How can poor people in the urban slums escape poverty? A description of how Kingdom economics sets people free.

1. When you have no money…
…how do you get capital for business?

2. Co-operative Economics
Self Help Groups
How to Get Capital for Business?
Also known as:
Credit Cooperatives
Paluwagan (Philippines)
Cash-go-round (Uganda)
Bayanihan Banking System (Manila)
Mandal (India)

3. Why Self-Help Groups?
 If people have work, the
family will be happy
 If people have work, they
will support the church
 If people have work, they
can become leaders in the
church (qualification of a
leader – he must manage
his household well).

4. What is a Self-Help Group?
 8-25 adults (usually 10)
 Usually women
 Better in a homogenised
people with close social ties
 Contributing weekly to a
common fund
 Once it has grown, giving
that fund to one member
to start a business

5. Structure of a Self-Help Group
 They elect their leaders
 They give a name for a group
 They decide to save a certain amount
(usually Rs50 per month)
 A savings account is opened in the group
name and operated by the leaders jointly
 They gather once a week and discuss the
family problems, social issues, health issues

6. Problems with Self-Help Groups
 Q. There are many emergencies that disrupt
savings
 A. Establish two funds, one saving for business,
the other for

7. Beyond Self Help Groups…
 Once a group has demonstrated
 Capacity to Save
 Ability to manage finances, budget, repay loans
 They can seek a micro-finance program that
will grant larger loans

8. Taking Loans
 After three months
 They will have Rs15,000
 they can start to take a loan from their own
group fund
 They should repay this money with a small
interest to increase the fund

9. Record Keeping
 Individual pass book
 Savings register
 Cash book
 Loan register
 General register
 Minutes book
 Attendance register

10. What Businesses can they start
 Candle-making
 Fruit jiuce, Fruit Jam,
Pickles
 Cleaning powder
 Flower Garenng
 Computer education
 Pepsi ice cream
 Mobible tea cart
 Watch repairing centre
 Sarees rolling
 Coffee making unit
 Wire Net baskts
 Tiffen
 Dry Fruit Sales
 Fruit Plants Vending
 Wet – Dry Flour Grinding
Each according to their ability
Rs 5000 or Rs 10,000
business capital

11. Impact of Self-Help Groups
 Break power of money-lender
 Women stand on their own legs by earning
through micro-enterprise
 Women participate in the decision-making in
all matters of the family. Before that they
were dependent only on their husband.
 Women participate in community
development programmes and social issues
 Increase in offerings to the church

12. Selection of Beneficiaries
 Regular member of the church
 Member of Self Hel group
 Poor situation
 Regular in savings and attendance
 Recommended by committee
 Feasible project which will generate regular
income and enough for repayments

13. The Duty of the Pastor
 Train the Members
(Eph 4:11,12)
 To share the gospel
 In word
 In deed
 Raise up leaders
 Deacons
 Elders
 (Pastor can be a member of the committee
not the supervisor, he should look after the
spiritual not the financial – if the pastor is
there, he will just forgive their debt and the
project will not work)

14. Roles of Committee
 Secretary
 Treasurer
 One elder or deacon
 2 beneficiaries
 Program Coordinator

15. Economics of the Project
Beneficiary Income
 Ave income per day Rs100 x25 = Rs2500per mo
 Costs per day Rs30 = Rs750 per mo
 Labour costs Rs 50 x 25 days = Rs1250
 Total left in hand Rs500
 Less repayment per month Rs300
 Total surplus Rs200

16. Problems
 Q. Should you charge interest?
 A. Collect a small service charge
 Q.Is this different to tithing?
 A. Yes, they are already tithing
 Q. Why are men not encouraged?
 A. Yes be involved but do not take a prominent
role over the women
 If members do not pay in time, what can we do?
 The group must take responsibility