A Self-sufficiency Program
By:
Dr. Joel B. Santos December 25, 2003
Introduction Evangelical Christian Church of Manila (ECC-Manila) is a church ministry that assists missionaries in planting churches in the remote rural, tribal and Muslim peoples in the islands of the Philippines. The ministry of ECC-Manila started in 2001 to reach the unreached communities and bring them to the Lord. Since that year until today, some sponsors of ECC-Manila are faithfully helping the ministries so that many Filipinos will be converted to Christian faith and practice. The facet of ECC-Manila program is to assist missionaries in selected areas to evangelize and establish a church within the span of seven years. After that full term, missionaries will be transferred to another place to begin a new. It’s really amazing that the Lord blessed ECC-Manila's ministry and for 2 years of doing the Lord’s work, ECC-Manila was able to plant 3 daughter churches and produced more than 5 committed workers faithfully doing the mission of the Lord. Most ECC-Manila churches are planted in the areas usually left out by other Evangelical mission groups. It is very interesting to know that ECC-Manila is concern about their spiritual life and gave them importance that they might also receive the blessings of the Good News of our Lord Jesus. But churches in the rural, tribal and Muslim areas assisted by ECC-Manila need continuous sustenance. These communities are living way below the poverty level because of the present unprecedented economic crisis suffered by the country. Job opportunities are limited that most parents could not help and support their family needs. To find a stable job, people are migrating to cities in order to have the source to support the growing needs of their families. Those who remain in the place create some ways to earn and try to live within their means. As a result, churches planted in these areas are also suffering from financial deficiency. The monetary contribution (though not required) that ECC-Manila expects from them is not even met. Their workers are not even receiving enough. And when a missionary leaves the church after a 7-year term, it can hardly get a pastor or a fulltime worker to serve her spiritual needs for financial reasons. To solve this, ECC-Manila thought of ways to help the churches to become stable by giving assistance to the members like self-employment opportunities that will boost their morale and get involved in business to have a source of living. Thus, creating a Micro Enterprise Development Program is an initial step to help ECC-Manila churches to come-up with financial sufficiency and stability. The Purpose of Micro Enterprise Development Program Micro Enterprise Development Program is a national program of ECC-Manila which seeks to spread the message and ministry of Christ among the indigenous communities. This program was formed to help church members of ECCM create their own small businesses for self-employment and to help ECCM churches strengthen their relationship and ministries. The small business program not only offers an opportunity for employment but also enhances self-respect for the Church members who otherwise might not be able to support themselves and their families. Through this Christian empowerment program, ECCM Churches hope to become self-reliant in the future and be able to contribute in the financial sufficiency program of ECCM Ministry. The Coordinators of Micro Enterprise Program The Micro Enterprise Development Program will need project coordinators who will guide, group and help the concerned people to avail the program. They will assist them in planning and applying for funds, disburse the funds to qualified groups, evaluate their progress and encourage them to become responsible in paying back the fund so that other churches can avail and benefit the program. The beneficiaries will think, plan and work with themselves. The project coordinators are encouraged not to do all the thinking and planning for them. Self-sufficiency will only happen when people think and plan for themselves. Therefore the project coordinators should not take the burden of creating an appropriate plan, but rather help the beneficiaries conceptualize their own ideas, letting them use their skills, local materials and their knowledge about the local community and market. Selecting the Groups For Micro Enterprise Program Group formed and composed of any ECCM church members can apply for funding. However, the qualified applicants may never require professed Christian faith at any time. The program aims to demonstrate God’s free gift and become a channel of Christ love. The project coordinators will look for the most in need, and likely to have a successful business. Because the purpose of Micro Enterprise is to make ECCM churches become self-sufficient, each church can form up to two groups as long as it meets the requirements of the program. Application and Payment for Micro Enterprise Fund Awarding of micro enterprise fund consists of two installments. The first installment of $200 will be given after the application is accepted. The final installment of $100 is to be given after three (3) months of verified success and completion of a project report. The group will start to pay back the fund availed after another three (3) months of successful operation. Because the purpose of the program is to empower these people, the groups are not obliged to pay larger amount that affects the stability of the businesses. The beneficiaries are only required to pay a minimal amount equivalent to 5% monthly or 15% quarterly of the total amount received with no interest. But this payment depends on the kind of projects they are engaged in. If a group invests in a project