Entrepreneurship fund raising travails

Dear Friends,

Greetings!!!

I would like to know about fund raising methods employed by member organisation when they were start up.

Bihar Development Trust is an emerging MFI in Bihar. It has been promoted by young IRMA graduates of 2006 batch. We are spread up in 50 villages, 6 blocks, two districts ( Bhagalpur & Patna). We are following grameen model.

As usual we started with our own money and friends, well wishers money. With effort, we were able to get funding from FWWB, RGVN, BASIX & Trust Microfin Network, Lucknow.

Then, the India macro economic scenario got worse and government and RBI panicking about inflation and started absorbing excess money from market. Interest rates are rising and credit squeeze are happening.

In this scenario, small fledgling organisation like us are suffering credit drought. I am moving around all banks and funding agencies.

The basic bottleneck faced by us is 3000 members and 3 year experience. On one side, sector is devoid of professionally promoted & managed microfinance organisation , on the other side, if some professionally qualified person begins its entrepreneurial journey, he is encouraged only by words but not by deeds of funding agencies or agencies like SIDBI, Indian Bank, NABARD etc.

We are one of the rare breeds of professionally qualified individuals slugging out in Bihar. We are feeling like players of roman collossium who are destined to die with all funding agencies and support organisation watching and getting their thrill of our fight. If we die, then also you will clap and cheer and if we survive, then also all funding agencies and support agencies officials will clap and cheers.

Every professional and consultant worth its salt will harp on robust system processes and control system. Even, if some one does not understand how does these processes translates during implementation, these shallow consultants go on harping their jargons about system and processes.

I am getting fed up with all gyan given by these funding agencies and so called capacity building and support organisation who just jump on any new organisation to sell their so called systems and processes.

The issue is that professionally qualified professionals from IRMA/IIM/TISS/IIFM etc are trying to slug out in eastern part of india. They are facing chicken or egg first problem. Funding agencies ask them to attain size but dont give money to grow to that size.

So, how start up like us grow if no fund is made availble to them?

I would like some members who have gone through this experience and made it big share their story. I would like members who are going through the ordeal also to share their story.

I am thankful to all my friends, well wishers and funding agencies for helping us to growing to this stage and understanding the challenges associated with entrepreneurship.

Regards

Ravi Chandra