CREAMing Management Knowledge for NGO enterprise

CREAM - Course in Rural Entrepreneurship, Administration and Management. The idea behind setting such an organisation was the need to bring entrepreneurship knowledge to NGO enterprise. Quoting Bablu Ganguly of Timbaktu “The people that we work with should participate in larger markets and they should do so from a position of strength , We must work on equipping them with skills and knowledge too do so”, this was the genesis or starting point of CREAM.

CREAM basically is a management course for adults, taking into consideration low literacy levels of the participants, the different backgrounds as well as the capability to absorb knowledge.

Bablu went on to explain about how barren the land of Timbaktu was and their efforts to rejuvenate it.

Following this there was a need to set up a livelihood enterprise for the people of Timbaktu, many options were tried but since sales was using friends network it did not last and the system collapsed. He felt the need to engage with the market not in the competitive way , but as a livelihood issue.CREAM helps in understanding the market, what product will sell, finance, systems, production.
After taking the training from CREAM people got into the business of neem powder making and labour cooperative doing business in meat production, weaving centres.

Ranjit from CREAM explained the different concepts one has to learn to run a business, he spoke about concepts like Profit and Profitability , business viability – which measure a business by its long-term survival, and its ability to have sustainable profits over a period of time. If a business is viable, it is able to survive for many years, because it continues to make profit year after year. The longer a company can stay profitable, the better its viability... The third concept is Risk management which is managing uncertainties. Opportunity Costs which is basically a concept which helps you analyze which option to choose among the various options. The Sixth concept is working capital and working capital management which is about setting aside money to carry out the day to day business since the customers may after a period of time.
They also mentioned about forecasting, and lastly about planning and tracking. These were all the threads woven into the business.

All the above concepts are broken down to sub concepts and taught at 3 levels , each level utilizing the concepts of the previous level . Level O concepts are of percentages, ratios. Level 1 deals with direct and indirect costs in producing a particular product, which helps you to choose which product is profitable. Level 2 deals with break even analysis, which in turn uses level 0,1 concepts.

The faculty of CREAM are professionals, with business management experience who need to put in a minimum of 5 days a year.

The programmes carried by CREAM were for Timbaktu collective, for the Govt of Kerala for the Kudumbashree project, in Ranchi, and also in Rajashthan for Seva Mandir, The training also includes a feedback program where after 6 months, 1 year the participants come back with their problems and developments which is shared with the trainers. This is something the normal Business Administration courses don't do.

The course is for 5 days a month of classroom studies and the remaining being practicles, for Six months .At the beginning of the course the participants an assessment of their level of knowledge is done so as to modify the learning method.

Some of the audience had raised questions on whether the course will help them choose a business.

Ranjit clarified saying that this was not possible basically since business depends on the field data which is different in different locations. He further went on to saying that the Course taught basic concepts which needed to be applied and that the concepts empower them to choose a business idea. He felt that there was no dearth of ideas and the course gives the rigor to weed out nonviable ideas.

CREAM can also help in training consultants- who in turn can train a number of other entrepreneurs.

Some of the concepts the trainers at CREAM felt the participants had to unlearn is that profitability is on the cost not on the Revenue , and that ownership of the business has to be with the people. Participants also need to understand that Equity is also a means of getting money to run the business , and that equity doesn't mean that control of the business is going outside . They need to realise that since in equity only if there is a profit you pay the shareholders whereas in loan irrespective of profit or loss the payment has to be made.

When asked about whether the environment aspect of business is taught at CREAM . They responded to this question saying that the NGO organisations awareness about the environment is their strength and what they are lacking is the financial concepts to get the enterprise working. Also it is very unfair to to talk to the marginilised about the environment aspect .