Entrepreneurship and Microfinance Impact on the Poor

Entrepreneurship and Microfinance Impact on the Poor Chapter One: Introduction Background Around the world economies have experienced high growth and financial systems have undergone major transformation, a significant number of people especially in the developing countries do not have access to finance. Policy makers have increasingly promoted the use of microfinance as a tool to eradicate poverty and implement financial inclusion strategies. Pakistan being a developing country is no exception to this, having a large number of people that are poor with limited recourse to livelihood. Though limited in its scope, microfinance in Pakistan has been able to bring some of the large number of unbanked people into the banking network and has also helped in improving their socioeconomic condition (SBP ILO, 2009). About 90 % of the people in developing countries lack access to financial services from institutes, either for credit or saving, which further fuels the â€Å"Vicious Cycle of Poverty† in Figure 1. A lack of assess to financial institutions also hinders the ability for entrepreneurs. Microfinance serves as a means to empower the poor and provides a valuable tool to assist economic development process. Pakistan is fourth most populous country in Asia and sixth in the world. Having an average annual growth rate of 2.02 percent the population of the country reached 160 million in 2007 as compared to 139 million in 2002. Two third of the population is living in rural areas and the working age population (15-60 years) is increasing which was 51% in 1998 and 57% in 2008 (SBP, 2008). In 2008, about 24% population is living under the line of poverty which was 34.46% in 2002. There is significant increase in economic growth and improvement in Social Sector Development. Now Pakistan has shifted from Low Human Development group to the category of Medium Human Development (Global Monitoring Report, 2007). Despite all these improvements, poverty is a major issue which every government is combating against. Pakistan is a country with high population growth and increasing ratio of labor force. According to Economic Survey 2007-08, Pakistan has 51.78 million active labor forces while 2.69 million out of this is unemployed. If we look unemployment gender wise, despite of women ratio of population which is 49.6%, ratio in labor force is only 25% (10.08 million out 51 million) of total labor force. Government of Pakistan has taken many steps to increase women participation in labor force, still women ratio is very less to over all labor force and it is not matching to world standards and trends about women participation in business and job opportunities (SBP, 2008). All these facts show potential to work in microfinance to encourage people and specially women to develop their own entrepreneur so that men in general and women specially can contribute a productive part of society to make it a sustainable. To combat unemployment, only big companies or public sector are not enough for job creation but it would be better if people start their own business for making society productive. Microfinance is being recognized by different researchers as an effective tool to fight poverty by providing financial services to those who do not have access to or are neglected by the commercial banks and financial institutions. Microfinance has been successfully implemented by Grameen Bank. Back to 1976, Mohammad Yunus took initiative of lending loans by developing solidarity group of women in Jobra village, Bangladesh. Many MFIs has adopted idea adding with new strategies and now serving poor in effective way. Now Garmeen Model is a successful approach of microfinance. Microfinance is being considered as one of the most essential and an effective driving force for poverty reduction and alleviation. Kashf case attracted me because Kashf believes in a world where financial inclusion is a possibility and where poor women are fully engaged in realizing the economic dreams of their families. Kashaf vision of â€Å"Financial Services for All† posits a miracle for transforming the role of women in society and for making a poverty free world a reality. Statement of Problem Although social entrepreneurship plays great role as looking to the world real and see clearly what is happening, feel responsibility for financially weak people and help them as much as they can. It is also a big challenge to the entrepreneurs and organizations that they should take steps to eliminate unbalance between different levels in society. In other way, this thought encouraged me to choose this problem. I think that empowerment of poor people by microfinance and with combination of micro entrepreneurship is a great idea. You can never help people just giving money. But you can help people giving them job and help to create their small businesses in order to optimize their share of production to the society. All these issues lead to research on this topic that how microfinance is contributing for entrepreneurship in low income communities of developing countries, how sustainable society is evolving as the result of doing own business in low income communities and how Kashf’s way of microfinance is supporting all of this process. Research Objectives To be meaningful, every work must have to formulate the objectives of the study (Mark Saunders, Philip Lewis, Andrian Tronhill, 2007). Although most of research has been done either microfinance or entrepreneurship separately. But in my opinion there is close relationship between microfinance and entrepreneurship. As social entrepreneurship is doing a lot for credit pool of MFIs with social services, micro entrepreneurship can be found in micro enterprise. As per research topic the objective is research on the issue that how do microfinance and entrepreneurship work for poverty alleviation and empowerment of poor. Research Questions The study was conducted with the guidance of the following questions. How microfinance is contributing for entrepreneurship? How do microfinance and entrepreneurship work for reduce poverty, empower poor in Pakistan? How do microfinance entrepreneurship work for sustainable development in Pakistan? Research Methodology The research methodology of this paper will be qualitative. My work is covering two main topics; entrepreneurship and microfinance with discussing three factors; poverty reduction, empowerment of poor and sustainable development. In this paper data collection techniques are used, interviews as primary source and internet, web pages, articles, annual reports, books etc.) as a secondary source. The research type will use deductive and empirical data will analyze by the help of conceptual framework, develop after literature review. Significance of The Study A lot of research is doing on Entrepreneurship and Social Entrepreneurship because it is emerging thread in business. On microfinance and entrepreneurship much research work has been while discussing in Grameen model. For both fields in terms of combining microfinance and entrepreneurship this research will lead a new horizon. It will also give a vision, to Kashf that how they can improve microfinance lending process, and other Microfinance institutions (MFIs) that how they can develop process in more effective way. Further, students, researchers in Microfinance field, NGO’s and Governmental organizations can extend research in this area to address the issue of poverty alleviation and empowerment of poor. Assumptions Limitations The assumption of this research is that all information, written in the reports, news, web page true and can be used fairly. The study does not cover all the aspects that the promotion of microfinance requires. It was difficult to organize interviews at large scale from borrowers due to distance problem between Pakistan and The Netherlands and this can reflect limited information about micro entrepreneurship. I primarily focused on microfinance and entrepreneurship role in reduce poverty and empower people. Organization of Study The thesis will consists of six chapters and will be organized in the following manners: Chapter One: Introduction: Briefly introduces the background information of the study. In addition, it consists of, statement of the problem, research objectives, and research questions to be addressed, significance of the study, research methodology, scope and limitation of the study. Chapter Two: Literature Review: Describe different theories and readers will look on previous research on the research topic. Also, discuss microfinance, its different models and how microfinance contributes in poverty alleviation, and theories about entrepreneurship and social entrepreneurship. Chapter Three: Theoretical Framework and Research Methodology: It will be building a theoretical framework that will use while analyzing empirical data. Chapter Four: Empirical Findings: It will present empirical data collect through borrower’s interviews and Kashf’s administration. Empirical daa is including facts and figure about poverty, unemployment, economy and microfinance. There is also detail information about Kashf Foundation. Chapter Five: Analysis of Data and Interpretation: It will present analysis regarding need of interactive strategy of microfinance and entrepreneurship, social services and intermediation by Kashf and sustainability issue. Chapter Six: Conclusions: Finally findings and conclusions will be put in the light of previous discussions. Chapter Two: Literature Review 2.1 Introduction The extent to which microfinance, entrepreneurship and sustainability are interrelated is dependent on the extent to which it addresses the economic development process. Yunus (1994), claims, â€Å"If we are looking for one single action which will enable the poor to overcome their poverty, I would go for credit. Money is power.† Credit invested in an income-generating enterprise as working capital or for productive assets leads to establishment of a new enterprise or growth of an existing one. Profit from the enterprise provides income, and a general strengthening of income sources. A variety of financial institutions, worldwide, have found ways to make lending to the poor sustainable and to build on the fact that even the poor self-employed repay their loans and seek savings opportunities. The challenge is to build capacity in the financial sector drawing on lessons from international best practices in micro, small enterprises and rural finance. The extent to which microfinance, entrepreneurship and sustainability are interdependent is becoming increasingly recognized by experts in their respective fields of work, associated with economic development. Over 500 million poor people around the world run profitable microenterprises and often cite credit as the primary constraint to business growth (IFC, 2002). Robinson (2002), a prominent expert in the field of microfinance, notes that â€Å"The formal sector has begun to realize that financing the poor can be both economically and socially profitable.† 2.2 What is Microfinance? Poor people are not able to access loans from commercial banks normally because of lack in guarantee and collateral. But there are also many other reasons involved for which commercial banks were not willing to finance poor. These reasons are included that poor have less education, experience and training, high expenses on transactions of small loans and lower rate of profit. This situation resulted in emerging the idea of micro lending and microfinance. Microfinance, therefore, a way to finance people, those have no collateral or any property for guarantee. Microfinance is a way of financing to poor for their business, to alleviate their poverty, empowering them, giving social benefits on sustainable way. Due to microfinance, there are many possibilities have emerged including extending markets, reducing poverty and fostering social change (Agion Morduch, 2005, pp.3). But there is general concept that microfinance is just lending loan to poor but as I mentioned that microfinance is no more only loans but covering the issues of poverty alleviation, putting social impact on poor and educating poor to savings. Therefore, MFIs, today, not only NGOs but serving as a complete banking system. This discussion lead to me that microfinance is a form of financial services for poor to help them for their business activities by giving micro credit. There is no one universal accepted definition of microfinance as different related variables like poverty, lone size, the poor and the poverty line carry different meanings in different countries. Different authors have defined the term in different ways. According to CGAP, Access to financial services puts power into the hands of poor people. Evidence shows that when poor people have financial services, they use their savings or loans to improve their families’ lives in a variety of ways: sending their children to school, buying better medicines and more nutritious food, fixing a leaky roof, meeting social and cultural obligations like paying weddings and funerals, and building income generating potential by investing in business (CGAP 2007). Microfinance has evolved as an economic development approach intended to benefit low-income women and men. The term refers to the provision of financial services to low-income clients, including the self employed (Ledgerwood, 2000, pp.1). While according to ADB (2008) Microfinance is the provision of a broad range of financial services such as deposits, loans, payment services, money transfers, and insurance to poor and low-income households and, their microenterprises. These definitions are elaborating that microfinance is a financial services but designed specifically for poor to improve their lives in sustainable way. 2.2.1 Microfinance Activities Economic activities are based upon sellers and buyers and their capacity. Sellers, before market their product, look at buyer intention and capacity. On the other hand, banking activities depend on both sellers and buyers. Financial institutions/lenders finance both sellers and buyers for their activities and commercial banks invested in projects at large scale while with this, banks invested in consumer finance also. Usually MFIs don’t invest in consumer finance, but give finance only for micro enterprise. MFIs encourage people to improve their standards by doing businesses and earning from them and this is a consistent and sustainable way. In fig (2), microfinance is dedicated only to poor and explicitly for business activities. But with this, there are some indirect impacts of microfinance on the micro borrower which are alleviation of poverty, improvement in healthcare, increase in literacy and other social impacts. These figures are taken from Ledgerwood, 2000. Figure 1: Economic Activity by Commercial Banking Figure 2: Economic Activity by MFIs There are many activities and characteristics are included in microfinance. Some are (Ledgerwood, 2000, pp.1): Small and short term loans Social collateral rather than financial collateral Access to larger amount of loan if repayment performance is positive Search and access the real poor and their business demand Continuous monitoring of business. Higher interest rates on loan due expensive financial transactions and risk factor. Easy way to access finance, therefore not too much paper work, and easy and short procedures. Saving Services and training services to borrower’s development. Literacy training to borrowers so that they can come up with competence to daily business problems and its solutions. Health care, social services and other skill training services to provide borrower a sustainable base for their business development. 