Sustainable Approacheswith the Ultra poor
Grameen Foundation’s workwith the poor and poorest
Camilla Nestor, VP Financial ServicesGrameen Foundation
SEEP 2012 Annual Conference Building Inclusive Markets: Impact Through Financial
and Enterprise Solutions
SEEP 2012 Annual Conference Building Inclusive Markets: Impact Through Financial and Enterprise Solutions
Poverty Levels
Total PT Ruma clients: 15,000
Total BASIX clients: 200
Total CKW clients: 114,218
PT Ruma Indonesia
% below $1.25 9% 18.1%
% below $2.50 62% 46.1%
CKW Uganda
% below $1.25 43.6% 38%
BASIX India
% below $1.25 88.9% 32.7%
% below $2.00 98.6% 68.7%
National poverty rates from World Bank indicators
SEEP 2012 Annual Conference Building Inclusive Markets: Impact Through Financial and Enterprise Solutions
Community Knowledge Workers (CKWs)
• Real-time feedback loop
• Poverty & livelihood data, disease trends
• On-demand impact tracking
• Research and market data collection
• Validated results• Automated web-
based tools, analytics and dashboards (current dashboard is here: http://grameenfoundation.force.com/ckw/apex/Dashboard?sfdc.tabName=01r70000000HaJA)
CKWs provide information on 35 crops , 6 types of livestock, weather, quality standards; MobileMoney agent locations; market prices;seed suppliers
Sourced from and reviewed by experts
SEEP 2012 Annual Conference Building Inclusive Markets: Impact Through Financial and Enterprise Solutions
PT Ruma “Business in a Box”
Technology Platform
Proven Business Model
Established Brand
Working Capital
Training & Support
Idea “What business should I start?”
Skills & Confidence “How do I start and run the business? How to plan for growth?”
Capital“Where do I get the money to start and grow the business?”
Key success factors in starting a business….
… microfranchise “business in a box” solution
SEEP 2012 Annual Conference Building Inclusive Markets: Impact Through Financial and Enterprise Solutions
Livelihood Pathways for the Poorest (LPP)in partnership with BASIX
• Livelihood training, credit and savings services all delivered through adapted self-help groups (ASHGs)
• Sequenced skills, knowledge and self-confidence building• Livelihood development
– Incense stick rolling– Rooftop gardening– Goat rearing and poultry
management training
• Innovative lending model• Inter-group savings
– Groups with large sums of moneyopened formal savings accounts
SEEP 2012 Annual Conference Building Inclusive Markets: Impact Through Financial and Enterprise Solutions
Global Lessons Learned
• Reaching the poorest, particularly women, requires extra effort and creative approaches– Targeting and segmenting– Women’s time restrictions, cultural
inequalities, and lack of self-confidencerequire creative solutions
• Business performance is equallystrong across poor and poorestclients – supporting the business case for working with the poorest- In some cases the poorest require
additional training
05/02/2023
Targeting: Failures ... and a Success
FAILURES Field officers “plus” “Special” field staff to
recruit the poorest Working through
partners Using government
identity cards
SUCCESS Empower existing female
Ruma entrepreneur to recruit poorest• The women were seen
as trusted peers
SEEP 2012 Annual Conference Building Inclusive Markets: Impact Through Financial and Enterprise Solutions
In terms of recruiting the poorest entrepreneurs –PT Ruma hit a few stumbling blocks before figuring out what worked:
Poverty level has not been a good predictor of performance
8
Business Performance of RUMA Enterpreneurs
SEEP 2012 Annual Conference Building Inclusive Markets: Impact Through Financial and Enterprise Solutions
Project Lessons Learned
•
•The women in the BASIX project are very successful savers: in the first 9 months, the 130 participants saved about $776 or $6 each. 9 out of 13 ASHGs opened a formal bank account• Trust is gained through
building confidence, not just through cash hand-outs
• Poverty does notcorrelate with acreage• Poorest are more voracious users of the information• No difference in performance levels between poorest CKW and less poor
• No relationship between entrepreneurs’ poverty leveland activity level• Female entrepreneurs are trusted recruiters
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