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ABSTRACT - Beej Rural Business Plan

ABSTRACT - Beej Rural Business Plan

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Published by rahul vatsyayan

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Published by: rahul vatsyayan on Jan 13, 2010
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bove statement is a fact but not entirely the ultimate truth, how can we say that we are a prosperous nation when half of our population is still at the verge of “hand to mouth” syndrome. And the quality of life that they spend on this earth is not even human leave a life of semi-god on this earth. But the saying is still true that “God helps those who help themselves” and “chance favors’ the prepared mind. With the rational of the above statements the issue of the Entrepreneurship in the most neglected part of any economy “Rural Market” becomes imperative. Especially when we want to grow as a nation. The efforts in this field have been with mixed results as it is a tough nut to crack. But aiming at the bottom of the pyramid with dedication, determination and discipline will bring results. ANKUR is based on the belief that people can get maximum out of anything if he applies his own expertise and knowledge. With hardships faced due to agriculture, communication hardships etc, learning of vocational trainings and its usage will help in improving the life-style of the people in this rural area. ANKUR is mainly working on providing the tool to the people of this area in order to achieve the self earning capabilities which will improve their standard of living by making them less reliable to outside worlds help. And its goal is to promote RURAL ENTERPERNEURSHIP by giving support in form of imparting training, SHG formation and assistance for loan for rural youths. Apart from this it helps in making the underprivileged BPL segment in the rural areas come in the mainstream and it also brings in more efficiency in the efforts of the CORPORATES to bring them into the mainstream. ANKUR does this by providing services to the corporates for their CSR initiatives in ways of designing, implementation and monitoring of the initiatives’. The model demonstrates that institutes originally conceived as vocational training bodies can indeed be open to new target groups and visions, and can thus make a major contribution to promoting the national economy and creating new employment opportunities, above and beyond their original mandate.

The business proposition in Focus
     Focus on small towns, bottom of the pyramid markets & jobless youths V-School centers as delivery hub Training cost not to exceed Rs. 400 per month Focus on self dependability by imparting entrepreneurship accumen Industries as partners in the delivery of the value proposition

Unique Value proposition
 Solutions aimed at tier 3 & tier 4 of the population pyramid  Solutions tailored to the client need  Vocational training platform by giving hands on experience  Training to be delivered at Rs.400 per month maximum, with maximum 6 months of duration  Vocational training will contain work sheds and essential machines

Risks and Environment




here is no denial to the fact that the pace and progress of an economic system largely depends on the emergence of dynamic and innovative entrepreneurs including the house wifes who have the nack of saving from the household expenses & regenerating sources of income from the savings. The ability to innovate and take risk decides the fate and direction of a country’s economy. The conception and effective implementation of any individual project, irrespective of its size, largely depends on the availability and capability of the targeted groups. There are various factors responsible for the entrepreneurial success at the startup level. Opportunities in any field, like low level of investment requirement, use of simple technology, coverage of limited market and low gestation period, will attract the mini entrepreneurs and it will prove to be the breeding ground for first generation entrepreneurs & house wives. And above all the training required or the skill set is a major factor. In Maharashtra the recently concluded 61st round of NSS survey (2004-05) showed that while jobs are growing at faster rate than population, unemployment is also growing. The population is growing at the rate of 1.7% whereas the jobs are growing at the rate of 2.7% however due to backlog of earlier unemployed workforce and due to the present economic downtrend; there is a growth in unemployment. This employment statistic has led to the concept of jobless growth. Moreover the firms now are adopting less labour intensive strategies i.e. more capital intensive strategy. The traces of employability issues can also be seen in the reasons for break in the employment of an individual which came out in Maharashtra as per the latest NSS data. The option ‘lack of work in the area’ stands out as the main reason for the break in the job. Lack of work could be attributed to non availability of skills to perform the jobs or the sector in which the individuals are working in may not have any growth. Migration, from rural to urban areas, frequently opens up new opportunities for those who want to start something of their own, they are also often disadvantaged because of their limited knowledge of employment opportunities and institutional support networks in their new surroundings. In one sentence “THEY ARE THE LAST TO BE HIRED AND FIRST TO BE FIRED”. In this case, the role of local organizations’ in providing information and assistance to start entrepreneurship ventures among the migrant youth is imperative. In case of people below poverty line the training for becoming independent comes from NGOs rather than any vocational training because of costs, the type of courses, the location of the institutions or educational prerequisites. As NGOs are not able to provide different types of training, it is found that among these self-employed youth, who had received training, skills and entrepreneurship training the most common theme was related to traditional livelihood activities. A huge chunk of 84.40% does not receive any kind of vocational training and number of individuals receiving/received formal vocational training is less than 10%. Skill development is a supply side issue hence there needs to be a greater co-ordination between the supply side and the demand side of labour. Hence there is a need for Vocational Training for BPL people with growth opportunities in the local market with local resources. This issue has been taken by “ANKUR” with its RURAL VOCATIONAL SCHOOL. While giving training in growth areas it also provides assistance in taking the first step in the form of SHG formation in the BPL segment and Loan Assistance for the APL segment. And in both the ways it is trying to promote RURAL ENTREPRENEURSHIP & INCREASING THE PROPENSITY TO MOBILISE SAVINGS OF THE HOUSE WIFES.

