Business GROUPS PROFILE

What is a business Groups?

These are small voluntary associations of 2-3 poor people (members) preferable
from the same social economic background and experience.
They come together for the purpose of solving their common problems through
establishing a small business to support the livelihood of their families.

Objectives of the Business groups

The overall objective of the small business groups are to support the
livelihood of the families through income generating activities.
They act as a forum for the members to provide space and support to each
other.
It enables members to learn to corporate and work in a group environment.
It also provides a cost effective delivery mechanism for small credit to its
members.
Business groups significantly contribute to the empowerment to the
entrepreneur.

Membership
People with special skills in a specific business can work together as partnership. The
first step is for them to find out the person they want to work with him as partner in
the group.

In the second step, they have to choose a business for themselves and give reasons
why they have chosen this business.
If you have experience in that field and are interested in advancing the business
affairs, the office will be ready to finance the mentioned business but some terms
and conditions.

Business groups sustainability.

Members come together due to felt need on platform and commonality of
problem.
They are characterised by collective and participatory wisdom.

Advantages of Financing through Saving Groups

An economically poor individual gains strength as part of a group.
They generate Benefits/interest.
The allow access to credit
They offer more possibilities to members to learn new experience.
They allow for the accumulation for specific goal in the future.
The group meetings give the participants the chance to get together
regularly, which creates a feeling of solidarity, reciprocal assistance, and
trust.

Key Features of Business Groups

 Business groups are based on affinity (relations of trust and mutual
support) of poor people who self select themselves.
 They have a constitution that governs and protect their group from
abuse by non members and also protects the interest of the members
and their assets. The constitution is drafted by the members-
specifying membership – who should be a member, age limitation,
region of coverage, meetings weekly or monthly ,executive issues like
election and how long the executive should be in office, saving criteria
and ending criteria, conflict resolution, dealing with disciplinary action
among the members- it is based on participatory agreement by all
members.
 They can invest in other business with consensus of other partners.
 Each partner can equally withdraw money from the business for their
daily expenses.
 At the end of each week they have to check profit and loss of their
business.
 If someone withdraw more money he has to bring it back as soon as
possible