"We fear because, we do not know
We do not know, because
We do not understand.
We do not understand, because
We are not informed.
We are not informed, because
We do not communicate.
We do not communicate, because
We are separated"

Martin Luther King

Any economic system must be aimed at liberating all the poor from the prison of poverty and should maximize human welfare. Second, it must have institutions that rest upon, and nourish, voluntary cooperation through cost effective, and timely deliverance of goods and services third; it must respect the human person as the originating source of human action. Fourth, it must provide the necessary (but not sufficient) cause for the polity, however democracy need not always produce good governances, whose best approximation in history so far is democracy under the rule of law. Fifth, it must take realistic precautions against the besetting economic sins of all eras and times, but particularly its own. Sixth, it must be based upon the presupposition that any democratic country, the decentralized local governance need democratic units and grassroots organisations but now the bureaucracy is equated with government and people see themselves as subjects rather then as partners This was one reason. Why poverty alleviation projects have suffered in giving out the results, poor delivery of service for the past over 60 years resulted Private-public- civil society participation in order to develop delivery system at root level. The expectation of people is “ RIGHT NOW –RIGHT HERE “ for any product and service. Any system/ mechanism should cater needs and demands, networking through MSME if developed with extension service, it is sure of catering the demands/Expectations of the people

We reside in a country where education is personified in the form of a goddess and a spiritual link is attached to it. In such a country, the very existence of illiteracy becomes a paradox. It is ironic that in this country, where texts like the ancient vedas are deified, we also have reports stating that more than seven million do not know the meaning of being literate and strive hard everyday to earn their living. We have reached out to all fields, gone till the moon and come back, yet many within us, are still ignorant in terms of basic writing and reading. Our literacy rate at 62.53% shows that a little less then half of the country is still illiterate despite of the issues being raised in many sessions and assurance being given with the change of every political party and implementing systems /structure. We need to think, contribute towards and implement a positive change. The weapon of literacy should empower every citizen to become a part of self and social development and not just a few, as it does today. let us literate the masses with participatory enterpreural development modules basing on adult education for all the beneficiaries of PMEGP

The Human development Report 2002, has devoted a chapter on democratic governance for human development –efficient institutions, rules that make market works, protect human rights, wider participation and public service living up to their name. Human resources are the best resources for development and it is their contribution and participation with dignity in all affairs of the state that brings a success in all fronts. In PMEGP , the stress should be on implementation and a time frame towards end. There are generally the weaknesses on implementation side, in spite of good policies that are related to governance—so the principal has to be implementation, implementation and relentless implementation--

Partnership with people organizations and institutions in governance is the essential input in all stages of development Sustainable social market economy igniting the social economy is the agenda for 21 century as proposed by prof. Prahalad, growth models. Human resource development, empowerment, employment, opportunities and income generation have been the main components in the economic approach in India. The concept of social economy aims at integration of man, with empowerment, environment, economy, and culture. The transformation process of social economy depends upon several factors such as education, technology, politics, culture, production, distribution, and ethics, as policies and programmes of state, central governments changes and are tuned towards people centered economy, which aims at development a socially just, economically viable, ecological sustainable, politically participatory, and culturally vibrant processes needs a change both internal and external.

Let us groom people for this change by a total transformation of our economic approach is the key, and is also a need to formulate PMEGP in India that serves the people communities, and society. The policy makers have realized the need for alternative development models for inclusive and excusive growth models and indeed recognized that community; trade, industry information, knowledge and people are the real asserts, in the new social economy but not land, machinery. Intellectual property (ip) would be the driving force for the economy. The interdependency is the key for successful implementation and rapid expansion to achieve the twin objectives of employment generation and wealth creation from individual level to group level, group level to processing level,. Processing level to federation level. And Federation level to export market level.

 

Women Entrepreneur’s participation- in PMEGP.

1.WHY DO WE NEED PARTICIPATION?

