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Introduction


Introduction

A Perspective

Women's Groups play an important role within, the village economy through the micro-enterprises members engage in. Once women realize their own potentials, they are able to raise their own resources and develop the capacity to manage external resources as well. Through the Women, Population and Development Programme, rural women proved that they can manage loans from external sources, such as those provided through the project revolving fund. Women themselves are determined to address common weaknesses and constraints of their micro-enterprises. They are able to take risks and adopt innovative approaches in problem-solving. In certain instances, after two years of membership in Women's Groups, they were able to build up enough business skills and confidence to source their capital requirements from local banks.

But often times we hear remarks like "the poor will not be able to repay... they do not know how to manage their business.... they are used to hand outs... etc..."

Our experience in this Women Population and Development (WPD) Programme of China, does not validate the above remarks. On the contrary we have found that the poor can be accountable and actually repay their debts. They have good instincts about business and are realistic in gaging risks according to their estimate of their own capacity. They would rather determine and decide on resources they need rasher then outsiders determine this for them. They have a sense of pride in being able to achieve their own goals which they themselves determine.

Rural poor women engage in micro-enterprise activities which start as small household activities like vegetable gardening or raising a small number of small animals like pigs and chickens. Lack of cash for investment and the need to take care of their household tasks as well as the farm are among the major limiting factors why they are not able to expand their operation. When credit facilities are made available, they generally opt to either expand their existing micro-enterprise operation or engage in a new area of business.

As a component of the WPD programme, the development of women's own chosen micro-enterprise is an important component. Meeting subsistence needs is the most urgent preoccupation of the poor before they can entertain other options.

Engaging in micro-enterprise is not only improving the women's economic position, but it also provides the women an opportunity to improve their skills in business. "Small victories" against their reticence or lack of confidence serve as building blocks towards regaining control of their own lives.

When women realize their own strengths and potentials and when they realize that they need to operate as a group to consolidate their resources, the first risk they take is to mobilize their own resources. This risk comes in the form of savings mobilization in a disciplined process. As they lend out to one another what they have saved as a group, they are again taking a risk on one another. When women choose a micro-enterprise to engage in, they are deciding to take another risk. These decisions are the next building blocks toward regaining control of their own lives. The consequence of these decisions are solely theirs whether the result is success or failure. The development of their own policies and procedures, managing themselves as an organization, the operation of their savings and loan fund, the identification of the micro-enterprise, the planning, the management and control of their chosen micro-enterprise enhance their skills as well as their sense of confidence in themselves. As a consequence, they achieve an increasing level of a sense of control over their own lives. In short, micro-enterprise development is Important for the empowerment process to occur.

Field workers need both the positive attitude and skills to assist groups in the various phases of development of the group and women's micro-enterprises. Field workers assist groups through training in group formation, development of their organizational policies and procedures, the operation of their savings and loan fund as well as in the process of tapping from the project revolving fund.

Women Population and Development Programme (WPD) Manuals

The Women Population and Development Programme has developed a series of Manuals. There is a separate Manual for Group Formation For Rural Women. This Manual addresses areas of value clarification and change; mechanics of organization; basic elements in the establishment of micro-enterprise, and action planning.

Micro-Enterprise Development Manual

The Manual on Micro-enterprise Development focuses more deeply on the requirements of micro-enterprise development; the use of the revolving fund and the group savings fund.

Project personnel et county and township levels need to provide three major types of assistance for Women's Groups, namely: (a) development of policies and procedures for savings and loan operations as well as the management of the group capital fund (sourced from the group savings and loan operations and their loan from the project revolving fund); (b) at the inception stage in assisting individual women in developing a feasible business plan; (c) follow through assistance during the women's micro-enterprise operation.

No previous education in micro-enterprise economics is required for participants in the training where this Manual will be used. Although primarily developed for training of county and township level personnel, with little modification the Manual can be used for training of women group members.

The training methodology used is highly participative, meaning that few lectures are utilized. Rather a problem-solving methodology is applied using case studies, exercises and group work. The Manual has five major content areas.

The first Module focuses on the role of micro-enterprise development as a mea . to achieve group goals, major among which is to improve women's status and self reliance. The following concepts are dealt with: the fundamentals of what a business is and the characteristics of micro-enterprise: the role of micro-enterprise in the WPD programme; elements which leads to success or failure of a business: the major weaknesses and constraints of micro-entrepreneurs and finally identification of the major areas of needed project assistance.

The second Module deals with the required attitude, knowledge end skills for business planning. The tools, the basic information required and the financial indicators for preparation and assessment of business plans anti loan applications are discussed. What trainees would have learned are then applied. Trainees are given an opportunity to work with village women entrepreneurs to develop an actual Business Plan. It may be noted that part of the Field Workers' responsibility is to assess funding proposals from members of the women's groups.

The third Module deals with the needed attitude, knowledge and skills in performing the Field Worker's task of providing technical assistance during the operational phase of the women's micro-enterprise operations. This is what project implementors call the "follow thorough" phase. Emphasis has been placed on the preparation and interpretation of business records. since we have observed that there is an absence or poor quality of business records among micro-entrepreneurs.

The fourth Module deals with fund utilization and management both at project and women's group level. Although the Manual on Group Formation for Rural Women deals with the importance of savings mobilization and utilization for self reliance, this aspect is given further emphasis in this Module. The relationship between the savings fund and the project revolving fund is addressed; how these funds need to be managed and controlled; the preparation and processing of loan applications from the women's groups; how to monitor loan utilization; and the establishment and maintenance of the required record systems.

The fifth Module deals with a review of the Field Worker's tasks and the development of a training plan for "echo" training in their respective counties after returning to their respective duty stations.

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