MICRO-ECONOMIC PROJECT FOR WOMEN IN URBAN POOR

COMMUNITIES
(A Project Proposal)

Project Background

Early this year, the University of San Carlos, through its Community Extension
Services Office (USC-CES) conducted a survey profile of the Basic Ecclesial Communities
(BECs) in Talisay, Cebu which the former have been assisting. One of the pictures that
emerged from the aforementioned survey shows that more than half (53%) of the total
BEC membership are women. Of this, 93% never had College (Tertiary) education. The
survey profile also shows a strong relationship between educational level and employment
options available to women. In urban areas where the labor market is very competitive,
women from poor urban communities like those from the BECs in Talisay, Cebu find
themselves edged out from the labor market.

This situation forces the women from Talisay BEC to look at other areas of
economic opportunities available to them. After a series of consultative meetings, the
women have identified some micro-enterprises that would make them productive partners
in their respective families. One of the identified micro-enterprises is Garment Production.

As a start, the women asked the assistance of several agencies and private
individuals to be able to set-up an informal class on garment production in their area.
Consequently, an informal class on the basics of garment production was conducted by the
Technical Skills Development Authority (TESDA) to an initial group of 20 women.
Classes were conducted on-site (at Talisay) to enable interested nursing mothers to
participate. The first batch of 20 women graduated last September of this year. Because
of the positive and visible effect of the on-site garment production class in building women
economic capabilities, efforts to seek to continue the classes are on-going. Meantime, the
women who have graduated from the first garment production class is now putting its
vision and efforts in implementing an economic project that would productively utilise
what they learned from their garment production classes. This Project Proposal is a
concrete effort to pursue such vision.

Project Objectives

This Project aims to expand access of women from urban poor communities to
economic opportunities by helping build their productive capabilities through an enabling
process. Specifically, the Project aims to accomplish the following objectives within a
span of 3 years:

1. Provide employment to at least 25% of the unemployed women membership of the

Basic Ecclesial Communities from Talisay.

2. Enable project beneficiaries to earn at least a daily income equivalent to the current
minimum daily wage.

Project Description:

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 The Project will have have three(3) major components: Productivity Development,
Marketing Operations and Institutional Development and Strengthening.

Productivity Development refers to the continuous enabling and development of the

productive capabilities of the project beneficiaries. This involves continuous trainings to
expand their skills in garment production. Skills training will proceed from basics to some
specialised areas needed by the operations like designing, cutting, embroidery, etc.

Marketing Operations will enable the project beneficiaries to market their own outputs
and as such derive maximum benefits from their labour. This component will enable the
project beneficiaries to identify, develop and nurture its target markets.

Institutional Development and Strengthening. Under this component, activities aimed to

organise the project beneficiaries into a cohesive social and economic organisation will be
undertaken. Through this component, the project beneficiaries will be able to evolve an
effective project organisation that will ensure the projects sustainability.

Marketing Aspect

The Project will focus on serving both domestic re-seller markets as well as
consumer markets with its garments and textile home furnishing products (curtains and
bedsheets).

There are about 10 schools located nearby Talisay with an approximate total
population of 40,000 students. The Project aims to serve at least 10% of this population.
Talisay is home to many garment businesses (re-seller market) which the Project can serve
as sub-contractor. On the other hand, there are no less than 10 subdivisions within the
municipality of Talisay. These subdivisions have an approximate current household
population of not less than 2,000 and expected to grow at 3% annually for the next five
years. The Project seeks to serve the textile home furnishing needs of at least 5% of these
households within the period of three years. The table below shows a conservative
estimates on the demand of the Projects target market.

