#microfinance failure

[hicginewsagency]

Bank of Uganda takes a decisive action on Mercantile Credit Bank.

Uganda’s central bank on Tuesday suspended the operations, Mercantile Credit Bank Limited (MCBL), one of the country’s biggest microfinance institutions, saying the bank was undercapitalised, posing a risk to customer deposits. The bank is one of five licensed microfinance credit institutions supervised by the central Bank of Uganda. The Bank of Uganda took action because of MCBL’s “failure to…

[kriti2024]

Microfinance appears as a ray of hope in a society where the most disadvantaged people frequently lack access to financial opportunities. Through the provision of financial services to people and communities that have been shut out of traditional banking institutions, this creative approach to banking improves lives. This essay will examine the fundamentals of microfinance, including its definition, characteristics, importance, and potential for transformation. 

What is Microfinance?

Microfinance, also known as microcredit, is a specialized banking service aimed at providing financial assistance to low-income individuals or groups who lack access to traditional banking services. It encompasses a range of financial products such as microloans, savings accounts, and insurance, tailored to meet the unique needs of underserved communities. The primary goal of microfinance bank loan  is to empower individuals to become self-sufficient by offering them a pathway to financial independence.

Features of Microfinance

Accessibility: Microfinance institutions operate in underserved areas, bridging the gap between financial institutions and marginalized communities. This accessibility is crucial in empowering those excluded from mainstream banking.

Small Loan Amounts: Unlike traditional loans, microfinance provides small loan amounts tailored to the specific needs of borrowers. This makes repayments manageable and ensures the sustainability of the lending model.

Group Lending: Microfinance often employs a group lending model, where community members form a group and collectively take responsibility for each other's loans. This fosters a sense of community and encourages accountability.

Significance of Microfinance

Microfinance plays a pivotal role in poverty alleviation and economic empowerment. By providing financial tools to those excluded from the formal banking sector, microfinance enables individuals to generate income, improve their standard of living, and break the cycle of poverty. Moreover, microfinance promotes entrepreneurship, financial inclusion, and gender equality, laying the foundation for sustainable development within communities.

Types of Microfinance Loans

Microcredit: This involves providing small loans to individuals, often entrepreneurs or small business owners, who need access to traditional banking services. Microcredit serves as a catalyst for entrepreneurship, empowering individuals to start or expand businesses and create income-generating opportunities.

Microsavings: Microsavings focus on encouraging individuals, particularly those with low incomes, to save small amounts regularly. By providing a secure place for savings, microsavings contribute to financial stability and create a foundation for future investments or emergencies.

Microinsurance: Microinsurance addresses the vulnerability of low-income individuals by providing them with affordable insurance coverage. This protects clients against unexpected events such as illness, crop failure, or natural disasters, shielding vulnerable communities from financial shocks.

Empowering Communities Through Microfinance

Microfinance has the power to transform lives and uplift entire communities. By providing access to financial services, microfinance enables individuals to pursue their entrepreneurial aspirations, support their families, and contribute to local economic development. Moreover, microfinance promotes financial inclusion, gender equality, and sustainable livelihoods, paving the way for a brighter and more equitable future.

 Conclusion Microfinance represents a powerful tool for empowering marginalized communities and driving inclusive economic growth. By understanding its definition, features, and significance, we can appreciate the transformative impact of microfinance loan and the opportunities they create for those in need. As we continue to champion financial inclusion and social empowerment, microfinance stands as a beacon of hope for a more just and prosperous world.

[prnanayarquah]

Prof. Daniel Agyapong to government; addressing SME development 'Monters' key to reducing unemployment in Ghana

New Post has been published on https://plugzafrica.com/prof-daniel-agyapong-to-government-addressing-sme-development-monters-key-to-reducing-unemployment-in-ghana/

Prof. Daniel Agyapong to government; addressing SME development 'Monters' key to reducing unemployment in Ghana

The Director of the Directorate of Academic Planning and Quality Assurance, University of Cape Coast, Prof. Daniel Akwasi Agyapong has delivered his Inaugural Lecture with a call on the government to address the challenges confronting Small and Medium Enterprises development.

He stated that with over a hundred thousand graduates leaving universities yearly, SME scaling up and expansion could be the panacea for graduate unemployment in Ghana.

The Finance and Entrepreneurship Scholar made these remarks during his Inaugural Lecture held at the School of Graduate Studies auditorium on Thursday, February 1, 2024, on the topic “Entrepreneurship and Small Enterprises’ Development Night Journey: The Road Monsters, Fairies, and Angels”.

He set the ball rolling by giving a global, continental and domestic picture of the SME’s situation. He said “There is an estimated 332.99 m SME’s in 2021, an increase of 1.4% over the 2019 figure of 328.33m. The propensity for start-ups increased on average by 30% over 49 countries”, he posited.

On the continental level, he revealed that countries such as Kenya, Algeria, and Angola drove the increase in the number of SMEs and Entrepreneurship adding “Sub-Sahara Africa accounted for over 43.8% for early stage deals between 2018-2022”, avered Prof. Agyapong.

The Director of the Directorate of Academic Planning and Quality Assurance however hinted that Accra is emerging as one of West Africa’s fastest-growing tech hubs with start-ups raising $212 million in capital in 2022.

