bds: the kauswagan experience

MICROFINANCEMICROFINANCE

on on

BUSINESS BUSINESS

DEVELOPMENT DEVELOPMENT

SERVICESSERVICES

by: ENGR. REYNALDO T. AMBAO

Director, MSI-BDS Division

Taytay Sa Kauswagan, Inc.

TSKI was registered under the

Securities and Exchange

Commission (SEC) on

September 1, 1986

To see self- sufficient families

responding to the needs of

their Community and pursuing

a collective effort for their

development

To make the love of Jesus

Christ be felt by the

poor in our midst by providing

opportunities that

promote spiritual

transformation and total

human

development

TSKI started its operation in Iloilo City in 1986 with a start-up capital of P2,500 with only three employees.

As of December 2007 the outreach is 250,000 clients with a total amount released of 2.3 billion. The staff complement is nearly 3,000.

Area of Operation

TSKI Branches:

Western Visayas

Eastern Visayas

Central Visayas

Southern Tagalog

Western Visayas

Western Mindanao

Western Visayas

9. Metro Iloilo (Molo)

4. Northern Iloilo (Sara)

5. Central Iloilo (Pototan)

6. Central Iloilo (Cabatuan)

10. Miag-ao, Iloilo

8. San Jose, Antique

11. Jordan, Guimaras

13. Roxas, Capiz

2. Sigma, Capiz

3. Culasi, Antique

1. Kalibo, Aklan

7. Leon

12. Pontevedra, Capiz

TSKI Branches:

Western Visayas

Eastern Visayas

Central Visayas

Southern Tagalog

Eastern Visayas

Western Visayas

Western Mindanao

Eastern Visayas

22. Ormoc, Leyte

21. Tacloban, Leyte

25. Maasin, Southern Leyte

14. Catarman, Samar

15. Calbayog, Samar

17. Naval, Biliran

20. Carigara, Leyte

24. Bontoc, Southern Leyte

18. Borongan, Eastern Samar

16. Catbalogan, Samar

19. Guiuan, Samar

23. Dulag, Leyte

Eastern Visayas

TSKI Branches:

Western Visayas

Eastern Visayas

Central Visayas

Southern Tagalog

Western Visayas

Central Visayas

Western Mindanao

TSKI Central Visayas

27. Danao, Cebu

30. Minglanilla, Cebu

35. Dalaguete, Cebu

31. Talibon, Bohol

34. Tagbilaran, Bohol

36. Larena, Siquijor

32. Jagna, Bohol

33. Clarin, Bohol

29. Lapulapu, Cebu

28. Toledo, Cebu

26. Molaboal, Cebu

TSKI Branches:

Western Visayas

Eastern Visayas

Central Visayas

Southern Tagalog

Western Visayas

Central Visayas

Southern Tagalog

Western Mindanao

Southern Tagalog

39. Odiongan, Romblon

38. Roxas, Mindoro

40. Coron, Palawan

41. Puerto Princesa, Palawan

37. Calapan, Mindoro

TSKI Branches:

Eastern Visayas

Western Visayas

Central Visayas

Southern Tagalog

Western Mindanao

Western Mindanao

42. Dipolog, Zamboanga

46. Ipil, Zamboanga

44.Sindangan, Zamboanga

43. Molavi, Zamboanga

45.Buug, Zamboanga

MicrofinanceMicrofinance•• Microfinance Microfinance has evolved

as an economic economic

development approachdevelopment approach

and intended to benefit low

income women and men.

• It is mainly oriented towards

making financial services making financial services

more accessiblemore accessible to the

self-employed, who conduct

most of their economic

activities in the informal

sector.

