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Rickshaw Bank


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Rickshaw Bank

  1. 1. RIKSHAW BANK Asset based entrepreneurship N‘ “$59” A Rickshaw development. I ° ASSET BASED ° ENTREPRENEURSHIP ° DEVELOPMENT
  2. 2. RIKSHAW BANK Dr. Pradip Kumar Sarmah (Ashoka Fellow, India) Executive Director, CENTRE FOR RURAL DEVELOPMENT (CRD) Dewan House, Zoo Narengi Road, Guwahati- 781 021, Assam, Phone : +91-361-2228281 (0) Skype: PRADIP1963 E-mai| :crd4ev@_yahoo. com/ pradipsarmah@hotmail. com Website: www. crdev. org
  3. 3. car *1“ M»! r~. I:. ':«", ual . .r in E. * Registered under the Societies Registration Act of 1860 (Section XXI) in 1994-95 1* Registered under the Income Tax Act - Section 12AA 8; 80 G ~' Registered under the Foreign Contribution Regulation Act of 1976
  4. 4. ASSET BASED ' November 20, 2004, 80 ' Steps taken: - Rickshaw Were )> Motivated the TEAM; distributed to Rickshaw > ASSURED the pu”erS_ pullers; , )> Contacted IIT Guwahatl; * On Nov 21, 2004.. .created _ _ > Hired technical team. CHAOS! !! Because . ... .. )> Rickshaw Chain constantly fell off, '> Rickshaw chassis were bend“
  5. 5. It LEARNINGS Never launch product without doing experiments; Know your technical partners; Not to become over smart; and, COST CUT without decreasing the quality. 0 At the time of failure always consider team perspective towards products; Always play a leader cum motivator; Work only on feedbacks; and Solve problems as soon as possible.
  6. 6. Asset Ownership Existence business Rickshaw Bank Rent paid Rs.50 for 12 hours 0 Rickshaw ownership and in Chandni Chauk, Delhi. higher income Puller hired Rickshaw for 6 0 Safer work environment month and paid Rs 9000. through well engineered Like that he pulled 20-30 rickshaws and insurance years of his life and paid Rs 0 Support network through 3,65,000 to Rs S,47,500. discussion forums and peer But still he is not called as SVOUPS the owner of that Rickshaw 0 Pride and confidence within which cost is Rs 6,500 only. the rickshaw driving business
  7. 7. RB - OPERATION MODEL 5 Drivers constitute a group & . " 5 groups under one garage/ meeting point Under each garage/ meeting point cover 25 rickshaws and . also provides repair facilities Each garage/ meeting point serves as the collection centre for the Drivers’ daily payment Garage/ meeting point are the creation of new entrepreneurship Opening of new branches on a Franchise Model
  8. 8. Daily Operation of CRD and its Branches and Franchisees Centre for Run] Development l Bmm‘hCoo1din. Itor: UJU-. :uuu pullers Mohiimuon (, oord1nuor: I Accoumnnu’MIS Bpctilisl: wu zuuo pullers ' Fidd C oordinnlorz 125 -£50 pullers Gang: Owner: :5 -50 S Rlrlutuw pulleys’ gtutlpoc '5 pulleys per group
  9. 9. BENEFITS Benefits: RICKSHAW DRIVERS Bonafide membership of the Rickshaw Bank Receive ownership of an income generating asset lnculcates the habit of savings Social security such as insurance coverage for both the rickshaw, the puller, the passenger (s) and the mediclaim facility. Provided platform to work with dignity- norms, uniforms, photo I-cards Getting health and eye care support Subsequent loan Benefits: Member of the Community Less polluted environment passenger insurance Jobs for youths Benefits: Govt and Local Authorities Im roves law and order - Less corruption 0 Better documentation through availability of licenses - Saferroads 0 Additional revenues Benefits: To Local Business * Larger consumer market - Job creation Benefits: To Corporate and Financial Institution - Builds goodwill in the community - Larger consumer market - Effective and less expensive advertising - Tax incentives and 100% donor efficiency - Better investment opportunity
  10. 10. Design Innovation Rickshaw originally ii designed by . 4. . _ ' ; e IIT. Guwahati ti t ‘ e * E Aero-dynamically f L‘; ‘ designed thus lighter More spacious Fl More attractive to t, it .41 ‘K “ . . clients ‘L ‘ Comfortable for all age , , l§; ‘i‘, .;'“/ - groups Longer functioning life ’_ , -" D 4'. ~«.
  11. 11. How RB grab opportunities? Problems Raising fund; Banks were unwilling to give line of credit; Lack of knowledge; Heavy vehicles; and, Rickshaw pullers were not enjoyed. Solutions and learning's Tap the CSR funding from three large Indian corporation; Sign an agreement to give 86% discount on advertisement at the back of Rickshaw; Visited Grameen Bank and met Professor Mohammad Yunus; Made Rickshaw on the basis of the feedback through IIT Guwahati; and, Provide uniform, licence, technology superior Rickshaw, and property and casuality Insurance.
