Turning Unemployment into Entrepreneurship_PARVEEN MAHMUD
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“Turning Unemployment into Entrepreneurship”
Ms. Parveen Mahmud
Managing Director
Building Social Business…
Workshop 2
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Grameen Telecom Trust (GTT)
was founded in 2010. GTT
facilitates and implements
social businesses in Bangladesh.
GTT has identified healthcare,
education, technology &
entrepreneurship development
as key areas of social business.
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Our Focus
Healthcare
Delivering affordable healthcare
services by setting up Health
Complex, Health City, Eye Care
Hospitals and Cardiac Hospitals
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Education
Setting up nursing colleges, training institutes for medical technicians and
other ‘hands on’ and ‘skill focused’ vocational schools and training centres
Our Focus
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We provide in-depth support to and
incubation of social businesses through
our management team
• Finance and Accounts
• Human Resource & Administration
• Legal, Regulatory & Asset Management
• Project & Infrastructure Development
• Social Business
• Internal Audit
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What is social business?
A business…
is one whose owners are motivated by solving a social problem, often unemployment, rather
than making money for themselves.
… different from the non-profit charitable model
which has an inherent weakness — its reliance for survival on donations
Profit making, which makes it sustainable…
Its revenues cover its costs, or there is a clear business plan to reach break-even within a
reasonable timeframe; can be financed by investment, rather than depending on donations.
…but it does not pay dividends
Any income remains with the company to be reinvested. An owner can take out their original
investment but no more.
Difference between social business and regular business
A conventional business goes out only to make money, and creates jobs as a byproduct. In a
social business for example, the main objective is to generate employment.
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Types of social business
TYPE 1:
Any business focused on providing a
product and/or service with a specific
social, ethical or environmental goal.
TYPE 2:
Any profitable business that is owned by
the poor and disadvantaged
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Business Objective will be to overcome poverty, or one or more problems (such as education,
health, technology access, and environment) which threaten people and society; not profit
maximization
Financial and economic sustainability
When investment amount is paid back, company profit stays with the company for expansion
and improvement
Environmentally conscious
Seven Principles of Social Business
Investors get back their investment amount only. No dividend is given beyond investment
money
Workforce gets market wage with better working conditions
…do it with joy
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Activities of GTT
2. Social Business Learning and Innovation Fund (SBLIF)
1. Nobin Udyokta (NU)/New Entrepreneur
3. Investments and Joint Ventures
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New Entrepreneurship Program
Funding and Incubation for businesses of
children of Grameen Bank borrowers.
~ Unemployment to Entrepreneurship
Nobin Udyokta Program
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Definition of New Entrepreneur
• To make the next generation of Grameen Bank
members from job seekers to entrepreneurs,
New Entrepreneur (Nobin Udyokta) Program has
been created.
• The program was initiated in the last quarter of
2013 with a fund of BDT 100 million($ 13 million).
• It is a Social Business for the investors, however,
conventional business for the Nobin Udyoktas.
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Who are Nobin Udyoktas(NU’s)
• The children of existing (at
least three years) or past (for
seven years) Grameen Bank
Members.
• Age of the entrepreneur
must be between 18-35
years; but the age limit will
be relaxed for the females.
• Willing to run a business
individually or jointly.
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Methodology
• Primary information collection through Screening
Exercise/Workshop in the focused areas.
• Field visit undertaken to verify the information collected from the
workshop.
• Meeting with parents(Grameen bank members) of the potential
NU’s.
• Based on the field visit business plans are prepared and presented
at the Social Business Design Labs for review and approval.
• Once approved from design lab, agreements are signed.
• Against the approved budget a bank account is opened on
approved project name and funds are disbursed in tranches.
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Objective
• Intention is to transform a job-seeker into a job-giver.
• Entrepreneur is established as owner of the business.
• For 100 % ownership to NU’s the investors will
recoup/take an amount equivalent to their original
investment and NU will pay an additional fixed sum of
20% over it.
• The additional amount is termed as “share transfer
fee”.
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NU Reporting:
Accounts information system(AIS)/MIS
• NU sends regular operational updates via SMS which are
directly stored in the social business monitoring system
(SBMS) for NU, a server which assists to analyze & monitor
the businesses.
• NUs also send a monthly receipt/payment of their
businesses as per the prescribed format.
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On site & Off site monitoring
• Field officers visit the individual business on a regular
basis(at least once in a month).
• Panel officers from GTT corporate office also visits the
NU businesses to monitor and report on the progress.
• MIS/AIS reports are generated for offsite monitoring
• Internal audit carries out their independent field visits.
• External auditors assesses on sample basis.
• Communication through phone and skype is also
conducted from the corporate office.
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Capacity building of NU
• Reporting through SMS
• Maintaining prime books of accounts.
• Trade compliance & regulatory affairs.
• Providing relevant training for value addition to
business
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Way forward
• Self employment & employment
generation beyond family members.
• Enhanced technical knowledge & IT
facilities promoting market linkages
and e-market platform
•Value chain method followed to
make the enterprise profitable and
sustainable.
•Emergence of Social Business
Village in the focused area with the
intensification of NU program, giving
it an institutional structure and
vision.
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Sector wiseNU Breakdown
So far GTT invested in eighty (80) projects and already signed investment agreement with
ninety nine (99) Nobin Udyoktas.
NU Report 2 - Sector Wise Investment Breakdown
Sector Wise
Approved Investment
(BDT)
Investment from Nobin
Udyokta (BDT)
Investment from GTT
(BDT) Percentage
NU GTT
Livestock
6,977,000.00 2,020,000.00 4,957,000.00
11.28% 5.99% 17.62%
Livestock - Feed & Medicine
1,265,700.00 640,700.00 625,000.00
2.05% 1.90% 2.22%
Telecom & IT Support
5,701,700.00 3,041,700.00 2,660,000.00
9.22% 9.02% 9.45%
IT Support
4,365,000.00 2,250,000.00 2,115,000.00
7.06% 6.67% 7.52%
General Retail & Wholesale
26,833,900.00 15,258,900.00 11,575,000.00
43.37% 45.24% 41.14%
Clothing, Footwear &
Apparel 15,915,500.00 10,210,500.00 5,705,000.00
25.73% 30.27% 20.28%
Crafts
582,000.00 182,000.00 400,000.00
0.94% 0.54% 1.42%
Medicine Business
225,000.00 125,000.00 100,000.00
0.36% 0.37% 0.36%
Total
61,865,800.00 33,728,800.00 28,137,000.00
100% 100% 100%
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Grameen Telecom Trust is planting the seed of development through Social Business for Creating a
World Without Poverty
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Contact Information:
parveen@gtctrust.com
Visit:
www.gtctrust.com
Follow:
www.facebook.com/gtlctrust.com
Thank you