need-based enterprise development

8/14/2019 Need-based Enterprise Development

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Component Purpose Examples (if necessary)

Information Technology

Center

To provide a facility for

assisted individual researchand training in any available

area.

To provide a facility to

incubate entrepreneurial

ideas and skills.

English training software;

Better methods of

production.

To disseminate information

necessary to the optimal

functioning of the localsociety and economy.

Regional market prices and

projected global prices of

locally produced goods;

Weather reports;

Available government

assistance programs;

Affordable insurance.

Information

Technology Center

Microfinance

Bank

Participatory Research

Group

Need based Enterprise Development



Participatory Research

Group

To gather and maintain

qualitative and quantitativedata about local conditions.

To act as think tank concerning opportunities toincrease local welfare

Apply for grants and loansto fund more focused projects;

Identify needs that can be

addressed byentrepreneurship.

To act as a base for

Participatory Approval

Board of the Microfinance

bank Microfinance Bank To fund enterprises deemed

to provide for a community

need

Roof making;

Drinking and cooking water

supply service.

To fund enterprises found to be a good opportunity to

increase local income

Transport to bring touristson explorations.

Need based Enterprise Incubation for Economic Development schema has been

developed in response to criticisms of current and past development practices, aiming

make an effective and practical plan to increase sustainable intra-local economic

linkages, as well as local linkages to all levels of economy. The project is designed to

integrate two ubiquitous trends in the development discourse –Microfinance and

Participation – and one practice showing enormous potential – the Information

Technology Center (sometimes called a Village Information Shop). The synthesis of

these three development tactics results in a promising vision: local economies developed

on human-scale business that attempt to meet local needs and opportunities, spurred and

managed by intrinsic enthusiasm and ownership, and reliant on and nourishing the

ingenuity of the local peoples.

The process:



• The ITC is established by the start up team that begins to research the locality

through all available manners, including the initiation of a Participatory Research

Group.

• Local researchers, ITC and Microfinance Bank staff should be identified and

trained.

• Needs and Opportunities are established through Participatory Rural Appraisal

activities.

• The ITC adapts its information dissemination and training sessions accordingly.

• The Microfinance Bank is established with a Participatory Approval Board with

memberships based on the Participatory Research Group.

• Loan applicants are submitted to the Board

• The Board votes on applications considering fit with local needs and

opportunities and capacity of the entrepreneurs as primary considerations.

• Approved loan applicants utilize the ITC for training and networking.

A local person, otherwise finding dim opportunities for income, can participate in the

research group, helping to identify needs and opportunities in the local economy.

Based on a need or opportunity that he/she has a personal affinity for (ex: brick

making, trap making, irrigation making, cheap clothing retail, produce distribution

service), he/she can research the most effective way to produce his/her product, or

provide his/her service. The prospective entrepreneur can also be trained in and

research proper business planning and management. Upon completing research or

training and assessing feasibility, he/she can apply for a loan from the Microfinance

Bank component. The Participatory Approval Board will note that the enterprise is

grounded in local need and opportunity, and that the prospective entrepreneur has

spent time and effort to understand all aspects of running the potential business. The

funded entrepreneur can then use the ITC to train prospective employees, and to

research opportunities for geographical expansion, regional distribution, or export

markets.



The process of Need based Enterprise Incubators also offers much more than the

definitive process previously outlined. The facilities of the ITC can be used for a local

Internet Café and a facility from which individuals can receive distance learning degrees.

The Participatory Research Group can collect valuable data to help update government

and international agency databases and can coordinate community efforts to apply for

needed grants and loans for other projects. The microfinance bank can fund local

individuals who wish to buy a home or durable good.

The unification of these three ideas in development tends to make up for the

shortcomings of the three ideas separately. Microfinance can lend indiscriminately to

enterprises that may not fill a void in the current economy and thus shows little promise

for great success. ITC can train individuals and give them helpful information, but

cannot promise that training and information can lead to new and better opportunities.

Participatory research and management can identify proper needs and opportunities and

speak much about the local condition, but has much difficulty organizing a truly lasting

manner to solve for such needs or to embrace such opportunities.

This project would be most effective in places where there is a distinct opportunity

for the local population to access a market given appropriate and minimal inputs such as

capital, training, links, and information.

need-based enterprise development

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