Promotion of Small and Medium Enterprises by Vikas Rana

Promotion of Small and Medium Enterprises through Microfinance in Tribal areas of Udaipur District, Rajasthan

Authors Astha Bajpai Vikas Rana

Host Organization CEE (Centre for Environment Education) Ahmedabad

Faculty Guide Prof. Bikash Ranjan Dash

“A REPORT SUBMITTED IN THE PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR MASTERS IN RURAL MANAGEMENT.”

School of Rural Management Kalinga Institute of Industrial Technology (KIIT) University Bhubaneswar, Orissa, India. September 2009 Management Traineeship Segment (MTS) I

SCHOOL OF RURAL MANAGEMENT, KIIT UNIVERSITY Bhubaneswar

The MTS Report of Astha Bajpai and Vikas Rana

Candidates for the degree of MBA Rural Management

Is hereby APPROVED

Prof. Bikash Ranjan Dash September 16, 2009

Executive Summary

The title of the project is Promotion of Small and Medium Enterprises through Microfinance. The Host Organization is Centre for Environment Education (CEE), Ahmedabad. CEE is the nodal agency for the current project funded by RMoL (Rajasthan Mission on Livelihoods); a government organization with the grassroots partner NGOs, namely, Kotra Adivasi Sansthan (KAS), Sangam Sansthan, Sahyog Sansthan and Prayatan Samiti respectively. It is a live project i.e. it is in the implementation phase. Our Reporting officer is Mr. Pramod Sharma; Project Coordinator, CEE West, Ahmedabad under whose guidance we (Astha Bajpai and Vikas Rana) completed our Management Traineeship Segment (MTS)- I from 11th June’09 to 15th August’09. The objectives of the project are to assess the status of the NGOs under which the project is being carried out and to understand the status of SHGs and FTTGs (Farmer’s Technology Testing Groups), their contribution and the role they can play in developing rural enterprises and to identify the potential enterprises that can be possible in the area of treatment and their economic analysis. First of all we have stratified/ divide all the SHGs into different groups based on their year of formation. The classification was done so that every member of the population is found in one and only one stratum. After that, separate random samples are drawn from each stratum. The sample size was taken as 23 SHGs. The Partner Organizations are having FTTGs groups formed under the GEF- Small Grants Programme of UNDP. Thus, likewise SHGs, to study the status of these FTTGs is of the essence of the current project. The methodology of the study remains the same except the status is analyzed in terms of their livelihood opportunities, agricultural scenario, livestock, rate of migration, annual income etc. Therefore, to analyze their current status the questionnaire for the field survey was restructured according to the FTTGs and tried out beforehand and necessary rectifications were incorporated after pre-testing in the field. The sample was taken as 47 individual farmers. Primary data are collected with the help of a structured questionnaire. The informal group discussions and case studies were also the main source of primary data collection. This gave us the opportunity to think in this direction and analyze the situation. The secondary data were provided by the organization. They have provided the list of interventions in that area and also the beneficiaries in the villages. The other source of secondary data is the reports of the projects undertaken by both the NGOs. i

The formation of SHGs was basically project oriented. There is lack of operational effectiveness in terms of capacity, governance and patronage cohesiveness among groups. In the absence of monitoring by the organization, the lack of faith on each other among the members of SHG was found out to be the major reason for the de-functioning of the SHGs. There is noticeable vision at apex level but it has not been disseminated throughout the hierarchy of partner Organizations. The initiatives from the community are lacking and there is dependence on organization for support. There are experiences of enterprises at individual level but inter and intra group sharing of experiences needs to be strengthened. The groups seem to be weak in terms of Network, liaison and coordination. Agriculture is totally subsistence and practices are traditional. The yield per unit area is very low. With limited land resources, too much dependence of work-force on agriculture makes the returns nonremunerative. The tribal belt is basically a cattle dominant area with non-descript cattle specially to meet the animal power requirement for farm operations. It is a goat belt also due to grazing potential and low capital requirement. There is huge potential of farm based enterprises like Jatropha, Custard Apple and Kakdi (Cucurbitaceous crop) etc. The other potential enterprises seem to be poultry and goat husbandry, which are replicable also throughout the tribal dominated Southern Rajasthan region. We have done the Cost Volume Profit (CVP) Analysis of above mentioned three major enterprises to examine the behavior of total revenues, total costs and operating income as changes occur in the output level, the selling price and the variable cost per unit or the fixed costs of a particular enterprise. Break Even Point (Total Revenue=Total Costs) was calculated for each enterprise. Though Promotion of Small and Medium enterprises (PSME) is new to Partner grassroots organizations, they need capacity building but if they will follow the strategies sincerely then some successful model for the micro enterprise can be created. The grassroots NGOs needs hand holding support from the professional organizations like CEE for capacity building and proper implementation of the strategies formulated. Since not much accountable work has been done in the work area of the grassroots organizations on PSME, it should be taken as an opportunity. Through proper implementation of the strategies and experiments, a successful model can be developed. Moreover, being in the vicinity of the Udaipur, they get a developed market nearby. This increases the scope of the development of the Enterprises.

Acknowledgements

We are grateful to the School of Rural Management (SRM) for having provided us the opportunity to take up this project in the Management Traineeship Segment (MTS-1) which provided us with a scope to work with an organization which is unique in itself. We are deeply indebted to Prof. L.K.Vaswani; Director, SRM and SOM, whose stimulating suggestions and encouragement helped us all the time. We are grateful to Prof. A.V.R. Acharyulu for giving us his valuable time for discussions, providing his useful advices and insights on the project topic. We take this opportunity to express our deep sense of gratitude to our faculty guide Prof. Bikash Ranjan Dash; Professor, SRM for his valuable guidance provided to us throughout our study. We express our gratitude to our reporting officer Mr. Pramod Sharma; Project Coordinator, Centre for Environment Education (CEE) West, Ahmedabad for giving us the precious opportunity to work on this project. We extol our sincere gratitude for devoting the precious time in providing us his painstaking guidance as well as his abiding inspiration all throughout the project period to accomplish our work successfully. Our sincere thanks to the officials of different partner grassroots NGOs for displaying keen interest in our project and providing us all the valuable data and information without which our project would not have taken the present shape. Finally we are thankful to all the staff members of Centre for Environment Education (CEE) and the grassroots NGOs namely, Kotra Adivasi Sansthan and Sangam Sansthan and for their invaluable cooperation and support extended to us throughout our project period.

Astha Bajpai Vikas Rana

iii

Table of Contents Contents 1. Introduction

Page No. 1

1.1.

Micro-enterprise Scenario of the world

1.2.

Micro-enterprise development scenario in India

1.3.

Organization overview

1.4.

Project overview

1.5.

Objectives of the Study

Methodology

2.1.

Research Design

2.1.1. Sample Design

2.1.1.1. Sampling method and Sample Size

2.1.1.2. Survey Design

2.1.1.3. Collection of Primary data

2.1.1.4. Collection of Secondary data

Literature Review

Findings and Discussions

4.1.

Evaluation of Status of Partner grassroots NGOs

4.1.1.

Status Analysis of Kotra Adivasi Sansthan (KAS)

4.1.1.1. Inferences out of the field survey

4.1.1.2. Status of Farmer’s Technology Testing Group

4.1.2.

Status Analysis of Sangam Sansthan

4.1.2.1. Inferences out of the field survey

4.1.2.2. Status of Farmer’s Technology Testing Group

4.1.2.2.1. Inferences

4.2.

Findings and Key Observations

4.3.

Identification of potential Enterprises and the proposed Institutional Mechanism

4.3.1.

Identifying the potential target group

4.3.2.

Selection of the possible sector or the activity and the village

4.4.

Analysis of Goat Rearing as a Sustainable Economic Enterprise for Tribal Families

4.4.1.

Background

4.4.2.

Goat as a livelihood Option

4.4.3.

Goat promotion for livelihood generation

4.4.4.

About the Sirohi breed: Suitability

4.4.5.

Economic Analysis of “Sirohi” Breed

4.4.6.

Recommended Package

4.5.

Analysis of Backyard Poultry as a Sustainable Economic Enterprise for Tribal Families 34

4.5.1.

Poultry as a livelihood Option

4.5.2.

Backyard Poultry for livelihood generation

4.5.3.

About the Nirbheek breed

4.5.4.

Economic Analysis of Backyard Poultry

4.5.5.

Recommended Package

4.6.

Analysis of Trading in Jatropha as a Sustainable Economic Enterprise for Tribal Families

4.6.1.

Jatropha as a livelihood Option

4.6.2.

About the Jatropha Plant

4.6.3.

About the Jatropha Oil and Biodiesel- Success Stories

4.6.4.

Enterprise ideas for Community Benefit

4.6.5.

Sustainability

4.6.6.

Economic Analysis for 50 Quintals of Trading in Market at SHGs level

Conclusion

References

Appendices

List of Tables

Table No.

Title

Page No.

Distinguished analysis of the functional and defunct SHGs from the sample size of Kotra Adivasi Sansthan (KAS) Landholding and irrigation scenario from the sample size of KAS

Table 7

Scenario for the use of Seeds, manures and chemical fertilizers from the sample size of KAS Distinguished analysis of the functional and defunct SHGs from the sample size of Sangam Sansthan Landholding and irrigation scenario from the sample size of Sangam Sansthan Scenario for the use of Seeds, manures and chemical fertilizers from the sample size of Sangam Sansthan Rates of important items in villages (Gogunda Block)

Table 8

Goat breeds in Western India and their Conformations.

Table 9

Performance of different genotypes of Poultry breeds in villages

Table 10

District wise progress of Jatropha Nursery Raising Till March 2009 in Rajasthan

Table 1 Table 2 Table 3 Table 4 Table 5 Table 6

21 22

List of Figures

Figure No.

Title

Page No.

Figure 1

Phases of the Project

Figure 2

Scenario of livestock and poultry from the Sample size of KAS Average yield (in quintals/ bigha) of major crops grown in the area (Kotra Block) Scenario of the SHGs of Sangam Sansthan

Figure 3 Figure 4

17 18

Figure 9

Scenario of livestock and poultry from the Sample size of Sangam Sansthan Average yield (in quintals/ hectare) of major crops grown in the area (Gogunda Block) Market value (Rs./Kg) of the important crops of the area (Gogunda Block) Pattern of Expenditure in the Normal lifestyle of tribes in Gogunda Block Identifying the common strength

Figure 10

Capacity Vs Willingness Matrix

Figure 11

Proposed Institutional Mechanism

Figure 12

Jatropha Production Chain

Figure 5 Figure 6 Figure 7 Figure 8

vii

20 21 22 25

List of Abbreviations

CEE MSE RMoL MSECDP CFC’s MoEF PSME KAS EF VLOs CBOs EIC TAF IGAs NGOs SHGs TSP GEF SGP FTTGs NREGS FYM DAP NRM MPUAT FGDs CARI NPK MED

Centre for Environment Education Micro and Small Enterprises Rajasthan Mission on Livelihoods Micro and Small Enterprises Cluster Development Programme Common Facility Centres Ministry of Environment and Forests Promotion of small and medium enterprises Kotra Adivasi Sansthan Enterprise Fund Village Level Organizations Community Based Organizations Enterprise Investment Committee Technical Assistance Fund Income Generating Activities Non Government Organizations Self Help Groups Tribal Sub-Plan Global Environment Facility Small Grants Programme Farmer’s Technology Testing Groups National Rural Employment Guarantee Scheme Farm Yard Manure Di-ammonium Phosphate Natural Resources Management Maharana Pratap University of Agriculture and Technology Focused Group Discussions Central Avian Research Institute Nitrogen, Phosphorus, Potassium Micro Enterprises Development

viii

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance

1. Introduction Rajasthan is 11% of the country's geographical area. It is situated in the northwestern part of the Indian Union and lies between 23º30´ and 30º 11’ North latitude and 69º 29’ and 78º 17’ East longitude. It has only 9.5 % of total geographical area recorded as forest. The state is girdled by Punjab and Haryana states in the north, Uttar Pradesh in the east, Madhya Pradesh in the southeast and Gujarat in the southwest. As part of the Management Traineeship Segment, the major persona was status analysis of two partner NGOs and their respective SHGs as well as find out the potential enterprises based on the available resources and potential of the people. A study of business analysis in both financial and operational aspect of different opportunities was carried out to understand the various perspectives for the initiatives undertaken by RMoL (Rajasthan Mission on Livelihood). In order to identify challenges for the organization in current and future context different concepts that were learnt in the classroom were utilized. The period of the study was from the 1st of June to the 15th of August 2009. 1.1.

