Hassan reports on June 18, 2011: I just got back from Pawakai. Handed over Rs.15000 to Pashmeeno and had all the five members of the group sign the contract. These women are all aged women and are above 30's. All are married and all belong to Pawakai.
Pashmeeno: Her plan is to buy blankets, and sell them to people in the neighborhood on monthly installments.
BakhtZameen: Her plan is to open a small tuck shop at her place, in which she'll sell daily use utilities and toiletries.
Nargis: Her plan is to start a food business, make the dish and then sell it to people in bottles. It's a spell dish called 'ACHAR' and is used to spice up the food. Makes the food tasty.
Gul Meena: Her plan is to open a small shop at her place in which she sells usual stuff for children, like toffees, snacks, biscuits, etc.
They all signed on separate piece of paper in which the 'contract' was written down and filled up.
Since we started with P, so she'll pay Rs.1500 each month for 12 months to finish up on her loan. I charged 15% interested which is about Rs.2300 on the whole loan.
Pashmeeno bought 6 blankets and cloth and has them all sold to neighbors who are paying monthly installments of 300 to 1,000 rupees. She doesn't worry about defaults because they live close to her.
Pashmeeno: Her plan is to buy blankets, and sell them to people in the neighborhood on monthly installments.
BakhtZameen: Her plan is to open a small tuck shop at her place, in which she'll sell daily use utilities and toiletries.
Nargis: Her plan is to start a food business, make the dish and then sell it to people in bottles. It's a spell dish called 'ACHAR' and is used to spice up the food. Makes the food tasty.
Gul Meena: Her plan is to open a small shop at her place in which she sells usual stuff for children, like toffees, snacks, biscuits, etc.
They all signed on separate piece of paper in which the 'contract' was written down and filled up.
Since we started with P, so she'll pay Rs.1500 each month for 12 months to finish up on her loan. I charged 15% interested which is about Rs.2300 on the whole loan.
Pashmeeno bought 6 blankets and cloth and has them all sold to neighbors who are paying monthly installments of 300 to 1,000 rupees. She doesn't worry about defaults because they live close to her.
Pashmeeno's journey:
Q: How much was the loan?
A: The initial loan lent to me was Rs. 15000. I added Rs. 20,000 from my own that I borrowed from friend here and there. Also, I have an account with the shopkeeper and I return some money to him in monthly installments so I have got a very good business going on.
Q: Business project?
A: To sell blankets and raw cloth to people in the neighborhood on monthly installments.
Q: What are your earnings?
A: I gave away 12 blankets to people on monthly installments. Over the months, I got returned Rs. 30,000 out of which I gave the installment to Mincrofinance project of Rs. 5000 and I gave Rs. 25000 to the shopkeeper. I still don’t have any profit that is specified for me. I will give another installment of Rs. 5000 to Microfinance project on 10th October.
Q: Any problems or difficulties?
A: The difficulty was to add more money to the business and start it. I added 20,000 of my own and now, I at least earn. I give away all my earnings in installments to either to shopkeeper or you. One day, when I’ll be done with all the loans, I’ll have all my earnings for me.
Q: What have you learned about owning a small business?
A: I learned about good cloth, raw cloth and bad cloth. Now, I understand the business, the nature of profit regarding how much I can invest and how much I can earn out of that. For instance, if I invest in a larger business, the margin of profit is more. My husband is very supportive. He understands that I am working for my children and for our livings. Everyone loves to have a little comfort in life, have good education for kids and that’s what we’ve been doing for our kids’ future.
Q: What would be your advice for someone starting out?
A: My advice for them would be to start a business according to your own finances. Don’t make waste via haste. Make sure you understand the business, the rates and margin of profit and what you’re doing. Don’t just invest blindly. Search in the market for the best prices and deals. Learn to develop trust.
Q: Did the group of 5 assist you?
A: So far, not really. I know what I’m doing and they’re waiting for their turn to come so they can start their business. Sometimes, when I am alone and I have to go to market to get cloth or blankets, I ask one of them to come along and they happily come with me. They’re getting the hang of the market too.
Q: How did you use your new literacy skills?
A: Oh they have been a magnificent help along the way. It’s such a major boast that I am doing my own finances now and do my math. I keep track of my spending and savings. I have no words to thank the project owners.
Q: Anything else you’d like to add?
A: I’d like to add that it’s great what you guys are doing. When I wake up in the morning, I don’t just sit idle and take care of my household work all day. Of course, I do that too, but I have a business to take care of. I am making good use of my time now. I go out, deal with different kind of people and learn from them. That makes me experienced. I want to use the opportunity to thank you all. Also, I want you guys to lend me more loan after this so I can extend my business and provide more smiles for my family.
A: The initial loan lent to me was Rs. 15000. I added Rs. 20,000 from my own that I borrowed from friend here and there. Also, I have an account with the shopkeeper and I return some money to him in monthly installments so I have got a very good business going on.
Q: Business project?
A: To sell blankets and raw cloth to people in the neighborhood on monthly installments.
Q: What are your earnings?
A: I gave away 12 blankets to people on monthly installments. Over the months, I got returned Rs. 30,000 out of which I gave the installment to Mincrofinance project of Rs. 5000 and I gave Rs. 25000 to the shopkeeper. I still don’t have any profit that is specified for me. I will give another installment of Rs. 5000 to Microfinance project on 10th October.
Q: Any problems or difficulties?
A: The difficulty was to add more money to the business and start it. I added 20,000 of my own and now, I at least earn. I give away all my earnings in installments to either to shopkeeper or you. One day, when I’ll be done with all the loans, I’ll have all my earnings for me.
Q: What have you learned about owning a small business?
A: I learned about good cloth, raw cloth and bad cloth. Now, I understand the business, the nature of profit regarding how much I can invest and how much I can earn out of that. For instance, if I invest in a larger business, the margin of profit is more. My husband is very supportive. He understands that I am working for my children and for our livings. Everyone loves to have a little comfort in life, have good education for kids and that’s what we’ve been doing for our kids’ future.
Q: What would be your advice for someone starting out?
A: My advice for them would be to start a business according to your own finances. Don’t make waste via haste. Make sure you understand the business, the rates and margin of profit and what you’re doing. Don’t just invest blindly. Search in the market for the best prices and deals. Learn to develop trust.
Q: Did the group of 5 assist you?
A: So far, not really. I know what I’m doing and they’re waiting for their turn to come so they can start their business. Sometimes, when I am alone and I have to go to market to get cloth or blankets, I ask one of them to come along and they happily come with me. They’re getting the hang of the market too.
Q: How did you use your new literacy skills?
A: Oh they have been a magnificent help along the way. It’s such a major boast that I am doing my own finances now and do my math. I keep track of my spending and savings. I have no words to thank the project owners.
Q: Anything else you’d like to add?
A: I’d like to add that it’s great what you guys are doing. When I wake up in the morning, I don’t just sit idle and take care of my household work all day. Of course, I do that too, but I have a business to take care of. I am making good use of my time now. I go out, deal with different kind of people and learn from them. That makes me experienced. I want to use the opportunity to thank you all. Also, I want you guys to lend me more loan after this so I can extend my business and provide more smiles for my family.