CENTRE FOR SELF-HELP DEVELOPMENT

Institute of micro-finance and cooperative development.

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CSD Initiates Two-year Entrepreneurship Development Program for Microfinance institutions.

The Centre for Self-help Development (CSD) has initiated an entrepreneurship development program with the aim of developing about 5,000 entrepreneur women among microfinance members within a period of two years. This program has been started in coordination with 18 microfinance institutions considering the fact that there are currently a large number of passive members in the microfinance sector and even the members who have taken loans have not been able to embrace enterprises sustainably.

The program will go through the three-tier training process. In the first tier, at least 20 senior officials of MFIs and cooperatives organizations will be provided Training of Trainers (TOT) to groom them as an entrepreneurship development trainers. In the second tier each of the 20 trainers will develop again at least 20 branch manager and field staff of their respective organization as an entrepreneurship development trainers. In the third tier, each of the branch managers and field staffs will identify 20 potentials members to undertake locally potential enterprises and become self-employed entrepreneurs. They will also prepare a 2-year plan to execute in their own branch. This entire process will be facilitated by the senior officials who has had TOT and monitored by assigned officials of CSD.

To this effects, a first tier 4-day residential Entrepreneurship Development Training of Trainers (TOT) has been completed on March 14-17, 2023 at Yellow Pagoda Hotel, Kathmandu. In total 24 senior officials from 18 microfinance institutions and microfinance cooperative organizations and 4 officials from CSD have been provided with TOT training.

In the opening ceremony of the TOT Program, Mr. Shankar Man Shrestha, Chairman of CSD said that keeping in view the current state of microfinance members, it is a high time for MFIs and cooperatives to be seriously concerned about the micro-entrepreneurship development of each of their members by enhancing their business skills and restore the lost goodwill of micro-finance. “Initially, microfinance practitioners had laid the foundation for the transformation of socio-economic status of vulnerable and destitute families, but now change are moving in an opposite way. Newspapers and social media are filled with negative views about microfinance. Now the time has come to be ashamed to even be introduced as a microfinance practitioner.” He further said, “What we have been doing now is not right. MFIs are providing loans more than the capacity and needs of members. No attention has been given to imparting skills to the members and seen how the loans are being used. We have not checked what and how the members are doing with money we lent. We focused on only more and more disbursement of loans. Now the members are in a loan trap and running away from their houses for fear of encountering with MFIs staffs. Besides, MFIs lending deviated from the poor to the rich. This current situation is due to our own evil deeds. So, what to do now? Stop all the wrong doings we have been and do business in right manners. To this effect, we should reach each and every client and serve their needs. Still more than 1 million families are below the poverty line. We must focus the downtrodden. Looking at their needs and capabilities, we don't need to make big investment. Locally available resources and means should be mobilized to make them prosperous.” Shrestha said.

The TOT was facilitated by Mr. Gokul Pyakurel and Mr. Rajan K.C. They taught on the learning of identifying right enterprise and process to develop entrepreneurship, marketing skill and also the enterprises and entrepreneur's classification, calculation of Return on Investment (ROI), Break Even Point (BEP), Portfolio at Risk (PAR), Business Selection, and preparation of a Business Plan etc.

The first day classes were based on theoretical and practical knowledge. In the second day, the participants were divided into four groups and observed and studied project of four different branches and members of the Swabalamban Laghubitta Bittiya Sanstha Ltd. and the Manushi Laghubitta Bittiya Sanstha Ltd. in Kavrepalanchowk district. In the field work, the participants had collected data and information as per provided guidelines. In the third and fourth day of the training all the participants of the four groups analyzed and prepared business plan on the basis of collected data. The instructors also guided them to postulate data and calculate different indicators. Lastly, in the fourth day each group has presented their business plan with the facts and figure.

This program at the end will help microfinance members to become entrepreneurs, explain business conditions of their ventures, help in business promotion, suggest potential and sustainable businesses/ enterprises, develop professionalism in existing enterprise, increase production, ensure marketing and get higher price of the product.

The evaluation of the training shows that the participants learned the skills and knowledge to know the microfinance members and their enterprises, businesses, understand their conditions and assess the possibilities and challenges seen in the business. This also enable MFIs and their staff to develop their members as an entrepreneur in an organized way that endeavor to secure microfinance investments.

 

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