Empowering Women Entrepreneurs: The UN Women Fund for Women Entrepreneurs
The United Nations Entity for Gender Equality and the Empowerment of Women (UN Women) is taking a significant step towards empowering women entrepreneurs in India through its innovative initiative, the UN Women Fund for Women Entrepreneurs. This initiative aims to provide women from disadvantaged communities with access to affordable, customizable, and regulated credit, thereby enhancing their creditworthiness and enabling them to secure funding from formal financial institutions. The deadline for organizations interested in this initiative is set for September 27, 2024.
Key Result Areas
The initiative outlines several key result areas that are crucial for its success:
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Identification and Mobilization of Women Borrowers: The first step involves engaging local women’s groups, NGOs, and community leaders to identify potential women borrowers, particularly first-time borrowers from disadvantaged backgrounds.
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Development of Customized Credit Products: The initiative emphasizes the need for tailored credit products that meet the specific needs of women entrepreneurs, ensuring they have access to the right financial tools.
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Creation and Operationalization of the Fund: Establishing a dedicated fund for women entrepreneurs is essential. This fund will serve as a financial resource for women looking to start or expand their businesses.
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Mobilization of Investors: A significant aspect of the initiative is to attract individual and institutional investors to contribute to the fund, aiming for a five-fold increase in UN Women’s grant.
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Loan Disbursement: The initiative sets ambitious targets for loan disbursement, with plans to mobilize and distribute substantial amounts from social investors.
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Financial Training: Organizing financial training sessions for women entrepreneurs is a priority, with a target of 200 training sessions covering 40 women each.
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Monitoring and Evaluation: Implementing robust systems to track the impact of loans on women’s economic empowerment and social well-being is vital for assessing the initiative’s success.
- Incentives for Responsible Financial Behavior: The initiative will also include a system to reward borrowers for responsible financial behavior, encouraging sustainable practices.
Funding Information
The budget for this transformative proposal ranges from INR 1,90,00,000 to 2,00,00,000. This funding will be instrumental in achieving the initiative’s goals and ensuring that women entrepreneurs have the resources they need to thrive.
Target Group
The initiative aims to support at least 2,500 women entrepreneurs, with specific targets for first-time credit borrowers and those seeking credit for business expansion. Notably, 50% of the beneficiaries will be first-time borrowers from disadvantaged communities, while the other half will focus on women needing credit to grow their existing businesses. Priority will be given to women entrepreneurs already engaged in UN Women’s existing programs.
Expected Results
The overarching goal is to ensure that at least 2,500 women entrepreneurs in rural and semi-urban areas gain access to affordable and regulated credit, ultimately becoming creditworthy for formal financial institutions. This initiative is expected to create a ripple effect, enhancing the economic landscape for women in these communities.
Timeframe
The initiative is set to run from October 2024 to December 2025, providing a structured timeline for implementation and evaluation.
Roles and Responsibilities
The success of the UN Women Fund for Women Entrepreneurs hinges on the collaboration between Civil Society Organizations (CSOs) and Non-Banking Financial Companies (NBFCs).
Civil Society Organization (CSO) Responsibilities:
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Borrower Identification: Engage with local networks to identify eligible women borrowers, ensuring that first-time borrowers are prioritized.
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Incentives Management: Develop a system for disbursing incentives for responsible financial behavior in collaboration with the NBFC partner.
- Documentation Handling: Oversee the collection and management of all necessary documentation related to borrowers.
Non-Banking Financial Company (NBFC) Responsibilities:
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Borrower Identification: Collaborate with the CSO to vet borrowers and ensure they meet the criteria for accessing formal financial services.
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Investment Mobilization: Attract investments from socially conscious individuals and institutions to expand the fund.
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Financial Training: Provide essential financial literacy training to women borrowers.
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Loan Disbursement: Manage the disbursement of loans and oversee the repayment process.
- Monitoring and Evaluation: Implement systems to track the impact of loans on women’s economic empowerment and provide regular performance reports.
Competencies Required
To effectively implement this initiative, the proponent civil society organization must demonstrate significant expertise in working with rural women, particularly in livelihoods. They should have the capacity to deliver business development and entrepreneurship training, as well as a robust network across India to create community-level impact.
The NBFC partner must have a proven track record of lending to vulnerable women, with a commitment to fair lending practices, including a simple interest rate of no more than 8% per annum and no collateral requirements.
Ineligibility Criteria
Certain entities are not eligible to apply for this initiative, including those without legal status in India, those on the UN Security Council Sanctions list, and government agencies or institutions.
Conclusion
The UN Women Fund for Women Entrepreneurs represents a transformative opportunity for women in India, particularly those from disadvantaged communities. By providing access to affordable credit and essential training, this initiative aims to empower women entrepreneurs, fostering economic growth and social well-being. For more information, interested organizations can visit the UN Women website.