 Assessing industrial development of rural and less developed areas where local entrepreneurship is not readily available and to which entrepreneurs from nearby cities and towns are not easily attracted;  Providing productive self – employment to a number of educated and lower educated young men and women.  Developing new 1st generation entrepreneurs from non-traditional groups,  To establish Vocational training Center to increase the saving propensity among house wives  To provide individuals with appropriate skills and knowledge towards self-employment and income generation.

The content of the programme is broadly classified as follows.
 Skill in the areas of Fishing, Agro based food processing and retailing, S&D orientation,

   

two and three wheeler repairing, Sewing & stitching, Handicrafts and Artifacts and behavioral training: Entrepreneurial motivation and competencies, problem solving, counseling and communication. Resource building: procedures and formalities in setting up new enterprises, incentives and benefits for entrepreneurs. Business Opportunity Identification: Industrial opportunity cloud Business profile preparation, business plan formulation, assessing the viability of a business plan Small business management : Technical, financial, personnel, marketing, legal matters, etc

To impart the inputs in the programme structure, the following training methods will be adopted
   

Interaction with successful Entrepreneurs for practical insights. Hands on training by the local as well as industry experts Preparation of final plan and project idea, application for loan Six months monitoring and follow up support.



here is a need for operating a business that meets or exceeds the ethical, commercial and public expectations that society has of business. Corporate Social Responsibility (CSR) is one such niche area of Corporate Behaviour and Governance that needs to get aggressively addressed and implemented tactfully in the organizations. At the same time CSR is one such effective tool that synergizes the efforts of Corporate and the social sector agencies towards sustainable growth and development of societal objectives at large. Corporate social responsibility can be used interchangeably with other terms including responsible competitiveness, corporate citizenship, or the triple bottom line, among others. It has existed as a part of the business lexicon and strategy for years, but has increasingly come to encompass not only what companies do with their profits, but also how they make them. It goes beyond philanthropy and compliance to address the manner in which companies manage their economic, social and environmental impacts and their stakeholder relationships in all their key spheres of influence. India is a fast growing economy and is booming with national and multinational firms. At the same time, the Indian land also faces social challenges like poverty, population growth, corruption, illiteracy just to name a few. Therefore it is all the more imperative for the Indian companies to be sensitized to CSR in the right perspective in order to facilitate and create an enabling environment for equitable partnership between the civil society and business. ANKUR group focuses to facilitate Organizations’ CSR initiatives by streamlining social activities with its efficient and low cost services. We intend to provide our customer, “service performance with purpose”, with a technological infrastructure to support effective operation.