Micro-enterprise Scenario of the world

“Worldwide, the micro and small enterprises (MSEs) have been accepted as the engine of economic growth and for promoting equitable development. The MSEs constitute over 90% of total enterprises in most of the economies and are credited with generating the highest rates of employment growth and account for a major share of industrial production and exports. In India too, the MSEs play a pivotal role in the overall industrial economy of the country. It is estimated that in terms of value, the sector accounts for about 39% of the manufacturing output and around 33% of the total export of the country. Further, in recent years the MSE sector has consistently registered higher growth rate compared to the overall industrial sector. The major advantage of the sector is its employment potential at low capital cost. As per available statistics, this sector employs an estimated 31 million persons spread over 12.8 million enterprises and the labour intensity in the MSE sector is estimated to be almost 4 times higher than the large enterprises.” (MSME, 2009)

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance

1.2.

Micro-enterprise development scenario in India

“The Micro and Small Enterprises Cluster Development Programme (MSECDP) is implemented for holistic development of clusters of micro-enterprise. The programme envisages measures for capacity building, skill development, technology up gradation of the enterprises, improved credit delivery, marketing support, setting up of common facility centers, etc., based on diagnostic studies carried out in consultation with cluster units and their collectives and management of cluster-wide facilities by the cluster collectives. This is, in fact, the flagship scheme of the Ministry of MSME and it attempts to cover (in phases) all or most of the "Clusters of Micro & Small Enterprises" scattered throughout the country. It aims at a focused programme of upgrading skills and technologies that exist in these clusters through various stages, like proper diagnostic studies; interaction with the existing enterprises (on the recommendations of the study); exposing the entrepreneurs/workers to better products, processes & practices; upgrading the existing skills available that finally lead to the creation of 'common facility centres' (CFCs) that these enterprises could utilize. These CFCs can be in the form of processing facilities, finishing or packaging centres, tool rooms, testing/certifying laboratories, training centres and so on. Till October 2007, the Ministry of MSME has undertaken the development of over400 clusters of village, micro and small enterprises; while 8 other Ministries and agencies of the federal government have also undertaken similar interactions in about 800 more clusters. India has now acquired considerable expertise in "Cluster Development Programme" and UNIDO as well as many developing countries are eager to learn about the Indian success story.” (MSME, 2009). 1.3.

Organization overview

Centre for Environment Education (CEE) was established in 1984 as a centre of excellence in Environment Education, supported by the Ministry of Environment and Forests (MoEF). It is affiliated to the Nehru foundation for development. CEE is a national institution engaged in development and material to increase awareness about the environment and sustainable development. CEE’s head office is in Ahmedabad , Gujarat. In order to effectively reach out of various parts of the country and facilitate programmes that are culturally sensitive and locally relevant, establishing a presence in different parts of India has been recognized as essential.

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance

Its Regional cells are situated at Ahmedabad, Banglore, Pune, Lucknow and Guwahati. CEE has its international branches at Sydney, Colombo, Toronto. CEE worked on 21 different thrust areas like Education for children, Education for youth, Sustainable rural development, Water and sanitation, Waste management, Biodiversity conservation, Eco-Tourism, Knowledge management for sustainable development, Disaster Preparedness and Rehabilitation etc. The current project- Promotion of small and medium enterprises (PSME) was under the thrust area of Sustainable Rural Development. 1.4.

Project overview

Centre for Environment Education (CEE) is a nodal agency for the current project funded by RMoL (Rajastham Mission on Livelihoods); a government organization with the grassroots partner NGOs, namely, Kotra Adivasi Sansthan (KAS), Sangam Sansthan, Sahyog Sansthan and Prayatan Samiti respectively. The strategy is to work with partners with which CEE has long standing relationship of about 5-8 years. CEE has facilitated a number of programmes directly and in partnership with other agencies for enterprise development. The current project is Promotion of Small and medium enterprises through microfinance. For this, the initial task is to create the profile of the partner grassroots NGOs and to assess the current status of SHGs and the federation/VLOs (where ever it is initiated). KAS had already led up the task of constituting its SHGs into a federated structure. The approach of the project is an amalgamation of two systems;

A financial system comprising of an Enterprise Fund (EF) that provides working capital credit to VLO members for investments in Enterprises.

ii.

An institutional system that administers the fund and simultaneously provides capacity building and information service support for the establishment of entrepreneurs.

The Institutional Structure for management and implementation of the proposed project will primarily consist of a three-tier system of the following with CEE, as a lead partner in the project, coordinates the project:

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance

Grassroots NGOs/CBOs as local partners to facilitate community mobilization and field coordination of the project activities.

ii.

Local village level organizations (VLOs) federated from the existing SHGs of the project areas of the grassroots NGOs.

iii.

The Enterprise Investment Committee (EIC) comprising the members of VLOs, NGOs and other stakeholders to manage the revolving fund for facilitating the enterprises.

To fulfill the above mentioned needs and aspirations, the primary thing is to assess the present conditions and status of the NGOs/CBOs as well as SHGs in terms of their socioeconomic conditions, livelihoods, scope of enterprises, linkages with banks and market, capacity and empowerment etc. Two funds will be created under the project. The details of the fund are as follows-

Enterprise Fund (EF) The fund would be created as a revolving capital to provide financial assistance to communities at individual and group level to start the enterprises. EIC will manage the fund deposited in bank account of a nationalized bank. EIC will decide upon the interest rate and management costs of managing the fund. The funds will be sanctioned and disbursed based on norms and criterion set by the committee.

ii.

Technical Assistance Fund There is a greater need for training and technical assistance, in order to be able to meet the credit needs of Enterprise and reduce the operating costs, increased revenue, reduce risks and organizational adaptation. CEE seeks to achieve this through the Technical Assistance Fund (TAF). The main advisory services include enterprise planning, marketing, value addition, training in technical subject areas, financial control and accounting, environmental indicators and monitoring programmes.

An important issue today is to create an environment of gender equality in the society to make it more humanistic in terms of secularism and human rights for sharing nature’s bounty in the development process. The efforts are, therefore, directed towards ensuring equality and capacity building of the women, particularly in the rural areas where traditionally women 4

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance

have been excluded from the mainstream societal and economic processes in spite of the fact that they constitute one third of the natural labour force and a major contributor to the survival of the family. It has almost become a phrase that ‘the poorer the family, the greater its dependence on women’s income’. Despite the progress in several key indicators, a gender analysis of most social and economic data demonstrates that women in India continue to be relatively disadvantaged in matters of survivals, health, nutrition, literacy and productivity. Most of rural women in India are unskilled, restricting them to low paid occupations and subsequent exploitation at different levels in various forms. Women generally have no or less control over land and other productive assets, which excluded them from access to institutional credit and render them dependent on high-cost informal sources of credit to secure capital for consumption and/or productive purposes. Although women are the main providers of basic services in poor settlements, their key role remain largely unrecognized. SHGs are now playing an important role in poverty alleviation in many countries across the world. “SHGs are small informal associations created for the purpose of enabling members to reap economic benefit out of mutual help, solidarity, and joint responsibility”. A growing number of poor people, mostly women, have become the members of SHGs and are actively engaged in saving and credit practices as well as in various activities of income generation, natural resources management, literacy, child care and nutrition, etc. SHGs of women are recognized as an effective tool for their empowerment in rural as well as urban areas bringing them together from all spheres of life to fight for their rights. The access to credit can be seen as the motivational factor behind the formation of SHGs and the bond that sustains the groups over time. However, SHGs have a potential that goes beyond the mere economics of loan management. Once an SHG has been formed, the credit link is established and the meetings of the members are managed regularly, the group tends to take on a much wider social role. More precisely the SHGs provide a forum in which people can meet on a regular basis and discuss various issues or concerns that the members face in their daily life. The overall objective of the study was to come out with the learning on the processes and efforts required for developing SHGs into successful micro-enterprises, to determine the variants to be adopted by SHGs for moving to entrepreneurial mode, suggestion to overcome the problems and constraints attached with micro enterprises and marketing etc, to elicit the support required by the SHGs from multiple sources for IGA (Income Generating Activities) promotion and to assess the lacunas, gaps and needs to support IGA based SHGs. The objectives of the present study were framed in consultation 5

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance

with all relevant stakeholders and experts concerned with this sector and SHGs related activities. 1.5. i.

Objectives of the Study To get exposure and understanding of the economic, cultural and social aspects of the target population.

ii.

To develop a holistic understanding of livelihoods and to get an insight on the lives of the villagers through selected questions about their livelihood.

iii.

To assess the status of the NGOs under which the project is being carried out and to understand the status of SHGs, their contribution and the role they can play in developing rural enterprises.

iv.

To acquaint ourselves with the current agricultural scenario viz. cropping pattern, income generated out of farming, no. of family members engaged in agricultural activities etc.

To create a benchmark data on SHGs with respect to monthly savings, total savings till date, Bank- Linkages if any, loans taken, repayment etc. and to know about the present status of people in terms of capacity building and empowerment and also the means (if any) like training, exposure visits, commodity trading within and in nearby markets etc.

vi.

To identify the potential enterprises that can be possible in the area and their economic analysis.

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance

2. Methodology

Figure 1- Phases of the Project Sample design admits sample collection, secondary data collection and deciding tools for data collection. Field Work includes Focused Group Discussions, Survey through structured questionnaire, general discussion and personnel interviews. Data analysis is done by using statistical tools and MS Excel. Report writing is the final phase, before going for the final report a draft report is drawn and re-checked. 2.1.

Research Design

Kotra and Gogunda blocks of Udaipur District, Rajasthan were selected for the research. The reason for the selection of Kotra is that, Kotra Adivasi Sansthan, one of the partners NGO is operational in this area since 1998. Sangam Sansthan, other partner NGO for the project, is situated in Gogunda block, operational in this area since 1999. 2.1.1. Sample Design 2.1.1.1. Sampling method and Sample Size First of all we have stratified/ divide all the SHGs into different groups based on their year of formation. The classification is done so that every member of the population is found in one and only one stratum. After that, separate random samples are drawn from each stratum. The sample size was taken as 11 SHGs from Kotra Adivasi Sansthan and 12 from Sangam Sansthan . 7

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance

2.1.1.2. Survey Design In order to conduct a comprehensive and meaningful study the basic requirement is of accurate and reliable data. In our study we have collected data from both primary as well as secondary sources in order to meet the true purpose of our study. 2.1.1.3. Collection of Primary data Primary data are collected with the help of a structured questionnaire. The questionnaire was tested beforehand and necessary corrections were incorporated after pre-testing in the field. The revised questionnaire was finalized then for survey. We have started approaching to the SHGs with the help of Village level workers of respective NGOs. The organizations have given us their references. The aim of survey and purpose of use of the questionnaire was explained properly to these workers in detail before starting the survey. Focused group discussions were conducted about some important facts, issues, before and present situation of the beneficiaries etc. The informal group discussions and case studies were also the main source of primary data collection. This gave us the opportunity to think in this direction and analyze the situation. Important argument and information were ranked according to their priority, check list were also used to facilitate the discussion. Some of the information was collected about the general household conditions and their daily routine work also. 2.1.1.4. Collection of Secondary data The secondary data were provided by the organization. They have provided the list of interventions in that area and also the beneficiaries in the villages. The other source of secondary data is the reports of the projects undertaken by both the NGOs.

