A lot is being said about microfinance in Andhra Pradesh, Tamil Nadu or Gujarat. What many dont know is the slow but steady rise in micro financing in the states like Bihar, Jharkhand, MP or West Bengal.
Recently SKS, one of the biggest microfinance companies in India and now featured in a Forbes list, opened shop in Bihar. Already companies like Basix, Share and Nidan has been getting its market share. Smaller start-up companies are coming in with the help of giants like Unitus or the Dell Foundation or the Bellweather Foundation to hold their hands.
Cashpor Microcredit operating in Bihar and UP has recently crossed the 100,000 client mark. These are some of the poorest regions in India. This is a tiny number as compared to states such as Andhra Pradesh, but it is a significant start nevertheless. Bandhan and Arohan are smaller setups working in various districts in West Bengal.
What does it mean for us.
Whereas larger microfinance companies have been using the services of executive search firms for some time, only recently have the start-ups and smaller firms realised the need to get top talent in their top management. Microfinance organizations are not always not-for-profit firms and hence selling and recovering becomes integral to their bottomline. What is required then is aggressive selling of loans on the one hand and also humanitarian forms of recovering the loans without pressure but with efficiency. Founders are understanding the need of getting corporate hotshots, with experience in private banks or even from diverse backgrounds like FMCG selling to lead the business from the front.
A perfect match would be a combination of the above skills with the passion for development work. And whereas that is not to difficult to find, one has got to know where to look.
Sammaan Foundation is a non profit company started by two graduates from IIM-A and IIT-K. It provides funds to rickshaw pullers and even redesigns rickshaws to suit the pullers and passengers better. The difference brains make to the project is this- besides funds from leading funding agencies these two have deviced other revenue generation shemes, advertisements on rickshaws, mineral water bottles and newspapers to passengers etc, while working towards a sustainable livelihood for the pullers.
Therefore, young brains are always available to lead companies to a bright future. More and more microfinance agencies are realising that. And they are ready to pay the price to get them on board.
