Friday, June 13, 2014

Turning dreams into reality with their own savings

A dearth of capital is usually an impediment in the execution of many new business ventures. But some women entrepreneurs have turned their dreams into reality by choosing business ideas that require a minimum of capital, where their savings and skill-sets alone have helped set the ball rolling.
Prospective women entrepreneurs often are ignorant of the Reserve Bank of India (RBI) guideline that no collateral is required for bank loans of up to Rs 1 crore in the micro and small enterprise sector. Nor do they know of the several schemes of assistance offered by the Central and state governments.
Undeterred by these hurdles, many women with the passion to become entrepreneurs have succeeded in creating a niche for themselves. Having reached a critical threshold in their businesses, they are now looking for funding.
Gagandeep Kaur, 25, has been supplying ready-to-eat meals to over 350 clients at their doorstep every day. She started her venture four years ago, when her father died and the family needed a source of income. This business needed a minimum of investment and with the help of her mother she forayed into preparation and distribution of fresh meals under the name 'Ghar Ka Khaana'.
Kaur and her team of eight now have their full with orders for birthday parties, kitty parties and small wedding celebrations. "I am now thinking of opening a restaurant but that will need funds. Until now the investments were meagre but for expansion we may look for financial help," she explained.
Manisha Ahlawat, 38, who worked for 10 years with Reliance and Mahindra Retail, dreamt of opening a 'women only' fitness centre. "I put at stake my own savings and the savings of my close relatives. My journey began in 2010 when I became the master franchisee for Vivafit Portugal in India, and rolled out Vivafit India Inc. In a short span we opened two fitness centres at Gurgaon and one in Delhi. Franchises were given in Guwahati and Chandigarh, and we may expand our footprint in Lucknow and Mumbai shortly."
Further expansion, according to Ahlawat, will need funding from banks. She realises that in the wake of the slowdown and the bad-loan problem of banks, borrowing money from banks will not be easy. But a woman entrepreneur should be ready to face all this, she added.
Leena Singh, 40, of Shree Kalindi Art, has recently relocated to Chandigarh from Mathura. Born in Madhya Pradesh and married into a Mathura family, she started working with a local NGO and then began making brass handicrafts. Location in business really matters, said Singh, who explains that in small towns a manufacturer is dependent on traders, who make fat margins.
On the advice of close relatives, she shifted base to Chandigarh to cater to a bigger market, she explains, adding, "I regularly participate in exhibitions across India and have won appreciation. But I need funds to create better objects, as I have many ideas. I have a small warehouse and wish to display items in a more professional way. My artifacts get exported too. But designers get peanuts due to lack of branding."
Shreya Singh, 28, a diet consultant in Chandigarh, has one clinic each in Chandigarh and Panchkula. She wants to add more, and towns like Patiala, Ludhiana, Jalandhar and Amritsar are on her radar, but she wants to tread carefully instead of expanding too fast, too soon. "There is a huge market for diet consultants due to lifestyle problems these days. The initial investments are quite low, as the quality of consultation is more important. But in order to make value additions to your services, investments become indispensable," she said.
All these women feel that, having proved their worth, they may now face fewer road blocks in securing funds. They believe that venture capital and angel investment come with a high cost, and ask: why go in for costly funds when cheaper options are available? So bankers, get ready, for women borrowers are going to be knocking on your doors!

Source: http://www.business-standard.com/article/sme/turning-dreams-into-reality-with-their-own-savings-114050501268_1.html

Virtual business innovation centre to help women entrepreneurs

The Confederation of Women Entrepreneurs (Cowe), a Hyderabad-based non-profit organisation, in partnership with University of East London (UEL), is planning to set up a virtual Business Innovation Centre (BIC). The business-to-business portal aims to create a trusted circle of cooperation to support women’s ventures to trade in the global market place.
This is the first International European Union (EU) business centre in India and Cowe is the only organisation from India to be linked to the central portal at London, along with 164 other centres from 22 countries, Hannah Simcoe-Read, professor of entrepreneurship, Royal Docks Business School, UEL and the coordinator for the centre, told Business Standard.