Prof. Agyapong referenced the exploding youth population and the number of graduates universities are churning out yearly to prove a point to his audience about why Ghana should be intentional about SMEs and entrepreneurship.

“According to GTEC, 2023, in 2018/2019, 106,499 graduates completed universities. This decreased a little to 105,721 in 2019/2020 but, inched up again to 107,263 graduates in 2020/21 academic year”, quizzing, is the country able to provide jobs to meet these increasing numbers?

Again, he underscored the fact that the SME and entrepreneurship failure rate in Africa is high at about 54% with Ghana ranking 3rd with 74% failure rate after Ethiopia(75%) and Rwanda (75%).

Further, he argued that with this failure rate of SMEs and entrepreneurship in Ghana, the country in 2022 alone imported $400m worth of tomatoes from Burkina Faso. Mineral water, fruit juice, poultry, detergents etc are also imported and he quizzed again, “Can’t our SMEs be strengthened to produce these products locally?”

Incidentally, he argued that for SMEs to do well and for the failure rate to decline, the country needs to deal with the ‘Monsters’, Fairies’ and Angels’ in the SMEs and Entrepreneurship sector.

Monsters according to the Professor of Finance and Entrepreneurship are normally imaginary or mythical creatures that evoke fright or fear and/or a perception of threat or harm. Within the SMEs and Entrepreneurship sphere, the monsters within the venture are employees who steal from the venture, employees who spread negativity and discontent and create a toxic work environment and poor customer service care.

On the other hand, the Monters who militate against SMEs and Entrepreneurship from the outside of the venture are Business Angels that take over start-ups, Microfinance Institutions that offer 5% interest per month, customers who buy on credit but never pay, wicked rent and general state of the economy and the tax regime in Ghana.

Fairies in the view of Prof. Agyapong are mythical beings often associated with enchantment and magic with very unpredictable behaviour. These Fairies within the scope of his lecture are divided into 2, namely; Household Fairies to include employees, families, friends and community members with the perception that once someone owes a business then automatically, the person is rich.

The second group he calls Manipulative Siren Fairies which include competitors who use deceitful tactics or false promises to lure customers away and promises from spiritualists and politicians which cannot be relied upon.

The Finance and Entrepreneurship Scholar explained the angels to mean spiritual beings often associated with guidance, protection and benevolence. In the case of SMEs and entrepreneurship, he categorised them into 3.

Firstly, the Healing Archangels are stakeholders (investors, partners) who step in in times of crisis to provide resources or offer strategic advice to help the business recover from the setbacks, aiding in business resilience.

Secondly, The Protective Cherubim to mean families and communities shielding the company from external challenges and lastly, the Guardian Angels are the loyal customers who offer constructive feedback, and actively promote the venture’s product.

In proffering some solutions to the myriad of problems associated with SMEs and entrepreneurship in Ghana, he emphasised three broad areas, viz policy, programmes and practice that need to be addressed urgently if we are to make any meaningful headway in SMEs and entrepreneurship.

The country needs to develop a policy framework for SMEs and Entrepreneurship to include having a complete database of MSMEs, entrepreneurship and Start-up acts to streamline SMEs and entrepreneurship, and a National Guide to Entrepreneurship Curriculum Design.

On the programmes side, he avered the country needs an Entrepreneurial Curriculum fostering teaching and learning, and entrepreneurship at the school level. Entrepreneurship and Design Thinking Centres should be made available to help those who require some assistance and Technology Parks to stimulate the entrepreneurial drive in people.

With practice, he proposed that the government must develop a Financial Support Scheme or Act to regulate and streamline SMEs and the Entrepreneurship sector. He argued that the current party manifesto-driven financial support to SMEs isn’t sustainable and hasn’t yield any positive results.

Again, he argues that there should be a Monitoring and Evaluation System to follow up on SMEs and Entrepreneurship development and also proposes a stronger collaboration between industry and universities where industry problems would be of research interest to academics. These can help develop our SMEs and Entrepreneurship thereby contributing immensely to the reduction in graduate unemployment.

Daniel Akwasi Agyapong is a Professor of Finance and Entrepreneurship. He holds a PhD and MPhil in Finance; a Postgraduate Diploma in Entrepreneurship; Bachelor of Management Studies; Associate Member, of the Chartered Institute of Marketing (UK) with a Professional Postgraduate Diploma in Marketing; Licentiate Member, of the International Professional Managers Association (UK) with a Postgraduate Diploma in Management. He was the Head of Programmes, at the Unit of Art and Social Sciences, College of Distance Education, University of Cape Coast and is currently the Director (of the Directorate of Academic Planning and Quality Assurance).

He is an SME and Problem-Based Learning Trainer. He has over 70 research outputs in the area of financing SMEs, green and sustainable business finance and Sustainable SME development. He has been involved in the implementation of both local and international projects including BET Ghana Project, GIZ ComCashew Project, Switch Africa Green Project; Codeshare Teaching and Learning, E-waste Management in Ghana, Graduate Enterprise Development Initiative, Participatory Appraisal of Competitive Advantage, Building Bridge Across Continents, Partnership for Applied Sciences project, German-African University Partnership Platform for the Development of Entrepreneurs and Small/Medium Enterprises.