2.3 Microfinance A Developmental Tool Due to lack of financial resources in developing countries, people from low income communities while having innovative idea for their business, even as shop keeper or house hold products manufacturer, they can’t implement their ideas. This low economic activity in low income communities due to lack of financial resources lead them to more poverty and poor life standards. Generally financial services cover savings and credit activities and there is same concept about MFIs. But according to Ledgerwood (2000), MFIs work for general financial services with this they provide insurance and payment services to their clients. But important aspect of MFIs is not only financial intermediation but also providing social intermediation and social services to their clients. Social intermediation and social services contain many activities including trainings, management development, and financial literacy activities. Furthermore, many MFIs, arrange get together where experienced people guid e others, where they give useful suggestions, tips and other tactics for their business. Microfinance is providing financial services along with social services. Normally, social services are not applicable in general banking system. So, microfinance is not simply banking system but development tool, combining both financial and social intermediation (Ledgerwood, 2000). 2.3.1 Different Services by MFIs Financial Intermediation The primary objective of MFIs is financial intermediation because without loan/money social intermediations can not work. As prior discussions that poor face barriers to access finance from general financial service institutions. In this regard, MFIs become a bridge to access finance and in result to poverty alleviation, health care and education literacy (Ledgerwood, 2000). MFIs provide many financial services including credit, savings, insurance credit cards, payment services etc. It is not necessary that every MFI should facilitate their customers by all these services but MFIs can facilitate anyone of these services or all. The choice of which financial services to provide and the method of providing these services depend on the objectives of MFI, the demands of its target market and its institutional structure (Ledgerwood 2000, pp.66). Social Intermediations Social intermediations for individual whose social and economic disadvantages place them beyond the frontier of formal finance (Von Pischke 1991). A successful financial intermediation is often accompanied by social intermediation. It covers the issues of group formation, leadership training and cooperative learning, is secondary role of microfinance for borrowers of MFIs. Development in Social capital is a basic ingredient of sustainable development in poor’s life and especially in society. Social intermediation is process of building the human and social capital required by sustainable financial intermediation for poor (Ledgerwood 2000, pp.64). Now question rise, how social capital be acquire and strengthen? Social capital is actually links between clients of a group and multiple groups, and between MFIs and borrowers. These links establish on the basis of strong foundation of trust and cooperation (Agion Morduch, 2005). The ratio of social capital will increase with increase in business activities among members, and financial transaction between lender and borrowers. It is normally developed through group activities but there are other ways to develop it by individually. In group social intermediation, activities perform inside the group with some help from outside to develop institutional capacity and human resource. In group, most of members belong from remote areas, having less literate and experience about business and financial transaction. So from group formation to selecting leader, developing networks and working mutually, MFIs support borrower to deal with these issues. Therefore, these members need training in record keeping, book keeping, accounting, training about business activities and tactics, and negotiation skills (Ledgerwood,2000). Enterprise Development Services Micro finance institutions (MFIs), not all, support to borrowers, either in group or individual in different enterprise development services like marketing, business and accounting training etc. This service can be divided in to two parts, enterprise formation and enterprise transformation. In enterprise formation, MFIs provide technical support to group or individual in start up of business, development and maturing ideas and maturing the skills. During in transformation of enterprise, MFIs arrange trainings for their borrowers, workshops and get together for developing latest skills in their business area (Ledgerwood, 2000). Figure 3: Minimalist and Integrated Approaches to Microfinance (Ledgerwood, 2000, pp.65) Minimalist Approach Integrated Approach One-missing piece Financial and non financial Credit Services Financial Intermediation Working Capital Fixed asset loans Savings Insurance Social Intermediation Group formation Leadership training Cooperative learning Social Services Education Health and Nutrition Literacy training Enterprise Development Service Marketing Business training Production training Social Services Microfinance practitioners define that, poverty can be addressed by financing poor for productive activities which in result comes up to their access to life necessities. But financial lending is only a one tool to poverty alleviation. Poor needs more than microfinance to address the problems of poverty and accessibility to other life needs like food, health, family planning, education, social support network and so on. In Ledgerwood (2000) MFIs serve to their clients with additional social services with financial intermediation. The best way to contact with their clients is in the form of group, that is the easy way to literate them, giving health care and other facilities. So in this way, MFIs would positive effect in the life of poor by offering financial services with supportive services. These supportive services, actually, play important role in sustainable human development and livelihood of the poor (Khan, Rahman, 1998). Social service should not implicate with financial or social intermediation because financial intermediation is primary service providing by MFIs. That means, there should be no additional cut off from loans in account social service but it should be provide by secondary means or by subsidies (Ledgerwood, 2000). 2.4 Microfinance Models The term model refers to â€Å"service delivery methods and microfinance products†. There are now nearly 70 million poor people who are getting benefits from 2500 MFIs in over 100 countries by microfinance (Sengupta, Aubuchon (2008). The poor’s conditions are different in different countries in world. These conditions are related to social, ideological and political issues (Weiss, Montgomery, 2004). Therefore, there are some distinctive differences between approaches and motive of microfinance. I will see briefly two approaches, which is very famous Grameen Model, originated from Bangladesh and other is Banco Sol Model, Bolivia. 2.4.1 Grameen Model In Grameen model, primary unit to whom lending fund is a group of 5 members that organize and apply for loan. In first stage loan is granted for two members to invest in their business. If these two members become successful to repay amount, then four to six weeks later, next two members are granted for loan. Last one member will be eligible for loan if previous two repay loan successfully. Repayment of loan open door for next loan and then go on if all members repay loan successfully. If anyone of group member will default in their loan, whole group will disqualified for further loan. Each group has its own president and secretary to coordinate all activities among their own group and to communicate and coordinate with other groups. Eight groups are then organized at center level, by which a bank officer deal with these all eight groups. This center of eight groups has its own center chief and center group leader (Khan, Rehman, 2007). According Sengupta, Aubuchon (2008), first time, bank granted loan $100 and bank require to repayment of 10 percent amount, at rate of per annum, weekly. This repayment ensures to user for loan security, and also encourages them for savings. Along with five percent of loan deposited in group account for emergency and social need. For example, in case of need of health care of any one member, in case of emergency, this five percent deposit will be use. A unique and innovative approach of group lending is used in Garmeen Model. As Sengupta, Aubuchon (2008) described that group lending have many benefits. First, group usually organize in members who are neighbor to each other, those can understand each other well and recognize their needs. Second, if anyone of group member will not present in group meeting, leader or other member can pay its installment. We can say that there is a kind of mutual understanding between all members. Third, in south Asia generally, and in Bangladesh specially, there are social pressures among members of society with social bindings with them. If one member of group will not pay even one installment, social pressure will be levied from all eight groups on this member and this reduces the risk factor. 2.4.2 Banco Sol Model Grameen model of microfinance emphasize on lending to villagers and keep loan lending on in smaller amount. The other core concept of model is formation of groups and these groups are eligible to take loan, no option of loan for individuals. Idea of progressive lending introduced to lend loan to individuals with group lending (Agion Morduch, 2005, pp.119). In this model after completion of every repayment schedule the amount of loan increased. But other characteristics of Grameen model (Group lending) are included in this method, like targeting to poor, women, group formation, and public payment. No doubt, progressive lending is an extension of group lending but now many MFIs are adopting this approach. In this model of Progressive lending, microlenders are flexible about collateral and lend loan to group with individuals also. This method is very helpful in areas with low population densities or highly diverse population where group forming is not so easy due to different ratio of safe and risky borrowers. In Bolivia, there was different situation when populist regime left government and there was high ratio of unemployment in urban areas. To come to fulfill the need of time, Banco Sol started operations in microfinance with progressive lending. Therefore we can say that microfinance approaches are evolved due to different political, ideological and social conditions. In Weiss Montgomery (2004, pp.3) Microfinance in Latin America developed under quite different conditions. In Bolivia, a collapsing populist regime led to widespread unemployment. Banco Sol, a pioneering microfinance institution in the region, developed to address the problem of urban unemployment and provide credit to the cash-strapped informal sector. The notion of commercial profitability was embraced relatively early in this approach. 2.5 Empowerment Poverty effects not only on individual’s life but also on society as a whole. Poverty is one of the main reasons in cause of less empowerment of poor especially in developing countries. Empowerment is a broad concept to define because there are many elements involve in it. These elements influence by including political, social and power system in the country. Empowerment covers many issues and when there is discussion on empowerment it includes many elements. These elements are, self-strength, control, self-power, self reliance, own choice, life of dignity, fighting for rights, independence, decision making, being free, capability , access to basic human needs etc.(PREM,WB, 2002). Misra (p.3) describes empowerment as a power to the people and self governance. He define that Empowerment builds self-reliance and strength in women, preparing them towards gathering the ability to determine the choice of life. This adds to the command over resources outwit insubordination and signify their social role. Empowerment is about change, choice, and power. It is a process of change by which individuals or groups with little or no power gain the power and ability to make choices that affect their lives. Due to different social, political, economical conditions, we can not define a one definition for empowerment. According to Batliwala (Makombe, 2006, p.52), empowerment mean, take control over material assets, intellectual resources, and ideology. The material assets over which control can exercised may be physical, human, or financial, as land water, forests, people’s bodies and labor, money and access to money. Intellectual resources include ideas and knowledge information. Control over ideology signifies the ability to generate, propagate, sustain, and institutionalize specific sets beliefs, values, attitudes, and behavior-virtually determining how people perceive and function within a given socio-economic and political environment. Empowerment is the expansion of assets and capabilities of poor people to participate in negotiate with, influence, control, and hold accountable institutions that affect their lives. (PREM, WB 2002, p.11) define that A strategy for empowerment is taken at individual, government, civil society and private sector level. Usually these efforts lead to empower people in context of sharing of power, freedom of information, access to resources and health and education services. These strategies normally share four types of elements: First, Access to information, its mean every citizens including poor have direct access to information because information is power. Second, Inclusion/participation, that’s mean there should be opportunities for poor that they can participate in decision making and they should be included in all financial and political policies. Third is accountability, that’s mean officials, public servants, private actors should be accountable not only to some specific institutions but to their citizens for performance. Fourth and last one Local organizational capacity, its mean that people can work together, organize themselves, mobilize and utilize resources and solve problem at community level (PREM, WB (2002). 