This report documents findings from research on the emerging impact enteprise landscape in Papua New Guinea. This report was commissioned by UNDP and compiled by Intellecap (a globally-recognised specialist research group that specialises in SME, entrepreneurship and start-ups) titled Seeding Social Enterprise in Papua New Guinea. The report sets out the challenges and opportunities for SMEs in six key sectors of the economy that have a major impact on the lives of the majority of the population – agriculture, energy, health care, finance, education and water and sanitation.
On September 14, 2012, IntelleCash Microfinance Network Company (IntelleCash) announced that it had taken a majority stake in Arohan Financial Services (Arohan) and would consolidate the two businesses. We believe that the IntelleCash/Arohan transaction represents the “leading edge” of what is likely to be a growing trend toward consolidation in the Indian microfinance industry. As the industry slowly recovers and grows post the AP crisis, the new regulatory environment and the need for MFIs to be larger and more efficient will be primary drivers of this consolidation trend.
The Micro, Small and Medium Enterprise sector is crucial to India's economy.Although 95% of Micro, Small and Medium Enterprise units are informal in nature, the contribution of the sector to India's GDP has been growing consistently at 11% per annum, higher than overall GDP growth of 7-8% . Poor infrastructure and inadequate market linkages are among key factors that have constrained the growth of the sector. However, lack of adequate and timely access to finance has continued to be the biggest challenge.
Access to capital and human resources are the top two challenges Indian social enterprises face. Already juggling to bring together capital, a viable business model and market knowledge, social entrepreneurs face human resource (HR) challenges that impact their ability to scale, become sustainable and achieve social impact.
In India, social enterprises have become a national phenomenon in less than a decade, with a growing ecosystem of supporting players. Yet, despite this impressive growth, little is known about these social enterprises collectively: their geographic and sector distribution, business structure, stage of development, financial viability and funding sources.
In December 2010 the Government of Andhra Pradesh (“AP”) passed a law (the “AP Act”, originally conceived in October 2010) which effectively shut down private sector microfinance in the State. The AP Government stated that its goal was to protect the poor. Now, 18 months later, the impact of the AP Act is clear: rather than protecting the poor, it has had the opposite effect, harming the poor by starving them of access to credit and basic financial services.
A study by Legatum Ventures, with contributions from Intellecap.
In the fall of 2010, a microfinance crisis started in the southern Indian state of Andhra Pradesh, and had implications for the industry nationwide. One of these had been the recommendations put forth to the Reserve Bank of India (RBI) by the Malegam Committee. Intellecap released a white paper responding to these recommendations.