2.WHAT IS PARTICIPATION?

3. WHO PARTICIPATES?

4.TYPES OF PARTICIPATION?

5.PARTICIPATION IN WHAT?

 

People's participation in rural development is by no means a new concept. It was formulated in the mid-1970s, amid growing awareness that development efforts were having little impact on poverty. • At the World Conference on Agrarian Reform and Rural Development (WCARRD), held in Rome in 1979, the international community identified the reason for this failure - the lack of active participation of the poor in programmes designed, supposedly, to assist them. WCARRD declared that participation by rural people in the institutions that govern their lives is a basic human right.

A participatory approach aims to support local people to carry out their own development using the expertise of outsiders to help them achieve their development goals Distinction between participation in development and participatory development Participation in development is usually said to mean the full involvement of people in the development which affect their lives, regardless of gender, race, age, class, sexual orientation or disability.

Participatory development essentially means conventional project practice in a more participatory and sensitive manner. Wignaraja (1991:202) has observed that, “participatory development is essentially top-down participation while participation in development is bottom-up participation includes people’s involvement in decision-making processes, in implementing programmes, their sharing in benefits of developmental programmes and their involvement in efforts to evaluate such programmes” (Cohen and Uphoff 1977).

“Community participation is an active process by which beneficiary or client groups influence the direction and execution of a development project with a view to enhancing their well-being in terms of income, personal group, self-reliance or other values they cherish”. (Paul, 1987). Therefore, participation has been viewed in different ways as follows

• Participation as Contribution
• Participation as Empowerment
• Participation as a Means Or End?

People’s Participation: Advantages

The major advantages of participation as enumerated by Oakley et al. (1991) are:

 

• Efficiency

• Effectiveness

• Self-reliance

• Coverage

• Sustainability

Poverty has become feminized.

• 70 percent of the world’s poor are women. Women are less protected from economic shocks - they have fewer resources, and are often excluded from government work schemes. Women are more likely to work in the informal economy and so have less access to work-based old-age pensions. Women are more exposed to displacement due to violence - domestic battering, community conflict, and war.
• Women on average earn 25 percent less than men.
• Women's access to and control of resources such as land, capital, tools, training, and information is limited when compared to their male counterparts.
• Girls receive less schooling than boys, and where their participation in education has been equalized they are less likely to receive education in mathematics and in S&T.
• Women experience a health gap due to discrimination and poorer access to nutrition in many areas, but also due to the burden of inadequate investment in public health and health services falling more acutely on women due to their role in reproduction and their responsibility for caring for children.
• Women need access to S&T in order to bridge the poverty gap. Instead, there is a 2nd gap that is making the poverty gap worse. Women are the keepers of half the knowledge & know-how of communities. Women in much of the Asia Pacific region have sole responsibility for many activities at household and community level. Thus women are the local S&T experts in many areas - food security, post-harvest technologies, family health, household energy supplies, water sanitation and management. Securing this diversity - in the cultural knowledge of local environments, and of technologies for utilizing this local science knowledge for sustaining communities - should be a national and global priority. Protection of bio-diversity has been internationally recognized as important for human capacity to respond to environmental and cultural challenges. Equally important is the protection of bio- cultural diversity, providing security for the human knowledge & technologies to sustain and benefit from that biodiversity. Securing this cultural asset of local S&T is not about keeping it static; it is about providing communities - especially women - with opportunities to develop their S&T cultures creatively, in dialogue with S&T developments from outside the community.

 

Women’s voices must be heard decision-making or they will be excluded from shaping the future of their society

What is technology?