2.6 Entrepreneurship It is one of the most widely used terms in business, management, economics and other related fields. One of important thing is that entrepreneurship has different meaning for different people, some use it in the meaning of innovation, some use for creativity, risk taking, leadership, and profit maximization or in social context, and some consider it as start up of business, new production methods and many other different meanings. Davidsson, (2004) describes it that entrepreneurship is rich phenomenon which makes it a resourceful field. While defining entrepreneurship, I consider some school of thoughts that have major role to define this field. According to Schumpeter school of thought (Swedburg, 2000), Entrepreneurship is about innovation in organizational process, thinking up new combination, entrepreneurial behavior and motivation of entrepreneurs. While according to Gartner (Thornton, 1999), entrepreneurship is about creation of new organization or new startup, creating values and entrepreneur mean owner-manager. In Krizner’s view, entrepreneurship is searching opportunities and exploiting them so it reflects towards the alertness capability of entrepreneur towards profit opportu Entrepreneurship and Microfinance Impact on the Poor Entrepreneurship and Microfinance Impact on the Poor Chapter One: Introduction Background Around the world economies have experienced high growth and financial systems have undergone major transformation, a significant number of people especially in the developing countries do not have access to finance. Policy makers have increasingly promoted the use of microfinance as a tool to eradicate poverty and implement financial inclusion strategies. Pakistan being a developing country is no exception to this, having a large number of people that are poor with limited recourse to livelihood. Though limited in its scope, microfinance in Pakistan has been able to bring some of the large number of unbanked people into the banking network and has also helped in improving their socioeconomic condition (SBP ILO, 2009). About 90 % of the people in developing countries lack access to financial services from institutes, either for credit or saving, which further fuels the â€Å"Vicious Cycle of Poverty† in Figure 1. A lack of assess to financial institutions also hinders the ability for entrepreneurs. Microfinance serves as a means to empower the poor and provides a valuable tool to assist economic development process. Pakistan is fourth most populous country in Asia and sixth in the world. Having an average annual growth rate of 2.02 percent the population of the country reached 160 million in 2007 as compared to 139 million in 2002. Two third of the population is living in rural areas and the working age population (15-60 years) is increasing which was 51% in 1998 and 57% in 2008 (SBP, 2008). In 2008, about 24% population is living under the line of poverty which was 34.46% in 2002. There is significant increase in economic growth and improvement in Social Sector Development. Now Pakistan has shifted from Low Human Development group to the category of Medium Human Development (Global Monitoring Report, 2007). Despite all these improvements, poverty is a major issue which every government is combating against. Pakistan is a country with high population growth and increasing ratio of labor force. According to Economic Survey 2007-08, Pakistan has 51.78 million active labor forces while 2.69 million out of this is unemployed. If we look unemployment gender wise, despite of women ratio of population which is 49.6%, ratio in labor force is only 25% (10.08 million out 51 million) of total labor force. Government of Pakistan has taken many steps to increase women participation in labor force, still women ratio is very less to over all labor force and it is not matching to world standards and trends about women participation in business and job opportunities (SBP, 2008). All these facts show potential to work in microfinance to encourage people and specially women to develop their own entrepreneur so that men in general and women specially can contribute a productive part of society to make it a sustainable. To combat unemployment, only big companies or public sector are not enough for job creation but it would be better if people start their own business for making society productive. Microfinance is being recognized by different researchers as an effective tool to fight poverty by providing financial services to those who do not have access to or are neglected by the commercial banks and financial institutions. Microfinance has been successfully implemented by Grameen Bank. Back to 1976, Mohammad Yunus took initiative of lending loans by developing solidarity group of women in Jobra village, Bangladesh. Many MFIs has adopted idea adding with new strategies and now serving poor in effective way. Now Garmeen Model is a successful approach of microfinance. Microfinance is being considered as one of the most essential and an effective driving force for poverty reduction and alleviation. Kashf case attracted me because Kashf believes in a world where financial inclusion is a possibility and where poor women are fully engaged in realizing the economic dreams of their families. Kashaf vision of â€Å"Financial Services for All† posits a miracle for transforming the role of women in society and for making a poverty free world a reality. Statement of Problem Although social entrepreneurship plays great role as looking to the world real and see clearly what is happening, feel responsibility for financially weak people and help them as much as they can. It is also a big challenge to the entrepreneurs and organizations that they should take steps to eliminate unbalance between different levels in society. In other way, this thought encouraged me to choose this problem. I think that empowerment of poor people by microfinance and with combination of micro entrepreneurship is a great idea. You can never help people just giving money. But you can help people giving them job and help to create their small businesses in order to optimize their share of production to the society. All these issues lead to research on this topic that how microfinance is contributing for entrepreneurship in low income communities of developing countries, how sustainable society is evolving as the result of doing own business in low income communities and how Kashf’s way of microfinance is supporting all of this process. Research Objectives To be meaningful, every work must have to formulate the objectives of the study (Mark Saunders, Philip Lewis, Andrian Tronhill, 2007). Although most of research has been done either microfinance or entrepreneurship separately. But in my opinion there is close relationship between microfinance and entrepreneurship. As social entrepreneurship is doing a lot for credit pool of MFIs with social services, micro entrepreneurship can be found in micro enterprise. As per research topic the objective is research on the issue that how do microfinance and entrepreneurship work for poverty alleviation and empowerment of poor. Research Questions The study was conducted with the guidance of the following questions. How microfinance is contributing for entrepreneurship? How do microfinance and entrepreneurship work for reduce poverty, empower poor in Pakistan? How do microfinance entrepreneurship work for sustainable development in Pakistan? Research Methodology The research methodology of this paper will be qualitative. My work is covering two main topics; entrepreneurship and microfinance with discussing three factors; poverty reduction, empowerment of poor and sustainable development. In this paper data collection techniques are used, interviews as primary source and internet, web pages, articles, annual reports, books etc.) as a secondary source. The research type will use deductive and empirical data will analyze by the help of conceptual framework, develop after literature review. Significance of The Study A lot of research is doing on Entrepreneurship and Social Entrepreneurship because it is emerging thread in business. On microfinance and entrepreneurship much research work has been while discussing in Grameen model. For both fields in terms of combining microfinance and entrepreneurship this research will lead a new horizon. It will also give a vision, to Kashf that how they can improve microfinance lending process, and other Microfinance institutions (MFIs) that how they can develop process in more effective way. Further, students, researchers in Microfinance field, NGO’s and Governmental organizations can extend research in this area to address the issue of poverty alleviation and empowerment of poor. Assumptions Limitations The assumption of this research is that all information, written in the reports, news, web page true and can be used fairly. The study does not cover all the aspects that the promotion of microfinance requires. It was difficult to organize interviews at large scale from borrowers due to distance problem between Pakistan and The Netherlands and this can reflect limited information about micro entrepreneurship. I primarily focused on microfinance and entrepreneurship role in reduce poverty and empower people. Organization of Study The thesis will consists of six chapters and will be organized in the following manners: Chapter One: Introduction: Briefly introduces the background information of the study. In addition, it consists of, statement of the problem, research objectives, and research questions to be addressed, significance of the study, research methodology, scope and limitation of the study. Chapter Two: Literature Review: Describe different theories and readers will look on previous research on the research topic. Also, discuss microfinance, its different models and how microfinance contributes in poverty alleviation, and theories about entrepreneurship and social entrepreneurship. Chapter Three: Theoretical Framework and Research Methodology: It will be building a theoretical framework that will use while analyzing empirical data. Chapter Four: Empirical Findings: It will present empirical data collect through borrower’s interviews and Kashf’s administration. Empirical daa is including facts and figure about poverty, unemployment, economy and microfinance. There is also detail information about Kashf Foundation. Chapter Five: Analysis of Data and Interpretation: It will present analysis regarding need of interactive strategy of microfinance and entrepreneurship, social services and intermediation by Kashf and sustainability issue. Chapter Six: Conclusions: Finally findings and conclusions will be put in the light of previous discussions. Chapter Two: Literature Review 2.1 Introduction The extent to which microfinance, entrepreneurship and sustainability are interrelated is dependent on the extent to which it addresses the economic development process. Yunus (1994), claims, â€Å"If we are looking for one single action which will enable the poor to overcome their poverty, I would go for credit. Money is power.† Credit invested in an income-generating enterprise as working capital or for productive assets leads to establishment of a new enterprise or growth of an existing one. Profit from the enterprise provides income, and a general strengthening of income sources. A variety of financial institutions, worldwide, have found ways to make lending to the poor sustainable and to build on the fact that even the poor self-employed repay their loans and seek savings opportunities. The challenge is to build capacity in the financial sector drawing on lessons from international best practices in micro, small enterprises and rural finance. The extent to which microfinance, entrepreneurship and sustainability are interdependent is becoming increasingly recognized by experts in their respective fields of work, associated with economic development. Over 500 million poor people around the world run profitable microenterprises and often cite credit as the primary constraint to business growth (IFC, 2002). Robinson (2002), a prominent expert in the field of microfinance, notes that â€Å"The formal sector has begun to realize that financing the poor can be both economically and socially profitable.† 2.2 What is Microfinance? Poor people are not able to access loans from commercial banks normally because of lack in guarantee and collateral. But there are also many other reasons involved for which commercial banks were not willing to finance poor. These reasons are included that poor have less education, experience and training, high expenses on transactions of small loans and lower rate of profit. This situation resulted in emerging the idea of micro lending and microfinance. Microfinance, therefore, a way to finance people, those have no collateral or any property for guarantee. Microfinance is a way of financing to poor for their business, to alleviate their poverty, empowering them, giving social benefits on sustainable way. Due to microfinance, there are many possibilities have emerged including extending markets, reducing poverty and fostering social change (Agion Morduch, 2005, pp.3). But there is general concept that microfinance is just lending loan to poor but as I mentioned that microfinance is no more only loans but covering the issues of poverty alleviation, putting social impact on poor and educating poor to savings. Therefore, MFIs, today, not only NGOs but serving as a complete banking system. This discussion lead to me that microfinance is a form of financial services for poor to help them for their business activities by giving micro credit. There is no one universal accepted definition of microfinance as different related variables like poverty, lone size, the poor and the poverty line carry different meanings in different countries. Different authors have defined the term in different ways. According to CGAP, Access to financial services puts power into the hands of poor people. Evidence shows that when poor people have financial services, they use their savings or loans to improve their families’ lives in a variety of ways: sending their children to school, buying better medicines and more nutritious food, fixing a leaky roof, meeting social and cultural obligations like paying weddings and funerals, and building income generating potential by investing in business (CGAP 2007). Microfinance has evolved as an economic development approach intended to benefit low-income women and men. The term refers to the provision of financial services to low-income clients, including the self employed (Ledgerwood, 2000, pp.1). While according to ADB (2008) Microfinance is the provision of a broad range of financial services such as deposits, loans, payment services, money transfers, and insurance to poor and low-income households and, their microenterprises. These definitions are elaborating that microfinance is a financial services but designed specifically for poor to improve their lives in sustainable way. 2.2.1 Microfinance Activities Economic activities are based upon sellers and buyers and their capacity. Sellers, before market their product, look at buyer intention and capacity. On the other hand, banking activities depend on both sellers and buyers. Financial institutions/lenders finance both sellers and buyers for their activities and commercial banks invested in projects at large scale while with this, banks invested in consumer finance also. Usually MFIs don’t invest in consumer finance, but give finance only for micro enterprise. MFIs encourage people to improve their standards by doing businesses and earning from them and this is a consistent and sustainable way. In fig (2), microfinance is dedicated only to poor and explicitly for business activities. But with this, there are some indirect impacts of microfinance on the micro borrower which are alleviation of poverty, improvement in healthcare, increase in literacy and other social impacts. These figures are taken from Ledgerwood, 2000. Figure 1: Economic Activity by Commercial Banking Figure 2: Economic Activity by MFIs There are many activities and characteristics are included in microfinance. Some are (Ledgerwood, 2000, pp.1): Small and short term loans Social collateral rather than financial collateral Access to larger amount of loan if repayment performance is positive Search and access the real poor and their business demand Continuous monitoring of business. Higher interest rates on loan due expensive financial transactions and risk factor. Easy way to access finance, therefore not too much paper work, and easy and short procedures. Saving Services and training services to borrower’s development. Literacy training to borrowers so that they can come up with competence to daily business problems and its solutions. Health care, social services and other skill training services to provide borrower a sustainable base for their business development. 