that earns income quarterly, then they can liberally pay the amount every quarter. The fund should be paid so that it will roll back, and many churches and groups can avail and benefit the program. It is important that the recipients understand the principles behind the funding. The program is organized based on several proven principles that are required of small business. It is not intended to make it difficult to qualify for the fund, but to help ensure business success and self-sufficiency. The three requirements—the Application for Small Business Fund, the Project Report and the Business Planning, are not only important to the administration, but are also designed to help the applicants put into action the ideas/techniques of small business management. The Required Group Sizes for the Program The Micro Enterprise Development Program gives highest priority to groups that have ten (10) or more people to ensure group accountability and group involvement, and so that many people will benefit. In a group, people can encourage one another, share their skills, and each person can bring insights into the planning process. Groups with below ten (10) members will be considered second priority, and the coordinator must explain or justify the grant. A single individual or group with five (5) members and below will not be eligible for a fund. The Group Planning and Ownership Deciding what to produce requires group planning (for example, “Do we know how to produce this?” “Are the materials easily available?”). Further, the group needs to consider not only what they can produce with the skills they have, but also how to sell it. They must consider the demand and profitability of the products. The group also needs to consider carefully their expenses in order to set prices. It is of no benefit for the group to produce something, sell it, and find they sold it for less than their expenses. The project report includes questions that will help ensure the profitability and continuation of the new enterprise. As co-owners, all of the group members should help to plan the business. Each member should participate in decision-making and should have some control over the resources of the business (such as stock, tools, equipments, money). The project leaders are not business owners who hire the rest of the group as employees. Reinvestment to Improve the Project Each group is required to reinvest at least 25% of the profit made in the first 6 months. This is a simple business principle: to continue, they need to reinvest in the business. The group members can decide how they will reinvest (for example, in new tools, renting space in the market, using better quality materials). They can demonstrate this intention by reinvesting or by designating savings for reinvestment. Not all of their investment money be spent immediately, and the group should then deposit savings in a bank, credit cooperatives, and so on. Reinvestment will need to continue through the years so that the business may continue to grow. Other Project Requirements Naming the group helps bring group identity and a feeling of ownership. Knowing the prevailing wages in the community helps them to understand the value of their labor time. It is also important for the group to understand that their success depends upon their capability and skills in running the business. The program only supplies the fund as seed money to assist them in uplifting their living condition by having their own source of income from their efforts. Proper recording of sales and expenses is also important. This is a good learning experience as well as good business. It is recommended, but not required, that each group will open an account in a bank with all members as co-signatories. After the Small Business Fund application is completed and submitted, the project coordinators of Micro Enterprise Development Program will determine whether the plan qualifies or not. If it does not qualify, the application will be returned. Denied application may be resubmitted if there are significant changes if a plan is modified. If an application is accepted, the first installment of $200 will be sent to the group. After three (3) months, the coordinator may help the group to complete a Project Report, and the business may receive the second installment of $100. Submission of Business Application After choosing the project coordinators, and when the fund is readily available, ECCM will conduct seminars for three (3) days for the Church leaders about the Micro Enterprise Program, effective business management, and the ABC of running a livelihood project. After that submission of small business applications will be accepted. The first twenty five (25) qualified applications every six (6) months will be prioritized for funding for the immediate start of operations. The Required Project Report The project report would verify whether a group has met the requirements and is eligible to receive the final installment of $100. It should be completed when the group has worked for three (3) months. It must be fully completed for the business to be considered for the final installment. The project report should be submitted after the business has started and well enough to be showing a profit. But agricultural businesses, for example, will not reach this point until after the harvest. (Some businesses, especially agricultural ones, will need more than six months.) The Small Business Project There are many types of small businesses operating in poor communities in the Philippines. Below are some of them but a business with creativity and originality is given preferential attention. The project coordinator should refrain from being too involved in business planning, because the people in a group are the ones who should actually run the business and must form a plan which will work for them, with their skills and available materials, within the local marketplace. 1. First priority: The program provides fund for start-up costs for new businesses, involving ten or more people who anticipate on-going self-employment. For example: Agriculture, Repair shop, Cattle fattening,