Technology is all around us; it is part of our everyday lives. A variety of rice is a technology, an elephant used to move logs is a technology, a fisheries reserve system is a technology to preserve marine ecologies, a method of fermenting a sauce is a technology, and a baby's bottle is a technology. Technology is 3 things. Technology means the technical artifacts people use to improve their lives - telephones, energy efficient cook-stoves, the hardware for getting clean water to villages. Technology is also know-how - the knowledge of how to use tools and machines to do tasks efficiently, of how to weave a beautiful mat, of how to improve crop yields by using compost. And technology is the socio-technical system within which artifacts and know-­how are embedded and made to work. A working technology, a village biogas plant for example, is the holistic system that makes it possible for a biogas plant to be built in a village - the voluntary labour donated by the villagers, the credit scheme, the pattern-books circulated to local technical institutes, the system of cow ownership that makes it possible for the village to use the cow dung co-operatively. Technological artifacts and the know-how to operate them are created, produced, distributed, maintained, improved, become redundant or wear out, and are thrown out. They are part of systems of circulation. When we use the word technology, sometimes we are talking about socio-technical systems

People - men, women and children - use technology to act on their environments. People use technology to make their work easier, to communicate, to produce better products, to travel, to improve food security, to care for the sick. Technologies can bring benefits and progress; but equally technologies can cause harm and damage the environments on which communities depend.

There is greater emphasis on canalizing micro enterprises and micro credit for the poverty alleviation of women. It is also a fact that the majority of the women in agriculture, themselves form the target group of these poverty alleviation programmes through micro enterprises and micro credits as they form the members of marginal farm and farm labour families. As a result of the above-mentioned push large number of women have entered into agribusiness sector – in both farm and non-farm-based enterprises in these days. It is also to be recognized that towards the support of women, a number of institutional mechanism are also set up by various agencies; but viewing from the very right

Entrepreneur’s problems;

The philosophy of PMEGP and its scope for inclusive and exclusive growth to empower individuals and society need to be sensitized and socialized among masses for “ production by mass” Lack of technical knowledge, lack of exposure and access to financial assistance, lack of managerial training, lack of awareness and access to entrepreneurial development agencies are some of the major hurdles in development process.. The women entrepreneurs suffers male oriented extension systems, support-services, development institutions, non-membership and non-inclusion of women in social institutions are to be considered. As women do not own land, mostly the land owing male only will be getting membership and inclusion in most of the social institutions. Society and development institutions remain ignorant of the rules of women and do not accept that women are also major actors; these social discriminations are largely contributing to the general low efficiency of women's participation in development. The unaccountability of institutions and lack of space for women in the public are two major issues, which have led to the perennial problems of the accessibility of women to developmental support viewed here. Through gender sensitive policies and institutional changes can be addressed so that women also will be supported to have more general exposure, knowledge and access to social institutions. The self-efficacy thus generated among women can be a boost towards promotion of their entrepreneurial development.

The set of problems faced in relation to the marketing is also directly related to a prevalent gender issue of the production scene. Even though women may be the major performer the male oriented marketing system in general affects the efficiency of the enterprise; dependence on men and other middle persons for marketing affect the profitability of the women enterprises. Many of the group enterprises are now able to overcome these difficulties; but individual entrepreneurs face these difficulties. It is also to be remembered that women do not get access to new technologies of market demand; they are still being tied around traditional business activities where there is already established market and high competition.

The observations on socio cultural barriers also reveal the gender discriminations, which women have to overcome to enter the business scene and to excel in the scene. Social institution's norms and values do not encourage the entry of women in to the business. The multiple workloads that women have to face due to the responsibility of family management are to be specially highlighted here. The commitments of women in reproductive, productive and community activities act as pull factors in most of the situations barring their excellence in the scene of enterprise. The resultant conflicts are also worth considering here. These observations highlight the need of structural and functional adjustments that should be brought in the family scene. These in turn pinpoint to the need of considering the strategic gender needs of family set up and corresponding policy change that has to be effected through appropriate law enforcement on accounting the domestic work. at large are capable to be entrepreneurs? How far the ever-prevailing gender issues of the patriarchal social institutions are allowing or enabling to be successful entrepreneurs.