2.3 Microfinance A Developmental Tool Due to lack of financial resources in developing countries, people from low income communities while having innovative idea for their business, even as shop keeper or house hold products manufacturer, they can’t implement their ideas. This low economic activity in low income communities due to lack of financial resources lead them to more poverty and poor life standards. Generally financial services cover savings and credit activities and there is same concept about MFIs. But according to Ledgerwood (2000), MFIs work for general financial services with this they provide insurance and payment services to their clients. But important aspect of MFIs is not only financial intermediation but also providing social intermediation and social services to their clients. Social intermediation and social services contain many activities including trainings, management development, and financial literacy activities. Furthermore, many MFIs, arrange get together where experienced people guid e others, where they give useful suggestions, tips and other tactics for their business. Microfinance is providing financial services along with social services. Normally, social services are not applicable in general banking system. So, microfinance is not simply banking system but development tool, combining both financial and social intermediation (Ledgerwood, 2000). 2.3.1 Different Services by MFIs Financial Intermediation The primary objective of MFIs is financial intermediation because without loan/money social intermediations can not work. As prior discussions that poor face barriers to access finance from general financial service institutions. In this regard, MFIs become a bridge to access finance and in result to poverty alleviation, health care and education literacy (Ledgerwood, 2000). MFIs provide many financial services including credit, savings, insurance credit cards, payment services etc. It is not necessary that every MFI should facilitate their customers by all these services but MFIs can facilitate anyone of these services or all. The choice of which financial services to provide and the method of providing these services depend on the objectives of MFI, the demands of its target market and its institutional structure (Ledgerwood 2000, pp.66). Social Intermediations Social intermediations for individual whose social and economic disadvantages place them beyond the frontier of formal finance (Von Pischke 1991). A successful financial intermediation is often accompanied by social intermediation. It covers the issues of group formation, leadership training and cooperative learning, is secondary role of microfinance for borrowers of MFIs. Development in Social capital is a basic ingredient of sustainable development in poor’s life and especially in society. Social intermediation is process of building the human and social capital required by sustainable financial intermediation for poor (Ledgerwood 2000, pp.64). Now question rise, how social capital be acquire and strengthen? Social capital is actually links between clients of a group and multiple groups, and between MFIs and borrowers. These links establish on the basis of strong foundation of trust and cooperation (Agion Morduch, 2005). The ratio of social capital will increase with increase in business activities among members, and financial transaction between lender and borrowers. It is normally developed through group activities but there are other ways to develop it by individually. In group social intermediation, activities perform inside the group with some help from outside to develop institutional capacity and human resource. In group, most of members belong from remote areas, having less literate and experience about business and financial transaction. So from group formation to selecting leader, developing networks and working mutually, MFIs support borrower to deal with these issues. Therefore, these members need training in record keeping, book keeping, accounting, training about business activities and tactics, and negotiation skills (Ledgerwood,2000). Enterprise Development Services Micro finance institutions (MFIs), not all, support to borrowers, either in group or individual in different enterprise development services like marketing, business and accounting training etc. This service can be divided in to two parts, enterprise formation and enterprise transformation. In enterprise formation, MFIs provide technical support to group or individual in start up of business, development and maturing ideas and maturing the skills. During in transformation of enterprise, MFIs arrange trainings for their borrowers, workshops and get together for developing latest skills in their business area (Ledgerwood, 2000). Figure 3: Minimalist and Integrated Approaches to Microfinance (Ledgerwood, 2000, pp.65) Minimalist Approach Integrated Approach One-missing piece Financial and non financial Credit Services Financial Intermediation Working Capital Fixed asset loans Savings Insurance Social Intermediation Group formation Leadership training Cooperative learning Social Services Education Health and Nutrition Literacy training Enterprise Development Service Marketing Business training Production training Social Services Microfinance practitioners define that, poverty can be addressed by financing poor for productive activities which in result comes up to their access to life necessities. But financial lending is only a one tool to poverty alleviation. Poor needs more than microfinance to address the problems of poverty and accessibility to other life needs like food, health, family planning, education, social support network and so on. In Ledgerwood (2000) MFIs serve to their clients with additional social services with financial intermediation. The best way to contact with their clients is in the form of group, that is the easy way to literate them, giving health care and other facilities. So in this way, MFIs would positive effect in the life of poor by offering financial services with supportive services. These supportive services, actually, play important role in sustainable human development and livelihood of the poor (Khan, Rahman, 1998). Social service should not implicate with financial or social intermediation because financial intermediation is primary service providing by MFIs. That means, there should be no additional cut off from loans in account social service but it should be provide by secondary means or by subsidies (Ledgerwood, 2000). 2.4 Microfinance Models The term model refers to â€Å"service delivery methods and microfinance products†. There are now nearly 70 million poor people who are getting benefits from 2500 MFIs in over 100 countries by microfinance (Sengupta, Aubuchon (2008). The poor’s conditions are different in different countries in world. These conditions are related to social, ideological and political issues (Weiss, Montgomery, 2004). Therefore, there are some distinctive differences between approaches and motive of microfinance. I will see briefly two approaches, which is very famous Grameen Model, originated from Bangladesh and other is Banco Sol Model, Bolivia. 2.4.1 Grameen Model In Grameen model, primary unit to whom lending fund is a group of 5 members that organize and apply for loan. In first stage loan is granted for two members to invest in their business. If these two members become successful to repay amount, then four to six weeks later, next two members are granted for loan. Last one member will be eligible for loan if previous two repay loan successfully. Repayment of loan open door for next loan and then go on if all members repay loan successfully. If anyone of group member will default in their loan, whole group will disqualified for further loan. Each group has its own president and secretary to coordinate all activities among their own group and to communicate and coordinate with other groups. Eight groups are then organized at center level, by which a bank officer deal with these all eight groups. This center of eight groups has its own center chief and center group leader (Khan, Rehman, 2007). According Sengupta, Aubuchon (2008), first time, bank granted loan $100 and bank require to repayment of 10 percent amount, at rate of per annum, weekly. This repayment ensures to user for loan security, and also encourages them for savings. Along with five percent of loan deposited in group account for emergency and social need. For example, in case of need of health care of any one member, in case of emergency, this five percent deposit will be use. A unique and innovative approach of group lending is used in Garmeen Model. As Sengupta, Aubuchon (2008) described that group lending have many benefits. First, group usually organize in members who are neighbor to each other, those can understand each other well and recognize their needs. Second, if anyone of group member will not present in group meeting, leader or other member can pay its installment. We can say that there is a kind of mutual understanding between all members. Third, in south Asia generally, and in Bangladesh specially, there are social pressures among members of society with social bindings with them. If one member of group will not pay even one installment, social pressure will be levied from all eight groups on this member and this reduces the risk factor. 2.4.2 Banco Sol Model Grameen model of microfinance emphasize on lending to villagers and keep loan lending on in smaller amount. The other core concept of model is formation of groups and these groups are eligible to take loan, no option of loan for individuals. Idea of progressive lending introduced to lend loan to individuals with group lending (Agion Morduch, 2005, pp.119). In this model after completion of every repayment schedule the amount of loan increased. But other characteristics of Grameen model (Group lending) are included in this method, like targeting to poor, women, group formation, and public payment. No doubt, progressive lending is an extension of group lending but now many MFIs are adopting this approach. In this model of Progressive lending, microlenders are flexible about collateral and lend loan to group with individuals also. This method is very helpful in areas with low population densities or highly diverse population where group forming is not so easy due to different ratio of safe and risky borrowers. In Bolivia, there was different situation when populist regime left government and there was high ratio of unemployment in urban areas. To come to fulfill the need of time, Banco Sol started operations in microfinance with progressive lending. Therefore we can say that microfinance approaches are evolved due to different political, ideological and social conditions. In Weiss Montgomery (2004, pp.3) Microfinance in Latin America developed under quite different conditions. In Bolivia, a collapsing populist regime led to widespread unemployment. Banco Sol, a pioneering microfinance institution in the region, developed to address the problem of urban unemployment and provide credit to the cash-strapped informal sector. The notion of commercial profitability was embraced relatively early in this approach. 2.5 Empowerment Poverty effects not only on individual’s life but also on society as a whole. Poverty is one of the main reasons in cause of less empowerment of poor especially in developing countries. Empowerment is a broad concept to define because there are many elements involve in it. These elements influence by including political, social and power system in the country. Empowerment covers many issues and when there is discussion on empowerment it includes many elements. These elements are, self-strength, control, self-power, self reliance, own choice, life of dignity, fighting for rights, independence, decision making, being free, capability , access to basic human needs etc.(PREM,WB, 2002). Misra (p.3) describes empowerment as a power to the people and self governance. He define that Empowerment builds self-reliance and strength in women, preparing them towards gathering the ability to determine the choice of life. This adds to the command over resources outwit insubordination and signify their social role. Empowerment is about change, choice, and power. It is a process of change by which individuals or groups with little or no power gain the power and ability to make choices that affect their lives. Due to different social, political, economical conditions, we can not define a one definition for empowerment. According to Batliwala (Makombe, 2006, p.52), empowerment mean, take control over material assets, intellectual resources, and ideology. The material assets over which control can exercised may be physical, human, or financial, as land water, forests, people’s bodies and labor, money and access to money. Intellectual resources include ideas and knowledge information. Control over ideology signifies the ability to generate, propagate, sustain, and institutionalize specific sets beliefs, values, attitudes, and behavior-virtually determining how people perceive and function within a given socio-economic and political environment. Empowerment is the expansion of assets and capabilities of poor people to participate in negotiate with, influence, control, and hold accountable institutions that affect their lives. (PREM, WB 2002, p.11) define that A strategy for empowerment is taken at individual, government, civil society and private sector level. Usually these efforts lead to empower people in context of sharing of power, freedom of information, access to resources and health and education services. These strategies normally share four types of elements: First, Access to information, its mean every citizens including poor have direct access to information because information is power. Second, Inclusion/participation, that’s mean there should be opportunities for poor that they can participate in decision making and they should be included in all financial and political policies. Third is accountability, that’s mean officials, public servants, private actors should be accountable not only to some specific institutions but to their citizens for performance. Fourth and last one Local organizational capacity, its mean that people can work together, organize themselves, mobilize and utilize resources and solve problem at community level (PREM, WB (2002). 2.6 Entrepreneurship It is one of the most widely used terms in business, management, economics and other related fields. One of important thing is that entrepreneurship has different meaning for different people, some use it in the meaning of innovation, some use for creativity, risk taking, leadership, and profit maximization or in social context, and some consider it as start up of business, new production methods and many other different meanings. Davidsson, (2004) describes it that entrepreneurship is rich phenomenon which makes it a resourceful field. While defining entrepreneurship, I consider some school of thoughts that have major role to define this field. According to Schumpeter school of thought (Swedburg, 2000), Entrepreneurship is about innovation in organizational process, thinking up new combination, entrepreneurial behavior and motivation of entrepreneurs. While according to Gartner (Thornton, 1999), entrepreneurship is about creation of new organization or new startup, creating values and entrepreneur mean owner-manager. In Krizner’s view, entrepreneurship is searching opportunities and exploiting them so it reflects towards the alertness capability of entrepreneur towards profit opportu