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance

3. Literature Review Financial services play an important role in assisting the poor in managing their money and in improving their economic status. It has not only created institutional mechanism, but also has had targeted schemes that help the poor to come out of poverty. However, most of the efforts have been supply-driven and have looked at the credit and not the savings need of the poor. It is believed that poor know how to manage their flows (Rutherford 2000). They need money in lumps and finding ways to meet such requirements is a challenge. Saving is nothing but the choice of not consuming cash. We should look at the issue pertaining to saving and credit together, to understand the needs of poor (Rutherford 2002). The risks are temporary risks, permanent risks like life cycle risks, structural risks and crisis risks. These risks disrupt the functioning of the household’s economic portfolio to such an extent that the income required to fulfill basic needs can no longer be maintained. People ask for more for safety and liquidity and less for returns in case of savings. The savings at home, loans from moneylenders and emergency loans from SHGs are most frequently used in overcoming crisis risks. Regular savings help in building large sums, are often useful in dealing with such risks. A good financial service enables the poor to manage money effectively and allows them to use it when required in a quick, affordable and transparent manner. Ruthven and Kumar (2000) argue that the success of the moneylenders, deposit collectors, pawnbrokers who reach people where others fail, is in providing lump sums instantly, with no security and also regular savings devices on a sufficiently small scale basis. There are many tricks that the formal institutions need to learn from informal players if they want to widen their client base to reach the poor. It was also found that poor give importance to security and liquidity aspect of savings and not look for significant returns. Throughout the world the enterprises run by SHGs has been growing since last three decades period. In the developing world also the women’s enterprise is often referred to as ‘income generation’ which describes the reasons behind activity. Income generation projects are now being increasingly used as a major entry point for agencies and organizations concerned with wider development.

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance

Women Microenterprise springs largely from economic necessity. Indeed they have to be, in order to survive. Women involved in microenterprises are largely concerned with survival for their families and themselves rather than running a successful enterprise. Indeed, it is not often that the word ‘business’ is used when discussing women’s enterprise. A more common term is income generation, which describes exactly what these women are trying to do to generate an income. Women doing microenterprise are in better position to serve their needs as well as of their family. Goldman Sachs recently cited Jatropha curcas as one of the best candidates for future biodiesel production. However,

despite

its

abundance

and

use

oil

and reclamation plant, none of the Jatropha species have been properly domesticated and, as a result, its productivity is variable, and the long-term impact of its large-scale use on soil quality and the environment is unknown. Jatropha curcas seeds is used for making biodiesel fuel, where it grows naturally. Likewise, jatropha oil is being promoted as an easily grown biofuel crop in hundreds of projects throughout India and other developing countries. The railway line between Mumbai and Delhi is planted withJatropha and the train itself runs on 15-20% biodiesel. In Africa, cultivation of Jatropha is being promoted and it is grown successfully in countries such as Mali. In the Gran Chaco of Paraguay, where also a native variety (Jatropha matacensis) grows, studies have shown suitability of Jatropha cultivation and agro producers are starting to consider planting in the region. Estimates of Jatropha seed yield vary widely, due to a lack of research data, the genetic diversity of the crop, the range of environments in which it is grown, and Jatropha's perennial life cycle. Seed yields under cultivation can range from 1,500 to 2,000 kilograms per hectare, corresponding to extractable oil yields of 540 to 680 litres per hectare. Time Magazine recently cited the potential for as much as 1,600 gallons of diesel fuel per acre per year. Jatropha can also be intercropped with other cash crops such as coffee, sugar, fruits and vegetables. Small scale poultry production systems- either in the form of small semi or fully scavenging household flocks or a slightly larger more intensive units have developed in a large number of developing countries around the world as a source of livelihood support for the rural poor In recent years there has been growing recognition among the development community of the role of small scale commercial poultry production in accelerating the pace of poverty 10

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance

reduction and reaching out to the poorest of the poor. There is also growing evidence to demonstrate the role of small scale poultry in enhancing the food and nutrition security of the poorest households and in the promotion of gender equality (Dolberg, 2004; Ahuja, 2004, INFPD, http://www.fao.org./ag/AGAInfo/subjects/en/infpd/). At the same time, the market and production context of poultry production has been changing rapidly over the last two decades. Rapid economic growth and urbanization in developing countries has resulted in fast expansion of industrial large scale, vertically integrated, poultry production units, especially in Asia. Opportunities have also expanded for small scale poultry enterprises due to improved market access infrastructure and a preference structure that might still favour free range birds and eggs (Conroy, et al 2005). Goat is a multifunctional animal and contributes largely to agrarian economy, especially in the area where crop and dairy farming is not economical. Thus goat plays an important role in livelihood of large proportion particularly small farmers, women, landless and marginal farmers inhabiting geography isolated areas and who do not have other means of survival. Goat is reared traditionally and ideally suited to poorest of poor particularly who cannot afford to maintain large ruminants. With the growing demand for livestock product, Goat husbandry is becoming an attractive activity. Due to short gestation period, low risk capital investment and low cost of investment. It is considered as a poor man’s cow in India. Goat also considered as “Walking Refrigerator” for storage of milk and she can give milk as and when required, several times a day.

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance

4. Findings and Discussions 4.1.

Evaluation of Status of Partner grassroots NGOs

4.1.1. Status analysis of Kotra Adivasi Sansthan (KAS) Kotra is a Tribal dominant area of Udaipur District, and falls in the Tribal Sub-Plan (TSP) Area. Tribals contribute 89% of total Population. The block is located at a distance of 125 Kms from Udaipur City. The block consists of 31 panchayats made up of 265 Villages. The majority of the population belongs to Bhil and Garasia communities. These are originally farming communities, with very low per family cultivable area. Due to scarcity of cultivable area the population is highly dependent upon forests for livelihood. Important minor forest products in the area are Tendupatta, Aonla, Glue, Honey, Ratanjyot, Dolma, White musli, custard apple. The main Kharif crops are corn, Tuver and chawla while the important rabi crops are Gram, Wheat and mustard. 30% of the total area is forest; most of it is under Reserve Forest Area. Due to undulating terrain the agricultural land is also limited. Only 39% of the total agricultural land in the block is irrigated. Majority of people are marginal farmers with the average land holding of 2-4 bigas (1 Hectare= 4.5 bighas). The agricultural land was basically prepared by leveling the forest land. 3500 Households still struggle for their ownership right for land. Agriculture, forest products and upto a limited extent livestock are the traditional sources of livelihood of the tribals of Kotra KAS is fundamentally a people centered organization. The key elements of its working strategy is operating through people’s institution at the village level and taking up village level development issues. The development issues basically are related to tribal communities, women & Children, Migrants, Labor issues, farmers, Minorities and weaker section of the society. Community mobilization and facilitating the process of making village level organizations proactive, continues to be done through creating issue based organizations and block wide organizations. The Focus areas of KAS are education, Health, Women Empowerment, Self governance, Minimum Wage, Social Development, Retaining Cultural Heritage, Water, Forest and Land related issues, Abolition of corruption, building up the resource base through developmental activities, creating and strengthening the people’s organization, advocacy and lobbying for the accomplishment of rights.

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KAS has currently 52 SHGs in 31 panchayats of Kotra tehsil. KAS has divided their area of operation into three clusters, namely; Kotra, Devla and Mandva. Name of the cluster Kotra Devla Mandva Source: Secondary data from KAS

No. of SHGs 36 16 Nil

No. of villages addressed 21 15 5

The five villages mentioned in the Mandva cluster are addressed under the GEF Small Grants Programme of UNDP. These villages do not have any SHGs. To overcome the inherent limitations of small unregistered group, promoters facilitated the formation of federations. The benefits of federations include (a) those arising from economies of scale, (b) reduction in transaction costs, (c) reduction in default rates at all levels, (d) provision of value adding services, (e) reduction in the cost of promoting new SHGs (that is, in the cost of reaching out to every poor woman) and (f) increasing levels of financial discipline and accountability among SHGs. 21 SHGs were identified in 21 Villages of Kotra block covering 9 panchayats for the implementation of the project of UNDP titled Social mobilization around Natural Resource Management for women-upliftment and poverty alleviation in 2002. Initially, the SHGs were provided with seed money deposited into their respective saving bank accounts for Improving and strengthening the economic base of women by ensuring access to productive resources and sustainable management of these resources. The seed money that SHG members receive are intended to improve their livelihoods so that they can receive greater and steadier cash flows. In rural areas, livelihoods range from agriculture, animal husbandry, dairy and various other goods and services activities. Experience has shown that SHGs have had improved livelihoods to the extent of providing the leveraging needed to start an enterprise. The seed money ranges in between Rs. 20000 to Rs. 25000. During the project, various income generating activities like honey collection, green gram processing, collection of palash and gum, marketing of tuar dal etc. were started successfully. Later on during the middle of the project in 2004, the seed money which was deposited earlier into the bank accounts of SHGs was extracted out and the 21 SHGs were federated and the total amount was deposited in a common federation account. By that time the SHGs have a sound corpus because of their regular monthly savings and the profit generated through the above mentioned IGAs. It was done with a view that the corpus of the SHGs was utilized for inter-loaning whereas the need of seed money for raising a new 13

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enterprise or maintenance of existing ones can be addressed under the federation. Simultaneously it also enhances the up-coming of medium scale enterprises. The corpus for developing IGAs was made available to the 21 SHGs at a common platform. The monitoring of the proper utilization of funds and providing trainings according to the need of the possible IGAs was addressed by KAS. The federation is made up of 21 members, one from each SHG out of which 3 members were given the signatory authority. Soon after the project was over in 2006, in the absence of any monitoring and look after by the organization, the SHGs started collapsing. Presently, the unutilized corpus with the federation is around Rs. 3, 50,000. Out of twenty one, 9 SHGs are inoperative. During the project the organization acts as a binding force in keeping the SHGs intact but soon after the completion of the project proper technical assistance and guidance was not provided which is a main cause for the de-functioning of the federation. On the other hand, KAS perceives its role as a facilitator of change and thus envisages the Development of Tribals; through a process of conscientiousness, mobilization and economic empowerment, whereby they become self-reliant and self-sufficient and rightfully claim their status in society to become makers of their own destiny wherein they could live with human dignity. But it is straightaway discernible that the SHGs are still not in position to be selfsufficient and thus the federation. As mentioned earlier, the five villages mentioned in the Mandva cluster are addressed under the GEF Small Grants Programme of UNDP. Those villages do not have any SHGs but during the project the Farmers Technology Testing groups (FTTGs) were formed to increase their food security by providing them timely assistance and information about new innovations and practices in Agricultural improvement. Farmers in project villages have resource persons available in the area. Thus, likewise SHGs, to study the status of these FTTGs is of the essence of the current proposed project. The methodology of the study remains the same except the status is analyzed in terms of their livelihood opportunities, agricultural scenario, livestock, rate of migration, annual income etc. A total of around 70 beneficiaries from five different villages were the members of these FTTGs formed by KAS.

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Therefore, to analyze their current status the questionnaire for the field survey was restructured according to the FTTGs and tried out beforehand and necessary rectifications were incorporated after pre-testing in the field. The sample was taken as 25 individual farmers (5 from each FTTG).

4.1.1.1.

Inferences out of the field survey

Out of the sample population, 3 SHGs are de-functional.

ii.

Average no. of members in the SHGs is 16.55 out of which BPL members are 8.73 and others are 7.82 respectively.

iii.

Average monthly rate of savings is Rs 12.27.

iv.

Average corpus with the sample SHGs is Rs 11433.

Average no. of times inter-loaning is going on in the sample SHGs is 8.18.

vi.

Out of the sample SHGs, 2 SHGs have not even started the inter-loaning.

vii.

The average rate of interest on inter-loaning is 28%.

viii.

There is only 1 SHG out of the sample population which is lending money outside the group. The rate of interest on intra-loaning is 60%.

ix.

Only 3 SHGs of our sample population are linked to Banks through grading last year but the money is not received yet.

Table 1- Distinguished analysis of the functional and defunct SHGs from the sample size: Functional SHGs

Defunct SHGs

8 SHGs are functional BPL members- 37.17%; APL members- 63.46% Savings amount/ month- Rs 13.10 Average Corpus- Rs 13106.50 Average no. of Inter-loaning- 9.875 Rate of Interest on inter-loaning- 26% Intra-loaning- 2 SHGs are doing @ 60% p.a.

3 SHGs are defunct BPL members- 87.9%; APL members- 12.1% Savings amount/ month- Rs 10 Average Corpus- Rs 6970.30 Average no. of Inter-loaning- 3.7 Rate of interest on inter-loaning- 16% Intra-loaning- NIL

Source: Field Survey 4.1.1.2. Status of Farmer’s Technology Testing Group

Out of the sample population, 11 farmers were illiterate, others are below 10th standard.

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ii.

The primary source of income is Agriculture as 100% of the sample population is engaged in agriculture.

iii.

Labor including NREGS is the secondary source of income as 96% of the sample population is engaged in it.

iv.

The average no. of migrating people/ household from the sample population is 0.92.