Institutional Market:

Year 1 Year 2 Year 3

No. of re-seller clients 2 4 10
No. of units per client (aver.) 600 1200 1200
Total 1200 4800 12000

Consumer Market:

a) No. of students 3% 5% 10%

1200 2000 4000

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 No. of units per student at
(1) set of uniform/student 2400 4000 8000

b) No. of households 30 40 100

No. of units per household 6 6 6
Total 180 240 600

Total Projected Demand 3780 9040 20600

Total Project Beneficiaries 18 30 30
Aver. Revenue per unit (Ph Pesos) 100 150 200

Total Revenue from Labour P 378000 P 1356000 P 4120000

Technical Aspect

The Project will procure two types of sewing machines: 30 Twin Master 424 and 6
units of Discomatic 424 zigzagger. Each project beneficiary will be assigned one Twin
Master 424 for her own use. Proper maintenance and repair expenditures shall be the
responsibility of the individual project beneficiary who has the option to purchase the
machine on installment basis payable within 3 years. The individual project beneficiary
likewise take care of providing herself with the other necessary tools for her operation
such as scissors, needle, thread, etc. The institutional and household markets will provide
the materials for their orders and will only pay the labour using labour contract
arrangement. The Project assumes that it will handle 50% of the materials needed for the
students uniforms for which it will charge a mark-up of 10% over purchase price.

The zigzagger machines will serve as a common service facility of the project
beneficiary at 5 producers per zigzagger. Production will be done by individual producers
at their respective homes under allocation system. This scheme allows the Project to save
on capital outlay at the same time allows mothers, especially those who are nursing, to
work without leaving their homes and children. The allocation of lot size to be produced,
quality control, and marketing will be the responsibility of the producers organisation.
For doing these functions the Project organisation will get 20% of the total revenue from
labour. The 80% goes to the producing members or project beneficiaries based on their
number of units produced.

A community-based technical skill classes on garment production will continue to

serve the skills upgrading need of the producers.

Running parallel to the marketing and production activities are continuous

activities aimed to organise the project beneficiaries into a cohesive and sustainable social
and economic organisation. This Organisation will be registered either with the Securities
and Exchange Commission as a non-stock, non-profit entity, or with the Cooperative
Development Authority and will play an important role in the Project operation.

Project Costs

Capital Outlay:

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Twin Master 424 Sewing Machine 30 units @ P 8,519.50 each .... P255,585.00
Discomatic 424 Zigzagger 6 units @ 13,189.00 each .... 79,134.00
Office Furnitures
Tables 2 units @ 2,500.00 each .... 5,000.00
Chairs 6 units @ 350.00 each .... 2,000.00
Calculator 1 unit @ 300.00 each .... 300.00
Filing Cabinet - 4 drawers 1 unit @ 6,000.00 each .... 6,000.00

Sub-total 348,019.00

Working Capital: 170,000.00

Human Resource Development

Productivity Development (1 training per quarter at P50,000/training)

P50,000 X 4 qtrs. X 3 years .................................................. 600,000.00

Institutional Development and Strengthening (1 training per semester )

P30,000 X 2 semesters X 3 years ........................................ 180,000.00

Estimated Total Project Cost P1,298,019.00

Proposed Cost Structure

Funding Source
Cost Item Project Beneficiaries, Foreign Source Total
Equity
Capital Outlay P 348,019.00 P 348,019.00
Working Capital P 20,000.00 150,000.00 170,000.00
Human Resource Devt.
Productivity Development 300,000.00 300,000.00 600,000.00
Institutional Development
and Strengthening 45,000.00 135,000.00 180,000.00
Totals P 365,000.00 P 933,019.00 P1,298,000.00

Project Organisation

The Project will be operated and managed by the Project beneficiaries themselves
through their organisation.

The Project organisation adopt a simple and straight-forward structure as shown

below:

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 E x e c u t iv e C o u n c il

P r o je c t M a n a g e r

T r e a s u r e r /B o o k k e e p e r

PRODUCERS

P R O D U C T IV IT Y C I R C L E A P R O D U C T IV I T Y C IR C L E B P R O D U C T I V IT Y C IR C L E C P R O D U C T I V IT Y C I R C L E D P R O D U C T IV I T Y C IR C L E E

The Executive Council will be composed of 3 representatives elected from among

the Project beneficiaries. The main function of the Executive Council is to formulate
and/or approve Project policies. The Executive Council meets quarterly.