Theories and concepts in leadership

Theories and concepts in leadership The term leader is defined as a person initiating interaction with other members of a group, a person who moves the group towards group role. To be called a leader, one must be performing leading roles repeatedly under varying conditions (English dictionary 1987; Gibb 1965) (leaders and leadership roles in relation to effective management of human resources by John Domingo) Social psychologist define leadership as the process through which one member of a group (its leader) influences other group members towards the attainment of specific group goals (Yukl,1994).Leadership however is essentially a process of mutual stimulation which by successful interplay of relevant individual differences controls human energy in pursuit of a common cause. (Ekong, 2003) Leadership calls for certain qualities or characteristics firstly on the part of the individual who want to become a leader and secondly on the part of a group who want to respond favorably to the individuals leading acts. In the first place, a leader must have the ability to influence others. This may be derived from his personal characteristics such as height, handsomeness or some general personal appeal, abilities to speak and win the crowd, the possession of specific skills known to and desired by the group, being wealthy and or generous, having known connections with external sources of power or occupying known official positions , and so forth. Studies in Nigeria have also shown that among other characteristics, age, being married, honesty, humility and industry are highly valued in being accepted as a community leader (Adeogun, 1976). Second, a leader must have the ability to identify with the group he leads. This entails the ability to place oneself in anothers position; consideration for others, emotional stability, readiness to delegate tasks, love for and constant identification with the group, selflessness, and loyalty to group ideas and goals, etc. A person may also assume leadership because of the innate conditioned need in him to lead and or dominate others. However, for his leadership to be accepted by the people he must have other desirable characteristics, which he would have to project it to the group In certain instances, people have assumed leadership on the assumption that they have a divine call or revelation to lead others. A number of self appointed prophets and religious leaders fall into this group. Apart from their claims to divine call, such people still have to develop other personal qualities mentioned earlier, and or show extraordinary power(e.g. healing, fortune telling, making of very po tent charms,etc)to be accepted by others. In all several types of leaders can be identified according to the following criteria: Path of attaining leadership position, power, authority, scope of influence and orientation. It must be noted before hand that these are not mutually exclusive categories. One leader can fall into all or most of these classifications which leads to types of leaders and path to leadership the first being situational leader this refers to one who foresees crises or the needs of a group and takes initiative in either rectifying the situation or mobilizing others to meet such a situation. And that is why it is argued that leaders are not born but made by situations. Situational leaders however persist as long as the condition which brought them into the forefront lasts. They can last longer only if the condition becomes institutionalized or else, by imposing themselves as leaders on the group. Then comes the dictatorial leader generally when a situation brings up a leader , there is the tendency for this individual to either feel that he has the obligation to remain at the head to watch over the interest of that group perpetually irrespective of their wishes ,or that the only befitting gratitude which the group he has helped could render him is to allow him to rule over them .In the absences of such expectations being voluntarily fulfilled , the individual then uses his initial advantage to paralyze initiative amongst his followers and subdue all manner of opposition. He would want to control all phases of life in the community and takes no suggestion from his subordinates except when such suggestions are in his own favour. Generally they succeed in antagonizing others to their disadvantage and so they never last for too long before being toppled. Military rulers who come in through coup Detat and do not want to return to the barracks are e.g. of dictatorial leaders. Traditional or hereditary leaders: this is one born into a hereditary leadership position which custom and tradition recognize. His leadership status is therefore ascribed rather than achieved. In othe r words, he has authority by virtue of the tradition of the community (Moss 1970). Charismatic leader charisma means a divine or spiritual power .it also means a personal character or quality that enable an individual to influence his fellow men. A charismatic leader is therefore a type of person who has such personal type of qualities like good looks , high level of intelligence , ability to speak, fearlessness and commitment to a certain idea which when taken altogether make people follow him almost without questioning his authority . He has a more or less magical appeal to the people and they may infact, come to regard him as their saviour. He himself may, as time goes on, begin to feel that he has been divinely inspired to lead. This type of leader tends to thrive most in crises situation where he can display or exhibit his qualities. A number of political leaders can be look upon as charismatic leaders. Professional leaders this is one who earns his leadership position by virtu e of his expertise or technical competence. His leadership is therefore not based purely on personal charm, although good personal characteristic can enhance his acceptability to the group he is leading. The community workers, the agricultural extension officer, the medical officer, the organization executive are all professional leaders. In their interaction and leadership roles they control their actions and direct these to conform to the expectations of the organizations they represent, the expectations of their peers within the profession, the expectations of the client population which they serve and to what they expect of themselves as individuals. Now comes the question what is the base of leadership, this was given by Cartwright and Zander Leadership involves the ability to influence, director control others which means that leadership involves the use of power. Weber (1961) defined power as the ability to affect ones own will against resistance from others. Power may be exercised by using force, we tend to think of power in relation to government, it is well to remember that it is exercised in many other context as well: in family, schools, hospitals and businesses wherever it is possible to manipulate conditions so that people must obey. The leader must have a recognized power, the sources of which may be within or outside the group led. When his power is from the group, this is spontaneously accorded him by his followers, whereas where the sources of powers is located externally there may be some elements of coercion. Cartwright and Zander (1960) have identified five bases of power of a group leader. These include reward p ower: Which derives from the belief on the part of the followers that they will be rewarded in some way for complying , in this instance ,power is exercised effectively whenever one party can grant or withhold what another party needs but cannot get elsewhere ; Coercive power: Which arises from the belief that non compliance will result in punishment, expert power: In this case when a person is evaluated to have needed knowledge , information or skill which cannot be obtained readily elsewhere ,that person holds expert power over the group., referent power : This is the power the leader has as a result of his having qualities which the group members like , admire and want to identify with. They submit to him because they identify with him. Legitimate power: this derives from the office or official position which the individual occupies and which gives him the right to cont5rol others and equally compels others to comply. The tax collector, the police all have legitimate powers to do their work. Power is usually conceived in terms of authority and of influence. Authority and influence are not synonymous as an individual who has influence may not have any authority. Authority is derived from official position and is the power attached to that office whereas influence resides within the individual on the basis of his possession of certain characteristics or qualities which make other people want to submit to him (Ekong, 2003).The basis on which authority is used affects the nature of the organization and of the society of which the organization is the part.(Leaders and leadership roles in relation to effective management of human resources by John Domingo in yang) (www.academicleadership.com) Discussion on leaders power and influence leads us to think of the styles of leadership. Leadership style is concerned with the behaviour of the leader towards his followers. .Ideally there is three leadership styles: Autocratic leadership style, in this all policies and procedures are determined by leader. The leader should take considerable responsibility for assigning the activity task and companions of each group member. Democratic leadership style, wherever possible the policies should be a matter of a group decision and discussion with active encouragement and assistance by the leader. Wherever, technical advice is needed the leader should try to suggest two or more alternative procedure from which choice can be made by the group members. Laissez-faire leadership style, in this leader should play a rather passive role in social participation and leave complete freedom for group or individual decisions in relation to activity and group procedure. Here the leader does not make any attempts to control the behaviour of the group members. He tends to relinquish his responsibility for most decisions in the organization to his subordinates.( Koehler . anatol and applbaum, 1976) The function of any leader is to guide his group members. He leads in so far as he is ahead of his group goals. The role of a leader as a guide connotes a person devoted to helping the group move effectively in the direction it chooses to move. The leader as a guide must assist the group to choose this direction judiciously based on his expert knowledge or other advantages. The leader is a group spokesman. The leader is a group harmonizer and an enabler. In other words he is the one who keeps interpersonal relations pleasant, arbitrates disputes, provides encouragement, gives the minority a chance to be heard and increases interdependence among members. He focuses discontent and enables group members verbalize such discontents, encourages organization and emphasizes common objectives of the group. As an enabler he strives to make the group realize its potentialities and strength in cooperative work. He stimulates insight rather than provides all the answers and provides support for o thers who may want to share in the responsibilities of group organization and action. He is also a group educator or an expert. People submit to him because he is capable of bringing them to see the solutions to their problems. As an expert he provides research data, technical experience, and resource material, advises on methods and assists in evaluation. This may also imply expertise in knowing the traditions and customs of the people and being able to act as a resource person on traditions and cultural issues. The leader is the symbol of is the groups ideals and an agent of control. People submit to control of a leader because he is able to discern their underlying and inarticulate aspirations and to give them expression. He has the passion for the cause he represents and can crystallize this within mens hearts. He is loyal to the ideals and aspirations of the group so members look up to him for direction. The leader exercises control over his followers and not necessarily by usi ng sanctions but by exhibiting certain qualities which nourish and maintain favourable sentiments e.g. courage, self sacrifice, hatred of vice, contempt for folly, a sense of national or community destiny, and so forth (Ekong 2003) (Leaders and leadership roles in relation to effective management of human resources by John Domingo in yang) Historical background of this topic shows us that research on leadership and has been a part of social psychology since its very earliest days: and in recent decades, this research has spilled outside social psychology to the closely related fields of industrial/organizational psychology and organizational behaviour .