[blue-village]

How hot is too hot to work? It is a question researchers have found the answer to here, in Cambodia's brick kilns, where people toil in some of the hottest working conditions in the world, fuelled in part by the scraps of fast fashion.

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Special sensors recorded the core temperature of 30 workers at these kilns over a week and showed that they all had heat stress, or core temperatures of more than 38C. This can cause fatigue, dizziness, nausea and headaches.

A healthy body temperature usually ranges from 36.1C to 37.2C. Body temperature over 38C is symptomatic of a fever. Some workers had core temperatures of 40C, which can lead to heat stroke, resulting in convulsions, eventual loss of consciousness and even death, if not treated early.

One worker told researchers that he had suffered from heart failure due to the heat. But he eventually returned to work because this was the only way he knew to earn a living.

This is only made worse by a warming climate and Cambodia's own weather - last May it hit a new high with 41.6C during the hottest year on record. As global temperatures soar, even a small increase could mean the difference between life and death for the tens of thousands of brick kiln workers across Asia.

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Outside the kiln, Kosal, a father of two, scoops up a mix of fabric, plastic and rubber that he shoves into the hatch before shutting it quickly. Black smoke seeps through the cracks as children - his and other kiln workers' - run past.

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The children crawl over bags bulging with clothing offcuts - more fuel for the kiln from Cambodia's $6bn garment industry.

But what may initially appear a solution to the unwanted scraps of the country's 1,300 garment factories is actually hiding its own deadly secret.

According to a 2018 report - Blood Bricks - by UK academics at Royal Holloway, these scraps have traces of chlorine bleach, formaldehyde and ammonia, as well as heavy metals, PVC and resins used in the dyeing and printing processes. The report also found that brick factory workers reported regular migraines, nosebleeds and other illnesses.

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Cambodia's brick kilns have long been accused of unsafe and unfair working conditions - and they employ some of the world's poorest people. Now, climate change is only exacerbating those inequalities, experts say.

"What we need to do is to consider how climate change impacts people through the lens of labour and inequality, and recognise that labour exploitation is a major factor in the worst impacts of climate change," Mr Laurie said.

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The majority of those who work in Cambodia's brick kilns were farmers. ... But sparse rainfall in recent years has made it difficult to manage a single harvest.

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More than two million of Cambodia's 10 million adults have outstanding micro-loans, according to the Cambodian Microfinance Association. On average, they each owe $3,320 (£1,955).

This financial insecurity has supplied the vulnerable labour for brick kilns. Owners offer to pay off the loan but, in return, the worker is bonded to the kiln.

Often whole families are bonded to the kiln. The BBC saw children helping their parents in the kiln despite efforts by the Cambodian government to prevent child labour.

"If we leave, we are afraid of being arrested and imprisoned," Chantrea says. "So we must struggle here. If they ask us to enter the fire, we will do even that just so we can earn more money for food and to pay off our debt."

[jahid00]

The Pros and Cons of Angel Investors 2023

An angel investor is someone who invests in the early stages of a new business and provides the capital to get that business off the ground. An angel investor is usually someone with substantial assets. They are typically serial entrepreneurs, successful entrepreneurs, or successful professionals. They typically seek projects they like and higher returns than traditional investments. Business angels typically expect returns of 25% to 60%. Angel investing is a type of equity financing in which investors provide capital in exchange for holding a position in a company. Equity financing is typically used by corporates that do not have sufficient cash flow or collateral to obtain a business loan from a financial institution. Angel investors fill the microfinance void provided by family, friends and venture capitalists. Attracting a business angel isn't always easy, but there are some things you can do. First, consider whether angel investing is right for you and your business. Advantages and disadvantages of being a business angel A big advantage is that angel investment financing is much less risky than debt financing. Unlike loans, invested capital does not have to be repaid if the business fails. Most business angels understand business and take a long-term view of it. Additionally, angel investors are often looking for personal opportunities in addition to their investments. The main drawback of using a business angel is that you lose complete control as a co-owner. Angel investors have a say in how the business operates and also receive a portion of the profits if the business is sold. In debt financing, the lending institution does not control the company's operations and receives no share of the profits. Typical sources of business angels   Typical sources of business angels   Angel investor is a fairly common term, and you can actually find this type of investor in several different forms. Angel investments are typically made from things like: Family and Friends: This is the most common source of funding for startups interested in raising seed money, and for many it is the only option. The high failure rate in new ventures also poses a risk in terms of the potential impact on relationships if the business is not successful. It is important to be aware of the risks of failure in advance.

rich. Another good source is (usually) successful entrepreneurs, doctors, lawyers, and other high net worth individuals willing to invest up to $500,000 in stocks. This is often done by word of mouth through organizations such as business partners or local chambers of commerce. Groups: Angels are increasingly acting as part of angel syndicates (groups of angel investors) and the level of potential investment is increasing accordingly. Investors donate funds to the syndicate, and a dedicated syndicate management team selects where to invest. Crowdfunding: A form of online investment grouping, crowdfunding raises money by asking large groups to invest as little as $100.

Communicate before making decisions

  For entrepreneurs considering angel investing, it's important to be clear about what the investor will bring beyond money, such as experience in running a business or access to quality suppliers. You can also understand how angel investors want to work with you, as they may have conflicting ideas about how your business should be run.