The Project Manager who is elected from the Executive Council or appointed by
the former from among qualified members of the Community, implements the decision or
policies of the Council, coordinates, and manages the overall Project operations. This
includes allocation of production quotas, market development, marketing and financial
management.

The Treasurer/Bookkeeper ensures the efficient recording and safekeeping of

records of all Project transactions and Project funds.

The Project beneficiaries will hold a monthly meeting. These meetings among
others, will form part of the Project monitoring and evaluation mechanisms.

Financial Aspect

While the Project projects a loss during its first year of operation, it shows a
projected profit of P112,603.00 and P 658,073.00 on its second and third year of
operation. The first year projected losses is due to expected low revenues considering that
the Project is still feeling its way around its target market. With a total investment of P
1,298,000.00 million and a total net profit of P 715,479.00 the Project shows a very high
accounting return on investment.

As the subsequent projected income statement and table (B) will show, the Project
is profitable both at the Project and at the beneficiaries levels.

A. At Project Level

Micro-Enterprise Project for Women in Urban Poor Communities

Projected Income Statement
For Three Years Ended

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 Year 1 Year 2 Year 3
Revenues:
From Labour Contracts P 75,600 P 271,600 P 824,000
Mark-ups on Materials 9,000 P 84,600 19,500 P 290,700 45,000 P 869,000

Less Operating and Administrative Expenses

Salaries - Manager P 65,000 P 78,000 P 91,000
- Treasurer 23,595 36,595 43,095
Bonuses - 8,815 10,815
Honoraria 6,000 6,000 6,000
Rent 3,000 3,300 3,630
Depreciation 31,202 31,202 31,202
Transportation 10,000 20,000 30,000
Delivery Expenses 1,000 P 139,797 3,000 P 178,097 6,000 P 210,927
Net Income/Loss Before
Retained Earnings (P 55,197) P 112,603 P 658,073
Less Retained Earnings 77,718 197,422
Net Income After Retained Earnings P 34,885 P 460,651
Distributed Earnings ( 28 beneficiaries) per Project Beneficiary P1,245.90
( 30 beneficiaries) P 15,355

B. At Project Beneficiary Level

Year 1 Year 2 Year 3

Total Projected Demand (in pieces) 3,780 9,040 20,600

Average Revenue Per Piece for labour 100 150 200
Total Revenue for labour P 378,000 P 1,356,000 P 4,120,000
Share of Project Beneficiaries x .80 x .80 x .80
P 302,400 P 1,084,800 P 3,296,000
Total Project Beneficiaries 18 30 30
Total Earnings from labour P 16,800 P 36,160 P 109,867
Add: Share in distributed earnings - 1,245.90 15,355
Total Earnings from project P 16,800 P 37,405.90 P 125,222

Projected Income Statement Schedules

1. Labour Contracts Revenue:

Y1 : Total Revenue from labour x 20% (P 378,000 x .20) = P 75,600

Y2 : Total Revenue from labour x 20% (P 1,356,000 x .20) = P 271,200
Y3 : Total Revenue from labour x 20% (P 4,120,000 x .20) = P 824,000

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2. Marks - ups from Materials
Mark-up is 10% of purchase cost
Per piece of uniform is estimated to consume an average of 1.5 meters

Y1 : 2,400 units x .50 x 1.5 meters x P 50/meter = P 90,000 x .10 = P 9,000

Y2 : 4,000 units x .50 x 1.5 meters x P 65/meter = P 195,000 x .10 = P 19,500
Y3 : 8,000 units x .50 x 1.5 meters x P 75/meter = P 450,000 x .10 = P 45,000

3. Salaries
3.1 Managers : P 5,000/month for the first year; with P1,000 increase every year
3.2 Treasurers : Works only for half day every day; P1,815/month for the first year
with P1,000 increase on monthly salaries the years thereafter
3.3 Bonus : Equivalent to one-month Salary
3.4 Honoraria : P 500 per meeting/session per member