(Fiedler,1994;GreenbergBaron,1995).leadership is an inherently subjective subject with many definitions associated to it (Zaharah Hassan 2004) .most of those definitions found in the literature agreed that leadership is mainly concerned with a person who tries to influence groups or followers to achieve certain objectives .the literature also indicates that there are various theories describing leadership such as the traits that leads to successful leaders (Stogdill,1950),and the roles that a leader needs to perform (Mintzberg,1973;Yukl1994). Early researchers viewed leadership in terms of `great person theory-according to this theory ,great leaders posses certain traits that set them apart from most human beings ;until 1890 research designed to test the theory generally failed to yield positive findings(Geier,1969,Yukl1991). In recent years ,however this situation has changed greatly more sophisticated research methods ,coupled with a better understanding of basic dimensions of personality ,have led researchers to conclude that leaders do indeed differ from other persons in several important ways(Kirkpatrick locke,1991) specifically ,recent findings(e.g. JudgeBono ,2000) suggest that several of what psychologists often term the Big Five Dimensions of Personality may play an important role in leadership(Barrickmount/;1991). Still we question what characteristics do these leaders have? Leaders are known to have their own leadership style and can be said to be unlike any other leader which is to a great extent true .Literature points to the styles and approach that leaders need to adopt such as shown by early studies conducted by Lowa university ,Ohio university and Michigan universities (Nahavandi,19770)leadership theories also takes into account of the contingencies and situations they face(Fielder,1967; Hersey and Blanchard ,1988).more recent research includes transformational (Burns,19780) and servant leadership (Greenleaf ,1998).Recent writings also noted that there are notions of leadership that are assumed either implicitly or explicitly linking leadership to gender (Zaharah Hassan 2004).Further in this field of study ,studies have shown that people in leadership positions are thought to be or characterized more as men over women ,gender stereotypes ,( Myres 2002) are peoples beliefs about how men and women behave .A major concern dealing with gender stereotypes, are the effects they may have on leadership. Some research shows that these stereotypes may present obstacles for women who wish to compete for a leadership position .Hosoda and Stone(2000) found that the actual stereotype of men and women have remained relatively unchanged from 10-20 years ago, and also found that masculine stereotypes was evaluated less favorable and the feminine stereotype was evaluated more favorab ly over a period of 21 years ,this was done through studying seventy eight attributes of which twelve were `key masculine attributes and rest were associated with feminism .This suggest that people believed that men and women generally behave differently from one another at the same time there were research on effect of perceived attractiveness on leadership of women .a study conducted by Sigel man (1986) found attractiveness a plus for males running for political office ,but not for female candidates. Women were not discriminated against for being pretty but they were not helped by attractiveness as were the men (Sigel 1986). In recent years, transformational and transactional leadership construct has become a popular theme in leadership studies in the general management domain. Unlike task versus relationship oriented leadership, the transformational -transactional leadership notion is viewed as a continuum allowing for individuals to employ transformational and transactional qual ities at the same time (Bass 1985, 1990;Bryman,1992) .Bass furthered Burns view of transforming leadership to be a leadership style that gives insight into the importance placed on certain outcomes and promotes development and vision in subordinates .Bass also identified five main components to transformational leadership-charisma ,inspiration ,intellectual stimulation, individualized consideration, and extra effort . Burns (1978, as cited in Mher, 1997) suggest that transactional leadership emphasizes exchanges between leader and follower and how needs of subordinates can be fulfilled. Recent research (Hack man, Furniss, Hills Paterson, 1992) implies that to be effective leaders must display both feminine and masculine behaviour. Hack man et al (1992) found that transformational leadership requires a gender balance of strong masculine and feminine characteristics. Transformational leadership is generally held to be a superior form of leadership, built on transactional leadership, b ut not vice-versa .there is a line of argument in leadership literature contending that female leaders tend to be more transformational than male leaders (Rosener, 1990), since transformational leadership emphasizes on nurturing of subordinates and on the process of socialization, the nurturing qualities of women are particularly well developed in comparison to men. A cross cultural study by Gibson (1995) involving Norway, Sweden, Australia and the US, found that male leaders were more likely to emphasize goal setting than female leaders and female leaders more likely to focus on facilitating interaction then male leader this trend among women leaders who also emphasized in the Malaysian public sector leadership (Raffia Salim 2007, Halipah Esa 2007). However, other scholars such as Butterfield and Powell (1981) Campbell et al (1998) and Ron K (1993) all have concluded that leadership style is independent of gender and that they exhibit similar amounts of task oriented and people ori ented leadership behaviour. Kolb (1999) has asserted that two decades of research indicates few, if any, leadership differences in the leadership behavior of male and female. Leadership in community: Moving from Gender the research on leadership has moved on to study of communities, organization and defence forces. The word community is an umbrella term that is defined and applied in a myriad of ways. For instance, it may be used to refer to refer to geographic communities where members are based on region (lfe, 1997; Maimunah Ismail, 2001); unit of social organization such as worker and community associations (Maimunah Ismail, 2001); cultural Groups that can be identified through religions or races (Maimunah Ismail, 2001); or virtual communities, where members main form of contact is through electronic media (lfe, 1997). Communities of circumstances constitute another possible form of community such community or Group might emerge, for e.g. when floods occur across different regions and those most affected feel connected to one another (Marsh 1999). Finally there are communities of interest, where identity groups form to lobby Government for some kind of policy change or sponsorship various definitions of community development and organization are available in literature. One of the early definitions that were widely accepted was developed by the U.S.international cooperation (1956) as cited by Maimunah Ismail (1999).It emphasized the process where individuals in the community joined forces to plan and take actions regarding community problems. They identify community problems and needs plan and conduct activities together using available resources. They also sought outside help from Government and private organization. On the other hand, the United Nations (1975), indicated that community development is a process whereby the efforts of individuals in the community were combined with efforts of Government and no bodies to bring about improvement socially and economically. These efforts should lead to national development (Jones, 1982). Kirk and Shutter (2004) suggested a community development model that is more collaborative and co mprehensive in nature that comprises of three components leading change through dialogue, collective empowerment and connective leadership. It is said that children are the future of a country and they are the ones who will be leading the nation tomorrow, therefore it is really a matter of great concern that how should these young generations be groomed, what should be the crux of their positive development? It is here where the role of developmental psychology is needed .development after all is a process of growth and increasing competence. In the important sub domain of social and emotional development, however we are often more articulate about how things go wrong than how they go right. We have a burgeoning field of developmental psychopathology but have a more diffuse body of research on the pathways whereby children and adolescents become motivated, directed, socially competent, compassionate, and psychologically vigorous adults. Corresponding to that we have numerous researc h based programmes for youth aims curbing drug use, violence ,suicide, teen pregnancy, they lack a vigorous applied psychology of how to promote positive youth development. The place for such a field is apparent to anyone who has had contact with a cross-section of American adolescents. In such a group one encounter a surprising number of youth who appeared to be bored, unexcited about their lives it is in this article of towards positive youth development Reed W. Larson focused on extra co curricular activities helping in positive development of youth. Here when the samples of self report on 16000 moments in the daily experience of a representative sample of white, working and middle class young adolescents-a group that seemingly has everything going for them. These youth reported feeling bored for 27 %.( 4300) of these random moments (Larson Richards, 1991). Of course these individuals differed in these rates ,but what was surprising was that honor student were as likely as those involved in delinquent activities ,in many cases for more than 50% of random moments . The litany of explanation for this boredom -theres nothing to do in life, the odyssey is boring, and they communicate ennui of being trapped in the present, waiting for someone to prove them that life is worth living. a central question of youth development is how to get adolescents fire lit ,how to have them develop the complex disposition skills needed to take charge of their lives .this calls for development of initiative in them .The construct initiative is closely related to capacity for agency or for autonomous action that others have discussed (Brandst-idter,1998;Deci 1995;Ryan1993). It consist of the ability to be motivated from within to direct attention and efforts towards a challenging goal , initiative is the core requirement for other components of positive development, such as creativity ,leadership, Altruism and civic engagement. Reed W.Larson argues that western adolescents life do es not provide abundant daily opportunities for the development of initiative and it is in these activities such as participation in sports, hobbies, arts and in any youth organization opens the door of initiative within. positive youth development however has had not a strong base of research and theory (Brown 1988;Dubassnider 1993,Murray foster).the anthropologist Benedict (1938) observed that many traditional society provide a progressive set of steps that socialize youth into the roles and responsibilities of adulthood, whereas adults are required to be independent and suddenly take charge whereas in western society there is marked discontinuity between what we expect of adults , especially with regard to initiative. Benedict pointed out that children in our society are treated as dependent and given few responsibilities ,whereas adults are required to be independent and suddenly take charge of all parts of their life9et Sampson,1988) ,thus in order to develop initiative youths need a series of experience opportunity(1938).participation in extra co curricular activity and community youth organization has been fond to be correlated with higher self-esteem ,control over ones own life etc .(Holland Andre1978) the problem with these relationship is that participation in these activities is selective ,participation is greater in among higher socio economic status along with parental support(butcher,1985, Holland Andrà © 1987) once these factors are controlled the relationship participation and positive outcomes are reduced .(AgnewPeterson1989) this claim however is more adequately tested by longitudinal studies .number of studies have fond association between higher school and adult participation in political organization (Dematrini 1983);the arts (blom1985) sports (HowellMeckenzie,1987) but do not adequately control for the possibility that prior unmeasured third variables .studies that control for some of the variables that effect high school participation s uch as SES ,grade point average(GPA)still finds effect.(Hanks and Eckland 1978) found that youth who participated in activities were more likely to be involved in voluntary associations at age 30,even with controls for initial SES and academic aptitude .Eccles and barber (1999) fond that participation in structured youth activities in 10th predicted positive changes .(Marsh 1992) too found a positive change with respect to self concept . Classic sociological theories recognizes that joining a group leads to socialization (Berger and luckman,1966).the most extensive and most psychological discussion about the process of social integration are provide by Youniss ,Yates who have focused on how participation in service activities provide a context for civic participation (1997). This opens another avenue to the study of leadership .How far specific training in a particular field can help in mastering and developing a polished skill in the concerned field. (Toward a psychology of positiv e youth development by reed w. Larson) The construct of youth leadership and life skills development is a complex arrangement of experience, backgrounds and attitudes. In the measure of leadership skills of agriculture students leadership and life skills development were defined as skills in communication ,decision making, interpersonal relationship, learning and resource management, understanding self and working with group .participation in FFA leadership activities in combination with the variables after school jobs, years in the FFA .self reported cumulative grades and gender accounted for 22.3% of the variance in youth leadership and life skills development scores. As an addition to the body of knowledge surrounding youth leadership and life skills development this study has revealed an increase in the overall amount of variance explained for this concept, with less than 25% of the variance explained in the phenomenon known as leadership development.