ANKUR GROUP endeavor to make a positive contribution to the underprivileged communities by supporting a wide range of socio-economic, educational and health initiatives. Community projects and programs are driven by active motivated contract workers. Our commitment to address important societal needs extends throughout our philanthropic outreach programs driven by our strong rural pre-existing foundation. EDUCATION Literacy has traditionally lagged in rural areas, where a shortage of teachers, resources, and funds keep students from attending and staying in school. The lack of an educated workforce has retarded economic growth in those areas. ANKUR Group focuses on Awareness Camps, Facilities Fun Activities for underprivileged children, and Promoting Non-formal education in the community. REFERRAL HEALTH SERVICES ANKUR GROUP would focus on providing facility for referring patients to nearby hospitals, First id, Awareness Camp to reduce maternal mortality rate, Special Camp for minor operation and Health check facilities. COMPUTER LITERACY ANKUR GROUP would focus on children computer literacy program for their awareness towards growing technology.


Operation Model:
ANKUR group has devised a model to suit enterprise wide operation with its ANKUR FEDERATED SYSTEMS (AFS).  Federated Systems would assist ANKUR Group in  Real time decision making  Data Consolidation  Decision Dashboard  Central Control  Effective Planning  Scheduling  Live Update

MISSION STATEMENT: implementation of programmes for the upliftment of the economically challenged class resulting to employability, improvement in their standard of living &resulting to overall development of the rural economy

VISION : To improve the condition of the under privileged ,illiterate & unemployed rural section by way of human resource development & supporting the CSR programmes of the corporate

GOAL: operation in minimum of 5 states within 5 years of its operation

SEGMENTATION— the unemployed rural people (male or female) with lack of domain specific expertise within age limit of 18-35 yrs. (excluding the mentally & physically impaired class) The seasonally unemployed class of people (farmers, artisans) within 18-35years of age

The house wives within 18-50 yrs of age The identified segments cover both (BPL &APL) classes & targets differently through differential approach

Segment attractiveness NSS survey report suggests unemployment due to: Health hazard—11.50% Employer harsh--- 5.80% VRS: 1.95% Others: 26.90%
This constitutes to almost 46.15% of unemployed rural population. other segments relate to  Underprivileged poor living below poverty line.  Unemployed youth in remotest rural areas.  Females unemployed in rural areas. Vocational training can prove itself effective in promoting development in these unemployed segments. But there has not been significant achievement by these services as 80% of unemployed rural population did not attend a vocational training once.

POSITIONING- providing employability and enabling knowledge, social & economic capital formation through the empowerment of the destitute, climbers and aspirant group of rural India. LOCATION- the project will be launched in the SATARA district of Maharashtra. Marketing communication:
For the success of Ankur vocational training programme, awareness should be created regarding the purpose and process of registration in the organization in local areas of the village. Communication could be possible through following media channels:  Print media: publishing objectives & information regarding Ankur in local newspapers  Wall paintings: informatory wall paintings in villages at strategic points.  Word –of-mouth communication channel: development of an effective communication channel.  Melas & haats: promoting awareness through banners and kiosks.  Online promotion through website: launching a website to promote awareness about our development programmes, achievements, objectives.

PRICING: The pricing strategy taken by the company has slow penetration effect with
differential pricing across the different classes it is catering to (BPL & APL). The objective is not to skim the milk but to penetrate deep into the market. The pricing model is to sustain with the variable component. The pricing for the CSR implementation activities has been charged at a

nominal market going rate, following a simple mark up over the cost incurred in carrying out the event.

PLACE: to enhance the accessibility of the agro based food, handicrafts, artefacts & garments
in the market the company will be going for a small format stand alone stores in the form of kiosks in strategic locational points (front of post office, telephone exchange, cinema halls etc) where footfall is more. Apart from that it will be using the syndicated distribution model of different NGO’S in order to market the product. It has tied up with modern retail chain to be sold as store brands. Apart from this, ANKUR in order to make the products accessible to all will also be using the haats & melas as a platform to reach out to the crowds.

