Micro-lending in India. Thoughts on a business plan Introduction
According to Archie and Ann (2008) Benjamin Franklin once said that, “If you fail to plan, you are planning to fail.” Planning is the exodus of a business that has prospects of success. However, it is unjustifiable to say that all businesses that have an initial plan succeed or all businesses that fail to plan always fail. America experiences a million business start-ups every year, yet, only a fifth of the total are able to sail through to the fifth century. Again, not all of those businesses that survive attain the forecast in accordance to the business plans that they had formulated.
Adele (2010) explains that, a business plan is a well thought out and written document on a business idea that an individual thinks to implement. The business plan is futuristic and gives projections of the future. It includes the way in which the business will be run, its possible financial statements among other functions.
Poly Micro-Lending Business is a business that has been thought ought as a result of a social gap in one of the developing countries in India. India has an estimate of 1.2 billion people, a high population that makes competition to be high in quest for survival. World Bank elaborates that India is one of the country with the poverty levels being high. Bank (2011) gives the statistics indicate that the rural areas of India have the largest population of the poor people. The statistics elaborate that for every four people in the rural areas three of those are poor. Poverty in India is defined by the planning commission to entail the expenditure of Rs.49in the rural areas with a slight difference with the urban areas that account for Rs.57 on a monthly basis.
It is difficult for the poor population to invest in anything that could help generate extra income to support their families. The little that the breadwinners of the family earn is what is spent to ensure that the family does not go hungry. It became hard to save and take the children to schools. It is only wise for the positive minded fellows to establish the proper mode of helping reduce poverty levels in India. VIKAS (2011) futher elaborates that, there are less organizations that can dare risk their funding to the poor population. Once more, the available organizations may not be in a position to satisfy the needs of the population on their own because it is huge. That is what necessitates the formulation of this particular Micro Finance.
The business idea is the formulation of a Micro-lending business that is to be based in India. The business considers the social needs that are brought about by the lack of funding, increased population and other factors that cannot be controlled directly. The micro lending business will include giving small loans to the Indian population. The target population is the persons who live below poverty levels as is defined by the planning commission in India. Helping the persons living below poverty line in India is the primary Objective. Making profits is the secondary objective in this particular initiative.
The micro lending will work like a bank, were it will issue loans to those who make applications for help. The business establishment is based on the understanding of a risk as much as it is meant to help. Reason is, the population that is targeted do not have security that can guarantee them to get money that they will be offered. The micro lending business with thus take a precautionary measure of vetting the importance of a loan to those who come to apply. When the applicants are found fit for the loans, they will be trained on proper management of the funds. The micro lending will also seek a license from the government of India and its central bank to operate a deposit account. That will help improving the India people culture of saving whatever proceeds they get from the businesses that they conduct.
The project is the most ideal solution to the poverty levels in India. When the relevant applicants are enlightened through workshops and through many other openings on money management and possible business opportunities, they provide for families and safe for future. That way, most of the children in India will access education, and the remaining population will have better lives because of the circulation of cash in the economy. Opening the doors for some of the willing Indians will open more doors of employment to the risk neutral Indians. That way, most people will lead an improved lifestyle.
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- Joseph Wambua (Author), 2014, Micro-lending in India. Thoughts on a business plan, Munich, GRIN Verlag, https://www.grin.com/document/307069