Provide empirical evidence of your proposed solution's success/impact at present. If your project is in the idea phase, please provide evidence that speaks to its potential impact
The Vegetable vendor scheme was initiated by BDFCL on 25th September 2009. A pre appraisal report suggested that the scheme would best fit the vendor target group on studying their financial behavior and business cycle.
Initially when the scheme was initiated there were only 10 groups that consist of 43 individuals who were qualified to avail the scheme. One main criteria of this vegetable vendor scheme is that the vendors has to have a permanent stall at the Centenary Farmer’s Market and form minimum 3 members. After availing the scheme the members have to open an Individual compulsory saving account where the minimum weekly saving amount is $ 25.
As of date there are now 33 groups that consist of 138 individuals availing this scheme. Within a span of year the number of beneficiaries has almost tripled which indicates the success of the scheme. From the group break down there are 43 males and 95 females indicating that gender emphasis is also made during group formation.
The other measure of profitability is through their savings in BDFCL. All group members have Individual compulsory accounts but most vendors have now opened voluntary savings where they deposit their extra money to earn a saving interest rate @ 6% per annum. The report also indicates that five clients have opened recurring deposits ranging from 1000 to 300 monthly with BDFCL indicating extra income of the vendors. The total savings of the 33 groups amounts to $ 16215 (Taking $ 1 = Nu. 47) .
In the Centenary Farmers Market (CFM) there are a total of 310 stalls from which 138 stalls have been occupied by the Vegetable vendors who availed this scheme from BDFCL. This clearly represents almost 45% of sellers are directly benefited through this scheme creating more employment within the project and showing positive approaches towards access to credit.
Approximately 450 words left (2000 characters).
How many firms do you expect to reach?
As per the past trend there has been atleast 3 groups which has 9 individuals per group joining the scheme on monthly basis. There is still an opportunity for another 20 groups to join this scheme within one year period.
(I am being a little pessimist about the target group since there is limited stall availability within the CFM)
What is the volume of private SME finance you aim to catalyze?
The Vegetable vendor group is a micro Small and medium enterprenuer group. As per the the data till date for approximately $17,000 has been the total portfolio. Within another six months my expectation would be to grow by another 20% .
What time frame will be required to reach these targets?
To achieve the above mentioned portfolio and a target group of another 20 I am presuming that another 7 months will be the time frame. As per the past trend I am optimist to capture monthly 3 groups. There will be a positive feedback on the new group joining due to the following reasons.
• Success of the existing group in terms of financial and economic
• Business Development Services to be received shortly from BDFCL
• Door step repayment collection by BDFCL
To verify the number of clients BDFCL banking system can generate a report only for the Vegetable vendor clients.
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What would prevent your solution from being a success?
In the Centenary Farmer’s Market there are mainly two floors where vegetables are sold. The lower floor has only those vegetables that are brought directly from India and the upper floors has only organic vegetables but are a little expensive. One very important aspect is educating the consumers that organic vegetables which are sold by vendors are much healthier than the vegetables which are brought from India. If price is the primary matter for consumers then there is still a threat.
The other problem could be interference of grants directly to the farmers. If the vendors are approached by grants by the government then it will spoil their financial discipline which BDFCL has created till date.
Source of funding towards this kind of scheme may get exhausted soon and BDFCL has to look for source of funding.