3. Request for small fund which will not be funded:
The Release of Funding The fund will not be released to any business group without complete application while the second installments of small business fund will not be released without a complete project report. After an application or project report is received and approved, a fund of $200 and $100 respectively will be sent to the account of a church in which the group belongs or be sent directly to the account of a group after the strong recommendation of a church council. The Duties of Project Coordinators Periodically, the Project Coordinators will gather additional information (case study) about some of the businesses that have been started, along with the photographs. This information helps them to understand the business and helps in the fund raising program. The project coordinators will monitor the group assigned to them. From the very start of the business, in the full operation and even the preparation of progress reports, the project coordinator should see to it through. The questions and concerns through out the process must be known by them and appreciate the open and honest communication from the business groups. The project coordinators are also responsible for the collection and remittance of repayments to the ECCM treasury. They will remind the groups, follow-up and encourage them to become responsible to ECCM in order that the goal will not be defeated. They will also see to it that the fund released for the program shall be used properly to ensure that the groups are trustworthy so that as they pay back the fund, other groups or churches can enjoy the privileges provided by the program. The Organizational Structure The Micro Enterprise Development Program will operate under the organizational structure presented below. As shown, this will directly supervise by the Project Manager for the proper administration and implementation of the project. The project coordinators are directly responsible to the Business Manager for the proper implementation and monitoring of the project. Each province or area where large ECCM ministry is involved has an assigned project coordinator. The organizational structure clearly defines the line of authority and responsibility of all the persons involved.
Organizational Structure
The Source of Micro Enterprise Fund The fund will be secured from any interested donors and sponsors of ECCM who wants to help empower the indigenous families of ELMI churches and supports the ECCM Ministry in its national program for sufficiency. The Projected Cost The total investment for the Micro Enterprise Development Program is $40,000 for its two years program of church sufficiency. In this period, most ECCM churches that are suffering financially will benefit the program. The details of the fund is explained below: Description Year 1 Year 2 Total Micro Enterprise Fund
$15,000
$15,000
$30,000
Total $20,000 $20,000 $40,000 The program will provide funds to 50 groups with approved small business applications per year or 100 groups for two years. It is estimated that through the program approach, it will be able to endow with 200 small business applications in three years as the fund is successfully paid back to benefit also other applicants. Nationwide business management and livelihood seminar for the ECCM church members should continuously be done to train them in handling the project effectively and wisely and at the same time assisting them in their problems and needs. Expected Results The Micro Enterprise Development Program hopes to achieve the following results after five years of establishing the projects: 1. Thru the assistance given by the ECCM donors, Christian individuals in ECCM churches who have the potential to engage in business have the opportunity to avail the project, become self-employed and earn income to support their family needs. 2. The profit from the business will help uplift the economic condition of many ECCM church members. 3. The program will help ECCM churches to increase their income through the tithes and offering of the self-employed members having their own regular and stable work. 4. The program will create job opportunities for many unemployed church members. 5. The program will boost the morale of the ECCM church members in the community and get respect from the people. 6. As the churches give importance to the need of the members by giving opportunity for self-employment, people in the community will be attracted; therefore there would be a greater chance to share the Gospel of the Lord. 7. By lightening the load of the beneficiaries in paying the fund, this will give them opportunity to expand their business to attain growth and stability. 8. As their own businesses grow, more employment will be provided, more groups will be formed and many people will benefit from the Micro Enterprise Development Program. 9. There is a strong possibility of continued success because members of the group have the same concern for the project. 10. As the churches of ECCM attain its financial sufficiency, this will lessen the financial burden on the part of ECCM, thus it will attain financial sufficiency as well. 11. The program will encourage the loyalty of the members to the local
churches and the local churches to the ECCM Ministry.
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