ECONOMIC CELL GROUPS

BUSINESS AS MISSION IN ACTION

World In Need

• World In Need a registered UK charity (1041711)

• Aim to change attitudes through aid and education

World In Need Objectives

• To work in partnership with local community groups to allow them to fulfil their potential.

• To work together to build sustainable projects involving education, health care and business development.

• To move away from aid dependency

The model

• Micro credit programmes

• Revolving loan programs are established for viable business ideas. sometimes administered and evaluated overseas.

• An economic cell group is a form of micro credit programme

What Is An Economic Cell Group?

• An ECG Comprises A Group Of Individuals Who Wish To Share Resources Such As Time , Expertise, And Finance To Build Small Businesses From Dependency To Self Sufficiency Through An Ethical Investment .

How does an ECG work?

• Taking their lead from win the members of the ECG invest in an agreed business.

• A business plan is drawn up covering amount loaned, repayment period, interest to be paid back, review timetables and signed with the mission partner overseas to who will oversee the project

• The ECG, although associated with WIN are an independent body who manage and regulate the business.

• Members of the ECG are encouraged to make their own viability of the project , including tax issues

Objectives of an ECG

• To create an ethically based commercial and social enterprise that will benefit the target group through the creation of sustainable employment leading to investment in the local community through wages, education, health care, or further employment.

How WIN can help

• Provision of examples of enterprises needing investment

• Advise on cultural and historical issues that may affect an ECG

• Overseas partners who are involved in small business needing further support.

Steps to begin with

• 1. Evaluate the business opportunity

• Is it needed?

• Is it viable?

• Who are the target market?

• What is its USP?

• Evaluate the missions opportunity

• Who and where will benefit most from an ecg?

• What can you offer that no other organization can?

• Do you have the required resources?

• Visit the project beforehand

Non Financial Returns

• What are the social/cultural benefits in terms of quality of life

• Is there an environmental aspect impact to the sustainable product

• Can this enhance the Spiritual aspect of the community?

Who

• Have the right people in place

• Your board team must consist of experienced as well as the committed !

• Have members on board who can bring in a variety of experience

• Members should not be involved for a quick return.

One step at a time

• Have a solid advisory support team

• Take advise and use contacts with previous experience, are contracts legal?, What are the tax implications ? What are my liabilities?

• Present your business plan to an outsider

THE BUSINESS PLAN

• Aims and objectives

Those involved-profiles

Swot analysis

Investment needed

Plan b

Risk and reward

Personal issues to address

• Why am I involved?

• Be assured of your own commitment

• Are you aware of the issues?

• What support do you have?

Is it biblical or ethical ?

• Should We Charge Interest On A Loan?• EXODUS 22:25

• DEUT 23:19-20

• LUKE 19:1-27 Christ did not condemn Zacchaeus and did not condemn the making of the interest.

• 1 Timothy 6:10 It is the love of money, not money in itself which is the problem. Christ commands us to pay our taxes.

Questions regarding interest

• It is not compulsory

• It can be reinvested in the project

• It can be transferred to another project

• Its a form of education

WHAT DO I DO NOW?

• Pray• If you would like further information please

talk to me • Or contact the world in need office• 01892 669834• We will be pleased to meet with you

Accelerated Schools Plan

• A good example of an ECG in action• £5000 is advanced by an ECG to build a

school for at least 20 children.• The children are funded through the Child

Sponsorship programme.• The sponsors are identified by the members

of the ECG or they can be sponsors themselves.

Where does the money go?

• The £400 per calendar month that is raised (for 20 children) is split into threeOne amount to pay for the cost of the school

Some to give to the Childs family

Some is set aside as the capital and interest repayment to the ECG

What comes next?

• When the loan is repaid the ECG can either :

• Disband

• Introduce new members

• Or Establish a new project using the same model.

ECG in action

• Malawi a group of women have been loaned £50 each to start business fees to sell produce and clothing.

• These women are now supporting themselves and 2 orphans through World In Need

Women in Malawi empowered by a micro loan of £50

Used Mercedes Trucks in Malawi

Case 1. The average cost of a used truck in UK is £4000. It takes £4000 to ship to Malawi via Dar Es Salaam.The sales price is from £15,000 to £18,000.

This leaves funds to create an independent self sustaining operation on the field.

Toyota Mini Buses

Case 2.Toyota mini buses from Japan can be bought in Dubai and shipped to Dar Es Salaam.Cost is £3,500, shipping £3000. Sales price is £10,000