Net baskts
Tiffen Dry Fruit Sales Fruit Plants Vending Wet – Dry Flour Grinding
Each according to their abilityRs 5000 or Rs 10,000
business capital
Impact of Self-Help Groups Break power of money-lender Women stand on their own legs by earning
through micro-enterprise Women participate in the decision-making in
all matters of the family. Before that they were dependent only on their husband.
Women participate in community development programmes and social issues
Increase in offerings to the church
Selection of Beneficiaries Regular member of the church Member of Self Hel group Poor situation Regular in savings and attendance Recommended by committee Feasible project which will generate regular
income and enough for repayments
The Duty of the Pastor Train the Members
(Eph 4:11,12) To share the gospel
In word In deed
Raise up leaders Deacons Elders
(Pastor can be a member of the committee not the supervisor, he should look after the spiritual not the financial – if the pastor is there, he will just forgive their debt and the project will not work)
Roles of Committee
Secretary Treasurer One elder or deacon 2 beneficiaries Program Coordinator
Economics of the Project
Beneficiary Income Ave income per day Rs100 x25 = Rs2500per mo Costs per day Rs30 = Rs750 per
mo Labour costs Rs 50 x 25 days = Rs1250 Total left in hand Rs500 Less repayment per month Rs300 Total surplus Rs200
Problems
Q. Should you charge interest? A . Collect a small service charge
Q.Is this different to tithing? A. Yes, they are already tithing
Q. Why are men not encouraged? A. Yes be involved but do not take a prominent
role over the women Q. If members do not pay in time, what can we do?
The group must take responsibility