Nobin Udyokta (Young Entrepreneur)
How does the investor protects itself and assures that SB financials are healthy and that SB follows ethical standards of operations?
The investor does this through continuous monitoring, MIS, and close on-sight physical oversight....
What are the criteria to invest? (eg. only ratios such as # of jobs created per $ invested?)
The criteria to invest are to make the NU a successful entrepreneur. ...
Are entrepreneurs expecting follow-on finance either from NU or from other sources once entering growth stage?
Undeclared policy at the moment is to support an NU until total asset in his business reaches up to USD 14,000. After NU reaches this limit the policy may be reviewed....
What type of support is provided to the entrepreneurs after the investment? Is it outsourced to partners?
No, the support is not outsourced to partners. Grameen Communications has developed an elaborate MIS and accounting system software for all the NU projects. In addition to collecting financial information on a daily basis, this system records detailed data about yearly stock of assets, sales and inventory. It is through this monitoring system that daily figures can be sent via text/SMS messages. All of the information accumulates at the central server, which auto-generates reports for each inves...
What is the average timeline between first contacts and pitch day?
To make a guess, the average timeline will be around 15 weeks...
How is NU itself incorporated?
NU’s business is an informal business. They get a trade license from the local government. ...
Who is running NU at the various Grameen investing companies?
Each funding company has created a NU Division within its headquarters with dedicated staff for the Division. It is headed by a senior executive. The Division has project selection and evaluation unit, finance and accounting unit, MIS unit, problem shooting unit, management unit. The Division has field staff based in the rural areas where Grameen bank borrowers live. They are thoroughly trained before they are allowed to start their work....
What are incentives for entrepreneurs?
NUs find it as a cheap source of fund, and they get partnership and handholding from the investor. (They also see the flip side of it, too much monitoring, too many rules, etc.)...
How is the volume of the investment determined (CAPEX, until Break-Even, etc.)?
The current practice is to help a business to grow up to an asset value of USD 14,000. There is no CAPEX rule. ...
Who makes investment decision in case of NU Projects?
The investment decision is made through an investment committee of the investor, after a detailed screening process....
What are eligibility criteria of NU (Young Entrepreneur)?
The eligible criteria are: - Grameen bank borrowers’ children -Parents must have been Grameen borrowers for at least 3 years -18-35 years old -No loans from any other banks or financial institutions -Physically involve in Business ...
Do these established businesses change their ownership structure after investment (i.e. become 100% owned by Investor)?
Yes, after the investment is made it becomes a partnership business. NU may join the program without owning any business of his own. In that case, the investor will have 100% equity investment. At this stage the NU owns a business, and provides his part of the equity. ...
Did established enterprises become a new target group?
NUs selected now usually have a tiny business of their own. NU does not have to own a business to join the program. At this stage, all those who have joined the program have their own business....
Is it mandatory to have a family relationship with Grameen Bank to receive the investment?
Yes, in the case of the NU projects the entrepreneurs must be the children of Grameen bank borrower. (NU program can be done for any young person anywhere. But we have launched our NU program to focus on Grameen children. The procedures outlined here will generally apply in all cases.)...
Who are the target group in case of NU?
Grameen bank borrowers’ children (18-35 years old) male or female is the target group of the NU Program. ...
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