Micro-Enterprise Development Strategy and Support Mechanisms

1. New Delhi: 22nd June 2011 Kudumbashree, Kerala Micro-Enterprise Development Strategy and Support Mechanisms

3. Kudumbashree • Poverty Eradication Mission of Government of Kerala • Started in 1998 • 3-tier Community Organization structure embedded in local self governments • Neighbourhood groups • Area Development Society (Ward level) • Community Development Society (LSG level) • State and District Missions to support and facilitate functioning of CBO

4. Kudumbashree - Coverage • LSGs – Total - 1043; Rural - 978 • CDS – Total - 1061; Rural - 977 • ADS – Total - 17,956; Rural - 16012 • NHG – Total – 2.07 lakh; Rural – 1.86 lakh • Families–Total – 38.57 lakh; Rural – 34.36 lakh (~ 50% of the families in Kerala)

6. Structural flows • CDS sub committees • Micro finance • Micro enterprises • NREGS and collective farming • Social development • Infrastructure • ADS • Members given corresponding responsibilities • NHG • Income generation activity volunteer • Health and education volunteer • Infrastructure volunteer

7. Kudumbashree - Activities • Micro Finance • Thrift & Credit • Bank Linkage, Interest Subsidy, Matching Grant • Financial Literarcy • Audit & Account

8. Kudumbashree - Activities • Collective Farming by women groups • Women collectives for food security • Cultivation of land on lease by forming joint liability groups of women farmers • From Unskilled labourerto producer - cultivator • Convergence of local government agricultural support interventions • Scientific mode of cultivation and better know how of scientific cultivation practices • Have a say on the produce- price, what to produce, when to produce, how to produce • 25000 hectares of land under cultivation through Kudumbashree intervention

10. Kudumbashree - Activities • NREGS • ADS (Ward-level) functioning as mate • Involvement in registration, job-card issue • Social Audit • Integration with agricultural interventions by Panchayat and KrishiBhavan. • Eg: PerambraGramaPanchayat – conversion of 140 acres of fallow land.

13. Kudumbashree - Activities • Micro Enterprises • Individual & Group enterprises • Special enterprises • Collectives/Consortia

19. Kudumbashree - Activities • Samagra – Value-chain based enterprise model • One activity on a large scale targeting poor women with support across the value chain • Comprehensive development of either an agricultural produce or an industrial product or a traditional job • An all inclusive programme encompassing all the components from production to marketing • local governments facilitated to develop projects and converge resources • Community network support in implementation • Coordinated negotiation for bank finance

20. Samagra-Collectives • Pineapple project of Ernakulam district • Joint project of LSGs, Kudumbashree and Private Company • 3115 women as cultivators • 1250 ha under lease land farming • Technical facilitation for quality produce • Demonstration farms • Exposure visits • Trainings – follow up visits • Integrated nutrient and pest management practices • Value added products • Market tie up

22. Samagra – Nendran Banana • Banana Cultivation Project in Trivandrum • Kudumbashree , 3 tier Panchayath and private partner • Project worth Rs 40.60 crores - 58 Panchayaths -3 phases. • 2400 ha - 30000 women farmers • Phase I - 1780 ha under Nendran Banana - 13000 farmers • Dist Panchayat -Set up Bio-control lab, tissue culture lab and soil testing lab. • Adopted various scientific cultivation practices like IPM, INM etc • CDS role in bank linkage, provisioning of master trainers • Panchayat support for land identification, coordination and monitoring

24. Samagra- CollectivesOutcome • Assured market • Controlling Costs of production • Technical and technological know-how- theory into practice • Scientific cultivation practices • Support of the Technical institutes • Good bargaining power • Transformation from unskilled to skilled labourers/ entrepreneurs • Role clarity • Specialization • Value chain • Support of the community

25. Enterprise-Convergence NedumpanaPanchayat • Panchayat initiative for garment cluster • Convergence effected • Industries department women development fund for machineries • Panchayat fund for infrastructure • Kudumbashree fund for management support, training • CDS mobilisation of beneficiaries, coordination

26. Kudumbashree - Activities • Marketing • Monthly-Weekly-Daily markets at LSG level • Festival fairs; exhibitions • Home Shop

27. Marketing Collectives • Community Marketing Network – Home shops • Institutionalization of local markets for producers • Local Production- local marketing- local consumption • Opens new doors for marketing involving poor women of the locality • Production units linked to local network through home shops- women who take orders and deliver products in the neighbourhood (ward as unit) • professional management team to oversee logistics of production and distribution • Localised branding and quality standardisation • Sales on predetermined commission basis