(journal of agricultural education24 volume.38, 3,1997 Garry J Winge nbach Alan A Kahler) . The hypothesis of this study is that, the leadership quality is higher in the students who undergo NCC training than regular students who do not take NCC training. Today NCC is second largest youth organization in the world and the largest in India (a hand book on NCC) .it is one of the major second line defence force which is known for imparting training in military aspects, it has now expanded its horizon and now aims at developing character qualities amongst cadets and making them into good leaders of tomorrow as well as useful citizens so that they can take their appropriate place in all walks of life in the service of the nation. The qualities of leadership, discipline, spirit de coups, courage and confidence with secular outlooks, which are hallmark of a leader are inculcated in the cadets through a well conceived programme of institutional training combined with adventure, sports and outdoor activities plus many other community development programme -such as disaster managemen t ,adult literacy ,traffic control, village adoption ,tree plantation, blood donation are taken up which gives youths a comprehensive and a very good platform to take initiative in almost aspects of life. not only this the camps are conducted which constitutes the most vital part of national cadet corps where cadets get the thrill and joy of outdoor and community living stay together no matter how rich or how poor they are and thus teaches socialization, team spirit, unity in diversity through its motto of unity and discipline. (www.ncc.org.sg) The present study not only aims at adding more knowledge to the existing body of researches in past but it is also trying to go beyond the normal theories of styles, approaches and is focusing on a universal organization that aims at instilling leadership amongst youth .in todays world we have large number of organizations where we need leaders to lead the team to achieve the organizational goals ,whether its the field of scientific research ,the corporate ,the defence, the political world the non governmental organizations etc. thus, it would be interesting to know how far it has been successful in this endeavor. Method Participants In this study there were two groups consisting of total 60 subjects of which there were thirty NCC students who had participated in various training camps of NCC and few also had an opportunity to attend the prestigious national and international camps like republic day camp and youth exchange programmes, many have also attended mountaineering and parasailing courses, horse riding cum show jumps. These Students were taken from camp in Bison polo grounds Secunderabad. The non NCC students were the other regular college students taken from colleges like St. Anns, Bhavans, CBIT, St.Francis, etc. all the sixty subjects were in the age group of (17-22) years. Material The research instrument used for the study was the Leadership Characteristics and Skills Survey questionnaire. The first section of the survey consisted of a small section on personal information like name, age, category (NCC and non-NCC), and gender. The second part of the survey contained thirty questions which focused on individuals behaviour in a team. Leadership Characteristics and Skills Survey was assessed on five point Likert scale ranging from a score of (very weak-1, moderately weak-2, adequate-3, moderately strong-4, very strong-5). The purpose of this research was to find reliable information. Design In this study the students both from NCC and NON-NCC category formed the independent variables. The leadership qualities which was assessed was the dependent variable for this research .the age group from 17-22 was chosen for assessing the leadership qualities because the experimenter was keen in knowing whether a special course or training helps in enhancing ones managerial skills and also does it really makes a leader out of an ordinary human being. The other reason behind taking this age group was that the youngsters are the future leaders of tomorrow, so how far a youth organization like NCC has been successful in this endeavor of grooming future leaders, since NCC students basically fall in this age group and that is the reason this age was chosen for the study. Procedure In order to

Jesus: The First Anarchist :: essays research papers

Jesus: The First Anarchist "In God We Trust," reads the American dollar, mouths the American government. The bosses put their hands on bibles and take office, they put their hands on bibles and swear to be truthful and honest and follow the teachings of the people's God. But are they following God's will? Have they ever been? JESUS: AN ANARCHIST? Throughout history Jesus Christ has been regarded as a revolutionary, but an anarchist? Yes, the answer. As time has passed and covered the once passionate spirit in commonality, however, Jesus' true meaning has been lost in Sundays and collection baskets. Jesus' true meaning is that of the anarchist. "Again I say to you, it is easier for a camel to pass through the eye of a needle than for one who is rich to enter the kingdom of God," said Jesus to his disciples in one of many stories in which he shunned wealth and society's view of 'success'. We see in the story of the poor widow's contribution Jesus' message of devaluing money, and placing the true importance on the spirit in which it is given. We see Jesus sit down and observe how the people give money to the treasury, and his commentary on the donations shocks his disciples. "Amen, I say to you, this poor widow put in more than all the other contributors to the treasury. For they have contributed from their surplus wealth, but she, from her poverty, has contributed all she had, her whole livelihood," says Jesus, teaching us an important lesson, one he stressed throughout his ministry. Jesus taught that the poor would be raised up, that the powerful, the bosses as modern day anarchists say, will be layed low. Jesus talks of the kingdom of God, we today talk of Anarchy. The gospel of Luke, chapter 12, presents to us a wonderful group of stories in which Jesus' underlying Anarchism is revealed. Luke 12:15, "Take care to guard against all greed, for though one may be rich, one's life does not consist of possesions." And what is capitalism but a system by which the greedy and scrupulous are made stronger, the dependant and the honest pushed aside? Luke 12:18-21, "There was a rich man... and he said, 'This is what I shall do: I shall tear down my barns and build larger ones. There I shall store all my grain and other goods and I shall say to myself, "Now as for you, you have so many good things stored up for many years, rest, eat, drink, be merry!" But God said to him, 'You fool, this night your life will be demanded of you; and the Jesus: The First Anarchist :: essays research papers Jesus: The First Anarchist "In God We Trust," reads the American dollar, mouths the American government. The bosses put their hands on bibles and take office, they put their hands on bibles and swear to be truthful and honest and follow the teachings of the people's God. But are they following God's will? Have they ever been? JESUS: AN ANARCHIST? Throughout history Jesus Christ has been regarded as a revolutionary, but an anarchist? Yes, the answer. As time has passed and covered the once passionate spirit in commonality, however, Jesus' true meaning has been lost in Sundays and collection baskets. Jesus' true meaning is that of the anarchist. "Again I say to you, it is easier for a camel to pass through the eye of a needle than for one who is rich to enter the kingdom of God," said Jesus to his disciples in one of many stories in which he shunned wealth and society's view of 'success'. We see in the story of the poor widow's contribution Jesus' message of devaluing money, and placing the true importance on the spirit in which it is given. We see Jesus sit down and observe how the people give money to the treasury, and his commentary on the donations shocks his disciples. "Amen, I say to you, this poor widow put in more than all the other contributors to the treasury. For they have contributed from their surplus wealth, but she, from her poverty, has contributed all she had, her whole livelihood," says Jesus, teaching us an important lesson, one he stressed throughout his ministry. Jesus taught that the poor would be raised up, that the powerful, the bosses as modern day anarchists say, will be layed low. Jesus talks of the kingdom of God, we today talk of Anarchy. The gospel of Luke, chapter 12, presents to us a wonderful group of stories in which Jesus' underlying Anarchism is revealed. Luke 12:15, "Take care to guard against all greed, for though one may be rich, one's life does not consist of possesions." And what is capitalism but a system by which the greedy and scrupulous are made stronger, the dependant and the honest pushed aside? Luke 12:18-21, "There was a rich man... and he said, 'This is what I shall do: I shall tear down my barns and build larger ones. There I shall store all my grain and other goods and I shall say to myself, "Now as for you, you have so many good things stored up for many years, rest, eat, drink, be merry!" But God said to him, 'You fool, this night your life will be demanded of you; and the

The Epidemic of Post-Traumatic Stress Disorder (PTSD) Essay -- Post-Tr

The human brain is extremely complex, top scientists and surgeons still struggle to comprehend how it works. The way that the brain can process information and help a person to problem solve is amazing, but another part of the brain can hold memories. Some are good--like a memory of a family vacation or of family holidays--but there are also frightening memories that can haunt a person until his or her death, if they don’t get help. For a very long time researchers have focused on combatant PTSD, for very good reason, but now a problem has risen among civilians, and they have not been focused on the growth of PTSD right here in regular everyday people’s lives. Not just soldiers can be affected; civilian men, women, and children can be affected by the things they see every day. It can be the paramedic that is first on the scene or it could be the child who watches a robbery goes wrong and a loved one is caught in the cross-fire. Either way these people are all just as im portant to the american society as the soldiers. The importance of the military is massive, and yes I agree that we should help the soldiers who suffer from PTSD, I even have my own personal connections. My uncle went to Vietnam for the Vietnam war and when he came back he was paranoid and scared of anything that reminded him of Vietnam. He like so many other soldiers then and now has PTSD from what he had seen while overseas. The only problem with helping the soldiers is that we don’t focus on the others who also need help getting through their PTSD. There are so many research projects on how to help soldiers get through their PTSD, but their are a limited amount of PTSD research papers on the civilian side. Researchers will only focus on certain things, and pr... ... 07 Dec. 2013. Marais, Adele, et al. â€Å"Domestic Violence in patients visiting general practitioners: Prevalence, phenomenology and association with psychopathy.† SAMJ South African Medical Journal 89.6 (1999): 635-640. Web. 07 Dec. 2013. Schwarz, Eitan D., and Janice M. Kowalski. "Malignant memories: PTSD in children and adults after a school shooting." Journal of the American Academy of Child & Adolescent Psychiatry 30.6 (1991): 936-944. Web. 07 Dec. 2013. "Survivor Care." LOVE146. LOVE146. Web. 06 Dec. 2013. Tarrier, Nicholas, and Lynsey Gregg. â€Å"Suicide risk in civilian PTSD patients.† Social psychiatry and psychiatric epidemiology 39.8 (2004): 655-661. Web. 07 Dec. 2013. The Amazing Spider-Man. Dir. Marc Webb. Perf. Andrew Garfield, Rhys Ifans, Martin Sheen, Emma Stone, Denis Leary, and Sally Field. Sony Pictures, 2012. DVD. 07 Dec. 2013.

Performance of Philippine Agriculture

AGRO STRATUM1ConsequenceBackground InformationFigure 1:Performance of Philippine Agriculture ( 2013-2014 ) 001.png"> Beginning:hypertext transfer protocol: //www.bas.gov.ph/ ? ids=agriperformance Figure 2:Performance of Agriculture Agriculture posted a 0.67 per centum end product increase in the first three ( 3 ) months of 2014. The lag in the sector ‘s growing could be traced to the annihilating effects of typhoons that hit the state in 2013. The end product additions noted in the harvests, farm animal and domestic fowl subsectors were negated by the contraction in the piscaries subsector. Gross net incomes amounted to P386.7 billion at current monetary values. This represented a 10.75 per centum addition from last year’s gross grosss. Figure 3:Performance of Crops Subsector The harvests subsector grew by 1.53 per centum. It contributed 54.40 per centum to the entire agricultural production. Production of palay went up by 3.28 per centum while that of maize increased by 1.33 per centum during the mention period. Significant additions were noted in the production of sugar cane, Ananas comosus, manioc and onion. At current monetary values, the subsector grossed P225.8 billion or 17.58 per centum higher than last year’s record. Figure 4:Performance of Livestock Subsector Production in the farm animal subsector went up by 1.20 per centum. The subsector shared 15.44 per centum in the entire agricultural end product. The major beginning of growing was the pig industry which expanded by 1.25 per centum. All other farm animal constituents recorded additions in production. The subsector grossed P57.4 billion at current monetary values or 5.59 per centum more than last year’s degree. The domestic fowl subsector with its 14.46 per centum part to entire agribusiness grew by 1.33 per centum. Production additions in poulet at 2.50 per centum and duck at 0.10 per centum helped in prolonging the subsector’s growing. At current monetary values, the subsector’s gross value of production amounted to P45.7 billion. This indicated a 5.29 per centum betterment from last year’s record. Figure 5:Performance of Fisheries Subsector The piscaries subsector contracted by 3.25 per centum. The subsector accounted for 15.70 per centum of entire agricultural production. Reduced production was noted among all species except Euthynnus pelamis which registered a 4.62 per centum end product addition. The subsector grossed P57.8 billion, down by 2.64 per centum from last year’s record. Figure 6:Farmgate Monetary values On the norm, monetary values received by husbandmans increased by 10.01 per centum from last twelvemonth ‘s citations. In the harvests subsector, monetary values expanded by an norm of 15.81 per centum from the 2013 degrees. The farm animal and domestic fowl subsectors posted mean monetary value additions of 4.34 per centum and 3.90 per centum, severally. Monetary values in the piscaries subsector went up by an norm of 0.62 per centum this twelvemonth. Table 1:Number and Area of Farms by Region: Philippines, 1991 and 2002RegionNumber of FarmsArea of Farms2002199120021991Philippines4,822,73946100419,670,7939974871National Capital Region ( NCR )22,8201513671,63253646Cordillera Administrative Region120,104108251177,839155581I. Ilocos part276,766311757270,664324501II. Cagayan Valley321,755285721540,812530143III. Central Luzon341,466350786552,104632493IVA. CALABARZON282,746319865588,516703256RegionNumber of FarmsArea of Farms2002199120021991IVB. MIMAROPA220,967209248542,218569814VIII. Eastern Visayas330,750321456723,048695711IX. Zamboanga Peninsula252659235674785,294675723Ten. Northern Mindanao319157289469746,901768290Eleven. Davao Region229966267224758,335795893Twelve. SOCCSKSARGEN330571264095775,309746702Thirteen. Caraga210184189600523,407517446Fourteen. ARMM248528227571533,410565219Beginning: National Statics Office, 1991 Census of Agriculture and Fisheries and 2002 Census of Agriculture In 2002, the Philippines registered a sum of 4.8 million agricultural farms, covering 9.7 million hectares. The entire agricultural land country