It is also important to have a detailed business plan. As a small business, you need to secure funding from financial institutions. Read the full article

[webstartechnology]

Nidhi Software Provider in India at an Affordable Price

Opening a nidhi company is one of the trending businesses in India today. People are interested in this business because registering a Nidhi company is simple and easy. Also, these kinds of companies are not controlled by the RBI. It also needs a less complicated and less expensive setup. So, those who have a good knowledge of banking, microfinance, and loans often head toward setting up this type of financial organization.

Now, choosing the best Nidhi software in India could be a tough job as there are numerous vendors present in the market. Everyone claims to have those features and those features. Some claim they provide you banking solutions like NEFT, IMPS, IFSC code, UPI ID, virtual a/c, QR code, etc., while others claim they will provide you E-KYC, E-NACHH, and so on.

Before moving on to choosing the best low cost Nidhi software, let's discuss the problems Nidhi company owners face after purchasing the software.

Most of the companies have one common problem: some deleted entries are still present in the account books, or some entries are present in the cash statement but missing in the day book.

Some software requires more time to load.

Some software provides a single server; due to this, if any kind of mishap happens to this server, you can face a huge data loss.

Some software vendors also provide SMS services, but     most of the time the messages are not delivered to the customer.

Some software providers don’t support banking APIs for their customers. Nowadays, the majority of Nidhi companies provide their members with NEFT, IMPS, and QR codes.If your nidhi doesn’t support these types of facilities, then you might face a little downfall in the market.

A very common but most important problem felt by Nidhi companies is that their software doesn’t fetch the correct data from their ID verification tools.

Some software also generates reports that are riddled with errors, resulting in failure to meet compliance requirements.

Some software does not include built-in compliances. So the respective Nidhi company has to fill up the compliances manually, and that’s a big deal. You have to calculate the entire dataset manually, and then you have to fill up the compliances by yourself.

After delivering the product, some software does not even answer the phone.

That is the current situation. Now it is a big question: if you have to face this kind of problem, how can one continue their business? What does a person do then focus on their business or solve software-related problems? Also, some people always look for cheap software, and they also get it, but the issue is that after taking this kind of low-cost Nidhi software, they face this type of trouble, and in most cases, their vendor doesn’t pick up their call. As people seek low-cost software, it is impossible for the vendor to provide satisfactory post-delivery services.

What will be the solution to this issue? So, I recommend a Nidhi software company that offers trouble-free, user-friendly software and Android apps as well as high-quality services at a reasonable price. You can also get a free Nidhi Software Demo by going to https://www.webstartechnology.in/nidhi-software.html

[anniekoh]

on collective rural economies

Bonnie Stewart’s post about the Antigonish Movement in rural Canada and what lessons we can glean today about collective justice and economic revitalization in rural areas.

She writes about how in the early 20th century, rural residents came together to address poverty through study clubs that evolved through efforts of a local university’s extension program and local Catholic churches.

It was called The Antigonish Movement, a Maritime adult education, cooperative, and microfinance movement of the 1920s and ’30s that led to the development of local credit unions that still dot the landscape around Maritime Canada. Its vision was as education-focused as it was economic: it was a vision of human emancipation. And for all it was a relatively radical movement for its time, it had its roots in two stalwart institutions of Maritime Canada: the Roman Catholic Church and the extension department of St. Francis Xavier University, located in a tiny little rural industrial town called Antigonish, Nova Scotia.

The Antigonish Movement centered around the endemic poverty and marginalization people in these small rural towns experienced.

Geographic marginality is often a marginality of benign neglect rather than overt oppression, at least where the ongoing benefit of systemic white supremacy operates. But – and particularly in the economic context of the 1920s and ’30s, before Canada had any form of social safety net – benign neglect can nonetheless result in grinding, structural, seemingly inescapable poverty. And this experience – among others – can produce temporarily embarrassed millionaires, who feel victimized by their lack of what they perceive as their rightful status, but are disinclined to examine why.

The Antigonish Movement was about examining why. It was formed to fight the “weird pessimism” of constant outmigration from the Maritime provinces and its attendant social attrition and decay among those who remained. It was about working collectively to change that.

...

The Antigonish Movement had three key structural components: mass meetings, which Extension Department members organized with community members from villages and towns around the entire region, study clubs, wherein community members gathered together in local homes to study materials available on economics, cooperative principles, and business organization, and the School for Leaders, wherein members of the study clubs could attend six-week programs at the university in Antigonish, to prepare people for action and minimize business failures.

In the late 1930s, at the peak of the Antigonish cooperative influence, there were 1100 study clubs around the Maritimes, with 10,000 participants. Wikipedia says, “by 1938 these study clubs had formed 142 credit unions, 39 co-operative stores, 17 co-operative lobster factories, 11 co-operative fish plants, and 11 other co-ops.” In provinces as small as these, it is impossible to over-estimate the human effect of this level of industry and change.

The Wikipedia entry on the Antigonish Movement is actually pretty good.