• Economics for the voiceless marginalized poor develops through empowerment. , Methodology to achieve and to reach set objectives for bettering the economic social conditions of poor transforming voiceless and marginalized poor peoples as strong, powerful, asset owners and agents for change through good new self governance system, working with a bottom up approach on the lines –for the people by the people and to the PEOPLE FOR PROJECTS. The women by forming self help groups with the help of governments, NGOC, banks MNC’S so formed and developed:
• The salient revolution that had swept the world by poor destitute voiceless forming into women self help for their credit needs formed and stormed a New era new history a new space and a new approach for the government compelling for following a new methodology for any governments for involving poor peoples in planning managing and running their own institutions initiatives for bettering their life’s. CAPACITY TO CREATE WEALTH:
• "Where people capable of optimal utilization of the limited scare resources by creating enterprenuralship awareness by building business systems, building governance, capacity among poor, building transaction governance through transparency, access, contractual obligations.”
• Women are critical for development of entrepreneurs through self-help group

From Family Enterprises to large-scale Enterprises

Family enterprises may be located either in rural areas or in towns. Until fairly recently, health conditions in towns were so poor that urban populations did not reproduce themselves by natural growth but had to rely on migration from the countryside to preserve and expand their population base. Towns’ people who could afford it might send their children to rural areas to reduce the risk of early death and married migrants might leave wife and children in the countryside, especially in regions where women were accustomed to doing most of the agricultural work with the help of the children. Often towns had a large surplus of adult men over women and

Investment in Human Capital

Human capital investment in subsistence economies consists of two elements: training of the young generation in the necessary technical skills and transmission of traditional cultural features, including knowledge of and respect for the existing hierarchical order relating to age and sex and to foreigners. From a young age children of both sexes are socialized to accept their present and future roles not only without protest but also without resentment. Boys learn to fight, girls to obey.

Men and women are major actors of farming scene in various roles – as farmers, co-farmers, labourers, and entrepreneurs. Women of male headed farming systems also make substantial contribution to the farm family income through their unpaid or paid labour contribution especially in small and marginal farm households. It is also observed that in more than one-fifth farm families women are family heads and are responsible for managing the farming and earning livelihoods for their families. In the case of farm labour class not only in the women headed families, but in men headed families too the major portion of household income is from the farmwomen’s daily labour. Increasing rate of out migration of male members to non- agricultural occupations both inside and outside the nation

Gender mainstreaming in agriculture /agri-entrepreneur building

“empowerment,” “efficiency” and “participation” approaches of women development also increase feminization of agriculture.

Economic development is a gradual change from family production to specialized production of goods and services. This specialization of production makes it possible to use better technologies, scientific methods and an increasingly elaborate economic and social infrastructure As economic development proceeds family production for its own use diminishes and a larger and larger share of goods for family consumption is produced outside the family in specialized enterprises

 

• The government of India provided a strong policy and regulatory leadership through “Public-private and civil society participation for prosperity “ to socialize MSME. The private sector brings the dynamism and efficiency of the competitive environment, the civil society brings enthusiasm and participation by the people Meeting with people, individually, and in groups, encouraging them to create their organizations, manage them as owners/stack holders through collective wisdom and group dynamics, encouraging them to discuss their problems, learning to know about their requirements, skills, strengths, difficulties etc., through group meetings, encourage them to meet informally in the meetings of youth clubs bhajan mande, women groups ,youth organizations . Learn the sweetness in sharing their experiences with others on their project features, benefits and changes are the crux of the socialization of small, micro, medium industries movement .Due to large group and uneven member’s mindset it wasn’t effectively carried by methodology and the alternative is through self help groups at rural areas in credit delivery. The core other activities like Marketing consumers needs to strengthen the purpose, spreading awareness and preparing peoples and organizations and developing agencies to take up their agenda and demonstrate successfully with commitment combined with political will and equitable resource utilization by all stakeholders for self reliance programmers and Projects. No empty promises and no attempt to raise unrealistic hopes. It is widely believed that the poor (small farmer) artisans women, marginalized communities can be reached through self-help group approach in the following areas
• Micro enterprise
• 2 e -choupals and IT based services
• 3 process innovation
• 4 market linkage through private industry
• 5 network of relation ship
• 6 out sourcing
• 7 access to knowledge information and marketing
• 8 agriculture and industry linkage
• 9 linkages with social sector
• 10 technology revolution
• 11 micro credit institutions organization needs a shift, a change prepare for a change
• This effort is to develop a multi disciplinary system cutting across sect oral lines to make this system sustainable involving all stake holders, in a participative empowerment model of poor to work not only with social safety nets alone but also by generating productive systems for the poor areas of development, promote eco-systems for wealth creation, and reduce costs of the poor to help develop choices with private sector to make programs implemented effectively without any leakage and promote upscale self governess and institutional development programmers

