Self-Help Group Supports Business Expansion
“After joining with SHG (Self Help Group) project in 2013, I could access some loan which allowed me to double income from my business on Khmer noodle making.” said Ms. Sokhorn.
Mrs. Nov Sokhorn, 59 years old, is from O’Russei Kandal village, O’Russei commune, Siem Bouk district, Stung Treng province. In late 2012, after attending a village meeting with CRDT-MCA staff about SHG project orientation, she decided to call out her neighbors to form a SHG. After one month, she informed to CRDT-MCA staff to come back and help her with group formation.
In January 2013, a SHG “Sattrey Sahakum” was successfully formed and Ms. Sokhorn was selected by all SHG members as Coordinator responsible for general management, group facilitation, and budget control to make sure their group will have regularly monthly meeting and transparency. A series of training was then provided to her SHG members in Group Management, Financial Management, Bookkeeping/Leadership and Enterprise Motivation.
Currently, they are doing saving and the internal loan was used mainly for three purposes: emergency loan, enterprise loan and family need loan. What make them happy with this SHG program is that (1) low interest rate, (2) no collateral requirement, (3) skill training provision, and (4) Simple and easy process to get loan.
In April 2014, after joining a training course in Enterprise Motivation, Mrs. Sokhorn decided to expand her existing business of making Khmer Noodle. She accessed an internal loan of 300,000 Riels from her SHG and another external loan of 600,000 Riels from SHG Association called Mekong Credit Association (MCA). With such expansion, she could earn a net income of roughly 80,000 riels (USD 20) a day. She was so happy with this progress which enable her to send her son to study at university, cover family expense, improve their rice production, and save money monthly in her SHG. Her future plan is to continue to upgrade her business to be a wholesaler of Khmer Noodle in O’Russei commune and continue to increase savings to improve family living conditions.
By Mr. Bo Ravuth, MCA Regional and Training Manager in Kratie and Stung Treng