The most preferred places of migration are Mount Abu and Palanpur.

vi.

The average duration of migration from the sample population comes out to be approximately 26 days.

vii.

The average total income of a household p.a. is Rs. 22536 out of which the contribution from agriculture is Rs. 7832, from labor (inc. NREGS) is Rs. 11420 while from other sources is Rs. 2080.

Figure 2- Scenario of livestock and poultry Source: Field Survey Table 2- Landholding and irrigation scenario (in bighas) Average owned land Average landholding under the forest area Average total landholding Average irrigated land Average non-irrigated land Respondents having their own Well as source of irrigation 16

4.41 1.58 5.99 2.86 3.13 15

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Respondents who have access of other's wells for irrigation Respondents who have access to pond for irrigation Respondents who have access to river/nullah for irrigation Source: Field Survey

7 NIL 16

Table 3- Seeds, manures and chemical fertilizers Respondents using certified seeds Respondents using only their own seeds for sowing Respondents using only seeds purchased from market for sowing Respondents using both seeds purchased from market as well as their own for sowing Average total use of manures (FYM)/year (in kgs) Average use of DAP (in kgs)/year Average use of urea (in kgs)/year Source: Field Survey

NIL 1 3 20 624 49.6 98.6

(Note: 1 Hectare= 4.5 bigha)

Figure 3- Average yield (in quintals/ bigha) of major crops grown in the area Source: Field Survey 4.1.2.

Status analysis of Sangam Sansthan

Sangam Sansthan is located 78 Kilometers from Udaipur in the Northern direction on the Ranakpur thoroughfare at Village Padrada in Panchayat Chitrawas of Gogunda block. Gogunda block is situated 27 Kilometers away from District headquarters; Udaipur in the

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interior of Aravalli hills. The organization was established in 1999 with the vision of holistic rural development.

Figure 4- Scenario of the SHGs of Sangam Sansthan Source: Field Survey

4.1.2.1.

Inferences out of the field survey

Out of sample population, 4 SHGs are de-functional.

ii.

Out of sample SHGs 6 are Male SHGs, 5 are Female SHGs and 1 is mixed SHG.

iii.

Out of 6 Male SHGs 2 SHGs, out of 5 Female SHGs 1SHG and the mixed SHG are de-functional.

iv.

Average no. of member in SHGs is 16.

Average monthly rate of savings is Rs. 31.

vi.

Average corpus with the sample SHGs is Rs 11,123.

vii.

Average no. of times inter-loaning is going on in the sample SHGs is 13.25.

viii.

Out of the sample SHGs, 2 SHGs have not even started the inter-loaning.

ix.

The rate of interest on inter-loaning is 24%.

There is no any SHG out of the sample population which has started lending money outside the group.

xi.

11 SHGs out of the sample population is linked to Banks through grading and 4 SHGs already received the amount from Banks.

xii.

Average amount of loan from Bank is Rs.66837.5

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Table 4- Distinguished analysis of the functional and defunct SHGs from the sample size

Functional SHGs

Defunct SHGs

8 SHGs are functional Savings amount/ month- Rs 30 Average Corpus- Rs 9879 Average no. of Inter-loaning- 15 Rate of Interest on inter-loaning- 24% Intra-loaning- NIL

4 SHGs are defunct Savings amount/ month- Rs 32.5 Average Corpus- Rs 13610.75 Average no. of Inter-loaning- 9.75 Rate of interest on inter-loaning- 24% Intra-loaning- NIL

Source: Field Survey

4.1.2.2.

Status of Farmer’s Technology Testing Group

Sangam have formed the Farmers group in 5 villages under SGP project, in which 70 members are involved. Out of 70 members 22 are the members of FTTG. Thus, likewise SHGs, to study the status of these FTTGs is of the essence of the current proposed project. The methodology of the study remains the same except the status is analyzed in terms of their livelihood opportunities, agricultural scenario, livestock, rate of migration, annual income etc. A total of around 22 beneficiaries from five different villages were the members of these FTTGs formed by Sangam Sansthan.

4.1.2.2.1. Inferences i.

Out of the sample population, 10 farmers were illiterate, others are below 10th standard.

ii.

The primary source of income is Agriculture as 100% of the sample population is engaged in agriculture.

iii.

Labor including NREGS is the secondary source of income as 97% of the sample population is engaged in it.

iv.

Average household size is 6 members out of which male and female constitute 52% and 48% respectively.

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Average children/ household are 4 out of the sample population.

vi.

The average no. of migrating people/ household from the sample population is 0.9.

vii.

The average duration of migration from the sample population comes out to be approximately 31 days.

viii.

The average total income of a household p.a. is Rs. 19947 out of which the contribution from agriculture is Rs. 6638, from labor (inc. NREGS) is Rs. 11309 while from other sources is below Rs. 2000.

Figure 5- Scenario of livestock and poultry Source: Field Survey Table 5- Landholding (in bigha) and irrigation scenario Average owned land Average landholding under the forest area Average total landholding Average irrigated land Average non-irrigated land Respondents having their own Well as source of irrigation Respondents who have access of other's wells for irrigation Respondents who have access to pond for irrigation Respondents who have access to river/nullah for irrigation Source: Field Survey

3 2 5 2 3 15 7 NIL 14

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Table 6- Seeds, manures and chemical fertilizers Respondents using certified seeds Respondents using only their own seeds for sowing Respondents using only seeds purchased from market for sowing Respondents using both seeds purchased from market as well as their own for sowing Average total use of manures (FYM)/year (in kgs) Average use of DAP (in kgs)/year Average use of urea (in kgs)/year Source: Field Survey

NIL 2 3 20 524 50.4 102.1

Figure 6- Average yield (in quintals/ hectare) of major crops grown in the area Source: Field Survey

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Figure 7- Market value (Rs./Kg) of the important crops of the area Source: Field Survey

Table 7- Rates of important items in villages Item Fuel wood Irrigated land Un-irrigated land Waste land Labor- in village Labor- outside Source: Field Survey 4.2.

Unit 1Kg 1 Ha 1 Ha 1 Ha 1 day 1 day

Rate Rs. 15 Rs. 27000 Rs. 23000 Rs. 7000 Rs. 60 Rs. 80

Findings and Key Observations

No doubt the area of operation is tough and interior too. The opportunities are fewer and infrastructure is wanting. The formation of SHGs was project oriented. There is lack of operational effectiveness in terms of capacity, governance and patronage cohesiveness. In the absence of monitoring by the organization, the lack of faith on each other among the members of SHG was found out to be the major reason for the de-functioning of the SHGs. The other reasons are the conflict among group members on different issues, migration of the whole family of group member, defaulting by the members, negligence by field workers and irregularity of members in monthly meetings and group based activities. On the other hand, mixed groups are there apart from male and female groups. Ultimately it yields to family support in long term. 22

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There is noticeable vision at apex level but it has not been disseminated throughout the hierarchy of organization. The initiatives from the community are lacking and there is dependence on organization for support. The main motive of the formation of the SHGs was the livelihood generation but the SHGs are still in the stabilization phase after the many years of formation. Their mindset of SHG formation is limited up to savings. The SHGs are not in the self sustaining mode and depends upon organization for information, services, support and guidance. Simultaneously, the SHGs which have linkages with bank are repaying the loan on time even after the group is un-operational in terms of monthly meetings and savings. The educational status of the women is very poor, which further led them into the trap of dependence on others. Exposures, trainings, demonstration and the motivational forces are lacking. In general, the issue seems to be weak in terms of vision, capacity, sub- critical corpus etc. at both SHGs as well as the NGO level. There are experiences of enterprises at individual level but inter and intra group sharing of experiences needs to be strengthened. The groups seem to be weak in terms of Network, liaison and coordination. Villagers grow crops mostly in kharif season. Farmers who have access to water through wells or ponds grow crops in rabi and zayed season also. The kharif crops are grown in the rainy season, in the months of June to November whereas the Rabi crops are grown in the winter, October to April. In both the season their farming depends on the monsoon, if the monsoon is favorable and there is no natural calamities it turn in to good yield, if it is adverse they suffer a huge loss. Kharif crops are totally rainfed while Rabi crops are somewhat irrigated. Agriculture is totally subsistence and practices are traditional. The yield per unit area is very low. With limited land resources, too much dependence of work-force on agriculture makes the returns non-remunerative. Last year, under the project of UNDP GEFSmall Grants Programme the Farmer’s Technology Testing groups were formed in 5 Villages to increase the food security in migration dependent households. The vision is to develop an approach that is both sustainable and replicable in difficult but resource rich region facing extreme poverty, chronic food insecurity, rising out migration, low levels of skills and productivity. The immediate purpose is to improve the practices followed in Agriculture/ NRM that increases the food security and simultaneously improves the degraded resource base. There are total of 70 beneficiaries in 5 villages. Concurrently, the FTTGs will examine options for improving soil fertility and crop husbandry. This year the seeds of improved maize variety were provided to the member farmers with suitable practices as against the traditional ones. The soil samples of the participating farmers are tested at MPUAT 23

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(Maharana Pratap University of Agriculture and Technology), Udaipur. The primary emphasis is to cut down the costs of production while simultaneously increasing the productivity. The tribal belt is basically a cattle dominant area with non-descript cattle specially to meet the animal power requirement for farm operations. It is a goat belt also due to grazing potential and low capital requirement. Poultry enterprises are also common. Coverage of pasture and grazing land is more in the tribal dominated villages, which prompts the scope for developing animal husbandry as a potential source of income and employment in the tribal area. There is a seasonality of migration. Migrants generally return to their respective families during rainy season or during kharif season. However, during rabi season they generally stay at their migratory places, for lack of rain and irrigational underdevelopment, there is hardly sufficient agricultural activity to provide employment in this season. The pattern of migration is both seasonal as well as daily labor to nearby towns. i.

Seasonal- Falna, Pindwara, Surat, Shivganj, Bali, Pali, Sumerpur (Tent work, RCC)

ii.

Daily – Sayra, Gogunda, Padrada (wage labour).

An effort is done to get an insight of the pattern of expenditure in their normal lifestyle (see fig. 8 ). The figures are the essence of the direct observations and FGDs with villagers and inhabitants of the treatment area. There is huge potential of farm based enterprises like Jatropha, Custard Apple and Kakdi (Cucurbitaceous crop) etc. The other potential enterprises seem to be poultry and goat husbandry, which are replicable also throughout the tribal dominated Southern Rajasthan region.

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Figure 8- Pattern of Expenditure in the Normal lifestyle of tribes in Gogunda Block Source: Field Survey 4.3.

Identification of potential Enterprises and the proposed Institutional Mechanism Udaipur has more than 50% Scheduled Cast and Schedule Tribe population. The average yearly average income of the target population ranges from Rs 15000 to Rs 25000. Micro enterprise development is a tool in developing and improving the livelihood for them. The essence of the assignment was to identify such opportunity for PSME. This assignment targeted the small and marginal farmers and rural laborers, organize them in group and identify self help. One basic motive of conducting this assignment was to make the target population more confident and make them believe that they can also start some enterprise. It was observed that they have been marginalized of all the resources and of date the schemes like NREGA is hindrance to the enterprise development. One motive was to break these shackles of dependency. Make them more enterprising and risk taking. The assignment was carried out in different phases. The first phase was to understand the three basic entities involved for PSME; the grassroots organization, the target area, the target population. This was carried out by field visit and desk based research. The field visit was an exploratory research which was conducted by the semi formal interview of the target population with the help of the checklists. During this some of the activities were identified and that was further 25

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validated with the local and sectoral experts. The technical, financial and market analysis was done and thus filtered the low hanging fruits. Again the potential target group was identified on the willingness and the capacity matrix.

Figure 9- Identifying the common strength

4.3.1. Identifying the potential target group This phase was conducted in order to identify the potential target group out of the target population on the basis of the capacity and willingness matrix. Basically, this task was given to the respective partner organizations because of the fact that they know their clients better than anybody else. However, we were given the task to assist them as and when required.

