Being self-employed

Non-specific to

PwD

Specific to PwD

Needs for starting

and managing a business

Non-specific to

PwD

Specific to PwD

Needs for starting

and managing a business

•Technical skills•Business management skills –experience•Conducive legal environment•Reliable suppliers – good products & services•Market – potential clients•Capital (to buy tools, equipment, supply, etc.)

•Physical access to facilities (business sites, market, suppliers sites)Absence of discrimination – community support•Adapted workstations•Self-confidence

Access to capital

Grants

Own capital (savings)

Loans

In the absence of collateral

In the absence of a source of income/business (very poor)

Existing business management capacity and technical skills

To compensate competitive disadvantages

Providing grantsIn what situations is it appropriate to provide grants?

Needs assessment of the individual situation and business plan

•Entrepreneur follow-up – combine with a loan

•Define appropriate business plan

•Develop access to other sources of capital (savings or loans)

•If in cash, require receipts/invoices and conduct follow-up visits

•If in kind, allocate resources

•Seek contributions from authorities, community, existing entrepreneurs

•Set-up clear procedures & criteria – democratic decision-making process – ensure that controls are enforced

Providing grantsAdvantages Disadvantages

•Limiting risks for the entrepreneurs

•Usually the poorest are targeted

•Tends to take responsibility away from the person concerned

•Usually limited in amount

•Usually one shot

•If in cash, could be misused

•If in kind, complex to manage

•Not sustainable for the « donor » - difficulties in raising funds for grant schemes

•System could be unfair/corrupted

Preventive & corrective measures

Existing repayment capacity (existing business or income)

Existing business management capacity and technical skills

Existing collateral or possibility of pressure

Needs assessment of the individual situation

Providing loansIn what situations is it appropriate to provide a loan?

Advantages Disadvantages

Preventive & corrective measures

Providing loans

•Motivation to succeed in business

•Once the person has a good credit record, s/he could be provided with successive and bigger loans to develop the business

•Sometime, the only source of capital accessible

•Sustainable system

•Interest to be paid

•Capital to be reimbursed – burden on the business

•System could be or become discriminating

•Not for the poorest

•Create an interest-free non-profit mechanism

•Business follow-up & counselling; provide training; support/initiate business development activities (creation of cooperatives, organisation of fair)

•Raise awareness of microfinance services providers

•Combine with a grant system

Existing saving capacity and saving

habits

Existing business management capacity

Need to develop saving habits

Using one’s own savingsIn what situations is it appropriate to use savings?

Advantages Disadvantages

•Autonomy

Using one’s own savings

•Vulnerability once savings are used up by starting one’s business

Preventive & corrective measures

•Develop/maintain saving habits

•Provide savings scheme