[tim-cahyanto-bct]

Assessment #2 | Reflective Journaling

As per usual, I left this assignment up until the final dying days that we had available. Now in all fairness, this was due mostly to the fact that I did not even know about the existence of the assignment until today (Saturday 27th). However while I was racking my brain trying to think of something to write about, this very experience about being lost and confused had inspired me to write about our latest CT assignment - data objects. You may have read that last sentence and assumed the worst for the data objects assignment, however all is not lost as we somehow managed to claw our way into some form of success throughout these holidays. However, what I do want to write about was our experiences before then, where my faith and motivation for the data objects assignment was as fleeting as days left to do this reflective journaling. Experience So to begin with, our group was primarily made up of people who had no real group that related to their initial ideas. We had people with ideas to do with gaming, skateboarding, space etc. All in all, it was a real mixed bag of different people with different ideas. Our biggest issue off the bat was deciding upon and maintaining a data set. Believe it or not, it took until the very last week before the holidays for us to finally have a definitive data set which we were all working off, and even then we eventually changed it over the holidays anyway. A big reason for this hesitation and lack of progression, I think, comes down to the lack of any real motivation from the majority of our group. 

I'll be the first to admit that this assignment wasn't something that I was really excited by, especially compared to "cards for play" which I actually enjoyed quite a bit. Upon first hearing about this brief I actually thought it would be something I would be really into. Having done sculpture in high school, I thought this would be quite similar to the projects that I did for that. However, I was somewhat disappointed that we were restrained by the limitations of hard data and the one-directional emphasis on altering physical objects, which eliminated most of my ideas that I was excited to try. Much of our group looked like as if they felt the same- lost and unmotivated. 

It wasn't really until the last couple days where I think we realised how little time we had, and how we needed to actually make some form of progress. We all finally decided to choose and focus on a definitive data set we would all work on, and we came up with an object that we all liked the idea of. We wanted to make coasters and if we had time, cups to map deforestation data. I personally loved the idea, it would be both visual and interactive and I thought that it would be quite impactful. Even though we eventually changed ideas and data sets yet again, it was this point where we really progressed as a group. We finally had a direction to work towards together, and I think that was our pivotal turning point. We ended up using the holidays to knock out the rest of our project out. All of us, I think, happy with what we managed to achieve especially given how rocky our start was. 

Observation

Our biggest problem of the lack of motivation was, in my opinion, because most of the group wanted to do their own thing. I know for me that our original data set of renewable energy was not at all interesting to me, however it was something that the majority of the group kind of just went with. As stated by Amabile, T. M. (1998), "people will be most creative when they feel motivated primarily by the interest, satisfaction, and challenge of the work itself-and not by external pressures" It was just bound to happen that we couldn't come up with anything, intrinsically, most of us were not motivated. Even the looming external motivation of our potentially horrible grades did not seem to phase us. Since we all originally had our own wildly different ideas in the beginning, I think it was hard for us to just completely ditch our old ideas and adapt to a new one which we didn't really care for. While other groups were already deep into prototyping and testing, we seemed to still be stuck up on what data we should even focus on. Alternating between objects with each conversation and data sets with each class, our ideas never seeming to stick. 

A big reason that this happened in the first place, I believe, was because of a lack of leadership and effective communication. I say effective communication as opposed to just communication as we did communicate- quite a lot actually. However, with those ideas that we all came up with together, we never progressed it further. This for me highlights the completely nonexistent leadership shown by anyone in our group; me included. We had the ideas, but never did anything with them. 

This unfortunate experience has allowed me to learn and realise how volatile team projects can be. For the most part, all our group needed to progress much sooner was someone to just gather everybody’s attentions and allow everyone to come to a mutual agreement about what we want to do, and how we should do it. That one simple action could have saved many wasted days. 

Analysis

Ultimately, I think our problems arose from the absence of leadership. 

After having participated in Outdoor Education which heavily emphasises the importance of strong leadership, especially in the often life endangering scenarios we would often find ourselves in, it quickly became quite obvious how our team had absolutely no direction during those first few weeks of the project. “The study concluded that leadership plays a positive role in the transformation success. This conclusion was supported by correlation results which revealed that there is a positive correlation between leadership and transformation success.”  Kendi, B., & Kamaria, K. (2017). This study shows the direct and positive correlation between leadership and success. And on the contrary, how a lack of leadership can also be a contributor to a team’s failures. Additionally, the study conducted by Müller, R., Geraldi, J., & Turner, J. R. (2012) "found an impact of EQ [emotional intelligence] and MQ [managerial intelligence] on project success, but not so from IQ [intellectual intelligence]" From both these studies, we can conclude how effective leadership has a positive correlation to project success; however the latter study also shows how the most important traits are primarily emotional and managerial intelligence. For me, I interpret this study as showing us that effective leadership does not always have to do with outright intellect, but it's more about being able to practically assess the given situation to give the team some direction and focus. This was something I think anyone in our group could have easily done.

Additionally, Jung, D. I. (2001) writes how his study's "Results indicated that transformational leadership promoted higher levels of creativity measured by divergent thinking among group members" In this study, Jung compares transactional leadership to transformative leadership. Basically transformational leadership aims to intrinsically motivate followers to work towards a common goal while transactional leadership focuses on extrinsic motivation using things such as diminishing rewards or punishments. The study highlights the importance of intrinsic motivation over extrinsic motivation when it comes to, in this case, creativity; something a good leader should be able to help facilitate to achieve greater creativity and ultimately greater success. Although it is not solely up to the leader all the time, intrinsic motivation is something that fundamentally only us as individuals can achieve.