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Figure 10- Capacity Vs Willingness

This group will not selected This group needs training and some exposure visits This group will be selected for harnessing the ‘low hanging fruits This group needs intervention on capacity improvement

4.3.2. Selection of the possible sector or the activity and the village The possible activities were selected in phases. The first phase was the idea generation phase in which all the ideas was invited. In this phase the grassroots organization’s view was taken and few activity and possible target villages were taken which could be possible in their opinion. In the second phase that is during the field visit and after the field visit some of the activities were filtered and some were added in list of possible activities. It was decided on the availability of the resources of the target area and the skills of the target population of the grassroots organization. Presently the enterprises which came out of the two phases are:

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Jatropha trading Custard Apple based Honey trading Vinegar and Ark of Jamun

Nursery Raising Vegetable production Backyard Poultry Goat Husbandry

Ghee and other milk products Sewing and Embroidery Sweets making Agricultural tool bank

There are possibilities of other enterprises as well. The above mentioned enterprises satisfy the capacity of entities like the grassroots organization, the target area, the target population. As suggested by our host organization, we were supposed to work out the economic analysis of three major enterprises in the respective area of operation of both the partner NGOs.

EIC (10 members) FUND FLOW D E M A N D

@ 8%

NGOs/ Cluster of Beneficiaries

SHGs/ FTTGs

@ 12%

R E P A Y M E N T

Individual or Group Entrepreneurs

Figure 11- Proposed Institutional Mechanism The figure shows the proposed institutional mechanism for the implementation of the project. EIC (Enterprise investment committee) is the regulatory body composed of representatives from respective partner NGOs, representatives from the beneficiaries (SHGs, FTTGs etc), representative from CEE and RMoL. There were total of 10 members in EIC which governs the flow of fund from apex level to the grassroots. The figure clearly depicts that Individuals have to repay the loan at 12% interest p.a. but the cluster of beneficiaries have to pay only 8% p.a. interest to the EIC. The 4% is left to meet the operational cost of the cluster of beneficiaries. As soon as the beneficiaries receive the loan amount, advance dated cheques (duly signed) were taken from them to prevent defaulting and to orient them towards more serious and genuine efforts for enterprise development.

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4.4.

Analysis of Goat Rearing as a Sustainable Economic Enterprise for Tribal Families

4.4.1. Background Udaipur is located in the southern part of Rajasthan. It is bound to the north by Rajsamand and Pali districts, to the south by Dungarpur and Banswara, to the east by Chittaurgarh, and to the west by Sirohi and Gujarat. The district has 26,32,210 people (2001 census) living in 2248 villages of eleven blocks. The Scheduled Caste population is about 6 percent and Scheduled Tribe population constitute about 47.86 percent of the total population. It has a mean annual rainfall of 624 mms and normally experiences drought every three years. The area has very low CMIE1 index indicating poor secondary and tertiary sectors. 4.4.2. Goat as a livelihood Option The total goat population in the world is 790 million. China ranks first in goat population in the world with 199 million, followed by India with a population of 124 million. Over 54 million goats are slaughtered every year with an average meat yield of 9.63 kg per goat. The annual population growth of goat has been 0.22 percent. However, as per the 2003 livestock census, the goat population has recently increased with an annual growth of 0.6 percent, in spite 38 percent slaughter rate and approximately 15 percent mortality. The rate of increase in goat population during the last five decades has been the highest among all the ruminants. Among the Indian states, west Bengal has the largest goat population of 18.77million, followed by Rajasthan (16.80 million), Uttar Pradesh (12.94 million), Maharashtra (10.68 million) and Bihar (9.49 million). There are nearly 102 breeds of goats in the world, of which India’s vast genetic resources in goats are reflected by the presence of over 20 well defined breed, reared for milk, meat and wool.

Centre for monitoring Indian Economy 29

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Table 8- Some of the breeds that are found in Western India and adapted to the conditions are: Breed

Utility

Size

Sirohi

Milk and Meat

Large

Barbari

Milk and Meat

Medium

Kutchi

Milk and Meat

Medium

Marwari

Milk and Meat

Medium

Mehsana Milk and Meat

Medium

Zalwadi

Medium

Milk and Meat

Weight Male Female 51 23

Conformations Compact Body, coat colour predominantly brown with light or dark patches, flat ears, udder medium sized and round Compact body, coat colour is white with brown patches, short erect years, shining eyes, udder well set with small teats Coat is predominantly black, few with brown or white spots, long hair, long and drooping ears, udder well developed Predominantly black coat with long hair, few animals with white or brown patches, udder is round and small The coat is black with white spots at the hose of the ears. Leaf like and drooping years, twisted horns, developed udder Coat is black with long hairs, long and drooping ears, long twisted horns, large udder with conical teats

Source: Eco-friendly goat husbandry for Sustainable Livelihood of small farmers, BAIF Development research foundation. 4.4.3. Goat promotion for livelihood generation Goat as a livelihood option provides multifarious benefits. The initial investment needed for Goat rearing is low and due to small body size and docile nature, housing requirements and management problems with goats are less. Goats are prolific breeders and achieve sexual maturity at the age of 10-12 months gestation period in goats is short and at the age of 16-17 months it starts giving milk. Twinning is very common and triplets and quadruplets are rare. In drought prone areas risk of goat farming is very much less as compared to other livestock species. Goats are ideal for mixed species grazing. The animal can thrive well on wide variety of thorny bushes, weeds, crop residues, and agricultural by-products unsuitable for human consumption. 30

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The goat meat is more lean (low cholesterol) and relatively good for

Milk Composition

people who prefer low energy diet especially in summer and Total solids

13.5%

its "chewability". Goat milk is easy to digest than cow milk because

Fat

4.5 %

of small fat globules and is naturally homogenized. Goat milk is said

SNF

9 %

sometimes goat meat (chevon) is preferred over mutton because of

to play a role in improving appetite and digestive efficiency. Goat milk is non allergic as compared to cow milk and it has anti-fungal and anti bacterial properties and can be used for treating uro-genital diseases of fungal origin. Goats are 2.5 times more economical than sheep on free range grazing under semi arid conditions. Goat creates employment to the rural poor besides effectively utilizing unpaid family labour. There is ample scope for establishing cottage industries based on goat meat and milk products and value addition to skin and fiber. 4.4.4. About the Sirohi breed: Suitability Sirohi is a common Indian breed, which derives its name from the Sirohi district of Rajasthan. The breed is also known by other names such as Devgarhi, Parbatsari, and Ajmeri. It is a dual-purpose animal, which are reared for both milk and meat. The animals are popular for their weight gain and better lactation even under poor quality rearing conditions. The animals are resistant to major diseases and are easily adaptable to different climatic conditions. Though the main breeding tracts of Sirohi animals are situated in the Aravalli hills of Rajasthan, they are also widely distributed in several other Indian states. The skin colour of the goat varies from light brown to dark brown sometimes with light brown patches on the body. The ears are big and droop downwards. The tail is small and curved upwards. Sirohi bucks (males) are heavier than the does (females). Animals with a tapering body shape are preferred for milk and those with a cylindrical body shape for meat production. The animals can be stall-fed as well as sent for grazing. It is ideal to feed the animals reared in a stall with about 3-5 kg of green fodder every day. Sirohi when compared with the common breeds of the region score well in terms of lactation period and meat yield. If milk is valued at Rs. 6/Kg and weight at Rs. 150 kg.

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Box 1- Goat Husbandary in Intensive System

4.4.5. Economic Analysis of “Sirohi” Breed (Based on secondary data and discussions with the farmers in the field). Option 1: One Buck and Two Does Particulars

Amount

A B

Revenue from Sales 17200 Cost incurred Cost of Animals 4500 Cost of feed 494 Miscellaneous 1500 Interest @12% 2498 Cost incurred 8992 Profit 8208 Benefit/Cost* 1.9 *Including Fixed Cost of Rs. 4000 for shed etc and value of remaining animals Option 2: One Buck and Four Does 32

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Particulars

Amount

A B

Sales Revenue 24400 Cost incurred Cost of Animals 7500 Cost of feed 840 Miscellaneous 1500 Interest @12% 3320 Cost incurred 13160 Profit 11240 Benefit/Cost* 2.5 *Including Fixed Cost of Rs. 4000 for shed etc and value of remaining animals Option 3: Two Buck and Six Does Particulars

Amount

Sales Revenue 40100 Cost incurred Cost of Animals 12000 Cost of feed 1334 Miscellaneous 1500 Interest @12% 4520 Cost incurred 19354 Profit 20746 Benefit/Cost* 3.4 *Including Fixed Cost of Rs. 4000 for shed etc. and value of remaining animals A B

Source: Based on data from Field Survey 4.4.6. Recommended Package 1. Animals as per option chosen or capacity of the family. 2. At least 5 saplings along with each option for future fodder requirements. 3. Shed of the animals along with flooring for the animals – maintains hygiene and makes the collection of urine and dung easy 4. One month stock of the recommended concentrate feed. 5. Insurance with a GIC

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance

The animals would be provided on assessment of the capacity of the family, participation in training. Before the supply of animals the family should plant the saplings and create the shed with suitable flooring.

4.5.

Analysis of Backyard Poultry as a Sustainable Economic Enterprise for Tribal Families.

4.5.1. Poultry as a livelihood Option Though poultry development in the country has taken a quantum leap in the last three decades, the growth has been mainly restricted to commercial poultry. Rural backyard poultry, though still contributing nearly 30% to the national egg production, is the most neglected one. This is in spite of the fact that their poultry eggs and meat fetch a much higher price than that from commercial poultry. 70 percent of the poultry products and eggs are consumed in urban and semi urban areas and the rural consumption is quite low. Private poultry producers are also not able to attend to the needs of major rural consumers and to the consumers of the north-eastern states and other difficult regions. The major limiting factor in the way of increasing consumption of egg and poultry meat in rural area is poor availability. Most of the commercial poultry egg and meat production is centered in the urban and semiurban areas. Due to their operation being of an industrial nature, the private sector is not inclined to go to the rural areas, particularly to small farmers and landless farmers including women. The private commercial sector is understandably reluctant to enter the rural backyard poultry sector as they aim at higher and quick profits, through larger investments. The commercial poultry sector is doing business, through integrated approach of contract farming using high-input and high-output birds. For the poorest of the poor and the landless, the major issues are food security and risk spreading through subsidiary income, which are not addressed by the private commercial sector. It is well known fact that a significant proportion of the landless and marginal farmers eke out their living from poultry and other small ruminants. Backyard poultry requiring hardly any infrastructure set-up is a potent tool for upliftment of the poorest of the poor. Besides income generation, rural backyard poultry provides nutrition supplementation in the form of valuable animal protein and empowers

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance

women. It has also been noticed that the demand for rural backyard poultry is quite high in tribal areas.

It may also be mentioned that groups of small rural producers cater to the needs of consumers who have a specific preference for coloured birds and brown-shelled eggs, both of which are mostly produced in the rural sector/ backyard poultry. Thus there is a need to take up specific rural poultry production programs, to meet the requirements of the rural consumers while constituting a source of subsistence income as a subsidiary occupation by taking up coloured bird units ranging from 30 to 50 birds per family in their backyards. Such units require very little hand feeding and can give a fairly handsome return with bare minimum night shelter. 4.5.2. Backyard Poultry for livelihood generation Rural poultry farming implies rearing of poultry in small numbers in the backyards under free range or semi-intensive system. Abundant availability of natural food base such as waste, cereal, grain, pulse, grain by-products, kitchen waste, insects, worms, green grass etc is a boon to backyard poultry in all parts of this region. Egg and meat production in 100% scavenging mode is largely low yielding. Adopting poultry farming in backyard of rural household can ensure the availability of eggs and meat in rural/tribal areas, which could help in alleviating the incidence of protein deficiency of the susceptible group, women, children, expectant mothers and aged; besides providing supplemental income. Due to several above limitations to establish the intensive poultry farming in this region, it is always convenient to encourage small-scale rural poultry in Southern Rajasthan region. Backyard Poultry farming involves rearing of chicken varieties, under free range or semi intensive condition. Rearing method largely depend on the type of the bird reared, availability of resources and the preference of local population for meat or eggs. Native (desi) birds are available for both (dual purpose). In areas where plenty of natural feed resources (insects, white ants, fallen grains, green grass etc) are available, a small number of birds (20-40) can be reared for meat purpose under free-range condition. If the local demand is for meat in large quantity, the dual purpose or colored feathered chicken can be reared under semiintensive conditions by providing all the essentials impacts.

