MICRO FINANCE

A sizeable proportion of the population of Kalahandi, Bolangir, Nuapada and Bargarh districts lack access to institutional credit and savings. Again their limited capacity to invest in capital lead to a restricted productivity which is inhibited in their incomes. A lack of access to financial institutions also hinders them to engage in new business ventures. Microfinance serves as well as empowers them to assist in their economic development process.

Over a period of time SVA has well been realized that saving and small loan for income generation has a tremendous potential for reduction of poverty in rural areas. But it also believes that unless some measures towards empowerment of poor is taken the result will be lopsided one. Again performing these activities in groups rather than by individuals has better chances for sustainability. SVA initiated the process of organising poor women in to SHGs and cooperatives with an idea of empowering them socially, economically and politically. SVA used SHGs as forum of women to discuss gender issues and organize for change. This programme provides a potentially large and organized grass root base for developing advocacy and lobbying strategies around gender as well as other issues. . This year SVA worked out on a framework for gender equity, human rights and sustainable livelihoods to facilitate through SHGs and cooperative. The framework is ready now for implementation in subsequent years. To build up capacity SVA has been providing information, organizational and leadership skills and strategies to employ to SHGs and cooperatives. A status of SHGs promoted and supported by SVA has been given in the Annexure.

A total of 1016 SHGs have been promoted and 11376 families are being covered to get various services offered by SHGs .They have deposited a total amount of saving of Rs 4375710.00 in banks. Out of the total number of SHGs promoted by SVA 447 groups have already been linked to banks and have been able to mobilize an amount of Rs 7291900.00 to undertake various income generation activities.  Most of the SHGs have been involved in income generation activities as well as community activities in their respective villages. In many villages, the women SHGs have taken up fish nursery raising as an income generation activity. Because of the micro credit activities undertaken by SHGs  money lending has gone down and the general income level of the women have gone up.

To strengthen capacity of SHGs and cooperatives, during the year 2006-07 SVA organized a total of 142 number of programmes on various themes over 242 programme days. Membership Mobilisation, Leadership Development, Promotion and Management, Financial Management and skill up-gradation are the main themes around which training programmes of SVA for members of SHGs and cooperatives have been designed(See details in Page-2,Table-9 of Annexure). In these programmes male counterpart of member of women SHGs and members of male SHGs also participated. Out of the 2669 participants 2108 were female and only 561 were male. Many of the trainings were residential and internal members of SVA, external members and hired consultants were resource persons in these training programmes. Training for SHGs was very extensive during the year.

Social mobilization have been significant in many villages because of these SHGs and presently they have taken up many more issues like health, education, governance etc. both at village as well as upper level.

 ENTERPRENEURSHIP DEVELOPMENT AND INCOME GENERATION

Micro-enterprises contribute significantly to economic growth, social stability and equity. The sector is one of the most important vehicles through which low-income people can escape from poverty. With limited skills and education to compete for formal sector jobs, these men and women find economic opportunities in micro-enterprise as business owners and employees. People of poor and marginalized section in our districts are diverse and Micro-enterprises for them come in number of types, and their businesses in many sizes. This diverse group requires a variety of support to grow and improve. Many of these men and women are poor and have limited access to financial services. But they do not lack potential and are the heart of the region's economy. Women-owned businesses make up one of the fastest growing segments of micro-enterprise. The work women do outside the home is usually in addition to the care they provide for their families, which limits their business opportunities. Moreover, they often face even greater obstacles than their male counterpart in getting credit from formal sources. Increased income in the hands of women is usually invested in health, education and housing for their families. As micro-entrepreneurs, women not only make a huge contribution to national income, but they also create reliable social safety nets for their families and communities.  

As strengthening of rural livelihood has been a focused area for SVA, developing enterpreneuial abilities of the poor and marginalized and identifying suitable income generation activities for them has always been a top priority. SVA has already identified various trades both in farm and non-farm sector those have been suitable and feasible to local people and is in a process of identifying few more for promotion. To take up various income generation activities as internal funds of SHGs are not adequate SVA supported them to link with financial Institutions as well as other institutions. SHGs have been successful in mobilizing funds to take up various income generation programmes and are managing number of units successfully. For effective management of enterprises SVA has organized a number of skill development programmes as well as technical trainings for them during the year 2006-07. A total of 195 number of programmes organized by SVA during the year and those were participated by 2725 men and 1708 women.