constituted 32.2 per centum of the country’s entire land country. Although the figure of farms was 4.6 per centum higher than the 4.6 million farms reported in 1991, the country’s entire farm country decreased by three per centum after a period of more than one decennary. The lessening in entire farm country could be attributed to the transition of farming areas to residential and commercial intents. As a consequence, the mean farm size declined from 2.2 hectares per farm in 1991 to two hectares per farm in 2002. Table 2:Impermanent Crops of PhilippinesCropsNumber of FarmsArea of FarmsRice2,149,9713,922,522Corn1,458,4462,439,067Tubers, Roots, Bulbs1,364,276277,153Sugarcane167,186344,670Fruit Bearing Vegetables1,088,91392,220Beginning:hypertext transfer protocol: //www.census.gov.ph/old/data/sectordata/sr0414402.htm The tabular array indicates that rice was systematically the major impermanent harvest of the Philippines accounting for 2.1 million farms with a combined country of 3.9 million hectares in 2002.This shows that the rice was the major impermanent harvest of the designated/allotted with a larger plantation country whenever planned to the Agri-complex to systematically derive the number/yield of production as the top impermanent harvest of the state followed by maize holding 1.5 million farms, third are the tubers, roots and bulbs followed by the fruit bearing veggies, sugar cane, leguminous workss, baccy, leafy veggies, stems, flower and peanuts. Table 3:Output comparings of Hydroponics and Traditional FarmingName of CropsAquicultural Output ( per acre )Traditional Farming Output ( per acre )Rice12,000 pound750-900lbsTomatos180 dozenss5-10 dozenssBoodle21,000 pound.9,000 poundName of CropsAquicultural Output ( per acre )Traditional Farming Output ( per acre )Cucumber28,000 pound7,000 poundPotatos70 dozenss8 dozenssCabbage18,000 pound13,000 poundCauliflower30,000 pound15-30,000 poundWheat8,000 pound5,600 poundBeginning:hypertext transfer protocol: //www.ahga.org The tabular array shows that farming with the usage of engineering such as aquicultures can bring forth higher sum of output than a traditional agriculture. Both consequences were based on 1-acre country, which is tantamount to 4,046.85 square metres. The table consequences show that the aquicultures system is more efficient than the traditional planting for the output it can bring forth and less ingestion of infinite to be applied to the Agri-complex. The tabular array will besides function as footing for the allotment of country of the plantation/production country of the Agri-complex per floor Figure 7:Share of Agriculture in Total Employment in Central Luzon, 2012 The figure above shows that the portion of agribusiness in entire employment was worsening. In 2012, the portion went down to 32 per centum. Table 4:Daily Agricultural Wage Rate by Sex, Central Luzon, 2012Sexual activityNoun phraseRealMale312.40237.02Female260.91197.96Both307.36233.20Beginning:hypertext transfer protocol: //countrystat.bas.gov.ph/ ? cont=16 & A ; r=3 The tabular array shows the part ‘s entire employment in 2012 and about 21 per centum was in the agribusiness sector. Of this, 80 per centum engaged in agricultural were male workers. Entire Employment ( CY2012 )= 3,877,000 individuals Agricultural Employment= 820,000 individuals Figure 8:Distribution of employment for Agriculture constitutions by industry group in 2010 Beginning: National Statistic Office Agribusiness, Forestry and Fishing constitutions employed a sum of 128,767 workers in 2010. Of the entire work force, 127,944 workers or 99.4 per centum were paid employees and the remainder were working proprietors and unpaid workers. By industry group, turning of perennial harvests employed the largest figure of workers with 55,747 or 43.3 per centum of the sum followed by turning of non-perennial harvests supplying occupations to 32,860 workers ( 25.5 % ) . Fishing came in 3rd with 15,482 workers ( 12.0 % ) while carnal production ranked 4th with 11,434 workers ( 8.9 % ) . Table 5:Number of happenings of typhoons in the Philippines by twelvemonth and by part, 2007–2010Region2007200820092010EntireAnnual Ave.Philippines132122116717Cordillera Administrative Region510103287I. Ilocos Region511114318II. Cagayan Valley811124359III. Central Luzon61093287IVA. CALABARZON4672195IVB. MIMAROPA3942185V. Bicol Region4641154VI. Western Visayas261092VII. Central Visayas1630103VIII. Eastern Visayas2730154Region2007200820092010EntireAnnual Ave.IX. Zamboanga Peninsula010010Ten. Northern Mindanao132062Eleven. Davao Region020021Twelve. SOCCSKSARGEN010010Thirteen. Caraga153092Fourteen. ARMM010010Beginning: PAGASA The typhoons counted were merely those with assigned signals. From 2007 to 2010, the Philippines experienced a sum of 67 typhoons or an norm of 17 typhoons annually ( Row 1 ) . The figure of typhoons increased in 2008 and 2009 and so suddenly decreased in 2010. The most figure of typhoons occurred in 2009 at 22 while the least happened in 2010 at 11. Table 6:Crops and Floor Space Requirements ComputationCropsOutputper twelvemonthFloors ( 1 Ha )Floors ( 3 Layers/Floor )Rice/ Wheat / Cereal10000009.293.09Tubers, Roots, Bulbs349938032.5110.84Fruit180133716.805.60Leguminous Plants5328144.951.65Leafy Vegetables303649928.409.47Fruit Bearing Vegetables131642612.234.08Sum11193456104.1834.73Beginning: hypertext transfer protocol: //www.ahga.orgMarket StudyAs the survey focuses on the architectural information analysis, it is delimited to supply elaborate feasibleness survey. Although as portion of the analysis of its architecture, estimated market survey was analyzed based on the survey of urban agricultural architecture structures that has been proposed in other state such as the Vertical Farming of Dr. Dickson Despommier, one of the participants of the survey. Table 7:Construction and Building Technology Cost Estimate of Vertical FarmUndertaking CostUndertakingCost in dollarCost in pesoSub-structure and Electochromic Glass Shell$ 25,000,0001,097,000,0001000 ton Geothermal HVAC$ 2,500,000109,700,000400 ton Chiller + Cooling Tower$ 500,00021,940,000Populating Machine-based Water Recycling System$ 11,000,000482,680,000800 kWh/day tracking Photovoltaic Array$ 500,00021,940,0004,500 kW Water-cooled lighting System$ 2,000,00087,760,000Energy Infrastructure and Automatic System$ 13,000,000570,440,000Floating Garden Hydroponic System$ 1,700,00074,596,000Office and Laboratory Facilities$ 5,000,000219,400,000Sum$ 61,200,0002,685,456,000 PhpBeginning: Medical Ecology – Spring 2006, Dickson Despommier, Ph. D, Vertical Farming Entrepreneurship Article Table 8:Estimated Net Net income and Associated Calculation:ESTIMATED EXPENDITURESUndertakingCost in dollarCost in pesoEntire Labor Costs ( includes benefits + insurance )$ 2,135,00093,683,800Entire Electricity Costs @ 95 % Biogas Reliability$ 130,0005,704,400Entire Electricity Costs @ 5 % Extreme Climate Conditionss$ 100,000.4,388,000Production Supplies$ 700,00030,716,000Modified Atmosphere Boxing$ 500,00021,940,000Biogas & A ; Living Machine Operational Costss$ 650,00028,522,000Building and Facilities Maintenance ( 0.75 % per twelvemonth )$ 628,00027,556,640Sum$ 4,843,000.212,510,840 PhpBeginning: Medical Ecology – Spring 2006, Dickson Despommier, Ph. D, Vertical Farming Entrepreneurship ArticleEntire$ 18,605,000– $ 4,843,000EBIT ( Net incomes before income revenue enhancements )$ 13,762,000Net Net income ( after 10 % income revenue enhancement )$ 12,385,800Projected Return of InvestmentEntire Building Cost$ 61,200,000.00Annual Net Net income$ 12,206,000.00Return on invested capital:4.94 ? 4 Old agesAs analyzed within the market survey, the designing of agricultural tower shows the consequence of deriving the return of investing within the 4Thursdaytwelvemonth of its operation. Therefore, the survey shows that edifice such installation is executable and awaited to be supported by the NGOs which aims are in line with the surveyInterview ResultsThe research worker conducted an interview to Agricultural participants and professionals to back up and happen the proposalDr. Ernesto D. Supan, PhDDirector, Extension and Training Pampanga Agricultural College Date interviews: July 18, 2014 around 5:18 autopsyDo you believe this sort of proposal will advance and elate the Filipino Agriculture to mankind?YesDo you believe, holding a nursery is economically friendly than in a traditional planting?Yes of class, it will protect your harvests from unexpected clime conditions such as typhoons, inundations and plagues. And with this, you’ll harvest more. Vegetables are weak in excessively much H2O while typhoons and air currents hinder the workss to bloom that will became the fruit.Do you hold any remarks, reactions and suggestions sing to the proposal?In footings of organic and nurseries, animate beings can besides be employ. Having a nursery in raising animate beings such as hogs, poulet, fish can beneficial excessively, ensuing an organic nutrient.Dr. Virgilio M. Gonzales, PhdDirector, Extension and Training Pampanga Agricultural College Date interviews: July 23, 2014 around 10:40 amDo you believe this sort of proposal will advance and elate the Filipino Agriculture to mankind?Yes, and I will bring forth harvests all twelvemonth unit of ammunition yet without utilizing so much adult male power.Do you hold any remarks, reactions and suggestions sing to the proposal?Good fortune to your undertakingWhat other installations or characteristics in the proposal that you may propose to advance and to elate Philippine Agriculture?If you will advance ecotourism, I think you should let clients, purchasers, or consumers can separately pick newly harvests straight to the plantation.Arch. Michaela Rossette Santos, uapChair for the Committee on Environment, Ecology & A ; countrywide Tree Planting, United Architects of the Philippines, LEED ( Leadership Energy & A ; Environmental Design ) AP Holy Angel University Date interviews: July 31, 2014 around 4:15pmDo you believe this sort of proposal will advance and elate the Filipino Agriculture to mankind?Yes, and I’m sure that it will promote more young person to prosecute in agribusinessDo you hold any remarks, reactions and suggestions sing to the proposal?Maximize the usage of verdures and guarantee nutrient security. Use fruit bearing workss as a landscape supplying a farm garden that will turn to a healthy life community.What other installations or characteristics in the proposal that you may propose to advance and to elate Philippine Agriculture?Provide cantonment preparation and squad edifice installations that will add enticement to your mark user. Use or use the engineering were Koreans used in rice agriculture were can minimise the usage of adult male power.What is the really first thingthat comes to your head when you hear the word Agriculture?Kalabaw ( carabao ) . Poor people who work hard straight on heat of the Sun, merely to supply and to back up their ain household.Dr. Arturo FigueroaLicensed Agri-Engineer Holy Angel University Date interviews: July 31, 2014 around 11:45amDo you believe this sort of proposal will advance and elate the Filipino Agriculture to mankind?Decidedly, to reinstate thePhilippine therubric asanAgricultural Country particularlyyour siteTarlac known as the â€Å"Melting Pot of the Philippines† .Do you hold any remarks, reactions and suggestions sing to the proposal?You can utilize edifice stuffs within the locality to minimise C footmark. I suggest utilizing bamboo as your constructing stuff as known to be a ace stuff. If non available, supply a plantation of bamboo, because this works is really resilient, fast growth.What other installations or characteristics in the proposal that you may propose to advance and to elate Philippine Agriculture?Supplying and proper location of Sewage intervention works is of import to your development. I’ll suggestholdingan country where you can raise angleworms to break up such refuse and yet produce fertilisers from your plantations.Surv ey ResultsThe study aims to place if the undertaking is considered necessary and accepted by the society. The research worker usage Purposive Method in garnering informations, holding 100 respondents. 75 of the respondents are pupils and professionals in the field of agribusiness which is the hereafter operator of the proposal, while the 25 respondents are simply pupils which is mark of the survey. The research worker were gathered both online and questionnaires. The sample questionnaire can be viewed onAPPENDIX Oof the book. Significance of the TopicDo you believe that it is clip for the agricultural sector to derive a greater feeling to the society? Is it of import for the youth/student to educate and engaged in agricultural activities? Interest in the SubjectWould it be interesting for you to larn agribusiness through camps/lessons? Viability of the ProposalWould it be helpful for our state if we have a convention centre, museum, research and development centre, or similar installations dedicated for agribusiness?What system of farming do you prefer in agribusiness?Under what installations would you wish to see in the proposed AGRI COMPLEX AND RECREATION HUB?Would it be helpful and productive to the state if we apply engineering and new techniques in agricultural sector?Do you believe the authorities is supplying adequate support to Philippine Agriculture?

Life After High School Essay

I remember that towards the end of my senior year in high school, my parents suggested that I apply to a four-year college. They also offered to pay for the cost of going to college as long as I would go full-time and would start right after high school. They believed that I would be more prepared to challenge the real world by having a four-year college degree rather than just a high school diploma. Having a higher education made the difference in getting a good job with a decent salary. Unfortunately, I did not follow my parents’ advice to go to college right after high school. Instead, I decided to look for a job because I wanted to be independent. After I had been working at different dead-end jobs and making minimum wage, I tried to apply for better jobs that would pay more than ust the minimum wage. These jobs required a higher education such as having a two or four year college degree, which I did not have. I soon realized that I had to go back to school to obtain a higher education. I hated the fact that I had basically wasted three years. Now I encourage my younger sister to go to college right out of high school.By doing so, she wouldn’t waste time working in dead-end jobs making minmum wage. Instead she would concentrate on getting a better education which would provide her with a better paying job. I didn’t want my sister to learn the hard way that she could have been better off by going to college ather than working right out of high school. I felt good to see my sister’s interest in applying early to go to college right after she graduates from high school. Although she is still a junior in high school, I am glad she has learned from my mistake of not taking my parent’s advice when I had the chance. Fortunately, I did go back to school, and now I’m in my last semester of college. I guess it is better late than never.