28. LSGs and local markets • Organisation of monthly and weekly markets for sale of kudumbashree products • Special fairs during festivals, exhibitions • LSG infrastructure, promotion and supervision • Link up with cultural programmes for visibility • Vegetable stalls set up by panchayats for local sale of produce

29. Market -Converegence • We started with the monthly market, and then went on to weekly markets for the products from our panchayat. The panchayat provided us with a pick up truck and shopping lot and now we run daily markets • CDS Nedumkandam

30. Kudumbashree - Activities • Social Development • Destitute Rehabilitation • Special schools for mentally challenged children • Balasabha – Children's forum • Special Projects for ST communities

32. Kudumbashree - Activities • Women's Empowerment • Gender Self-Learning Programme • CBO Strengthening • Bye-laws & Election rules • Support for convergence of resources • Organization management support • Internal accountability & collective responsibility

33. Capacity Building • Most critical activity in the Kudumbashree system • Multiple areas – livelihoods, social development, gender, organizational development • Multiple stakehoders – NHG members, CBO leadership, LSG leadership, Officials, Resource Persons • Multiple approaches – Institutional training, in-house professional training groups, CRP system, Individual experts

34. Community-based CB – Resources • Resource Persons at various levels - volunteers • Micro Finance – 26,000 persons • Social Development – 3,500 persons • Gender – 52,000 persons • Training Enterprises • 20 units conducting multi-disciplinary training • 43 KAASS units of 356 trained accountant-auditors for book-keeping • MEC • 300 persons, in 29 MEC groups • Master Trainer micro-enterprises to train/mentor new units • Master Farmers for collective farming (MKSP)

36. From individual to collectives • Collectivization of trainers • Started off with individual resource persons • Gradually formed into groups • Enterprise form • Collectivization of enterprises • Bringing together of scattered enterprises in the same sector (garments, IT etc.) • Formation of Consortium at State level (member owned and controlled) • Collectivization of MEC • Groups of MEC at District/Sub-district level

37. Community-based Enterprise Support SystemThe Kudumbashree Experience

38. Micro Enterprises in Kudumbashree • ~ 15,000 enterprise units; ~60,000 members • More than 100 different types of enterprises • Production to Consumption interventions • Consortia • Garment Consortium (Kadambari) • Nutrimix (nutrition supplement) Consortium (Amrutham) • Consortium of IT units (Unnati) • Marketing interventions

39. ME Sector - Needs • Appropriate orientation and training for new entrepreneurs • Timely availability of managerial and technical expert support • Identification of business opportunities • Preparation of bankable business plans • Ties for backward-forward linkages (technology, market, finance) • Specialized training • Strengthening CBO network to deal with economic/business issues effectively

40. Building support systems • Business Management expertise available in the market • Expensive, not always available • Difficulties in understanding context of pro-poor businesses • Alternative - develop bare-foot business management consultants • Micro Enterprise Consultant - MEC

41. MEC System • Started in 2004 • Strengthened from 2009 onwards • ~300 MEC active at present • 29 MEC groups formed in 2011

42. MEC • Young men and women from families of NHG members • Identified by CDS, selected by District Mission • Orientation training by EDII, Ahmedabad • Specialized business management training for select MEC (CREAM Training) • Business management training for other MEC by Master Trainer MEC (TEAM Training)

43. Services provided by MEC • For establishing new enterprises • Support CDS in identification of entrepreneurs • Preparation of business plans • Support to entrepreneurs for bank liaison, machinery purchase, market linkages, product quality assurance etc. • Support for existing enterprises • Support for licensing, product diversification, market expansion, book-keeping, financial statements etc. • Training • New entrepreneur orientation & training • Performance improvement training for existing entrepreneurs

44. Services provided by MEC • Support to CBO Structure • Identification of entrepreneurs, business opportunities • Preparation of enterprise inventories • Conduct of monthly/weekly markets, fairs • Co-ordination with different departments/agencies • Preparation of GP level Livelihood Development Plan • Support to Kudumbashree Mission • Conduct of surveys and studies • Conduct of training programmes • Feedback on enterprise issues

45. Remuneration for MEC • Paid by entrepreneurs • 0.5% to 1% of project cost – for business plan preparation • Rs.500 for business counselling • Rs.250 for book-keeping • Paid by Kudumbashree Mission • Rs.350 per day faculty fees for training • Rs.250 per month per unit for follow up visits to new enterprises • MEC groups earn revenue by providing training services to other agencies/departments

46. Monitoring of MEC mechanism • At CDS level • Regular review of working of MEC support • Bi-annual report of services provided by MEC group to District Mission • At District Mission level • Monthly report by MEC group • Bi-monthly review meeting at District level • Bi-annual joint review of CDS and District Mission • Detailed guidelines issued by State Mission

47. Thank you!