According to the findings of UEL’s study on women’s enterprises, women around the world face difficulties in marketing their products and this initiative will help them accelerate their business growth by giving them an international platform, she added.
This centre is part of UEL’s network of international small and medium enterprises (SME) Centres of Excellence in the BRIC countries (Brazil, Russia, India and China) and the EU, which will assist SMEs that are internationalising.
The centre will connect the community of international women entrepreneurs within BRIC countries and the EU in empowering and training. This centre will help in internationalising female entrepreneurial ventures and creating a special gallery to showcase and trade their products globally to support venture growth, governance and leadership skills, Simcoe-Read said.
Simcoe-Read came to India through the Indian School of Business (ISB)-Goldman Sachs women’s entrepreneurship programme in 2008 and selected Cowe from India, Cowe president Sandhya Reddy said.
Cowe will sign an MoU with CEL in January 2011. Under the partnership, a design studio will be set up in India to make customised products with the help of designers from the design institute of the University and Indian weavers.
The products will be custom-made, eyeing international buyers, Reddy added. “This partnership will bring the design aspect and the clusters. We have already started the work with sarees.”
The portal will display Cowe’s Indianised products, including handicrafts, jewellery, packaged foods and dress material and it will help in the overall business growth, Reddy added.The portal will come up in three phases with a total investment of Rs50-55 lakh, with the support from the Union ministry of micro small and medium industries .
The entrepreneurs can be a member of the centre with a Rs10,000 life membership fee. “Initially, only Cowe members can display their products. Later, we will source products from other states,” Suman Kumar, senior president of Cowe, said.

Source:  http://www.business-standard.com/article/sme/virtual-business-innovation-centre-to-help-women-entrepreneurs-110112300040_1.html

Sewa who Gave the Women Wings To Fly

Self-Employed Women's Association of India (SEWA) is a trade union for poor, self-employed women workers in India. SEWA members are women who earn a living through their own labour or small business. They are the unprotected labour force of India. Constituting 93% of the labour force, these are workers of the unorganized sector. Of the female labour force in India, more than 94% are in the unorganized sector. However their work is not counted and hence remains invisible. SEWA is strongly supported by the World Bank which holds it out as a model to be replicated elsewhere.

SEWA's main goals are to organize women workers for full employment and self-reliance. SEWA aims to mainstream marginalized, poor women in the informal sector and lift them out of their poverty. SEWA has interacted and has been advised by many law firms like HSA.
"Health and child care and insurance is also part of their economic condition. Without that you can't come out of poverty" – Dr Mirai Chatterjee, Director of Social Security, SEWA. SEWA has two stated goals, Full Employment and Self Reliance. They have 11 questions they use to evaluate their progress
  1.     Have more members obtained more employment?
  2.     Has their income increased?
  3.     Have they obtained food and nutrition?
  4.     Has their health been safeguarded?
  5.     Have they obtained child-care?
  6.     Have they obtained or improved their housing?
  7.     Have their assets increased? (e.g. their own savings, land, house, work-space, tools or work, licenses, identity cards, cattled and share in cooperatives; and all in their own name.
  8.     Have the worker's organisational strength increased?
  9.     Has worker's leadership increased?
  10.     Have they become self-reliant both collectively and individually?
  11.     Have they become literate?
Official Website: www.sewa.org


Waves Hair : Hair She Comes

Her passion for doing something creative and innovative in the hitherto unexplored area of hair extension never dwindled as she put in more and more efforts in studying the world of hair care and beauty.

The entrepreneurship in her awakened and she packed her bag and went to Brazil to explore the business and learn the tricks of the trade. “I was not sure of the global demand and supply equation of hair extension and I sat down to explore the demand of human hair on the net. The first site I saw was of Alibaba.com. I smelled hope as the site afforded me a fund of opportunities. I went through all the details about hair companies on the site and I decided to plunge into the vast arena,” she says.
 Virtually, with no experience of managing a manufacturing unit for an international product, she decided to have a go and went about setting her own company on the Alibaba.com's platform. Mallika Shreekumar, owner and CEO of Waves Hair, has since made waves in the business. Today, Waves Hair exports to countries in North America, South America, Eastern Europe, Southeast Asia, Africa, Mid East and Eastern Asia and Western Europe.
 
Completely managed by women, Waves Hair offers various hair extension solutions. The company uses 100% natural high quality Indian Remy hair with the latest technology incorporating the best methodology of Brazil, Italy, Germany & Korea, making it suitable for hair extensions, pre-bond keratin extensions & machine weft.

“In 2005, I took up a free membership at Alibaba.com as I was still learning the ropes of managing my company. However, I realized that that Alibaba.com offers great potential to grow my business in the international market. Within 2-3 months I had signed up for the Gold Supplier Membership,” says Mallika.

