CENTRE FOR SELF-HELP DEVELOPMENT

Institute of micro-finance and cooperative development.

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Creating New Entrepreneurs: An Answer to Unemployment

On the invitation of the Grameen Trust, Bangladesh a delegation of nine senior Nepalese microfinance practitioners led by Mr. Shankar Man Shrestha, Chairman of CSD visited Bangladesh from February 24 – March 1, 2019 to study the Nobin Program of Grameen Trust which has been focusing on creating self-employment for the unemployed youth of Bangladesh. The visit was organized for the participants to get acquainted with the objectives, approach and implementation modality of the Nobin Program (NP).

Taking forward the Grameen Bank as a Social Business, Nobel Laureate Prof. Muhammad Yunus sought ways to tackle the problem of unemployment among the second generation of Grameen members’ families. The GB introduced higher education loan and scholarship programs for the children of their members. To address the global problem of unemployment, which is also a matter of serious concern in Bangladesh and achieve zero unemployment by turning unemployment into entrepreneurship, the Nobin Program was designed for and dedicated to the identification, incubation and promotion of new entrepreneurs, first starting with the young members of the Grameen families.

According to Prof. Yunus, every person is capable of becoming an entrepreneur. The Nobin Program was launched in 2013 revolving around the theme of ‘We are not job seekers, we are job givers’. Four Grameen companies (Grameen Trust, Grameen Telecom Trust, Grameen Kalyan and Grameen Shakti Shamajik Byabosha Ltd.) came together to form a Social Business Fund for the purpose and has been actively involved in promoting entrepreneurship among the unemployed youth.

The program focuses on the second generation of GB members, i.e. the children of GB members who have the vision and zeal to start or scale-up business and has a business/trade license. The age-bar is 18 – 35 years, which may be relaxed in case the new entrepreneur is a female. NP introduced a new financial mechanism where loans are replaced by equity participation and facilitated under a partnership model. The funding could range from USD 650 – 6,500 depending on the business plan and repayment can span up to 2-3 years. Fund disbursement and collection is carried out through bank account/mobile banking to avoid any fraudulent practice. NP has the scope to provide fund to the entrepreneurs cycle after cycle as the business grows in size and quality.

Screening camps are held in the regional level, and sometimes at the central level, where the prospective candidates are allowed to present their business plans. Discussions on the presented plans are held between senior officials and the applicants to sort out various issues and viability and feasibility of the plan. The candidate presents his/her business module along with SWOT analysis at the Social Business Design Lab where the Approval Committee approves the business plan. The staff at the Unit Office has to ensure that the correct applicant is recommended and detailed background check of the applicant is carried out.

During the visit, the delegation attended one Central Design Lab at the Head Office of Grameen Kalyan and another regional Design Lab in Singair, Manikganj and visited the Unit Office as well. They also interacted with the new entrepreneurs (NEs) following an on-site visit of their business. They were briefed on the software, NUPMS, developed by Grameen Communication to monitor the performance of the entrepreneurs as well as the units and their employees.

Due to their belief in the youth, as of December 2018, the four Grameen companies have generated 38,253 projects and invested USD 46.28 million. These NEs have created 30,034 additional jobs for other unemployed youths. The program is a live example that the youths require proper guidance and financial access to meet their vision and not charity or donation. Just providing funds in the name of entrepreneurship does not serve the purpose. Close monitoring, follow-ups and guidance are a must for successful implementation of the program.

The youth is a powerful force, which can make or break the future of a country. As per ILO report unemployment rate in Nepal is 23.8%. Thousands of Nepalese youth’s untapped potential is being overlooked and doors of economic opportunity continue to remain closed.

In order to tackle unemployment in Nepal, the team, on their return, has decided to replicate a similar program in their respective organizations as well. In their first phase, the MFIs will select a branch each to initiate the new entrepreneurs (NEs) program and will start collecting data for prospective NEs. CSD will act as a focal point to facilitate and guide the implementing MFIs in their respective areas.

The delegation comprised of Mr. Shankar Man Shrestha, Chairman of CSD, Dr. Gopal Dahit and Mr. Man Bahadur Tharu from Unique Nepal Laghubitta Bittiya Sanstha Ltd., Mr. Dambar Bahadur Shah from Kisan Bahuuddeshiya Sahakari Sanstha Ltd., Mr. Ram Prasad Kafle from Nawaprativa SACCOS Ltd., Mr. Suraj Prasad Acharya from EDCOL, Ms. Shova Bajracharya from Manushi Laghubitta Bittiya Sanstha Ltd., Ms. Gita Giri from Nepal Women Community Service Centre, Ms. Aasmani Chaudhary from Rural Women Development Centre and Ms. Sharada Pokhrel from Upakar Laghubitta Bittiya Sanstha Ltd.

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