Management Plan
The company will start its operations with one central office in Mumbai and one RURAL VOCATIONAL SCHOOL. The management team of the company will be driven by the three founding members each having expertise in finance, marketing and Public Relation domain respectively along with expertise in handling administration & coordinating the programs.

The major chunk of company staff will be working in the district Vocational School which includes the task force personnel’s and the guidance officers. The profiles and roles of different staff personnel’s are as follows: Public Relation & marketing officer: Since it forms the backbone of the company, he will be entrusted with the most vital task of initiating, maintaining and reporting of the CSR activities being handled. His scope of activities will include giving directions to the task personnel on daily basis, taking account of their activities and making sure that the task force meets their target on continuous basis Administrator: He looks into the financial & administration part of the business and will act as a supporting arm. He will handle day to day routine finance activities like data entry, reconciling the bank and cash account, making the final accounts at the end of the year &addressing the legal issues. Coordinator: his job is to vigilate & keep watch on the functioning of all the activities, coordinating with the admin dept, sanchalaks & the public relation officer to coordinate the plans & schedule all the events as well as appraising the performance of the task force &enabling adhoc decisions for service accuracy. Sanchalak: The task force shall visit the village and will reach out to the potential entrepreneurs on continuous basis and get their registration. Each village will be allocated one sanchalak. The number of personnel will be increased depending upon the response and demand from the industry. He will work in close coordination with the public relation officer & the coordinator.

Staffing and Compensation

Employees sanchalak coordinator administrator Cluster Admin executive P.R & mktg officer Control room networking manager

1 1 1 2 1 1 7

5000 15000 10000 2000 15000 5000 52000


Recruitment and Training
The company will conduct training for all the staffs for the first two weeks of their recruitment. The recruitment will be done by giving advertisements in the vernacular newspaper and the employment newspapers about the requirements. On the successful recruitment, each category of staff will be trained separately depending upon their needs.


Result Area: -Establishment of ANKUR vocational institute to train 80students in specified areas Indicator: - Presence of trained PEOPLE who have met the requirements for training Means of Verification: - Number of students recruited, attendance list, and source documents presence/ number of instructors, training equipments, materials and tools and observation. Progress Indicator:- Available resources and students registered to be trained ACTIVITIES TIME PERSON COST/ INPUTS FRAMES RESPONSIBLE Financial Resource May 2009 – July Administrator & admin Phone costs, emobilization and acquisition of 2009 dept mails costs, 4 computers and 20 tailoring printing, transport machines Registration of students and July – Aug 2009 coordinator Time, phone costs, recruitment of Teachers. printing. Renovation of the building to July - Aug 2009 Cluster admin Cement, sand, house Vocational Institute bricks, labor & (contractors). transportation of materials. Purchase of Training Aug Sept Admin dept Phone costs, eequipments and tools. 2009 mails costs, Instructors and tutors printing, transport Beginning of training Sept 2007-April and consultant’s 2009. Monitoring and time Monitoring and Evaluation. . evaluation team May 2009 headed by the Time, money, coordinator printing, transport, lunch, allowance. Acquiring land for May 2009 Cluster admin Money, time, constructing the institute. transport, printing, Tendering of the construction June 2009 Cluster admin Time, printing work

Construction of computer lab July 2009 and tailoring block.

Cluster admin

Cement & local materials, labor





 



In summary
e are presenting this operational plan to you hoping that you would consider supporting us in establishing ANKUR Vocational Institute which will provide RURAL PEOPLE skills for becoming self dependent. We believe that the context in which we are operating makes such project an imperative.  The emphasis on community based vocational training makes it likely that the project will be sustainable.  We already have substantial support from the community and land.  We encouraged you to support our budget by considering any of the line items. LOOKING FORWARD TO WORK IN PARTNERSHIP WITH YOU TOWARDS THIS NOBLE CAUSE.


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