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance

4.5.3. About the Nirbheek breed Nirbheek is a cross of Indian Aseel and Rhode Island Red (RIR). It is being promoted as a suitable breed in scavenging system of Backyard Poultry for both meat and egg purpose for Southern Rajasthan region by CARI (Central Avian Research Institute). In lab conditions, the cost benefit analysis is as follows:Table 9- Performance of different genotypes in villages (CARI, Izatnagar (Lead centre) – Co-PI: Dr. D. P. Singh) TRAITS

CARI NIRBHEEK 225 422 1925

Body weight at 4th weeks of age (g) Body weight at 8th weeks of age (g) Body weight of cockerels at 20th weeks of age (g) Body weight of pullets at 20th weeks 1390 of age (g) 173 Age at first egg (days)

CARI SHYAMA 207 390 1650

HITCARI

UPCARI

230 443 2070

210 403 1690

1190

1420

1290

165

167

162

Egg weight (g)

Annual egg production (No.)

158

165

168

172

Ranking (based on performance)

4th

3rd

2nd

1st

Ranking (based on liking)

1st

3rd

2nd

4th

B:C Ratio

3.01:1

Mortality (%)

7.28

Source: CARI, www.icar.org.in/natp/intro.htm The Nirbheek breed is being promoted by Maharana Pratap University of Agriculture and Technology (MPUAT) for about two years in Southern Rajasthan. The observation and discussions in the field with the beneficiaries have given the following experience:i.

The Nirbheek breed (20 units) was given about two and a half years back free of cost to tribal families in Khandar, Kantharia, Jambua, Malawadi, Koklakheda Villages of Gogunda block, district Udaipur.

ii.

The average egg production in villages (Kantharia and Jambua)2 ia around 120 eggs/annum. The local breed on the other hand produced about 80-90 eggs/annum.

The villages were visited on 7th August 09. Discussions were held with about 15 families to assess the performance and suitability of Nirbheek in actual field conditions. 36

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance

iii.

Nirbheek which is Aseel cross requires replacement with new chicks to maintain the improved germ-plasm. Inbreeding results in chicks with native birds characteristics. This is a big hindrance in success of the enterprise as there is only one hatchery running on project support with MPUAT, Udaipur. It involves additional cost to procure the birds and also make the entrepreneur dependent on external market for input in terms of chicks.

iv.

The interaction with the community showed that the egg of Nirbheek only fetches Rs. 3/egg and is not considered to be of the same therapeutic value as that of native bird. The egg of the native bird is sold at Rs. 5 in the local market. In Udaipur the prevailing price is Rs.6/egg but, due to distance, short shelf life and smaller scale the market is not accessible.

The meat is also not liked in the local market. The perception is that it is more fibrous than the native. The bones are also brittle.

vi.

Nirbheek hens do not usually sit on eggs for hatching. Farmers had to hatch the eggs using native breeds. 4.5.4. Economic Analysis of Backyard Poultry

Option 1: Unit size- 40; all native birds (desi). Particulars

Amount

Revenue

11100

Cost incurred

Chicks

2000

Cost of feed

1077

Miscellaneous

200

Interest @ 12%

876

Total Cost incurred

4153

Profit 6947 Benefit : Cost* 2.45 *The cost includes the fixed cost of cage etc. and benefit includes the asset value of the birds left after one cycle. Option 2: Unit Size-40, 30 Nirbheek and 10 Desi Particulars A B

Amount

Revenue Cost incurred

14161

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance

1 2 3 4

Chicks Cost of feed Miscellaneous Interest @ 12% Total Cost incurred

2000 1843 200 968 5011

Profit 9150 Benefit : cost 2.45 *The cost includes the fixed cost of cage etc. and benefit includes the asset value of the birds left after one cycle. Source: Based on data from Field Survey 4.5.5. Recommended Package 1. The entrepreneur can take any of the packages as returns after one cycle are the same. 2. The birds should be given after training, installation of the cage and other infrastructure requirements are fulfilled. 3. The infrastructure are as follows:a. Cage b. Water bowl c. Feeder d. Weighing machine – one per SHG

4.6.

Analysis of Trading in Jatropha as a Sustainable Economic Enterprise for Tribal Families

4.6.1. Jatropha as a livelihood Option Biofuel development in India centers mainly around the cultivation and processing of Jatropha plant seeds which are very rich in oil (40%). The drivers for this are historic, functional, economic, environmental, moral and political. Jatropha oil has been used in India for several decades as biodiesel to cater to the diesel fuel requirements of remote rural and forest communities; Jatropha oil can be used directly after extraction (i.e. without refining) in diesel generators and engines. Jatropha provides immediate economic benefits at the local level since it grows well in dry marginal non-agricultural lands, thereby allowing villagers and farmers to leverage non-farm land for income generation. As well, increased Jatropha oil production delivers economic benefits to India on the macroeconomic or national level as it reduces the nation's fossil fuel import bill for diesel production (the main transportation fuel used in the country); 38

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance

minimizing the expenditure of India's foreign-currency reserves for fuel allowing India to increase its growing foreign currency reserves (which can be better spent on capital expenditures for industrial inputs and production). And since Jatropha oil is carbon-neutral, large-scale production will improve the country's carbon emissions profile. Finally, since no food producing farmland is required for producing this biofuel (unlike corn or sugar cane ethanol, or palm oil diesel), it is considered the most politically and morally acceptable choice among India's current biofuel options; it has no known negative impact on the production of the massive amounts grains and other vital agriculture goods India produces to meet the food requirements of its massive population (1.1 Billion people as of 2008). Other biofuels which displace food crops from viable agricultural land such as corn ethanol or palm biodiesel have caused serious price increases for basic food grains and edible oils in other countries. 4.6.2. About the Jatropha Plant Jatropha curcas is known also as Barbados nut or White Physic nut. It is a perennial poisonous shrub (normally up to 5 m high) belonging to the Euphorbiaceae or spurge family. The plant originally comes from Central America. It has spread to tropical and subtropical countries and mainly grown in Asia and Africa. Animals do not consume Jatropha, so it is used as a living fence to protect gardens and fields. It grows extremely fast and during a span of 4-5 years it attains a height of around 4 meters. Within 2 years of plantation, Jatropha Curcas starts to produce seeds and keeps on producing until the age of 50 years. Jatropha Curcas grows best on well drained soils with good aeration but is well adapted to marginal soils with low nutrient content as well as shallow fields and rocky terrains. Jatropha can withstand long periods of drought, its water requirement is extremely low (1 litre per plant per day and can be provided once in 15 days. Jatropha Curcas prefers temperatures averaging 68-85 degrees Fahrenheit (20-28 degrees Celsius), it can, however, withstand a very light frost. The plant flowers between September and November and the fruits come from October to December. Recommended planting rates of Jatropha Curcas are 2,000 / 2,500 plants per hectare (2.5 acres); this will produce, depending on density and quantity, 3-10 tonnes of Jatropha seed.

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance

Fruit of Jatropha is green capsule shaped, and contains 3 to 4 seeds. One tonne of Jatropha Curcas seeds will produce approximately 350-550 litres of bio-diesel, while the residue can also be processed into biomass to power electricity plants. 4.6.3. About the Jatropha Oil and Biodiesel- Success Stories Currently the oil from Jatropha curcas seeds is used for making biodiesel fuel in Philippines and in Brazil, where it grows naturally and in plantations in the Southeast, and the North/Northeast Brazil. Likewise, Jatropha oil is being promoted as an easily grown biofuel crop in hundreds of projects throughout India and other developing countries. The railway line between Mumbai and Delhi is planted with Jatropha and the train itself runs on 15-20% biodiesel. In Africa, cultivation of Jatropha is being promoted and it is grown successfully in countries such as Mali. In the Gran Chaco of Paraguay, where also a native variety grows, studies have shown suitability of Jatropha cultivation and agro producers are starting to consider planting in the region. Realising the potential of the bio diesel from Jatropha, many State governments including Government of Rajasthan has initiated large scale plantation of Jatropha. District wise progress of Jatropha Nursery Raising Till March 2009 is as follows:Table 10- District wise progress of Jatropha Nursery Raising in Rajasthan S. No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

Districts

Total Plantation (in lacs) 9.43 25.76 6.20 3.92 7.00 44.00 18.50 15.90 27.50 25.00 52.75 235.96

Baran Banswara Bhilwara Bundi Chittorgarh Dungarpur Jhalawar Kota Rajsamand Sirohi Udaipur Total

Source: Internet The Jatropha which grows in Udaipur district have been found to be of very good in oil content and has become a source for seeds for other States taking up Jatropha plantation. The rural communities has benefited with this surge in demand for the seeds but are at loss in long

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance

term as they are not able to derive benefit from the same for their own energy security needs and enhanced income through processing and value additions. 4.6.4. Enterprise ideas for Community Benefit The biodiesel production process provides lot of opportunities to benefit the local community comprising largely of tribals and marginal farmers. The intervention required mainly is in form of capacity building and technological inputs. Some project ideas emerging from the process to enhance the income and energy security of the local community are as follows1. Enhanced income through transition from selling of seeds to crude oil or bio diesel. This would benefit the community as they would be able to realize better income from the local resource. 2. Locally producing bio diesel for meeting the agriculture and transportation needs. This will not only reduce the dependence on fossil fuel but would also reduce the input cost as the resource is locally grown and produced. 3. Technological interventions by transferring the technologies from “lab to field”. Some of the technology ready for transfer is in form of bio diesel run stoves, pumps etc. 4. Selection of local genotypes with high oil content and seed production. Multiplication of the same through nursery raising and grafting. 5. Small scale industries with Jatropha oil as inputs – Soap making, medicinal use etc.

Figure 12- Jatropha Production Chain Source: Internet

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The economic scale for cost of bio-diesel production is determined taking into account the amount of raw oil extracted from a seed to be +30 percent. The amount of raw oil content in the seed again depends on the quality of the seed. The output of the raw oil from the extraction unit is a key determining factor for deciding the capacity of the transesterification unit. The cost of the extraction stage is based on the capacity of the extraction plant, which, in turn, is based on the seed yield. Together with the oil, by-products of the production are: i.

Press seed cake

ii.

Residual of sedimentation process

The Press seed cake has mineral contents of nitrogen (6%), phosphorous (2.75%) and potassium (0.94%) similar to chicken manure, the press cake can be used as organic fertilizer. An application of 1 ton press cake is equivalent to 200 kg of mineral fertilizer (NPK 12:24:12). In the present calculation, the price for the press cake is taken lowest possible (42 $/ton= Rs.2/Kg). The estimated price for 1 ton of residual (sediment) is 120 US$/ton (Rs. 6) which is used for making washing soaps. 4.6.5. Sustainability

Given the realities of the biodiesel markets, a successful biodiesel business plan begins with an effective feedstock strategy from which process design flows. To make biodiesel a longterm business opportunity, attention must be to the critical issue of availability of right feedstock at right cost. Jatropha will be a vast source of biofuel and a key to reducing our dependence on fossil fuel Jatropha can bring significant environmental benefits. It can replace jet fuel and diesel from petroleum without interfering with food crops or leading to the clearing of forests. The good thing about Jatropha is that you're producing a tree shrub that lives for a long time and does its job, producing oil, while it also sequesters lots of carbon dioxide from the atmosphere Jatropha is a valuable multi-purpose crop to alleviate soil degradation, desertification and deforestation, which can be used for bio-energy to replace petro-diesel, for soap production and climatic protection, and hence deserves specific attention

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance

Jatropha can help to increase rural incomes, self-sustainability and alleviate poverty for women, elderly, children and men, tribal communities, small farmers. It can as well help to increase income from plantations and agro-industries. There are various trees that are suitable for bio-diesel production. Out of all these trees, Jatropha must be regarded as a sure inclusion and the foundation around which a plan can be built if for nothing but its pure hardiness and stress handling ability. It is just a tree that has enough credentials. That is why the Planning Commission of India has nominated it as ideal plant for biodiesel. Biodiesel produced from Jatropha is one of the most promising solutions for tackling the growing carbon emissions from transport India & other developing countries have the potential to be a leading world producer of diesel, but the rural farmers still need to get comfortable with the idea that diesel fuel can be "harvested," but they understand one thing very clearly that they can use Jatropha plants as a source of extra earnings by utilizing the land that was of no use. Farmers need to know that there is going to be a good market for what they produce. We are very keen to build that confidence and promote Jatropha and other non-food oil crops cultivation by assisting planting, buying the seeds for refining and providing the refining technology to enable growers to make their own biodiesel." 4.6.6. Economic Analysis for 50 Quintals of Trading in Market at SHGs level

Trading of Jatropha is being suggested in the beginning to involve the community in collection and sales. The current market is being controlled by middlemen who have recently jumped into it as it provides high returns on low investment. The analyses have been prepared on the basis of interaction with the community in Gogunda block which has naturally growing Jatropha as fence and on commons. After one year with the income generated from trading as projected below, other enterprises listed as ideas earlier in the paper can be explored. This would require capacity building, entrepreneurship and future scenario in terms of legislation, policy, governance etc.

