Income Generating Activities - Help Develop Criteria for a Micro-loan Program

Status: Just started
Step: 
1

One of the strategies put forward by the community to address the long-term support of the children, is providing opportunities for income-generating activities. Through skills training and business management, as well as the provision of one-time loans, we wish to help the community and the children be able to provide for themselves long-term.

In addition, funds set aside from the IGA will be used to purchase goats, which will provide milk for the family.

In this first step, we would like to gather input for the community to make decisions in the following areas:

1. Developing criteria for the selection of participants in an Micro-loan project
2. Developing criteria for assessing and selecting business types and/or ideas
3. Developing loan terms and repayment terms
4. Develop terms of continued participation in the Micro-loan project

The task has been previously started with some discussion - but we would like to focus it more on the above 4 areas.

If you have experience with micro-loan projects or can refer us to sources, please help post!

The information will be compiled and provided to the community to help them guide their decisions.

Hey Guys,

Funny enough, my research for my Masters was on Fruit drying (actually in Microwave power drying). More than the method used for drying it is more important and technologically more challenging to choose the other operations that must also be included in a drying process.

I found these two articles maybe to get a better idea of what I am mentioning.

http://www.earthlypursuits.com/wargarv/homecan1919/HomeCanDryVE27.htm

http://hgic.clemson.edu/factsheets/HGIC3084.htm

Let me know if you have any answer,

Raul

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Hello,

Eric, do you think this is worth looking into as an income generating activity? Are dried fruits used much in Kenya? What types of fruits are available? Do you think that dried fruit could be sold at the local markets to raise small funds?

Barb

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Barb,

I have not been able to see dried fruits being sold locally except for dried lemon which is used locally for a number of things one of which is to prepare sour porridge which many people like locally. I could do some research locally on this. There may be others am not aware of and i need to ask people around.I will share my findings ASAP.

Eric

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Dr. Lucy Steinitz of Stephen Lewis Foundation visited Kabondo on 1st and 2nd this month of November 2008 to carry out an assesment visit for possible support of the children's welfare and support project in Kabondo. In the course of this assesment she met the board of Kabondo Poverty Alleviation Organization (KPAO), the volunteers attached to the organization and the beneficiaries.

One such beneficiary she visited is a widow called Mrs. Benter Owino. Benter is a widow who has seen it all. Her husband died leaving her in constant illness and foour children to take care of amidst near abject poverty. She has leased nearly all her small piece of land to those who have the money to give her to survive with the children and take them to the local primary school. It is a pity having people plant and harvest produce all round her house for as little as $10. Benter has been giving portions of her land for years to these people to help her survive. The irony therefore is that she may have good crops next to her house which she cannot harvest because the land belongs to her but the crops belong to others. Add to thsi she lives in a dilapidated grass thatched house that leaks during periods of rains and that houses her four children 2 goats and 5 chicken.

It was therefore quite inspiring to find her making Samosas after a meeting with her children on what best ways to help them provide for their basic necesities. They therefore borrowed KShs 500 ($7) and started a business that is earning the family approximately KShs 50 per day (Approximately $1).They were motivated by the tarmacking of a road that criss crosses the village and which has increased the volume of human and motor traffic across the village.

She narrated to Dr. Lucy the challenges she is facing, the benefits she reaps from the business and a plan she has for the future which includes trying to raise approximately KShs 5,000 to 10,000 to expand her business to enable her gain atleast Kshs 300 a day. Lucy was so moved by her story and her efforts and offered to donate through the organization KShs. 5,000 to enable her expand her business.

We want to thank Lucy very much for reaching out to this strong woman as ultimately the only way to alleviate poverty is to help people to stand alone, take charge of their destiny and engage in activities that will improve their quailty of life.

Thank You Lucy and may God bless you abundantly.

Eric
Local Representative

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Dr. Lucy Steinitz of Stephen Lewis Foundation visited Kabondo on 1st and 2nd this month of November 2008 to carry out an assesment visit for possible support of the children's welfare and support project in Kabondo. In the course of this assesment she met the board of Kabondo Poverty Alleviation Organization (KPAO), the volunteers attached to the organization and the beneficiaries.

One such beneficiary she visited is a widow called Mrs. Benter Owino. Benter is a widow who has seen it all. Her husband died leaving her in constant illness and foour children to take care of amidst near abject poverty. She has leased nearly all her small piece of land to those who have the money to give her to survive with the children and take them to the local primary school. It is a pity having people plant and harvest produce all round her house for as little as $10. Benter has been giving portions of her land for years to these people to help her survive. The irony therefore is that she may have good crops next to her house which she cannot harvest because the land belongs to her but the crops belong to others. Add to thsi she lives in a dilapidated grass thatched house that leaks during periods of rains and that houses her four children 2 goats and 5 chicken.

It was therefore quite inspiring to find her making Samosas after a meeting with her children on what best ways to help them provide for their basic necesities. They therefore borrowed KShs 500 ($7) and started a business that is earning the family approximately KShs 50 per day (Approximately $1).They were motivated by the tarmacking of a road that criss crosses the village and which has increased the volume of human and motor traffic across the village.

