Being self-employed

1. Being self-employed

3. Technical skills • Business management skills –experience • Conducive legal environment • Reliable suppliers – good products & services • Market – potential clients • Capital (to buy tools, equipment, supply, etc.) • Physical access to facilities (business sites, market, suppliers sites) • Absence of discrimination – community support • Adapted workstations • Self-confidence

4. Access to capital Grants Own capital (savings) Loans

5. Providing grants In what situations is it appropriate to provide grants? • In the absence of collateral • In the absence of a source of income/business (very poor) • Existing business management capacity and technical skills • To compensate competitive disadvantages Training may be required before receiving a grant Needs assessment of the individual situation and business plan

6. Providing grants Preventive & corrective measures Advantages Disadvantages • Entrepreneur follow-up – combine with a loan • Define appropriate business plan • Develop access to other sources of capital (savings or loans) • If in cash, require receipts/invoices and conduct follow-up visits • If in kind, allocate resources • Seek contributions from authorities, community, existing entrepreneurs • Set-up clear procedures & criteria – democratic decision-making process – ensure that controls are enforced • Limiting risks for the entrepreneurs • Usually the poorest are targeted • Tends to take responsibility away from the person concerned • Usually limited in amount • Usually one shot • If in cash, could be misused • If in kind, complex to manage • Not sustainable for the « donor » - difficulties in raising funds for grant schemes • System could be unfair/corrupted

7. Providing loans In what situations is it appropriate to provide a loan? • Existing repayment capacity (existing business or income) • Existing business management capacity and technical skills • Existing collateral or possibility of pressure Needs assessment of the individual situation

8. Providing loans Preventive & corrective measures Advantages Disadvantages • Create an interest-free non-profit mechanism • Business follow-up & counselling; provide training; support/initiate business development activities (creation of cooperatives, organisation of fair) • Raise awareness of microfinance services providers • Combine with a grant system • Motivation to succeed in business • Once the person has a good credit record, s/he could be provided with successive and bigger loans to develop the business • Sometime, the only source of capital accessible • Sustainable system • Interest to be paid • Capital to be reimbursed – burden on the business • System could be or become discriminating • Not for the poorest

9. Using one’s own savings In what situations is it appropriate to use savings? • Existing saving capacity and saving habits • Existing business management capacity It should be one's own decision to use one's saving Need to develop saving habits

10. Using one’s own savings Preventive & corrective measures Advantages Disadvantages • Autonomy • Vulnerability once savings are used up by starting one’s business • Develop/maintain saving habits • Provide savings scheme