Abstract:
Microfinance (mF) has in the last two decades become increasingly important tools to tackle (rural) poverty. But, the concern is that in what way can mF projects move beyond mere financing and contribute to the livelihood of rural communities through micro-enterprise development? One of the major learning of mF efforts was that while credit is a necessary condition for promoting micro-enterprises as livelihood, it is not a sufficient condition. A variety of other inputs and services are required to promote the micro-enterprise. These conditions gave rise to an eco-entrepreneurship model called Gram Nidhi. The "Gram Nidhi" project promotes environmentally sound and ecologically sustainable micro enterprises (eco-enterprises) for sustainable livelihood using mF as a tool. The Gram Nidhi was aims to developing financial and human capital to conserve natural resources leading to eco-entrepreneurship model for sustainable livelihoods. The challenge taken up in the Gram Nidhi was to create a more eco-entrepreneurial mind set among community. The Gram Nidhi model is based on four E's interventions: Economic support (microcredit), Extension service, Eco-entrepreneur mind-set and Environmental conservation. Besides of the economical benefits of the Eco-enterprises in the form of additional income for the households, the Gram Nidhi also provides numerous non-material benefits, both ecological and social.