TSKITSKI

MFMF

LoanLoan

ClientClient

BusinessBusiness IncomeIncomeQualityQuality

LifeLife

RepayRepay--

mentment

MICROFINANCEMICROFINANCE OPERATIONAL FRAMEWORKOPERATIONAL FRAMEWORK

The BURNING PASSIONThe BURNING PASSION

•• 9090--95% of 95% of clientsclients are into:

––Buy and sellBuy and sell

––TradingTrading

––SariSari--sari storesari store

––OthersOthers

• Impact Survey in Northern Iloilo

Branch (NIB)

• Psychosocial and Economic

Contributions of Micro-financing

to Women

• Marketing Constraints and

Opportunities of Client-Producers

Studies ConductedStudies Conducted……

Psychosocial & Economic Psychosocial & Economic Contributions of MicroContributions of Micro--financing to financing to

WomenWomen

• The study has proven that micro-enterprise development can help improve the personal improve the personal lifelife and change the attitudechange the attitude of clients after their participation in the program.

• There is significance in the number of technical technical consultancy or business advisesconsultancy or business advises availed.

• The more technical consultancy or business advises availed, the greater the likelihood that the clients will fully investfully invest their program loanprogram loan.

Impact Survey in NIBImpact Survey in NIB

• The participants claimed that they

have received very limited

technical assistance from the

program

Recommendation: more training

& technical assistance should be

implemented.

Marketing Constraints and Marketing Constraints and Opportunities of ClientOpportunities of Client--

Producers of TSKIProducers of TSKI• Nearly one-fourth of the clients reported that

competitioncompetition is their major marketing major marketing

problem. problem.

• Product rejections reported are due to:

–– transportation/handling damagetransportation/handling damage

–– problems in preservationproblems in preservation

–– product qualityproduct quality

–– unacceptable design.unacceptable design.

Marketing Constraints and Marketing Constraints and

Opportunities of ClientOpportunities of Client--Producers of Producers of

TSKITSKI• Many of the clients identified their neighboring communities, big stores and supermarkets, households, and offices as potential marketpotential market

• Potential markets are not enterednot entered because–– production capacity is lowproduction capacity is low

–– insufficient capitalinsufficient capital

–– inadequate advertising.inadequate advertising.

• Those who have tried penetratingtried penetrating these markets stopstopbecause of:–– insufficient capitalinsufficient capital

–– CompetitionCompetition

–– small production capacitysmall production capacity

–– poor collectionpoor collection

–– problems in manpowerproblems in manpower


Opportunities of ClientOpportunities of Client--Producers Producers

of TSKIof TSKI

CONCLUSIONS:

• Need to improve product qualityimprove product quality

• Need for additional capitaladditional capital for production

• Need to advertiseadvertise their products

• Increase manpowermanpower

• Come up with good marketing strategiesmarketing strategies

•• ProductsProducts should be properly packedproperly packed and handled to avoid damages.


Opportunities of ClientOpportunities of Client--Producers Producers

of TSKIof TSKIRECOMMENDATIONS:

• Need to improve the ff:

–– Product qualityProduct quality

–– PackagingPackaging

–– PreservationPreservation

–– DesignDesign

•• Client exposureClient exposure to different production processes to acquaint them with techniques to improve product quality, packaging and design.

–– Business toursBusiness tours

–– Skills training and/or workshopSkills training and/or workshop

• MarketingMarketing

•• ProductionProduction

•• FinanceFinance

• Organization & MgtOrganization & Mgt

•• TechnicalTechnical

•• TechnologyTechnologyBDSBDS

TSKITSKI

MFMF

LoanLoan

ClientClient

BusinessBusiness IncomeIncomeQualityQuality

LifeLife

RepayRepay--

mentment

BDS DefinedBDS Defined

•• BDSBDS refers to a wide range of services used by entrepreneurs to help them operate efficiently and operate efficiently and grow their businessgrow their business with the broader purpose of contributing to economic

growth, employment growth, employment generation, and generation, and poverty alleviationpoverty alleviation