She narrated to Dr. Lucy the challenges she is facing, the benefits she reaps from the business and a plan she has for the future which includes trying to raise approximately KShs 5,000 to 10,000 to expand her business to enable her gain atleast Kshs 300 a day. Lucy was so moved by her story and her efforts and offered to donate through the organization KShs. 5,000 to enable her expand her business.

We want to thank Lucy very much for reaching out to this strong woman as ultimately the only way to alleviate poverty is to help people to stand alone, take charge of their destiny and engage in activities that will improve their quailty of life.

Thank You Lucy and may God bless you abundantly.

Eric
Local Representative

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Hi Eric,

Were you able to find out any information on this or other areas of use for dried fruit?

Barb

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Hi Eric,

Can you provide a bit of information on how KPAO plans to operate a micro-loan program? How will people be selected? How will repayment be made? What processes with be used?

Once we have some idea of what the community has in mind, then neighbours can comment on them.

Thanks,

Barb

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Barb,

It is hard to come by dried fruit at least in the village of Kabondo. The only dried fruit which is readily available in local shops is lemon crystals which is popular with most people in the village and is useful in the preparation of porridge ( a delicious breakfast cereal made from maize flour).

Eric

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Hi Barb,

Thanks for the questions. What we have in in mind is a community driven micro-finance program where those willing to engage in gainful income generating activities will form groups of willing people who will then be affiliated to KPAO. Members of each group will identify those to benefit from the loans program at any given time and the next batch to benefit after the previous beneficiaries have repaid their loans.

The group members will act as a guarantor to the individuals they have chosen to benefit and will ensure at all times that she repays the loan to enable other members benefit. The group members will gather together and collect all installments due from their members and forward it to KPAO. Since these women are known to the members it will behoove them to ensure every member honours his/her financial obligations. The groups will be told that if a member they guarantee fails to repay the loan it will be upon the remaining group members to settle her debts. This will not only ensure financial discipline but it help group members identify for support only those they consider honest and trustworthy and bring pressure to bear on those they view to be potential defaulters.

Groups and representatives of KPAO will also help the members identify viable income generating projects that fits their specific areas, energy, ability and commitment.

This basically is how we want to start. The rest will be a learning process for us and we want to network and collaborate with other organizations who have carried out such small scale support systems to learn from them and pick up what we feel is relevant to the successful continuation of this activity.

Eric

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I realize that I may have missed some details somewhere here, but are these dried fruits to be sold to locals or to outside communities? Also, what fruits are available in abundance for this kind of activity?

Thanks,
Brenda

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Thanks Eric for the explanation.

What do you see as areas that neighbours can help here? Are there materials or resources that will be needed and neighbours can find? Do you need examples or contacts with other groups doing similar things in Kenya or other parts of Africa?

Does anyone have comments on the proposed ideas above? Input? Insights? Experiences?

We are all learning here, so sharing is encouraged!

Barb

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Barb,

The neighbours can help us in a number of ways
1. we need information on organizations who have done this in a smaller and manageable scale can help us track the progress of each and every member to ensure this becomes an engine for changing their lives.

2. We need neighbours to help us raise a minimum of $1000 to be able to start up the program with a few widows/guardians/foster parents and focus on them to make them learning points for the rest of the community members and to help jump start the program.

3. We need information materials on how best this can be done in settings of poverty, where the start up capital advanced today can be used the next day to address other needs like paying school fees to children, medication or food thus defeating the original purpose of individual family growth and development in a profitable venture. Such needs which are totally foreign to the original intentions of the beneficiary have led to the collapse of very viable projects and the despair of well meaning guardians willing to change their life situations.

4. We need to facilitate the travel of a few leaders of the widow groups/beneficiaries to other successful projects run by people who share their life situations and almost from scratch to boost their morale and enable them acquire skills and knowledge which they can employ as they embark on their own income generating projects.

5. We need information on which organizations can support such a project and their contact information.

I will post any other need as far as this project is concerned as we proceed with discussions on this very important project which aims to empower people to take charge of their lives.

Eric

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Hi Eric

Are you in contact with other organisations in your area who run similar microcredit schemes? A quick internet search lists several in and around Kisumu, I can let you have some details if you think that would be helpful.

Mary

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Hi Mary,

I have already contacted representatives of two organizations (ADOK TIMO and CENT) who have agreed to come share with our women groups the possibility of accessing start up loans for income generating activities. I came to learn that it is good to have the community members hear from a wide range of micro-finance institutions before making a decision since they charge different interest on their loans.

People generally shy away from them because of their high rates but they are still affordable compared to banks. You can post the details so i see what i know and what i don't.

Eric

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Hi Eric

I don't have the details to hand, but will have a look around the internet and post sometime over the next few days.

From what you write, are the community considering joining an existing scheme instead of starting your own?

Mary

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