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance

Option 1: Current Market Scenario (Sales @ Rs. 20/kg. and procured at Rs. 13.5/Kg.) Current Scenario Revenue Cost incurred Raw material Initial capital invest (Rs. 9700= Establishment cost) Salary of procurement manager Sales in charge Labour for packaging & loading Gunny Bag Interest (@12 %) Transportation pick up (250 Km. Jodhpur) Cost incurred Profit Operational cost

Amount 100000

Rs./Kg. 20

67500

13.5

600

0.12

1000 1000 1000 1000 5748 6000 83848 16152

0.2 0.2 0.2 0.2 1.1 1.2 16.72 3.28 3.22

Option 2: Projected Market Scenario (Worst case) (Sales @ Rs. 8/kg. and procured at Rs. 3.5/Kg.) Worst Scenario

Revenue Cost incurred Raw material Initial capital invest (Rs. 9700= Establishment cost) Salary of procurement manager sales incharge Labour for packaging & loading Gunny Bag Interest rate@ 12% Transportation Cost incurred Profit Operational cost Source: Based on data from Field Survey

Amount

Cost/ unit

40000

17500

3.5

600

0.12

1000 1000 1000 1250 1578 6000 23928 16072

0.2 0.2 0.2 0.25 0.31 1.2 5.98 2.02 2.48

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance

Assumptions1. The cost analysis is for the trading of Jatropha seeds directly to market (Jodhpur Mandi) where it is currently being traded. 2. The analysis is an essence of the business carried by the cluster of SHGs.

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance

Conclusion

It was observed that there was no intervention on the micro-enterprise development, PSME by any development agency in the areas of treatment. Till now the organizations have worked indirectly in improving the livelihood opportunities. Though PSME is new to Partner grassroots organizations they need capacity building but if they will follow the strategies sincerely then some successful model for the micro enterprise can be created. The grassroots NGOs needs hand holding support from the professional organizations like CEE for capacity building and proper implementation of the strategies formulated. Since not much accountable work has been done in the work area of the grassroots organizations on PSME, it should be taken as an opportunity. Through proper implementation of the strategies and experiments, a successful model can be developed. Moreover, being in the vicinity of the Udaipur, they get a developed market nearby. This increases the scope of the development of the MED.

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance

References 1.

Colectorate, C. c. (2009, May 30th). District profile. Retrieved June 2nd, 2009, from http//www.udaipur.nic.in.

Foundation, J. R. (2005). Overview Jaipur Rugs Foundation. Jaipur, Rajasthan, India: Jaipur Rugs Foundation.

icar. (2005). Products. Retrieved 6 16, 2009, from http://www.icar.org.in/cari/product. html: http://www.icar.org.in

MSME. (2009, 5 29). http://msme.gov.in/msme_aboutus.htm. Retrieved 6 15, 2009, from Home page for Ministry of Micro, Small and Medium Enterprises: http://msme.gov.in.

ssi. (2007). overview. New Delhi: ssi.

Eco-friendly goat husbandry for Sustainable Livelihood of small farmers, BAIF Development research foundation.

www.fao.org (www.fao.org/docrep/004/x6532e/X6532E03.htm. viewed on 11-82009)

http://www.vuatkerala.org/

Modern bankable projects, NABARD (2007)

10.

www.icar.org.in

11.

Getting your Goat: An Analysis of Animal Husbandry Income Generation Initiatives and Suggestions for Future Directions, Sara McHattie, April 2004

12.

http://www.planning.rajasthan.gov.in/Annual%20plan_0809/pdf/chap_6.pdf

13.

www.dahd.nic.in.

14.

www.icar.org.in/natp/intro.htm.

15.

http://www.atlantisenergy.co.cr/jatropha.html.

16.

http://www.jatrophaworld.org/ 47

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance

Appendices Appendix 1: Questionnaire for field Survey Questionnaire District: Tehsil/Block: City/Town/Village: Date of Interview: Interviewer:

Preliminary information 1. Household Composition Name of the Household Members

Sex

Age

Education Status

Marital Status

Begin with yourself

1. 2. 3. 4. 5. 6. 7.

2. Occupation Classification

Source

Primary Occupation Secondary Occupation Other Occupation 3. Do you yourself own land? Total Land Owned (in Bigha) Irrigated Land Non-irrigated Land

Specify Income (in Rs.)

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance 4. Cropping Pattern and Income from Farming (Average from last few years) Cropping Season

Crops grown

Total Yield

Surplus

Income (in Rs)

Rabi Season

Zayed Season

Kharif Season

5. Total number of working family members a) Male

b)Female

6. Total income of the family (in Rs.) 1. 2. 3. 4.

Total …………………………………………………………………………………………

Remarks (if any) …………………………………………………………………………………………………………………

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance Regarding SHG Name of SHG Year of formation

1. When did you join SHG 2. Objectives of your SHG Item

Describe

What was your motive of forming the SHG? How frequently do members of your group save? (weekly/fortnightly/monthly) Do the group members make any extra savings apart from the regular savings? 3. What is your monthly savings in SHG? 9 Initial Saving Amount9 Current Saving Amount-

4. What is your total savings?

5. Why you did not able to save the anticipated amount? (a) (b)

6. Other sources of funding other than regular savings Name and Year of Bank linkages

Name of The Bank

Purpose of grant/loan

Total amount (In Rs.)

Purpose for which utilized

Subsidy/ grant amount (In Rs.)

Loan amount (In Rs.)

Interest rate (in percent)

Amount repaid (In Rs.)

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance

Any other

7. Do you have borrowings other than SHG? (a) Yes

(b) No

8. Sources and amount of loan taken in last 5 years (In Rs.) Sources

2005

2006

2007

2008

2009

Bank loan Money lenders NGO support Govt. agency Any other…………………….

9. Did you get loan from the SHG?

(a) Yes

(b) No

Loan amount Rate of interest Repayment period Purpose of the loan Amount repaid

10. Maximum limit of credit that your SHG can provide as inter-loaning (specify amount in Rs) ……………………………. 11. Did you felt pressure in getting loan from the SHG at the time of disbursement? (a) High pressure (b) Somewhat pressure (c) Slight pressure (d) No pressure at all

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance 12. What did field staff/ SHG Members see in you at time of disbursing loan? (a) Need (b) Attendance (c) Expenditure Pattern (d) Repayment History (e) Family size (f) After checking the register (g) Participation in meeting (h) Major stakeholder in society (i) Any other (please specify)3

13. Does your SHG maintain the following books and ledgers? Books/ledgers

Yes/No

Books/ledgers

Admission book

Savings ledger

Stock book

Minutes book

Loan ledger

Any other (specify)

Attendance register

Bank passbook

Cash book

Books/ledgers

General ledger

Individual passbook

Yes/No

Receipt vouchers

14. Who is responsible for maintenance of above mentioned books and ledgers?

15. Who is responsible for depositing the savings in the bank?

16. Have any of your members taken training regarding SHG activities from any agency? If yes, Name of the training programme

Duration/specify date if possible

No of Members involved

Conducted by

It includes ‘need’ for the loan etc. 52

Comments/limitations or areas not covered in the training

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance

17. Have you had any exposure visit conducted by any agency? If yes, Conducted by

Place of exposure/ Year

Area/domain of exposure

Duration/number of times

Feedback

18. Are you feeling confident in decision making and whether you are participating in it? 9 Health ……………………………………………………………………………. 9 Education……………………………………………………………………….. 9 Purchasing of Goods………………………………………………………… 9 Marriage…………………………………………………………………………. 9 Child Care……………………………………………………………………….. 9 Household Finance/ debt………………………………………………….. 9 Other, Please specify ……………………………………………………….. 19. How have the above training facilitated you in Organizing the group Taking up income generating activities Understanding accounting, book keeping and financial management Tackling everyday family related, community related and gender related issues Any other 20. Do you buy/sell commodities/inputs to Category Other SHGs Farmers Wholesalers

Commodity bought/sold

Comments

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance Govt. agency Exhibition Local market Outside local market 21. Did you find favoring field staff/ SHG Members to other members without any special reason? (a) Very often (b) Often (c) Seldom (d) Rare 22. What was the special reason can you mention?

23. Do you know from where the loan is coming to you? (a) Yes

(b) No

If yes, then mention where? 24. Do you know about your loan repayment schedule? (a) Yes

(b) No

25. Does the information regarding the repayment have been properly conveyed to you? (a) Yes

(b) No

26. What has been conveyed to you? Tell two important points.4 (a)

(b)

27. Who has conveyed the information? (a) Field staff

(b) area manager

(d)Any other 28. What kind of activities usually done by field staff at the time of non repayment? (a) Rude and physical (b) Indecent and scolding (c) Asking many times (d) Decent and kindly 29. What is the major reason for your non repayment? 54

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance (a) Economic crisis (b) Government’s money, so no need to repay (c) Field staff told not to repay (d) I have other need (e) Others (Specify) 30. How many times Executive Committee has told you to repay? 31. Do you know any Defaulters in your group? Possible reasons for defaulting area. b. 32. If you are provided training on SHG activities, what would you expect to be trained on? Item

Yes/No

Describe/Comments

Subject matter Method of teaching (group study, individual sessions, field studies, lectures, interactive sessions) Interaction with experts Any other

33. Tell us five good practices within your group

34. Tell us five bad practices within your group

35. Are there conflicts within your group? If yes, how do you manage them?

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance

36. Do you often change the group President and Secretary? If yes, why do you do so?

37. What are the areas in which you would need assistance from a project intervention? Please describe in detail.

Appendix 2: Detailed Economic Analysis of Goat Husbandry as an Enterprise Details of Option 1 (# Pink color represents the Particulars to be given in Package) Cost Analysis of Goat Husbandry (Sirohi) - Option 1 A. S. No. Particulars 1 Shed construction with Manger 2 Weighing Machine Sub Total

Fixed cost Units Cost (Rs.) Total (Rs.) 1 1500 1500 1 2500 2500 4000 Variable cost Units Cost (Rs.) Total (Rs.)

Particulars

1 2 A B C D

3 1 Buck and 2 Doe (4month old) Feed (Up to 1 year) 2 Does (For 2 months) 6.75Kg/month Buck(For 2 months) 7.5 Kg/month 2 Kids (For 1 month) 3.75Kg/month Miscellaneous Sub Total Total 2nd Year 56

1500

4500

5 5 5

135 75 37 1000 5747 9747

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance

S. No

Particulars Units Cost Total Feed {Up to 5 months(next 1 Breeding Season)} A 2 Does (For 2 months) 6.75Kg/month 5 135 B Buck(For 2 months) 7.5 Kg/month 5 75 C 2 Kids (For 1 month) 3.75Kg/month 5 37 D Miscellaneous 500 500 Sub Total 747 Total cost up to 2nd year 10494 Details of Sale from Revenue S. No. Particulars Units Cost Total 1 Sale of Buck (2 year old) 1 6000 6000 2 Sale of Doe (1 year old) 1 3500 3500 3 Sale of Buck (1 year old) 1 5000 5000 4 Market Value of Milk (if sold) 450 lts Rs 6/lt 2700 Total 17200 nd Total No. of Goats left at the end of 2 year are 4, which value around Rs 11000/Details of Option 2 Cost Analysis of Goat Husbandry (Sirohi)- Option-2 A.

Fixed cost

S. No. Particulars 1 Shed construction with Manger 2 Weighing Machine Sub Total

Units 1 1

Variable cost Cost Units (Rs.)

Particulars

1 2 A B C D

1 Buck and 4 Doe (4month old) Feed (Up to 1 year) 4 Does (For 2 months) Buck(For 2 months) 4 Kids (For 1 month) Miscellaneous Sub Total Total 2nd Year S. No Particulars 1 A

Feed {Up to 5 months(next Breeding Season)} 4 Does (For 2 months) 57

Cost (Rs.) 1500 2500

Total (Rs.) 1500 2500 4000 Total (Rs.)