This experience with our latest Creative Technologies Studio project has highlighted to me the importance of effective leadership and communication. In the future, I think my aim in these group projects would be to focus more on the group itself rather than solely on the content of the projects. Having someone to steer the group in the correct way in a practical sense would have heavily benefited my latest group, and I have no doubt that it will continue to be necessary for future group projects too. 

References Amabile, T. M. (1998). How to kill creativity (Vol. 87). Boston, MA: Harvard Business School Publishing.

Kendi, B., & Kamaria, K. (2017). AN INVESTIGATION OF THE ROLE OF LEADERSHIP IN THE TRANSFORMATION PROCESS OF MICROFINANCE ORGANIZATIONS IN KENYA INTO DEPOSIT TAKING INSTITUTIONS. International Journal of Business Strategies, 1(2), 22-42. Müller, R., Geraldi, J., & Turner, J. R. (2012). Relationships between leadership and success in different types of project complexities. IEEE Transactions on Engineering Management, 59(1), 77-90. Jung, D. I. (2001). Transformational and transactional leadership and their effects on creativity in groups. Creativity Research Journal, 13(2), 185-195.

[rameshchaurasiain]

Ramesh Chaurasia- Encouraging women to take small steps to achieve big goals

Mr. Ramesh Chaurasia is a successful businessman, philanthropist and also a family man. He also plays many other roles that enable him to uplift vulnerable groups. As the president of the Akhil Bharatiya Adarsh Chaurasia Mahasabha, he contributes in all forms to uplift the people of the Chaurasia-Tamboli community. We talked to him on the role of small-scale industries in generating employment along with the role of this industry in women upliftment. He is one of the most active leaders from within the Chaurasia community who are working on the ground to improve the lives around them.

Mr. Ramesh Chaurasia said, “When we have big dreams for a community, we often overlook the small things and small steps. Setting up bigger enterprises and industries takes a lot of time, a lot of resources, and many obstacles have to be dealt with. It takes a long struggle to generate employment through it. On the other hand, small scale industries can be set up in shorter periods and can also generate large scale job opportunities. This does not mean that there are no challenges in setting up such industries. But the challenges can be dealt together quickly if we work with a systematic approach.”

Mr. Ramesh Chaurasia has previously also talked about forming groups at local levels which can plan, implement, assess, and solve issues related to any project. This can be particularly helpful for small scale industries, cottage industries, women centric projects, awarenes campaigns, etc. The women’s wing of the Akhil Bharatiya Adarsh Chaurasia Mahasabha has been working on forming such groups since a long time. Mr. Chaurasia talked about some of the challenges faced while setting up these small-scale cottage industries.

He said, “Without proper guidance and awareness, it can be difficult to arrange for finances. People are still not aware about microfinance schemes especially for women. Without forming groups that have common goals and without assigning roles according to capabilities, there are chances of mismanagement which eventually lead to complete failure. People also need to deal with and tackle issues like lack of infrastructure, access to raw materials, lack of buyers, competition with large scale industries, etc. These can be dealt with if the right training, support, and awareness are provided. Also, the people involved need to focus on quality. If one can provide something which really adds value to people’s lives, then it gets easier to find buyers. Our organization has been providing training, running campaigns, arranging financial help, helping in availing government schemes, etc, so that our community can generate employment and become self-sufficient. A lot of problems multiplied during the Pandemic but things are again getting better. Now, we also want to plan ahead for such events and disasters.”

The Chauraisa community was primarily engaged in agriculture and betel leaf trade. Like with every other community, their members too are now employed in several other fields and many are entrepreneurs. But those involved in farming have struggled due to many factors. They are being educated about diversifying their agricultural practices. Women in these families or in other vulnerable groups suffer due to lack of representation, lack of recognition of their input and of the outputs they generate. They additionally suffer from lack of education, and also from lack of opportunities. Small scale cottage industries prove to be empowering, especially for women. There are so many examples of such industries in our country that have uplifted several communities.

A senior female member of the Akhil Bharatiya Adarsh Chaurasia Mahasabha also shared her views and the vision of the organisation. She said, “Women especially from agricultural families can start cottage industries. A big advantage of such industries is that entire family can be engaged in such initiatives. This also helps in dealing with social and family issues arising from unemployment. Even farmers can be engaged in this and the industry can be based around agricultural produce. Our initiatives to encourage women to form self-help groups can also help them in setting up such industries. We want to help them in adopting modern technology for this in order to compete with larger players.

Our organization is preparing to impart specific industrial training, financial assistance, help with government aids, and clearing access to markets for women. Such small-scale industries uplift women which in turn uplifts families. Empowered families empower a community. And such communities lead to national progress.”

https://static.wixstatic.com/media/af3946_396633811fde47fa937ea5065444aff5~mv2.png/v1/fit/w_1000,h_1000,al_c,q_80/file.png https://www.rameshchaurasia.in/post/ramesh-chaurasia-encouraging-women-to-take-small-steps-to-achieve-big-goals

[mindyourmoney23]

The negative impact of microfinance in developing countries

Microfinance is the service that works in small businesses and individuals to provide financial help to people who are unable to reach a bank for loans or any other financial aids. It includes services like micro credits, microinsurance, and many other such services. Its main target is to reach out to poor people in the country and help them financially. Banks do not usually provide funds to such people as they lack to have a security deposit in return, but with more programs and new rules, the banks have started some schemes to help poor people start their businesses on credit. There are pros and cons of every service and therefore, the pros of microfinance include, education for small children below the age of 14, employment creation plans, initiatives for new business ideas, etc. the money-minded people may find this interesting as the idea is to help the marginal class uplift themselves but this could be done only with a healthy and rich money mindset and to know how the money scarcity mindset works at times like these. 