Year 1 Year 2 Year 3

Managers Salary (P5,000 x 13 mos.) P 65,000
(P6,000 x 13 mos.) P 78,000
(P7,000 x 13 mos.) P 91,000

Treasurers Salary (P1,815 x 13 mos.) P 23,595

(P2,815 x 13 mos.) P 36,595
(P3,815 x 13 mos.) P 43,095
Honoraria : P 500 x 3 members x 4 quarters = P 6,000

4. Operating and Administrative Expenses

5. Rent (Office) : P 3,000 per month with annual increase of 10%
6. Depreciation : Estimated useful life machines is 10 years
Estimated useful life of office furniture is 3 years
Straight-line method is used

Yearly Depreciation Expense - Machines : (P 334,719 - P 36,000) 10 yrs =

P29,872
Yearly Depreciation Expense - Furnitures: (P 13,300 10 yrs =
1,330
Total Yearly Depreciation Expenses P31,202

4.3 Transportation Expenses

Estimated at P10,000 for Y1; P 20,000 for Y2 and P 30,000 for Y3

4.1 Retained Earnings

Y2 : 20% of gross profit + loss increased in Y1
Y3 : 30% of net income before retained earnings
MICRO-FINANCING SUPPORT TO WOMEN ENTREPRENEURS IN
URBAN POOR COMMUNITIES
(A Project Proposal)

7
PROJECT RATIONALE

Early this year, the University of San Carlos, through its Community Extension
Services Office (USC-CES) conducted a survey profile of the Basic Ecclesial Communities
(BECs) in Tangke, Talisay, Cebu which the former have been assisting. One of the pictures
that emerged from the aforementioned survey shows that more than half (53%) of the total
BEC membership are women. Of this, 93% never had College (Tertiary) education. The
survey profile also shows a strong relationship between educational level and employment
options available to women. In urban areas where the labor market is very competitive,
women from poor urban communities like those from the BECs in Tangke, Talisay find
themselves edged out from the labor market.

This situation forces the women from the aforementioned BECs to engage in other
productive activities in order to help their families survive. Of the total women-members of
the BECs in Tangke, Talisay, 22% or 44 are engaged in vending various products. But
since these women are not eligible to borrow from banks, they borrow the money they use
as capital at 20% daily interest (a scheme commonly referred to as five-six) from
usurers. Hence, a substantial portion of their earnings from vending goes to paying the
exorbitant interest. Aside from the 44 women already engaged in vending, many of the
201 women-members of the BECs in Tangke desire to engage in different entrepreneurial
undertakings as a means of earning but shun the high cost of capital. As this group of
women attempt to search for solutions to their predicament, the idea of coming up with a
micro-financing project that will support the entrepreneurial women-members of the BECs
in Tangke came up in one of their group meetings. This Project idea was further
discussed in subsequent informal meetings and pursued through this Proposal.

PROJECT BENEFICIARIES AND OBJECTIVES

This Project aims to expand access of women from urban poor communities to
economic opportunities by helping build their productive capabilities through an enabling
process. The Project specifically identifies the women-members of the Basic Ecclesial
Communities in Tangke, Talisay as project holders at the same time, beneficiaries. Within
3 years from operation, the Project aims to have accomplished the following objectives:

1) Enabled at least 50% of its beneficiaries to earn at least a daily income

equivalent to the current minimum daily wage through entrepreneurial
undertakings.

2) Organized the project beneficiaries into a viable and self-governing Cooperative

managing its own community-based financing operations.

PROJECT DESCRIPTION

The Project has three (3) major components: Micro-financing, Entrepreneurial

Skills Enhancement and Cooperative Development.

Micro-financing basically involves providing highly affordable, short-term financing

support to micro-enterprises with capital requirement of not more than P50,000.00.
Project beneficiaries will be organised into cells composed of 5 members each. Loans
will be granted only after passing the application requirements which include a favorable

8
result on the assessment of the profitability of the enterprise for which the loan will be
used. Individual loans will be collateralized by all of the other cell members who stand
as co-makers of the loan. An appropriate collection mechanisms and system shall be
likewise instituted to avoid delinquency in loan payments.