1 individual level

2-group level

3 intermediately levels

4 processing unit level

5-federation level

Development of social organization, which deals with farmer under group activity involving in critical phases

 

1. Stimulatory activities for social mobilization

2. Capacity building strengthening the market network and training

3-sustenance/-sustainability support activity

 

You and your organization through facilitation should not ignore the impotence of net working, which is the inherited strength of KVIC/KVIB organizations.

FEDRATION – NETWORK - INSTITUTIONAL BUILDING

This model generates subsidiary employment encourage people to develop marginal lands or acquire new lands /assets to earn more to become entrepreneur

 

Social indicators /values of organic members

1 -economic sustainability

2- members centrality

3- member participation

 

The structure is like a pyramid expanding at the base having numerous functional groups working in various portfolios as follows

Training (capacity building)

Planning

Report

Review

Benefit to members:

Member prosperity, member participation, production to reproduction, leadership, self-regulation, marketing his produce practices. Advantages of the group formation and elimination of middlemen, Mechanism to augment member income& socio eco welfare

 

Empower the member___ political

___ Social

___ Economical

___ Technical

 

Increase member net income through

Increase productivity in physical terms, access to market, increase value adition, reduce input cos Agro processing, utilization of local resources (back ward linkage of bio BD/vermin compost, better marketing Owner ship of community infrastructure, storage Through traditional at house hold level

Intermediately level

Market level, Federation level pressing / unit level

Post harvest technology/market quality up gradation, Pooling, grading bagging, Stitching, transport, logistics

Asset/Wealth creation

Individual beneficiaries Need Not Processing And Marketing Of Their Produce They Can Concentrate On Product And Productivity, The whole system works as a single unit, The benefits will plough back to the member after the processing units stated functioning promoted by the members

Need based because of assured long time market price to the farmers

Sustained activity input by to have fair trade /market platform quality efficiency capacity building on going activities

Functional integration of groups

Centralized planning for groups

Organizational structure for village groups

 

A new thought.. a new life

Case studies women entrepreneurs…

 

Success story of Thiruvalluvar Vasugi SHG

In Sanitary Napkin production

 

Mettupatti Thathanur is a tiny Panchayat in Ayothiytapattinam Block of Salem District in Tamil Nadu. The total population of the Panchayat is 5459. The male population is 2724 and the female population is 2735. Agriculture is the predominant activity in this Panchayat followed by Handloom and Powerloom activities.

Thiruvalluvar Vasugi SHG is one of the SHGs in Mettupatti Thathanur. The group was formed on 04.08.2000 with 12 members. Before joining in the SHG, the members were merely housewives and engaged themselves in part time labour works at very low wages. After forming the group, the women began to sare tiny amount regularly and took up internal lending. This practice began to enhance their self-decipline and confidence. The group completed first grading on 01.05.01 and got Revolving Fund assistance of Rs. 25000/- on 12.06.01. The group underwent training in Sericulture. With this experience, they started manufacturing cocoon garlands as cottage industry.

