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When you have no money…
…how do you get capital for business?
Co-operative Economics
Self Help Groups
How to Get Capital for Business?
Also known as:
Credit Cooperatives
Paluwagan (Philippines)
Cash-go-round (Uganda)
Bayanihan Banking System (Manila)
Mandal (India)
Why Self-Help Groups?
 If people have work, the
family will be happy
 If people have work, they
will support the church
 If people have work, they
can become leaders in the
church (qualification of a
leader – he must manage
his household well).
What is a Self-Help Group?
 8-25 adults (usually 10)
 Usually women
 Better in a homogenised
people with close social ties
 Contributing weekly to a
common fund
 Once it has grown, giving
that fund to one member
to start a business

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Structure of a Self-Help Group
 They elect their leaders
 They give a name for a group
 They decide to save a certain amount
(usually Rs50 per month)
 A savings account is opened in the group
name and operated by the leaders jointly
 They gather once a week and discuss the
family problems, social issues, health issues
Problems with Self-Help Groups
 Q. There are many emergencies that disrupt
savings
 A. Establish two common funds, one saving for
business, the other for emergency needs
Beyond Self Help Groups…
 Once a group has demonstrated
 Capacity to Save
 Ability to manage finances, budget, repay loans
 They can seek a micro-finance program that
will grant larger loans based on their
demonstrated credit
 Keep all the records so you can show your credit-
worthiness
Taking Loans
 After three months
 They will have Rs15,000
 they can start to take a loan from their own
group fund
 They should repay this money with a small
interest to increase the fund

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Record Keeping
 Individual pass book
 Savings register
 Cash book
 Loan register
 General register
 Minutes book
 Attendance register
What Businesses can they start
 Candle-making
 Fruit jiuce, Fruit Jam,
Pickles
 Cleaning powder
 Flower Garenng
 Computer education
 Pepsi ice cream
 Mobible tea cart
 Watch repairing centre
 Sarees rolling
 Coffee making unit
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 Tiffen
 Dry Fruit Sales
 Fruit Plants Vending
 Wet – Dry Flour Grinding
Each according to their ability
Rs 5000 or Rs 10,000
business capital
Impact of Self-Help Groups
 Break power of money-lender
 Women stand on their own legs by earning
through micro-enterprise
 Women participate in the decision-making in
all matters of the family. Before that they
were dependent only on their husband.
 Women participate in community
development programmes and social issues
 Increase in offerings to the church
Selection of Beneficiaries
 Regular member of the church
 Member of Self Hel group
 Poor situation
 Regular in savings and attendance
 Recommended by committee
 Feasible project which will generate regular
income and enough for repayments

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The Duty of the Pastor
 Train the Members
(Eph 4:11,12)
 To share the gospel
 In word
 In deed
 Raise up leaders
 Deacons
 Elders
 (Pastor can be a member of the committee
not the supervisor, he should look after the
spiritual not the financial – if the pastor is
there, he will just forgive their debt and the
project will not work)
Roles of Committee
 Secretary
 Treasurer
 One elder or deacon
 2 beneficiaries
 Program Coordinator
Economics of the Project
Beneficiary Income
 Ave income per day Rs100 x25 = Rs2500per mo
 Costs per day Rs30 = Rs750 per mo
 Labour costs Rs 50 x 25 days = Rs1250
 Total left in hand Rs500
 Less repayment per month Rs300
 Total surplus Rs200
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 Q. Should you charge interest?
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 Q.Is this different to tithing?
 A. Yes, they are already tithing
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When you have no money!!

  • 1. When you have no money… …how do you get capital for business?
  • 2. Co-operative Economics Self Help Groups How to Get Capital for Business? Also known as: Credit Cooperatives Paluwagan (Philippines) Cash-go-round (Uganda) Bayanihan Banking System (Manila) Mandal (India)
  • 3. Why Self-Help Groups?  If people have work, the family will be happy  If people have work, they will support the church  If people have work, they can become leaders in the church (qualification of a leader – he must manage his household well).
  • 4. What is a Self-Help Group?  8-25 adults (usually 10)  Usually women  Better in a homogenised people with close social ties  Contributing weekly to a common fund  Once it has grown, giving that fund to one member to start a business
  • 5. Structure of a Self-Help Group  They elect their leaders  They give a name for a group  They decide to save a certain amount (usually Rs50 per month)  A savings account is opened in the group name and operated by the leaders jointly  They gather once a week and discuss the family problems, social issues, health issues
  • 6. Problems with Self-Help Groups  Q. There are many emergencies that disrupt savings  A. Establish two common funds, one saving for business, the other for emergency needs
  • 7. Beyond Self Help Groups…  Once a group has demonstrated  Capacity to Save  Ability to manage finances, budget, repay loans  They can seek a micro-finance program that will grant larger loans based on their demonstrated credit  Keep all the records so you can show your credit- worthiness
  • 8. Taking Loans  After three months  They will have Rs15,000  they can start to take a loan from their own group fund  They should repay this money with a small interest to increase the fund
  • 9. Record Keeping  Individual pass book  Savings register  Cash book  Loan register  General register  Minutes book  Attendance register
  • 10. What Businesses can they start  Candle-making  Fruit jiuce, Fruit Jam, Pickles  Cleaning powder  Flower Garenng  Computer education  Pepsi ice cream  Mobible tea cart  Watch repairing centre  Sarees rolling  Coffee making unit  Wire Net baskts  Tiffen  Dry Fruit Sales  Fruit Plants Vending  Wet – Dry Flour Grinding Each according to their ability Rs 5000 or Rs 10,000 business capital
  • 11. Impact of Self-Help Groups  Break power of money-lender  Women stand on their own legs by earning through micro-enterprise  Women participate in the decision-making in all matters of the family. Before that they were dependent only on their husband.  Women participate in community development programmes and social issues  Increase in offerings to the church
  • 12. Selection of Beneficiaries  Regular member of the church  Member of Self Hel group  Poor situation  Regular in savings and attendance  Recommended by committee  Feasible project which will generate regular income and enough for repayments
  • 13. The Duty of the Pastor  Train the Members (Eph 4:11,12)  To share the gospel  In word  In deed  Raise up leaders  Deacons  Elders  (Pastor can be a member of the committee not the supervisor, he should look after the spiritual not the financial – if the pastor is there, he will just forgive their debt and the project will not work)
  • 14. Roles of Committee  Secretary  Treasurer  One elder or deacon  2 beneficiaries  Program Coordinator
  • 15. Economics of the Project Beneficiary Income  Ave income per day Rs100 x25 = Rs2500per mo  Costs per day Rs30 = Rs750 per mo  Labour costs Rs 50 x 25 days = Rs1250  Total left in hand Rs500  Less repayment per month Rs300  Total surplus Rs200
  • 16. Problems  Q. Should you charge interest?  A. Collect a small service charge  Q.Is this different to tithing?  A. Yes, they are already tithing  Q. Why are men not encouraged?  A. Yes be involved but do not take a prominent role over the women  Q. If members do not pay in time, what can we do?  The group must take responsibility