Sustainable Group Entrepreneurship through Grameen System of Micro Finance: A Case Study of Institute of Motivating Self-Employment

Abstract

Institute of Motivating Self-Employment (IMSE) is a non-governmental (NGO) based in Kolkata, West Bengal. Founded in 1973 as a voluntary social organisation working in the field of rural development. IMSE is committed to the cause of entrepreneurship development. The recurrent problem of high interest money lender leads IMSE social workers to initiate a discussion on the possibility of micro finance programme under the Grameen Bank Model of Bangladesh in November, 1994. IMSE micro credit programme has been established with the intent of empowering the rural poor to become economically self-sufficient, by disbursing micro loans to women below poverty line. With the loans, the members can invest in entrepreneurial opportunities, thereby improving their social and economic condition of life. IMSE as a social entrepreneur directly creates social values by financing the development of communities, through emerging entrepreneurial activities. As micro finance Institution (MFI), IMSE relies to greater or lesser extent on trust or social capital that exit among members in a group of five women of similar are, mentality - all from different families. IMSE micro credit programme is inclined to social development through economic uplift. IMSE has implemented fourteen social development clauses, which they expect, every micro credit member should know and practices in daily life. IMSE has a repayment rate of 98%, which is significantly higher than traditional banks. IMSE made it possible for its successful financial intermediation accompanied by social intermediation. In this paper we have provided a brief introduction on the micro credit concept to facilitate a greater understanding of the grameen system as a whole. We attempt to evaluate the women's business with the IMSE micro credit programme. In addition we analyse whether the entrepreneur's quality of life has improved through IMSE micro credit programme. This article mentions the problems and challenges faced by IMSE in promoting micro enterprise development and it also suggests strategies to overcome the obstacles before sustainable entrepreneurship development for below-the-Pyramid people.