Need based Enterprise Development

Information Technology Center

Microfinance Bank

Participatory Research Group

Component Information Technology Center

Purpose Examples (if necessary) To provide a facility for English training software; assisted individual research and training in any available Better methods of area. production. To provide a facility to incubate entrepreneurial ideas and skills. To disseminate information necessary to the optimal functioning of the local society and economy.

Regional market prices and projected global prices of locally produced goods; Weather reports; Available government assistance programs; Affordable insurance.

Participatory Research Group

To gather and maintain qualitative and quantitative data about local conditions. To act as think tank concerning opportunities to increase local welfare Apply for grants and loans to fund more focused projects; Identify needs that can be addressed by entrepreneurship. To act as a base for Participatory Approval Board of the Microfinance bank To fund enterprises deemed to provide for a community need

Microfinance Bank

Roof making; Drinking and cooking water supply service.

To fund enterprises found to Transport to bring tourists be a good opportunity to on explorations. increase local income 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.

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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.

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