The group members were more interested in this activity. The technical know- how was given to these groups through the Sericulture Department by DRDA.The SHG passed second grading on 12.11.02 and got assistance of Rs. 100,000/- (subsidy Rs. 50000/- + bank loan Rs. 50000/-) for handicrafts in cocoon products on 23.12.02. The group participated in district and state level Regional SARAS exhibition-cum-sales events and later in meanwhile same of the members got interest in manufacturing sanitary napkins and through DRDA got training in sanitary napkin production at Gandhigram University at Dindigal for a period of 15 days under SGSY.

Wood pulp, sticking gum, release paper, non-woven fabric and packing cover are the main raw materials in this product. The DSMS arrange the interest of the group members, their zeal to come-up in life helped them in getting the infrastructure for their new venture. After a details discussion with the trainers and subject and prepared the detailed project report. As the manufacturing of sanitary napkins needs hygienic environment, the group was sanctioned a building at an estimate cost of Rs. 1.00 lakh under SGSY Infrastructure. Further, they were also given additional dose of assistance of Rs. 1.00 lakh (Subsidy Rs. 50000/- + Bank loan Rs. 50000/-) was sanctioned to the group on 28.03.05 for the new venture under SGSY.The bank sanctioned the loan without much hassles. The manufacturing cost, operational cost involved and the profitability are presented below:

OPERATOINAL RESULTS

(Marginal costing per 10000 pads of production)

(Amount in Rs.)

S.No.	Item	Ordinary Pack
Variable cost
1	Cost pulp materials (10,000)	12500
2	Sticking Gum	375
3	Release Paper	500
4	Non Woven Fabric	1750
5	Cost of packing (Outer cover)	1000
6	Labour Charges	2000
	Total variable cost	18125
Fixed cost
7	Salary	4000
8	Electricity Charges	200
9	Interest	225
10	Contingencies	500
	Total fixed cost	4925
	Total cost for 10000 pads	23050
	Selling Price (at Rs.25/- per pack of 10 each)	25000
	Profitability (per 1000 packs)	1950

 

Profit Volume Ratio (P/V Ratio)

 

Sales – Variable cost

= ……………………… x 100

Sales

25000-18125

= ……………….. x 100

25000

= 27.50%

 

Fixed Expenses

Break Even point = …………………..

P/V ratio

4925 4925 x 100

= ………. = …………….. = 17909

27.50% 27.50

 

17909

No.of Units at break even point = ……… = 717 Nos.

Rs. 25/-

 

Profit 1950 x 100

Margin of Safety = ………….. ……………..

P/V ratio 27.50

 

= Rs. 7090/-

Margin of safety in absolute terms

= ……………………………………. X 100

Actual sales

 

Rs. 7090 x 100

= ……………..

Rs. 25000

 

= 28.36%

 

For marketing they were also given advertisement through DSMS by telecasting AD film in local channel.

 

The School going girls were their initial target groups. The total campaign lamed state wide created awareness and this has widened the demand for sanitary napkins. The concept of “Net working Sales” among SHGs have helped them in penetrating deep into the rural market. Now they have 5000 SHG members as their regular customer and their sales is very steady. To increase the rural turnover, the SHGs were advised to produce packages of five peaces each.

We have increased from 300 packs per day to in the first year sales in the second year to 800 per day. Their brand name Befree has occupied not only rural market but also semi urban markets.

The members per capita earnings have reached Rs. 130/- per day excluding their earnings through labour charges. The SHG has an amount of Rs. 75800/- as savings after profit distribution. They always keep this as a reserve to plough back into business to meet the investment needs.One of the group members, Mrs Nagarathinam says, “We do not compete with leading brands. Untapped rural segment is our market base. Some times we work day and night to meet the market. We don’t know whether we could have achieved if we had joined the SHG. But we are sure, our group efforts have brought us to this level.”