TSKITSKI

CLIENTCLIENT

BUSINESSBUSINESSMARKETINGMARKETING

• TRADE FAIRS

• MARKET MATCHING

• MARKETING VAN

• K-STORE

• TRADE CENTER IN

BORACAY

Product

Quality YES

C

L

I

E

N

T

S

C

L

I

E

N

T

S

MANUFACTURING

/PRODUCTION

ANIMAL

RAISING

TRADING

BUY &

SELL

SARI-SARI

STORE

MARKETING

KAUSWAGAN

STORE(OTHER

BRANCHES)

LABELING

PACKAGING

LABORATORY

PRODUCTS

(PRESENTATION

& QUALITY)

NO

YES

KAUSWAGAN

STORE(BRANCH OR

MUNICIPALITY)

DESIGN & PACKAGING CENTER

AND

LABORATORY FACILITY

CONSOLIDATION OF PRODUCTS OF TSKI CLIENTS FOR MARKETING: BRANCH MODEL

TSKITSKI

CLIENTCLIENT


• TRADE FAIRS

• MARKET MATCHING• MARKETING VAN• K-STORE

• TRADE CENTER INBORACAY

ProductQuality

TECHNOTECHNOLOGICALLOGICALSERVICESSERVICES

• LABELING• PACKAGING• PRODUCT DEV’T

• FOOD ANALYSIS• BFAD REGISTRATION

YES

NO

TSKITSKI

CLIENTCLIENT

BUSINESSBUSINESS

MARKETINGMARKETING

• TRADE FAIRS

• MARKET MATCHING

• MARKETING VAN

• K-STORE

• TRADE CENTER IN

BORACAY

Product

Quality

TECHNOTECHNO

LOGICALLOGICAL

SERVICESSERVICES

• LABELING

• PACKAGING

• PRODUCT DEV’T

• FOOD ANALYSIS

• BFAD REGISTRATION

YES

NO

TSKITSKI

CLIENTCLIENT


• TRADE FAIRS

• MARKET MATCHING• MARKETING VAN• K-STORE

• TRADE CENTER INBORACAY

.

ProductQuality

TECHNICALTECHNICALSERVICESSERVICES


• PACKAGING• LABELING• PRODUCT DEV’T

• FOOD ANALYSIS• BFAD REGISTRATION

•TECHNICAL TRAINING• SKILLS TRAINING• PRODUCTSTANDARDIZATION• ENTREPRENEURIALTRAINING

YES

NO

TSKITSKI

CLIENTCLIENT


•TRADE FAIRS

•MARKET MATCHING•MARKETING VAN• K-STORE

•TRADE CENTER INBORACAY

.

ProductQuality



•PACKAGING•LABELING•PRODUCT DEV’T

•FOOD ANALYSIS•BFAD REGISTRATION

• TECHNICAL TRAINING• SKILLS TRAINING• PRODUCTSTANDARDIZATION• ENTREPRENEURIALTRAINING

ORGANIZATIONORGANIZATION&&

MANAGEMENTMANAGEMENT

•LEADERSHIP•SUPERVISORY•MANAGEMENT

YES

NO

TSKITSKI

CLIENTCLIENT


•TRADE FAIRS

•MARKET MATCHING•MARKETING VAN• K-STORE

•TRADE CENTER INBORACAY

.

ProductQuality



•PACKAGING•LABELING•PRODUCT DEV’T

•FOOD ANALYSIS•BFAD REGISTRATION

•TECHNICAL TRAINING• SKILLS TRAINING•PRODUCTSTANDARDIZATION•ENTREPRENEURIALTRAINING

FINANCE &FINANCE &ACCOUNTINGACCOUNTING

ORGANIZATIONORGANIZATION&&

MANAGEMENTMANAGEMENT

•BOOKKEEPING•ACCOUNTING

•FINANCIALMANAGEMENT

•LEADERSHIP•SUPERVISORY•MANAGEMENT

YES

NO

bds: the kauswagan experience

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