  12. 12. ENTREPRENEURSHIP Cost Breakup of the Unit Particulars Cost (Rs) Rickshaw Assembling Cost Rs 9600 Uniform Cost Rs 450 Insurance Cost, 2 years Rs 350 License Cost for both, 2 years 400 Total = 10500 Amount recovered from each Rickshaw Puller Rs. 12,390/- @ Rs. 2S/ - EDI for 496 days for a maximum period of 18-24 months Average receivable Rs. 1800/- per rickshaw per year from the corporate advertisements till Rickshaw is owned by the RB and than 35% of the amount per year once Rickshaw is owned by the Pullers
  13. 13. BENEFITS - Social Entrepreneurship Corporate Donors 0 Avenue for CSR 0 Support in a sustainable 0 ‘Mobile’ advertisement model facility at 96% cheaper 0 Create a Visible impact rate for corporate . Working towa rds 0 Flexible term options on millennium advertising (1 month to development goal 3 yrs) MDG)_to bring people 0 Donors get 100% tax USD '“C°me Per da)’ exemption 0 Leveraging of funds to 0 Donors can participate reach larger numbers in the programme monitoring process
  14. 14. BUSINESS MODEL The Revenue Drivers The Cost Drivers Repayment from rickshaw - Manufacturing vehicles; Puller? * Administrative and Advertisement revenue; operational expenses; and, Additional loan repayment; - Finance and Insurance Member deposit and membership fees; Revenue from franchises; and, Support from International donor organization.
  15. 15. Franchising Model ii Invite NGO’s; ' Looking for * Provide capacity e”trePrer‘e”r53 building; and, ~ Statistics reveal that the . . Support first idea failure rate in business deposited guarantee ventures is much lover (i: i_DG) to ieveraee loan among franchises than from other 3arik5_ among individual start- ups.
  16. 16. DEVELOPMENT l"li'. -'aii. ~". ’_"ii‘{ll‘l ’li‘ ilili k. i'. ".‘l'fi"} to I. -‘n_> .9iLl:5l’ia'. '.' Illi«. '>EIS anti ihv: -:i F. iTi: li. =s Pr. l:: i-. l'l~'II«': ’ I . >.. ': .1 iijl [_]it'li. la: the Ccmrriiniiy ¢ I iv. "-rt“ A l‘i': -‘. i"i'. 'i~ '. '.'v‘-i~ Ell'i‘ilI. ""lr7". "Ill Si. ;.i3in: .l. f~: CL-iniiitii‘. -.i~, ' l. ‘.‘I'L"‘~fl_J‘i()i. ‘.llii_i{ii ["' » ijgt I lH‘i Lii ‘, ~:. li II". lllglll l“1ili‘iT' 2.” III nil ‘rt ‘. .l-
  18. 18. Identified Problem 0 Rickshaw Drivers — socially disadvantaged community (harassed, HIV-AIDS, exploited) 0 Majority suffer from tuberculosis due to constant exposure to smoke, dust on the road and smoking habits, 0 No access to formal finance: 95 % hire rickshaw on high daily rental fee, 0 Below poverty line and without any social security, 0 46% are illiterate, 0 8 million such rickshaw drivers in India. who Vllll Ila! for It PPFPPPPPP
  19. 19. Solutions The Rickshaw Bank provides it a newly designed rickshaw payable through a minimal daily installment R eventual ownership of the rickshaw, ‘insurance, uniform, licenses, a photo ID, slippers etc. WHAT YOU THINK? ??? ??? ??? ??? ?
  20. 20. first is Credit, Second is Saving, money management service will be the third revolution in Microfinance. — Mohammad Azhar not insurance . ... .. November 28, 2011 at 12:12pm - Like — Mohammad Azhar If you are handling money you can save no matter how poor you are, you can save. .. ..November 28, 2011 at 12:16pm - Like — Mohammad Azhar in this perspective, management service may be become the hot product for microfinance institutions. ..November 28, 2011 at 12:16pm - Like
  21. 21. MONEY MANAGEMENT SERVICE Average Income = Rs 350 p/ d Less Rs. 50 Rent Less Rs. 150 food Less Rs. 50 education Total 350-250=100 This Rs. 100 p/ d is most important to manage because Rs. 100 divert Rickshaw puller to buy intoxicated products. Things to do: 1- Provide Money Management service to Rickshaw pullers. 2- Through this inculcate habit of saving. 3- one’s they know the importance of Rs. 100 then we called ASSET BASED ENTREPRENEURSHIP DEVELOPMENT.
  22. 22. Thankyouuu '* Please Questions!