Entrepreneurial Skills Enhancement. This component complements micro-financing.

Under this component, project beneficiaries will continuously receive practical trainings
aim to impart knowledge and develop skills needed in profitably operating their
entrepreneurial ventures, thereby minimizing incidence of failure.

Cooperative Development. Under this component, activities aimed to organise the

project beneficiaries into a cohesive and economic organisation will be undertaken.
Through this component, the project beneficiaries will be able to evolve an effective
project organisation that will ensure the sustainability of the Project.

MARKETING ASPECT

The Project will focus on serving the short-term financing needs of the women-
entrepreneur members of the Basic Ecclesial Communities in Tangke, Talisay. The project
intends to reach 15% of the total women-members of the BEC within its first year of
operation. By the end of the 3rd year, the Project shall have reached 50% of its target
market. There estimates are shown by the table below.

Table 1
Demand Estimate

Y1 Y2 Y3 Total

No. of clients 30 60 100 100

Average credit requirement per Person P 5,000 P 7,500 P 8,000
Total Credit Requirement P150,000 P450,000 P800,000

Since the project beneficiaries are at the same time the Project owner, they are
expected to patronize and nurture the Project. This spirit will be the Projects greatest
competitive advantage over the usurers in the area.

TECHNICAL ASPECT

Micro-Financing

The Project beneficiaries will be grouped into cells of 5 each. The cell members
solidarily stand as co-maker of the loan made by any of its members. Loans will be
granted only after an applicant passes the application requirements which include among
others a favorable result of the assessment of the profitability of the business venture for
which the loan will be used. Applicants will be made to attend an orientation of the
Projects procedures as part of loan application process.

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 Loans will be charged an interest rate of 3% per month. Another 2% will be
charged to cover administrative costs for loan servicing. The interest on the loan will not
be discounted thereby allowing the beneficiary to have maximum use of the money she
borrows. The service charge however will be deducted from the principal upon release of
the loan. Loan application processing should be finished within 3 days from the time of
submission of the loan application. All considered, the effective rate offered by the Project
is way below the 240% per annum interest charged by usurers in the area.

Terms of payments appropriate to the nature of the beneficiaries business

undertaking will be adopted. An aggressive collection system will be instituted. Among of
the features of this system is the daily collection of interest and principal payments by
personnel hired by the Cooperative on a commission basis. The collection function will be
done by the Project Manager during the first year of the Project operation. Subsequently,
another collector will be hired by the Cooperative to meet the demand of a growing
number of clients.

Entrepreneurial Skills Enhancement

All Project beneficiaries will be given the opportunity to undergo a basic

entrepreneurial training. The result of this training will help provide the Project some
benchmark data indicative of the entrepreneurial capability and potential of each of its
members. This data will also serve as a useful reference in evaluating loan applications of
the members.

Project beneficiaries with approved loan applications would be made to attend a

one-day orientation session on the Projects procedures and regulations. During this
session, participants will also be given inputs on the basics of money position management.
The knowledge gain from this input is an immediate and an important need in any
entrepreneurial undertaking.

The Project will provide at least 1 relevant entrepreneurial skills enhancement

training per quarter to its beneficiaries within the first year of the latters business
operation to inculcate business sense in managing their micro-enterprises. These trainings
will be partly subsidized by the Cooperative. The subsidy will come from the revenue
generated from the financing operations. The equity of the participants in these trainings
will be determined by the nature of the training.

Cooperative Development

The cooperative development process will essentially go through the following

stages: formation, capability building and strengthening, and business portfolio expansion.
The latter stage will commence on the latter part of the third year of Project Operation.
The first stage will start at least 3 months before the start of the financing operations. The
activities under this stage will run parallel with the organisational and operational planning
stage of the micro-financing component. Within the first stage, the following are expected
to be accomplished: membership recruitment and orientation, formation of organisational
structural mechanisms, and registration of the Cooperative with the Cooperative
Development Authority.