Opportunities in Service Sector

(Success story of on SHG in Power Laundry in Salem District, TN)

SUCCESS STORY UNDER S.G.S.Y

 

Udaiyapatti – III is a SHG, functioning in Udaiyapatti Panchayat of Ayothiyapattinam Block. The group has 17 members of which or have passed preliminary and middle school and the rest have never attended the school. The SHG was formed on 28.08.2000 and got qualified on 20.03.03 for revolving fund assistance of Rs. 25000/- threshold level with the rotation of revolving fund among themselves they acquired knowledge in banking. After several rounds of discussion among themselves and with DRDA officials, they choose power laundry as their economic activity.

Anandhi, the animato, recalls even after selecting the activity, it was hard to obtain consensus. Social stigma, cultural differences were the bottlenecks the members faced in accepting the laundry work.After the group resolved, to take up this activity, it was sanctioned economic assistance of Rs. 5.00 lakhs on 23.08.05.

The School, College and Hospitals in the surrounding area were the clients of the SHG. The Government support by means of providing infrastructure and subsidy linked credits brought reality to their dreams. Under SGSY Infrastructure a working shed at an estimate cost of Rs. 5.00 lakhs was also provided to the SHG.

The economics of the power laundry are as given below:

1. I. Variable cost:

(i). Power consumption

Drum washer (DWS 100) - 0.75 Unit / Batch (20 min.)

Hydro Extractor (SHE 24) - 0.20 Unit / Batch (5 min.)

Total unit / day - (0.75 x 10 + 0.20 x 20)

Power cost @ Rs. 6 per unit - Rs. 69 / day.

(ii). Detergent requirement

0.350 gm / batch for 10 batches - 3.5 kg per day

Cost of detergent @ 42 per day - Rs. 147 per day.

II. Fixed cost

Man power requirement

Labour (3 x 1500) - Rs. 4500/- per month

Interest - Rs. 500/- per month

Total - Rs. 5000/- per month

Per day - Rs. 200/-

1. III. Operating Profit.

Number of clothes washed / day - 500 Kg.

Washing cost per day - Rs. 416/-

Washing cost per cloth - 416 / 500

-Rs. 0.82

Average cost per cloth - Rs. 2.50

Profitability per cloth - Rs. 1.68

Average profit per day - Rs. 420

(Taking in to account only 50% of present

Working potential i.e., 250 pieces is utilized – Rs. 210

(Excluding wages)

Profit Volume Ratio (P/V Ratio)

 

Sales – Variable cost

= ………………………….. x 100

Sales

 

210-108

= …………….. x 100

210

 

= 48.57%

 

Fixed Expenses

= ………………………

P/V ratio

5000 x 100

= ……………….

48.57

= 10,294

No. Of units at BEP = 4118

If the unit runs for 16 days (at its potential of 50% itself) the Break Even Point is reached. The additional days of operation are their profit.

In addition to the repayment of loan, now the group is having a savings amount of Rs. 70000/-.

The members among themselves have division of work. Some members get orders some dispatch, and others attend to bookkeeping etc.,

Tmt. Ajmaravathi, the representative says, “We divided the work among ourselves. This helps us in doing the work easier and much faster. This specializes our skills too.”

“Ideas are nobody’s monopoly,” it emanates in right, Rural folks or creamy corporate – makes no difference, but, is simple and faster – succeeds”.

 

Kota Purushotham is associated with Management and Rural Resource Development Foundation (MRDF), Andhrapradesh, India. He is also Chairman of TV NETWORK FOR Millennium Development Goals and ABHAYAHASTHA, an Agrarian Rural Research and Training Institute for Livelihood Promotions and Community Development under Co-operative sector.

He promoted and propagated a concept called ABCDE, which is Agro Business Cooperative Development Enterprise. He is a Post Graduate in Economics and has a PG Diploma in Co-Operative Management.