Mallika believes that B2B marketplaces are the best platforms for going global. “Being a Gold Supplier member of Alibaba.com has been integral in gaining the confidence of buyers and lends credibility to her business. “Today, 100% of Waves Hair's business comes from Alibaba.com. I get at least 5-6 enquiries from Alibaba.com everyday”, she is proud to announce.

 The platform afforded me umpteen opportunities opportunities to attend tradeshows and events around the world, including Paris and Germany. As a happy member of Alibaba.com, she recommends Alibaba.com to any aspiring businessperson. “I would advise entrepreneurs expevially the start ups looking for opportunities and success to try out Alibaba.com's services.”
Source: http://smeworld.org

India’s Poorless Poor Waiting to be Empowered

According to World Bank, 371 million people in India live in abject poverty. About 70 percent of the population lives in India's six lakhs villages. Majority of them live on agriculture produce by tilling lands and are engaged in petty business as micro entrepreneurs. Nearly 60 percent of the rural households do not have electricity and live without any basic amenities.

A major cause of poverty among India's rural people, both iniduals and communities, is lack of access to productive assets and financial services and social services. Micro-enterprise development, the only mechanism to enable the rural poor to generate income and improve their living conditions, attracted government attention only recently. As a result, micro-finance gained growing recognition as an effective tool in improving the quality of life of the rural poor.

This model of SHGs (Self Help Groups) bank linkage attracted attention as a possible way of delivery microfinance services to the poor. NABARD estimates that there are 2.2 million SHGs in India, representating 33 million members, that have taken loans from banks under its linkage program. This does not include SHGs that have not borrowed.

In India, the micro finance movement has almost assumed the shape of an industry, embracing thousands of NGOs/MFIs, community-based self-help groups and their federations, co-operatives in their varied forms, credit unions, public and private banks. According to SIDBI, during the last decade, the sector has witnessed a sharp growth with the emergence of a number of Micro Finance Institutions (MFIs) that are providing financial and non-financial support to the poor in an effort to lift them out of poverty. The MFI channel of credit delivery, coupled with the national level programme of SHG-Bank Linkage, today, reaches out to millions of poor across the country.

However, SHGs face problems in dealing with banks. In the midst of rapid upscaling of the SHG linkage, several groups and NGOs report denial of loans or delay in dealing with their proposals. The initial loan volumes are low. Often the banks require the groups to place all their savings with the bank, leaving little scope for internal lending of member's savings. The repeated visits, documentation requirements, lack of time on the part of branch staff to visit the groups in their villages and the lack of continuity of branch staff add to the woes of the groups.

The microcredit era that began in the 1970s quickly lost its momentum, to be replaced by a 'financial systems' approach. While microcredit achieved a great deal, especially in urban and semi-urban areas and with entrepreneurial families, its efforts in delivering financial services in the rural areas have been dismal.

Unfriendly attitude and middlemen

A classic example of how our rural banks works is given below. Periodical review meetings with the farmers are a regular feature in Indian Villages. One such meet was organized early November this year, in Chitrakoot in Bundelkhand region in Uttar Pradesh. The meet was called Rabi Ghoshti (Rabi Meet). It was attended by a large number of farmers. The meeting was held in the presence of Agriculture Production Commissioner.

Several issues highlighting the problems faced by the farmers in the region were discussed. Bundelkhand is a traditionally drought-hit area and has scant rainfall. Certain NGOs are active in the area but nothing much could be done. More often than not, farmers have to turn towards banks for funds.

The meet noted with concern the farmers' woes and the difficulties they face with the banks. There was a general consensus that either the banks are not friendly and ask for different documents or collaterals/securities throwing all norms to the dustbin or middlemen are active claiming a share from the loans granted. Numerous farmers even complained that many bank officials harassed them by wanting a commission on the loans. Serious monitoring of the working of our rural banks is almost not existent. Banks must find the time to analyse the reasons for these problems and design solutions that could work seamlessly in the field.

In India where microfinance movement is all set to attain the status of an industry, the role of MFIs must be streamlined. It is satisfying to note that numerous NGOs engaged in improving the lot of the rural poor have produced results which can easily work as model for our MFIs and rural development agencies.

It must not be forgotten that if India has to achieve the desired economic growth, the role of 'micro-finance' for the whopping rural population can not be undermined and no a non-sense approach is the need of the hour.

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