Updated Oct 12, 2020

Natural resource based production to develop rural economies

Part of University of Oxford

Christopher Samuel

Send Message

Surging demand for Himalayan nettle fabric needs fibre extracts that can only be collected manually and processed in village level industry and the innovation has the potential at scale to create wealth in many village economies in fragile mountain areas; the collection process also leads to better regeneration of the resource thus contributing to climate change adaptation and mitigation.

With support from Development Innovation Ventures, the University of Oxford and partners Buzz Women and Yunus Social Business are testing the effectiveness of microequity contracts with women microentrepreneurs. The microequity contract structure is more flexible than traditional microcredit, with payments that are contingent upon the microenterprise’s revenue and a three-year term. Workin...
SEE ALL
With support from Development Innovation Ventures, the University of Oxford and partners Buzz Women and Yunus Social Business are testing the effectiveness of microequity contracts with women microentrepreneurs. The microequity contract structure is more flexible than traditional microcredit, with payments that are contingent upon the microenterprise’s revenue and a three-year term. Working with tailoring and animal husbandry entrepreneurs, the project will explore how performance-contingent repayment terms affect demand for microequity and how microequity affects microenterprise growth. Researchers are offering half of the participating entrepreneurs an investment of approximately $1,400 in the form of assets and inventories that the entrepreneur chooses, with the other half serving as a comparison group. The tailoring and animal husbandry sectors allow production to be monitored, which is key to enforcing a microequity contract. If successful, microequity financing has the potential to be an impactful offering for many of the 10 million microentrepreneurs in India.
SEE LESS

Stage 1: Ideation

Focus Areas:

Economic Empowerment and Gender Equity

Economic Empowerment and Gender EquitySEE LESS

Implemented In:

India

IndiaSEE LESS

1
Key Partner
1
Country Implemented In
Verified Funding
?

Problem

Nearly 98 percent of businesses in India are microenterprises that are susceptible to income shocks and lack access to capital. These conditions challenge their growth and profitability, particularly for women entrepreneurs. While many microenterprises have access to microcredit, these loans come with rigid repayment schedules that may deter entrepreneurs from larger, higher-risk and return investments.

Milestone

Sep 2020
Funds RaisedVERIFIED
$111,627
Date Unknown
New Country Implemented In
India
Date Unknown