Liaise, Contribute and Grow.
1. The problem we are committed to solving is inherent in both the long and short terms. In the long term, getting informal workers to dutifully save for the future, and in the short term, ensuring that these workers handle costs that may arise due to unexpected happenings such as the COVID-19 pandemic.
2.To ensure that these informal sector workers are given ample opportunity to cultivate a savings culture through the grouping system that will give them an edge in their purchasing power and broaden their horizons in vocation.
3. With data analysis, groups will be strengthened in the next 1-3 years to pair up with other members from different countries based on their similar interests to reduce overall costs and ensure maximum productivity among members.
This scheme is for the "missing middle." As already stated, they're either not "too poor" for social safety net benefits or are not eligible for formal social insurance programs. How can they save their money for the future and even after their young age? As the informal sector drives most of the economy, how can a country benefit from a well-backed informal sector? If the businesses of these informal workers are growing, there would be an increase in employment rate, an increase of the general country's GDP, and increase unity among citizens. We want to tackle the hindrance of growth in the effort of individual informal workers. If they can form an entity and make similar strides together, they can efficiently address unforeseen circumstances and better their vocation individually. For example, Informal workers account for 65% of Nigeria's population. However, most of these informal workers are struggling and can't move forward with their incomes. If they are given opportunities to expand their vocations and business, there would be a massive hike in Nigeria's economy.
This solution seeks to improve the lives of petty traders, small scale enterprise owners, and the like who are financially incapable of buying directly from wholesalers as the need arises. Hence, with this solution, our target population is opportune to purchase their goods on average quantities depending on their choice of seeing the grouping scheme in place. Certain implementations would be put in place to understand the varying needs of our target population, including ensuring they have group accounts (with similar informal workers and other factors) that would facilitate the loan process. Also, on-ground field agents would be put in place to help groups interact with mobile banking apps and USSD codes and record and receive paid back loans in case of limited internet coverage. Moreover, groups can monitor their saving progress by meeting the nearest agent. Invariably, this solution will address their needs through a stress-free payment plan in their distinct groups, as they require advancement in their respective businesses.
- Deploying features that promote the continuity of contributions to social insurance schemes from informal sector workers, incorporating behavioral tools that incentivize and encourage financial savings, transparency, and accountability
- Idea: A plan or concept by an individual or organization.
- A new business model or process
What makes our idea stand out is that informal workers are motivated to pay up loans collected. Why are they motivated? the contribution scheme put in place which consists of groups stratified by factors such as age level of experience, location, and so on has paved the way for these informal sector workers to pay their retirement funds without getting affected. From that interest gotten from the group, 15% would be deducted and paid into each group member's account kept aside as retirement funds(with a high ROI). 35% would go into the group's savings account that can be shared amongst members or given as a whole to a member and rotated amongst the group until a cycle is complete. In conclusion, Informal workers indirectly pay for their retirement funds. When the group agrees that a single member can take the 35% stipend, other members would be motivated to complete more loan payments to enjoy the benefits.
Activities:
- Informal workers divide themselves into groups according to the type of work, location, age group, experience level, and other factors.
- Give out loans to these groups.
Short-term outcomes:
- Unity among group members.
- Increase in income for individual businesses.
Medium-term outcomes:
- Higher loans are requested.
- Increase in the employment rate.
Long-term outcomes:
- Increase in the GDP of developing countries
Our solution can be incorporated into social protection programmes through the formulation of policies that will aid skill acquisition for these workers, some of whom have deviated from what they know due to arising crises and inability to support their developing skills just results into abandoned skills. By grouping these workers based on some factors, we are able to ascertain their levels of expertise and how we can also be able to support them through the monies indirectly saved by them.
- Informal Sector Workers
- Migrant Workers
- Poor
- Low-Income
- Middle-Income
- Nigeria
- Nigeria
Our goal in the coming years is to tackle the illiteracy rate by taking homeless children off the streets and putting them through primary education. Afterward, each child can decide to be either be a formal worker or an entrepreneur and learn a vocation. This would ensure that the survival plane is leveled and better the lives of their generations yet unborn.
- Not registered as any organization
1. Deborah Oladipo-Ejibunu. deboraholadipo30@gmail.com
As stated earlier, over 65% of Nigeria's population are informal workers. Therefore, as Nigerians, it could be deduced that about 1-2 persons are in the informal sector in a family. This means we know what would have helped this majority succeed in their area of expertise and maintained a stable income. In addition to, as young entrepreneurs, we are always seeking opportunities to develop and enhance our capacities in every possible way. So, with this, we firmly believe we are well-positioned to deliver this solution.
We are applying for this challenge because it can benefit Nigerians on the long run in areas pertaining to the development of the economy which in turn would rub positively on other sectors in the country. if there is an expansion to other west African countries and a success rate in specific countries,it's safe to conclude that the purpose has been realized.
- Business model
Mr