Job creation model
Our model for business creation - initially developed by HiH India- is distinctive and comprehensive. We blend social mobilization and business training with access to micro- credit and larger markets.
We work in four stages:
Fist we create community groups, mainly women, who support each other, save together and learn together.
Then we train the group members to discover and develop small business opportunities that make use of their skills and potential.
Most groups hold joint savings and start lending internally to group members. If the group loans are insufficient for a member to grow their business, we also provide access to micro-finance.
Finally we help to scale up members’ businesses by connecting them to larger markets and helping them to move into higher margin products.
Other organizations often focus on one or two of the four elements of this model while Hand in Hand integrates all four into a holistic and systematic process, progressing from one to the next while constantly measuring impact and results.The clarity of our approach renders it highly cost-effective, as it can be replicated in different national contexts. On average, the cost of enabling a long-lasting job varies between US$ 35 and US$ 220 across the hand in hand network, which compares favorably to other initiatives which train the poor to become entrepreneurs. A study published in 2012 by the Institute for the Study of Labor found that the cost to train an individual alone – not the cost per job – ranges from US$ 21 to US$ 400 in other programs.