Impact Evacuation of Chief Minister Self Employment Scheme (CMSES) for Punjab Small Industries Corporation (PSIC)
Access to finance plays a vital role for the expansion and running of small firms. Many studies and projects have deemed debt as a source of capital and rightfully so. Micro finance schemes are gaining popularity in a number of countries and are serving the role of providing capital for small businesses. Such a micro finance scheme was implemented on a mass scale basis in Punjab (province of Pakistan) titled as the "Chief Minister's Self Employment Scheme (CMSES)."
The Chief Minister's Self Employment Scheme is a government initiative made by the Punjab Government in November 2011. This scheme was aimed towards helping the poor people of Punjab by providing them with loans in order to enhance their living economic standards.
IPOR was selected to conduct an Impact evaluation of this project being implemented in collaboration with Akhuwat (an interest free Islamic micro-finance lending organization). IPOR used mix qualitative and quantitative methodology for data collection. Focus Group discussions in various cities were held while quantitative data from 5,431 male and female beneficiaries of the loan scheme across all 36 districts of the Punjab was collected.
The major finding of the study is that, this Public Private Partnership Model (PSIC & CMSES) has been successful in providing for the needy and in aiding them to live a better life.
- 91% of the respondents in fact said that this loan scheme helps in the provision of education, health and provides with the other basic amenities of life.
- Survey findings show that majority of loan beneficiaries find this scheme very helpful and convenient. Majority 98% respondents shared that they return installments
- 96% did not face any challenge/issue in applying for loan.
- The overall scheme seems fair as 99% beneficiaries informed that they never paid bribe to anyone for getting loan.
- The services of Akhuwat staff have also been appreciated by the respondents and majority 98% stated that Akhuwat staff guided them well.
- There was strong demand by the borrowers to increase in the loan amount.
- 98% of respondent agreed with the statement that "CMSES is the best initiative to assist the less-privileged community to improve their financial condition" while 81% showed agreement that "In absence of CMSES's micro finance project, I would not have been able to meet and successfully manage my finances"