Micro Economic Development

"Trust" Self help group: as of  January 2011

"Trust" Self Help Group

It has been almost 4 years since 8 tailors who had been worked at home gathered together to set up a group named Itgel which means Trust in Bayankhongor Soum. When this group first joined together, it was only for the purpose of accessing a business loan, but now they have shared their experiences with each other and are learning new skills so they can increase the value of their work.

With their knowledge of special Mongolian customs, this group of deel and khantaaz (traditional Mongolian garments) tailors transformed their product’s name and variety by combining their efforts.  A Mongolian deel is a long, colorful robe adorned by a cloth belt of a contrasting color.  Previously, each member of the group sewed her deels at home.  Each deel took one day to make, but only yielded USD 4 -8 profit per piece.  Now, these business people have cut costs and increased sales by making deels from prefabricated materials and by bringing together their 6 electric sewing machines into one apartment that they now jointly rent for USD 60 per month.

Knowing that one deel per day was not enough, they worked together to increase production and basic capital through their cooperative business.

“At first, we didn’t have enough financial resource options available or enough knowledge or skills to invest in business,” the group members said.  “By participating in ADRA Mongolia SHG project trainings and learning for ourselves how to engage in business, we learned skills, and so began our first business. We divided up the work among ourselves so everyone had a role and responsibility to supply our seller channel and increase output.  We all competed to increase the satisfaction of our larger customers and the necessities of our subscribers.”

By July 2010, the “Itgel” SHG took out total amount of USD 6120 loan to expand their business capabilities.  With that money they bought 7 electric sewing machines, a steam iron, a bench, and a cross-stitch.  Benefiting from using ADRA’s business functions, the group even managed to save USD 8224 during that time.

This group was working with an average of USD 11520 in sales income during 2008. In 2009 their income increased by 31 percent or USD 15360.  One group member’s share was approximately USD 2200 with a monthly salary of USD 183.

The group still works at a profit as it increases product size and quantity, but they are also concentrating more on the quality of their products.  In the future, they hope to work harder and learn more, including other ADRA group members to help them increase their skills.

By 2010, the Group reached their goal. All group members took vocational trainings, and launched a process to establish a co-op.