The supporters of the theory suggest that it helps in reducing poverty and empowers women and the weak. As it creates employment opportunities form, and at a single time. It also results in higher income and enables the poor to find employment for themselves thereby improving their standard of living. This idea may not work in poor or developing countries as not many traditional banks can afford to provide credit to people without any security as these people may not be able to pay the amount back. The right and rich money mindset may be to build the assets and provide funds for the poor but the poor tend to utilize these funds and end up being in a worse position thereby leaving the rich with very less or no profits at all and affecting the economic growth of the developing country. Having a big money mindset and the knowledge of rich money mindset may be of use to find a solution to this problem but this idea does not also work in the developing countries as the poor the micro finances to pay their debts and not utilize it for their business thereby ending any opportunity for further profits. The companies and organizations lending financial funds to the poor focus more on the profits rather than helping 

the poorest of the poor and therefore the idea becomes a failure in small or developing countries. There might be a solution out there and we need to find it, for that we will have to be guided by the money mindset coach who can provide us the financial literacy and help us have a money mindset makeover, and help strategize the schemes correctly. There is still hope and potential in the idea of microfinance, therefore it is worth a shot. 

 https://mindyourmoney.me/

[peopleqlik]

How does Accounting Software and ERP Software in Karachi Helps Organization in Project Planning?

Erpisto #1 ERP software in Karachi We can spend a lot of time managing projects, but the results will be hazy unless we have a clear vision and a thorough grasp of the resources, talents, and processes required to complete them. While having lettered tech professionals oversee the project is key, there are several other critical components that are just as significant.

Erpisto #1 ERP software in Karachi 

A succession of events keep projects operating smoothly and on schedule, from designing the workflow and maintaining good communication to recognizing and removing hazards. These are difficult duties, but with the aid of ERP software in Karachi project management module, they become a lot simpler.

Project Management

ERP software, like project management, is one of the most important business management tools for boosting the competitiveness of businesses of all sizes and industries.

ERP software in Karachi that has a project management capability has a number of advantages. A single program can guarantee the effective completion of several projects at various customer locations.

Project management used to be done manually and with traditional methods. It didn't take long for us to discover that a lack of appropriate tools was a major factor in project failure. As a result of this study, a lot of businesses have adopted contemporary technology and developed their own ERP systems.

Project Management Success

The capability required to appropriately manage and employ available resources in order to ensure that all project-related tasks are accomplished efficiently is included in the management of a project ERP system. As a result, selecting the appropriate ERP software may have a significant impact on the project's overall performance.

Improves Project Planning

A great start is the foundation for project success. With project management software, the planning process may be expedited. It allows you to quickly access project information and create consistent project plans to priorities work, allocate resources, identify dependencies, and establish delivery dates to ensure business success.

Task Delegation

How well the project team's duties are distributed determines its overall efficiency. This might be tough unless you are familiar with your team's skill sets. Here, ERP software in Karachi functions as an all-encompassing task management software that keeps track of every employee's information, helping you to swiftly discover and assign work to qualified staff..

Risk Management

The best outcomes come from projects that don't have any bottlenecks. If you anticipate possible project threats early on, you may utilize effective risk reduction strategies. This protects your company from potentially disastrous losses. Using cloud-based project management software, which gives you access to real-time data and critical business information, you may assess and implement effective risk mitigation methods.

Budget calculation

Every project necessitates the investment of inventories, resources, and processes. The ERP software in Karachi makes keeping track of all of them straightforward. It keeps track of all project expenses from beginning to conclusion, ensuring that costs are maintained under control and do not spiral out of control.

Services we Offer:Erpisto ERP

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Erpisto E Invoice Software

Automatically receive and send invoices

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[techminsolutions]

Subsidiary disbursed 84,000 loans without customer consent: IndusInd

Subsidiary disbursed 84,000 loans without customer consent: IndusInd

A subsidiary of Indusind Bank disbursed nearly 84,000 loans without customer consent in May 2021 due to a technical glitch, said the private lender on Saturday. An independent review will fix process lapse or accounting failure at Bharat Financial Inclusion Ltd (BFIL), the bank’s microfinance arm. Customer consent was not recorded at the time of loan disbursement but the bank’s field staff…

[santong]

Why businesses fail: Two books every entrepreneur or professional must read

Why businesses fail: Two books every entrepreneur or professional must read

The world has seen thousands of businesses collapse over the last few decades. From the dot.com bubble to the world financial crises, companies went belly up. Ghana has not been left out of our own corporate failures. The recent financial sector clean up left 9 banks, 23 savings and loans, 347 microfinance institutions and 53 investment companies wiped off Ghana’s corporate list. How did that…

[synlogicsinc]

Microfinance Company KYC Verification using RPA Services

While eKYC is something relatively new to India, we need to reconcile with the fact that its importance in the global scenario is only growing each day.