The capability building stage will run parallel to the micro-financing and
entrepreneurial skills enhancement activities. While the latter aims at building individual

10
entrepreneurial capabilities, the capability building stage aims at building and
strengthening the functional capabilities needed by the Cooperative as a social and an
economic organisation.

Integral to the capability building component of the Project are activities that will
help the spiritual growth and enrichment of the members.

Project Cost

1. Capital Outlay
Tables 2 units @ P 2,500 each . . . . . . . P 5,000
Chairs 10 units @ P 350 each . . . . . . . 3,500
Calculator 2 units @ P 300 each . . . . . . . 600
Filing Cabiner-4drawers 1 unit @ P 6,000 each . . . . . . . 6,000 P 15,100

2. Working Capital 200,000

3. Entrepreneurial Enhancement ........ 120,000

(P10,000 x 4 qtrs. x 3 years)

4. Cooperative Development
(P30,000 x 2 sems. x 3 years) ........ 180,000

TOTAL ESTIMATED PROJECT COST P 515,100

Proposed Project Cost Structure

Funding Source
Cost Item Proj. Beneficiaries Equity Grant Total

1. Capital Outlay P 15,100 P 15,100

2. Working Capital 200,000 200,000
3. Entrepreneurial Enhancement P 60,000 60,000 120,000
4. Cooperative Development P 90,000 90,000 180,000
P150,000 P365,100 P515,100

29% 71%
100%

PROJECT ORGANISATION

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 The Project will be managed by the Cooperative composed of the women members
of the BECs in Tangke, Talisay. The Cooperative will adopt a very lean and simple
organisational structure as shown below:

M E M B E R S H IP

BOARD OF TRUSTEES

PRO JECT M ANAG ER

C L E R K /B O O K K E E P E R COLLECTOR

P R O J E C T O P E R A T IO N S

M IC R O - F IN A N C IN G E N T R E P R E N E U R IA L E N H A N C E M E N T C O O P E R A T IV E D E V E L O P M E N T

The membership will have the generic functions, responsibilities and powers
provided by the Cooperative Law and will convene in a general assembly once every year.
The general assembly however, can be convened in emergency situations.

The Board of Trustees is composed of 5 elected representatives from the

membership. The Board will convene every month during the first half of the first year of
operation and quarterly thereafter. Board members received an honorarium every session,
the amount of which will be agreed upon by the Assembly. Honorarium however will be
waived during the first 6 months of Project operation.

The Project Manager shall be elected from among the Board of Trustees or
designated by the Board from among its membership. The Project Manager is responsible
of the overall Project operations and exercise supervision over the Project Staff. The
Project Manager will be paid a monthly salary of P 6,000 plus a certain percentage of net
income (to be determined by the Board) after retained earnings as bonus.

The Project staff is composed of the collector who functions as clerk at the same
time and will be paid a monthly salary of P4,500 plus a certain percentage of net income
after retained earnings as bonus. The bonus will be determined by the Board. The
collector will be hired starting on the second year of Project operation. The collecting will
be done by the Project Manager on the first year operation.

FINANCIAL ASPECT

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 While the Project has only an accounting return of investment of 20%, the biggest
contribution of the Project is in providing 100 people the opportunity to have a decent
source of income and in developing and strengthening local institutions among urban
communities.

Table 2 below shows a projected income statement of the Project

Table 2
Micro-Financing Support to Women Entrepreneurs in
Urban Poor Communities
Projected Income Statement

Year 1 Year 2 Year 3

Revenue from Operations :
Interest Payments P 54,000 P162,000 P288,000
Service Charges 12,000 36,000 64,000
Proceeds from Forms 600 1,200 2,000
Monthly Dues 3,000 P58,800 6,000 P205,200 12,000 P366,000

