tailieunhanh - Lecture Micro financing & micro leasing - An Introduction: Lecture 5

Lecture 5 - The bop market up close (and personal). In this chapter, students will be able to understand: Understanding clients, the market, and the opportunities; the market; the average consumer in the market; tapping the opportunities. | THE BOP MARKET UP CLOSE (AND PERSONAL) Summary UNDERSTANDING CLIENTS, THE MARKET, AND THE OPPORTUNITIES Case Studies Sonali Kherwadi, a slum in Mumbai, India Sonali’s house sits along an alley of broken pavement with an open sewer running along the middle. Bundles of pipes have been laid helter-skelter on top of the pavement. Sonali Doorways are open to bring some relief to the dripping heat, and inside them sari-clad women sit on the floor in semidarkness, Sonali among them. Sonali A delicate young woman with two small children, Sonali’s much older husband works when he can, but lately has been at home because of a heart problem. Sonali Sonali has a skill: beadwork. She can take small metal bits and string them together to create necklaces and anklets. She sits with a tray on her lap, a pair of needle-nosed pliers in her hand, twisting wires hour after hour. Sonali Many of the women in Kherwadi do beadwork or a similar handicraft such as tailoring or embroidery. This kind of work . | THE BOP MARKET UP CLOSE (AND PERSONAL) Summary UNDERSTANDING CLIENTS, THE MARKET, AND THE OPPORTUNITIES Case Studies Sonali Kherwadi, a slum in Mumbai, India Sonali’s house sits along an alley of broken pavement with an open sewer running along the middle. Bundles of pipes have been laid helter-skelter on top of the pavement. Sonali Doorways are open to bring some relief to the dripping heat, and inside them sari-clad women sit on the floor in semidarkness, Sonali among them. Sonali A delicate young woman with two small children, Sonali’s much older husband works when he can, but lately has been at home because of a heart problem. Sonali Sonali has a skill: beadwork. She can take small metal bits and string them together to create necklaces and anklets. She sits with a tray on her lap, a pair of needle-nosed pliers in her hand, twisting wires hour after hour. Sonali Many of the women in Kherwadi do beadwork or a similar handicraft such as tailoring or embroidery. This kind of work suits their need to stay home, as cultural norms require, and allows them to look after the children. Sonali It is not a true microenterprise, however. Sonali actually works for a middleman who comes once a week to bring her the raw materials and take away the finished products. He pays her by the piece. She earns only a few rupees for hours of back-twist and eyestrain. Sonali Most of the work she does is of low quality and will be sold in small shops to people in Mumbai, but some of the residents of Kherwadi undoubtedly sew products that end up in handicraft markets around the world. Sonali Sonali’s earning power is fixed by the hours of her labor. One of her main financial needs is for what economists call “consumption smoothing”: managing the ups and downs in her income. Sonali Sonali used her first microloan to help pay the unexpected expense of her husband’s fees at the local health clinic. Sonali Although repaying the loan will be hard unless he returns to work, she is better off .