According to a report by Report Crux,

“The Global e-KYC Market is estimated to grow...at a CAGR of 23.4% during the forecast period from 2020-2027.”

To keep pace with the ever-growing customer base, a large number of banks and microfinance companies in India are switching to RPA consulting services, especially to faster KYC processes.                                                                                                                                                                                                     Why Is KYC Important?

KYC not only provides you with significant information about your customer but also safeguards your organization from various legal issues associated with customer frauds that happen, well, so very often.

The Role of Robotic Process Automation (RPA) in Know Your Customer (KYC) There has been a constant rise in the demand for artificial intelligence in KYC in recent years to prevent non-compliance. But even when AI has been implemented, for mass, repetitive processes, there needs to be some support that standardizes and speeds up operations. For this reason, one needs to introduce RPA with the help of a seasoned RPA implementation partner.

In fact, a remarkable number of banks, microfinance companies, and other financial institutes are already using RPA to transform critical business processes.

RPA eliminates all kinds of human efforts which in turn helps you reduce failures, costs, and human errors and fraud possibilities associated with KYC. RPA consulting services like ours are helping microfinance businesses in India with:

Reducing non-compliance penalties Extending their problem-solving potential Boosting productivity Increasing transactional efficiency and more.

Challenges Associated with Microfinance KYC Verification

Data Quality and Inconsistencies Inconsistency of data is the most recurring problem any microfinancing company encounters while trying to validate the KYC information. There are several distinct sources where the data of a company can be found, and sometimes the available information on file is confusing or out of date.

Solution: Our RPA services offer easy access to government business registries. RPA holds the record from every legal entity that ever existed. It goes straight to the source of company data that is valuable in performing KYC verification for microfinance companies.

Laborious and Time-Consuming Onboarding Process The traditional onboarding process is one of the most common challenges in corporate KYC. This labor-intensive, time-consuming, manual process can lead to frustrating delays for customers, causing them to leave the verification process midway.  

Solution: RPA-integrated KYC process helps monitor customer behaviour and manage the complexity of onboarding. It collates data from multiple sources and allows for in-depth KYC verification. It significantly minimizes the time spent examining the identity of your client and constantly protects your business from money laundering scams.

Increasing Costs of Compliance Time is not the only aspect that can be saved through making automated KYC verification. According to a survey, large financial institutions with more than $100 billion in revenue, spent up to US$150 million a year in 2017 as KYC expenses. And it is expected to grow 10 % by the end of 2022 as regulations become more expansive, detailed, and stringent.

Solution:  Implementing RPA provides an opportunity to offset the cost of the onboarding process by limiting the amount of human input dedicated to KYC. By automating KYC, cost savings of around 30% can be achieved.

Human Error No matter how well_tl-rained, humans are prone to commiting mistakes. And in the standardized KYC verification, these errors can have severe consequences.

Solution: Our RPA consulting services help you eliminate the risk of human error and help you automate the KYC structure. Furthermore, RPA offers the additional benefit of saving a significant amount of time and money over a manual approach.

Continuous Customer Risk Monitoring KYC challenges for microfinancing companies do not end following the onboarding process. The growing regulatory demands to monitor customer risk at different stages. Actively keeping track of a company’s KYC can be highly draining on resources.

Solution: Our service help you develop clear, auditable processes to manage the ongoing monitoring for KYC verification.

Final Thoughts Within the past few years, multiple microfinancing companies in India have been seeking RPA consulting services for KYC verification. The simple reason behind this is that RPA provides an exceptional opportunity to re conceptualize the existing operating model for KYC verification and help you increase efficiency, customer excellence, and employee productivity.

If you are a part of the microfinance industry and would like to simplify your KYC, we can help. Let's talk.

[kriziazulueta108]

Post 3

How does microcredit help the poor really? Do they make them poorer?

Learning microfinance helped me understand how important micro products are to low-income households.  Microcredit is known to be the loan that helps poor people get out of poverty. Though I came to realize that if there will be mismanagement of this product, there can also be failures. According to Five Talents, microcredit can also be subject to abuse and corruption. 

Like in the microfinance institution that we evaluated, there are still things they need to re-check regarding the requirements to apply for a loan. We can say that their product doesn’t really reach the poorer of the poor because of the given constraints. For example, they require a photo that is a photo studio produced. They also won’t allow cellphone quality pictures, this does not take into consideration the clients who cannot afford a picture from the photo studio because this requires them to spend at least 50 pesos. Moreover, photo studios are not really accessible for all especially those living in rural areas.

Moreover, under the institution’s loan program, it says that “The client must have an alternative source of income in the family aside from the livelihood project.” Most low-income households don’t have enough income in the first place that’s why they opt to loan money to fund their livelihood project. This policy is not really inclusive as not everyone would have a stable alternate source of income. Especially during this time of a pandemic, a number of people got laid off from their usual jobs and have nothing to return to and some of these are the sole breadwinner of the family.

I think that microcredit is a really good program for low-income families, but it also depends on the management of the institution. It should be feasible and accessible to their target audience as to really help their beneficiaries.  

Source: https://fivetalents.org/blog/2017/8/15/five-reasons-microcredit-fails-in-the-fight-against-poverty