1500

7500

6.75Kg/month 7.5 Kg/month 3.75Kg/month

5 5 5

270 75 75 1000 8920 12920

Units

Cost

Total

6.75Kg/month

270

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance

B C D

S. No. 1 2 3 4

Buck(For 2 months) 4 Kids (For 1 month) Miscellaneous Sub Total Total cost up to 2nd year

7.5 Kg/month 3.75Kg/month

Revenue Details Particulars Units Sale of Buck (2 year old) 1 Sale of Doe (2 year old) 2 Sale of Buck (1 year old) 1 Market Value of Milk (if sold) 900 lts Total

5 5 500

75 75 500 920 13840

Cost 6000 4000 5000 Rs 6/lt

Total 6000 8000 5000 5400 24400

Total No. of units of Goats left at the end of 2nd year are 8, which value around Rs 23000/-

Details of Option 3 Cost Analysis of Goat Husbandry (Sirohi)- Option-3 A.

Fixed cost

S. No. 1 2

Particulars Shed construction with Manger Weighing Machine Sub Total

Cost (Rs.)

Total (Rs.)

1 1

1500 2500

1500 2500 4000

Variable cost Cost Units (Rs.)

Particulars

1 2 A B C D

8 2 Buck and 6 Does (4month old) Feed (Up to 1 year) 6 Does (For 2 months) 6.75Kg/month 2 Buck(For 2 months) 7.5 Kg/month 6 Kids (For 1 month) 3.75Kg/month Miscellaneous Sub Total Total 2nd Year Particulars Units

S. No 1 a b c

Feed {Up to 5 months(next Breeding Season)} 6 Does (For 2 months) 2 Buck(For 2 months) 6 Kids (For 1 month)

6.75Kg/month 7.5 Kg/month 3.75Kg/month 58

Units

Total (Rs.)

1500

12000

5 5 5

405 150 112 1000 13667 17667

Cost

Total

5 5 5

405 150 112

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance

Miscellaneous Sub Total Total cost up to 2nd year Revenue Details S. No. Particulars 1

500

500 1167 18834

Units

Cost

Total

6000

12000

Sale of Buck (2 year old)

2 3 4 5

Sale of Doe (2 year old) 3 4000 12000 Sale of Doe (1 year old) 1 3000 3000 Sale of Buck (1 year old) 1 5000 5000 Market Value of Milk (if sold) 1350 lts Rs 6/lt 8100 Total 40100 Total no. of units at the end of 2nd year are 3 Doe parent, 1 Doe of 1st generation, 2 Buck of 1st generation and five kids. Total asset value is Rs.28500. Note: i.

Weight of 4 month old kid= 8KG

ii.

Age of Maturity= 8-10 months

iii.

Concentrated Feed at the time of maturity

iv.

Adult Goat (one month before and one month after breeding)=6.75Kg/month

Buck (2 month/Breeding season)=7.5Kg/Month

vi.

Kid (30 days)=3.75 Kg/Month

vii.

Cost of concentrated feed= Rs.5/Kg

viii.

Other feed is free of cost

ix.

Each Doe gives 2 lit. milk per day which is used for household consumption

15 percent mortality

xi.

A Buck, which is 1 year old, can be replaced with another Buck of same age in the vicinity of the village to check inbreeding.

Appendix 3: Detailed Economic Analysis of Backyard Poultry as an Enterprise Details of Option 1 (# Pink colour represents the Particulars to be given in Package)

A. S. No. 1 2 3

Cost Analysis of Backyard poultry- option 1 Fixed cost Particulars Units Cost (Rs.) Cage construction 1 1500 Weighing Machine 1 2500 Waterer 1 25 59

Total (Rs.) 1500 2500 25

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance

Sub Total

4025 Variable cost Units Cost (Rs.)

Particulars 1

Chicks (45 days old)

Cost of feed - 2 kg/bird upto 90 days @ Rs.6/ kg

3 4

2000

80 Kg for 90 days

480

Miscellaneous After six month need to feed only 19 Birds

200 19 Kg

114

Feed for chicks up to 45 days

0.15 /day/ chick

135

Sub Total Total

S. No. 1 2 3

S. No. 1

S. No. 1 2 3

Total (Rs.)

2929 6954

Revenue Details (In 6 months) Particulars Units Sale of eggs 300 Sale of Birds 12 Sale of offsprings 10 Total

Cost 5 300 50

Total 1500 3600 500 5600

Units 29

Cost 6

Total 348

Revenue Details Units 280 12 10

Cost 5 300 50

Total 1400 3600 500 5500

After 6 months Particulars Cost of feed up to 90 days

Particulars Sale of eggs Sale of Birds Sale of offsprings Total

Note: 5 cocks and 7 hens sold. In new generation if 20 are cocks and 7 are hen the total no of birds are 47 out of which 22 are cocks and 25 are hens.

In first generation- 3 Hen and 7 cocks. Total= 12 cock and 20 hens. 2nd time 7 hens and 5 cocks are sold 60

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance

In 2nd generation: 20 cocks and 7 hens. Total No. of units at the end of 1 year= 12690

Details of Option 2

A. S. No. 1 2 3

1 2 3 4

Cost Analysis of Backyard poultry- option 2 Fixed cost Particulars Units Cost (Rs.) Shed construction 1 1500 Weighing Machine 1 2500 Waterer 1 25 Sub Total Variable cost Particulars Units Cost (Rs.) Chicks (45 days old) Cost of feed - 2 kg/bird upto 90 days @ Rs.6/ kg Miscellaneous After six month need to feed only 26 Birds Feed for chicks up to 45 days

40 80 Kg for 90 days

2 3

2000

480 200

35 Kg

208

0.15 /day/ chick

303

3191 7216

Revenue Details (In 6 months) Particulars Units Sale of eggs (Desi) 60 Sale of eggs (Nirbheek) 312 Sale of Birds (Nirbheek) 8 Sale of offsprings 40 Total

After 6 months S. No.

Particulars

cost of feed up to 90 days

Cost 5 3 350 50

Total 300 936 2800 2000 6036

Units

Cost

Total

852

Revenue Details 61

Total (Rs.)

Sub Total Total

S. No. 1

Total (Rs.) 1500 2500 25 4025

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance

S. No. 1 2 3

Particulars Units Cost Sale of eggs 625 5 Sale of Birds 10 300 Sale of offsprings 40 50 Total Total Asset cost left with the family at the end of 1 year is Rs 13000/-

Total 3125 3000 2000 8125

Assumptions: Mortality rate = 15%. There are 20 cocks and 20 hens in the set.

Appendix 4: Detailed Economic Analysis of Trading in Jatropha as an Enterprise Details of Option 1 Cost Analysis of Jatropha- Option 1

S. No. 1 2 3

Current Scenario for 50 Quintals Fixed cost (Capital investment) Units 1

Particulars Weighing machine Additional weight Building Expanses Transportation Brick Cement Hardware Labour (@ 100 Rs/ lab.) Covering Polythene Total Capital investment

1500

Cost 2500

2 600

10 2

300

Total 2500 100 1000 3000 1500 600 1000 600 10300

Variable Cost for 50 Quintals A 1 2 B

Direct cost (Fixed cost) Purchasing Raw Material Direct Lbour (Packing & Loading) Indirect cost Storage Rent Salary of procurement manager cum sales incharge Thread Gunny Bag Transportation Labour

Sales= Rs 40000 62

Cost 13.5

Total 67500 1000

0 2000 100 50 20 2 pick-up 3000 2 500

0 2000 100 1000 6000 1000 78600

5000

0 1

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance

Contribution= Sales- Variable cost= 12150 per unit contribution= 2.43 BEP= fixed cost/per unit contribution= 4238.6= 43 qt

Details of Option 2 Worst Scenario for 50 Quintals Fixed cost (Capital investment) S. No. Particulars Units 1 Weighing machine 1 2 Additional weight 3 Building Expanses Transportation Brick 1500 Cement Hardware Labour (@ 100 Rs/ lab.) 10 4 Covering Polythene 2 Total Capital investment Variable Cost for 50 Quintals A 1 2

Direct cost (Fixed cost) Purchasing Raw Material Direct Labour (Packing & Loading)

Indirect cost Storage Rent Salary of procurement manager cum Sales Incharge Thread Gunny Bag

5000

Transportation Labour

Sales= Rs 100000 Contribution= Sales- Variable cost= 21400 per unit contribution= 4.28 BEP= fixed cost/per unit contribution= 2406.5= 25 qt

0 1 50 2 pickup 2

Cost 2500

2 600 300

Cos t 3.5

0 200 0 100 25 250 0 500

Total 2500 100 1000 3000 1500 600 1000 600 10300

Total 17500 1000

0 2000 100 1250 5000 1000 27850

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance

Appendix 5: Cases

An adept example of Nursery Raising Bharma Ram; 30 years old man from village Nichli Kadech produced an exclusive example of Nursery raising. He developed a nursery for plants like Karanz, Khakra, Bamboo, Su-babul, Mango, Mahua etc. He makes a net profit of 1.5 lakhs in 3 years by selling the plants at Rs 2.5 to 3 (at government nursery rates). While the rate of the same nursery plants in market was around Rs 5. The operational cost for raising a nursery for 3 years is somewhere around Rs 45000 according to his estimate. Besides this, he has started his own flour mill and a kirana shop in the village. If we look at his assets in livestock, he has 2 buffaloes, 1 cow and 12 goats.

Success story of Hari om Mahila bachat samuh Hari Om Mahila bachat samuh, Kaucha was formed in 1990. Reshmi bai is the head of the SHG. Initially they faced many problems because they have no freedom to participate in household decisions. Their family members were not in favor of her to join SHG. They all were very shy and occasionally come out of the home. By seeing the benefits of saving and credit their family members allowed them to be a part of it. This SHG had 12 members. Initially they save Rs. 5/month, now it increases to Rs.20/month. Thus this group has saving of Rs. 29564. The members are very enthusiastic and decided to run different small scale enterprises to increase their income and to help their family members economically. Due to their dependence on forest produce which are mostly seasonal they decided to marketing and processing of different forest produce according to availability of products. They started marketing of Honey, producing and selling of Ark and Sirka of jamun, urad processing, purchasing of different products from the village itself in a critical mass and sold in nearby market. They distributed the profit among the group members. They earn this confidence to run the business by being together and having trust on each other. This is an achievement of the SHG formation, reflects the involvement of the women in the participation process.

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance

Success story of Savlal Savlal is a 36 years old man, living in village Visma. The family size is 9 members and the main source of livelihood is Farming. He has 5 bighas of Agricultural land, but farming is not only sufficient for his family requirements. He is very enthusiastic person and able to take risk. He saw the poultry in his relatives’ home and planned to start poultry business to support his family requirements. He purchased 40 local variety chicks at the rate of 50 Rs./chick, from nearby village on June 2, 2009. All the chicks were 1.5 month old. In the whole set 8 were Cock and 32 were Hen. He purchased a cage, of size 7x4.5 feet, costing Rs.5,500 for chicks. He decided the feed for chicks according to their requirement. Initially he fed 1.5 Kg mixture of Maize, Masoor floor and grinded Gram. He has adjusted feed according to his experience and according to his relative’s experience. He increases the feed with the age of the chicks. After two months the mortality rate is 0%. All the birds gained good weight. Few birds start laying eggs. The price of an egg is between Rs.5-7.

Success story of Sama Ram Sama Ram is 22 years old, living in Gara village of Udaipur District. He is a member of FTTGs formed by KAS under the project of UNDP GEF- Small Grants Programme. Few years back his source of livelihood was only Agriculture. He has only 5 beegha Agricultural land. The total productivity was not sufficient to earn necessitated amount of money for his family members. He is a very enthusiastic person, and interested to start a small enterprise. He has two buffaloes which gives around 12 liters of milk per day. But there is no dairy in the village and the market is kotra which is 55 kms away from his village. He has identified the market in the nearby villages itself. He decided to start business of ghee making because milk is highly perishable and the market is far from the village. He sells 1 liter of ghee at Rs. 200 and earns Rs.5000-6000 per year.

School of Rural Management, KIIT University. Promotion of Small and Medium Enterprises through Micro‐finance