As part of the Commonwealth Secretariat and Central Bank of India’s Youth Enterprise Financing Programme (YEFP), a group of eight young women from Ernakulam district in India’s south-western state of Kerala have been assisted in developing their laundry business. This women’s self-help group (SHG), which provides laundry services to the local hospital and community in Kaitharam village, was finding it hard to access finance to enhance its business – although the potential and enthusiasm needed to expand the enterprise were there, the SHG did not have a proper business proposal. In other words, they lacked the business skills needed to justify their expansion.
Through the YEFP, experts worked with the group and trained them in soft skills such as developing detailed business plans and reports. This training enhanced their bankability, as they were able to clearly articulate the need for their expansion in the form of a detailed business proposal which they presented to the bank. This in turn ensured that this SHG was given financing through a term loan for approximately £4,275, which allowed them to buy new energy-saving equipment for their launderette, including a dryer. In the three months since receiving the extra finance, business has increased by 27 percent. The young women can now offer a better service to their customers through ontime delivery, as they are able to dry clothes faster and better even during the rainy season in Kerala, which can last for almost four months of the year.
