Case studies from developing countries
06 / 1994
The National Youth Services Co-operative (NYSCO)was set up by the National Youth Services Council NYSC)in Sri Lanka to provide credit facilities to youth intending to start their own income generating activities.
The NYSC is a youth organisation spread countrywide operated through the setting up of youth clubs in towns and villages. It is engaged in various activities aimed at helping young men and women.
The target group for the NYSCO credit scheme is automatically defined through NYSC membership. However eligibility for loans depends on the target group preparing itself according to NYSCO speficications.
Membership in a youth club of the NYSCO is open to any young Sri Lankan. Any member is eligible to apply for credit facilities under the NYSCO after six months of membership and after satisfying all requirements specified by NYSCO.
In applying for credit from NYSCO, a member becomes a prospective loanee only upon presenting a business plan to the Board of Directors of the NYSCO, of the proposed business for which the loan is sought.
The business plan must be a breakdown of the funds required for the business based on the proposed expenses for 6 months.The plan must also be accompanied by a recommendation from the Youth Services Officer.The Youth Services Officer is the official in charge of management of the youth club group to which the prospective loanee belongs.
This Specimen Business Plan includes all necessary details for a youth group member to submit in applying for a loan from the NYSCO.
This plan is for two persons intending to set up a joint book binding business at their own residence premises.It includes fixed capital costs(land,building, machinery ,tools and raw material), operational costs(transport, stationary)and the estimated income based on the expenses and proposed income.
Upon this Business Plan being approved, credit will be dsbursed.
The target group in this scheme is automatically formed as the scheme is launched within the already organised youth movement. The only qualification to be a loanee is a feasible business plan.
Implementing a credit scheme in a previously organised target group is easier in that the preliminary steps of identifying and mobilising target groups, ascertaining eligibility and gauging credibility are not necessary and the aims of the scheme can be achieved faster.
This is however different to target groups categorised according to social grouping systems such as caste.There, unlike in this instance, formal organisation and members’ awareness of how a group system works is not present and have to be instilled from outside.
HARPER, Malcolm; VYAKARNAM, Shailendra, INTERMEDIATE TECHNOLOGY PUBLICATIONS, INTERMEDIATETECHNOLOGY PUBLICATIONS, 1988
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