|Promoting Micro Finance Services for Poor||Livelihood Enhancement Services for Poor||Institutional Development Services for Poor|
|Knowledge centre: This is a cross cutting theme and run through all the services that CCFID offers to its member communities. To conduct action-research, document and produce reports and other information materials for wider sharing of learning|
|Capacity building of people's institutions for financial intermediation.||Provide technical support in assessing and identifying livelihood opportunities for ensuring food security.||Provide technical support and services to women and youth to organize themselves as groups and federate the groups for larger coordination, sharing and pooling of resources.|
|Capacities building for self help groups/ JLG promotion and undertaking micro-finance.||Training in micro-entrepreneurship development.||Capacity building for leadership development, change management for good governance.|
|Facilitate credit linkages to meet business and other livelihood needs.||Market access linkages.||Conduct institutional and field assessment, monitoring and handholding for institutional development.|
CCFID as one of the lead professionally managed development organisations working in tsunami affected regions of south India recognizes this complementary nature of microfinance and livelihood promotion. As a first step to adopting the Livelihood Financing approach, CCFID initiated an in-depth two month field oriented research study with support from one of the lead management institutions, the Indian Institute of Forest Management, Bhopal, India. The study was conducted in April-June, 2007 in Cuddalore district of Tamil Nadu and Karaikal district of Pondicherry.
Livelihood Resource and Training Centre (LRC) of CCFID was started to provide the much needed interface by offering the business development services and institutional development services along with the financial services like credit and insurance. For ensuring that the LRC provides the desired services to the people in an effective and efficient way, a business plan for the coming five years is prepared on with keeping two processes in perspective - strategic planning and operational planning.
Strategic planning entails articulating broad institutional goals, assessing the institution's performance in achieving its goals, and then selecting a strategy that enhances the institution's ability to expand outreach and achieve (or maintain) profitability.
Operational planning involves creating a framework for implementing the strategy, expressed concretely in detailed financial projections. The business plan for LRC is prepared by incorporating the perspectives of key stakeholders-such as the CCFID's board, staff, and clients for ensuring the regular and uninterrupted services for the clients to achieve the twin objectives of broad outreach and profitability.
Through the livelihood finance service provision plan the LRC supports up scaling efforts of existing entrepreneurs and starting new enterprises as well. Our Livelihood Financing potential and impact potential studies have help in identifying the scale of investment needed and the returns after implementing the Livelihood Financing approach.
For determining Livelihood Financing potential and impact potential, the major activities are selected from all the identified livelihood activities as livelihood opportunities on the basis of two criteria - scope of Livelihood Financing and employment generation potential. The Livelihood Financing potential and impact potential for the activities is identified by determining the scope of growth of the activities if they are provided with the required financial and non-financial support.
CCFID realises that there is a need for supporting the local entrepreneurs in their livelihood activities so that they can develop their businesses. The Livelihood Financing approach to microfinance is based on providing continuous support to the people for helping them to earn their livelihoods on a sustainable basis. For this purpose, there is a need for an interface between the institution and the people so that they can get all the financial and non-financial support for the promotion of their activities.
Livelihood Resource and Training Centre (LRC) of CCFID will provide that much needed interface by offering the business development services and institutional development services along with the financial services like credit and insurance. For ensuring that the LRC provides the desired services to the people in an effective and efficient way, a business plan for the coming five years is prepared on with keeping two processes in perspective - strategic planning and operational planning.
Marketing support: Market Information, Market Linkage, Raw Material procurement, Value Addition, Transportation
Technical support: Employability skills, Marketing skills, Business skills development, Quality Training, Other alternative livelihood activities training
Access to markets is of paramount importance for any enterprise, be it in the large, small or micro scale. The success of any enterprise, to a great extent, depends on its ability to gain access to markets. Most micro enterprises are established on technical skill, traditional knowledge or production orientation without identifying target markets and the market needs. Our study revealed that the microenterprises suffer from lack of market dynamics understanding and linkage. Also they remain vulnerable to the market forces and the changing and volatile markets as also to the natural calamities. To ensure protection from these problems, the knowledge of benefits of insurance in livelihood activities needs to be disseminated. With this in mind the business development services are designed for the people with the objective of developing entrepreneurship and management skills among the people of local communities.
Business development services:
One of the major constraints facing microenterprises is economies of scale. The microenterprises lack adequate infrastructural support and they face the problem of ability to scale up production and services due to lack of capital. The idea of working in groups eliminates the burden of many expenses that are borne by an individual micro enterprise. This leads to reduced expenses due to collective procurements and sharing of the expenses. CCFID recognizes the strength of forming the producer groups and cooperatives and envisages helping its customer reap the benefits of togetherness.
Institutional development services:
Producer group formation
Capacity Building Programs
Strategic Business planning