Less Operating Expenses

Salaries 72,000 133,200 146,520
Bonuses 0 0 12,210
Honoraria 3,000 4,000 4,000
Rent 6,000 6,300 6,615
Electricity 3,600 3,780 3,969
Office Supplies 12,000 18,000 18,000
Transportation Expense 6,000 6,000 6,000
Depreciation Expense 5,033 107,633 5,033 176,313 5,033 202,347
Net Profit/Loss from Operations (P 48,833) P 28,887 P163,653
Add other Revenues
Equity for Trainings 4,000 8,000 14,000
Membership Fees 2,500 6,500 5,000 13,000 10,000 24,000
(P 55,333) P 41,887 P187,653
Less Training Expenses ( 8,500) ( 22,000) ( 40,000)
Net Profit/Loss Before Retained (P 46,833) P 19,887 P147,653
Earnings
Retained Earnings 0 (19,887) 73,826.50
Dividends 0 0 73,826.50
Net profit/Loss after Ret. Earnings (P46,833) 0 0

SCHEDULES TO PROJECTED INCOME STATEMENT

1. Revenues:
2. Interest Payments
Y1 : P 5,000 x 30 borrowers x 3% per month x 12 mos. = P 54,000
Y2 : P 7,500 x 60 borrowers x 3% per month x 12 mos. = P162,000
Y3 : P 8,000 x 100 borrowers x 3% per month x 12 mos. = P288,000

3. Service Charge (2% of Principal)

Y1: P 5,000 x 30 borrowers x .02 = 3,000 x 4 (annual turn-over) = P 12,000
Y2: P 7,500 x 60 borrowers x .02 = 9,000 x 4 (annual turn-over) = P 36,000
Y3: P 8,000 x 100 borrowers x .02 = 16,000 x 4 (annual turn-over) = P 64,000

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 1.3 Proceeds from Forms
Y1: 30 borrowers x 5 x 4 times/year = P 600
Y2: 60 borrowers x 5 x 4 times/year = P1,200
Y3: 100 borrowers x 5 x 4 times/year = P2,000

1.4 Monthly Dues

Y1: 50 members x P5/month x 12 mos. = P 3,000
Y2: 100 members x P5/month x 12 mos. = P 6,000
Y3: 200 members x P5/month x 12 mos. = P12,000

1.5 Equity Payments for Trainings

a) Entrepreneurial
Y1: 30 borrowers x P25 x 4 qtrs. = P 3,000
Y2: 60 borrowers x P25 x 4 qtrs. = P 6,000
Y3: 100 borrowers x P25 x 4 qtrs. = P10,000

b) Cooperative Development
Y1: 50 members x P10 x 2 semesters = P 1,000
Y2: 100 members x P10 x 2 semesters = P 2,000
Y3: 200 members x P10 x 2 semesters = P 4,000

1.6 Membership Fees

Y1: 50 members x P50 = P 2,500
Y2: 100 members x P50 = P 5,000
Y3: 200 members x P50 = P10,000

2. Salaries and Bonuses Y1 Y2 Y3

3. Project Manager cum Collector

4. Monthly Salary: P6,000 increasing P 72,000 P 79,200 P 87,120
by 10% per annum
5. Bonus 0 0 0

2.2 Collector cum Clerk

6. Monthly salary of P4,500 0 54,000 59,400
increasing by 10% per annum
plus bonus
7. Bonus 0

8. Honoraria
P100 x 5 persons x 2 quarters 1,000
200 x 5 persons x 4 quarters 4,000 4,000

9. Rent (P500/month increasing by 5% every 6,000 6,300 6,615

year)

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10. Electricity (P300/month increasing by 5% 3,600 3,780 3,969
every year)
11. Office Supplies: Y1:P1,000/month 12,000 18,000 18,000
Y2-Y3:P1,500/month
12. Transportation Expense: P500/month 6,000 6,000 6,000
13. Depreciation
14. Using straight-line method;
15. 15,100 3 yrs. = P5,033 5,033 5,033 5,033

16. Training Expenses (P50/per/trng)

17. Entrepreneurial 6,000 12,000 20,000
18. Cooperative Development 2,500 10,000 20,000

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