Development of a Microfinance Product for Youth for National Rural Support Programme (NRSP)

Momentum provided comprehensive research and stakeholder engagement services for the Youth Economic Empowerment Project (YEEP) across the districts of Muzaffargarh, Layyah, and Rajanpur. Our approach was meticulously designed to assess the needs and challenges of unemployed youth and develop a tailored microfinance product to support micro-entrepreneurship in Southern Punjab.

Key Steps in Service Delivery:

1. Draft Inception Report:
   • Established a research framework and methodology tailored to the socio-economic context of the target districts.
   • Conducted a detailed pre-project brief with NRSP to understand project objectives, stakeholder roles, and the current state of the project.
2. Field Research Design:
   • Identified and selected respondent groups including TVET students, graduates, instructors, parents, and representatives of microfinance institutions (MFIs).
   • Designed primary data collection instruments such as questionnaires and focus group discussion guides to gather insights from different stakeholders.
3. Primary Data Collection:
   • Conducted in-depth interviews with unemployed youth, their teachers, and parents to assess their understanding of employment challenges, the potential of micro-businesses, and their needs for microfinance.
   • Performed focus group discussions with parents and teachers to explore views on unemployment, technical skill training, market entry barriers, and factors influencing micro-enterprise success.
   • Collected data from MFIs to understand existing microfinance products, their target demographics, and to gauge interest in a specialized youth microfinance product.
4. Analysis of Primary and Secondary Data:
   • Analyzed collected data to identify key challenges and opportunities for youth in accessing financial resources and starting businesses.
   • Compared findings with secondary data to validate results and provide a comprehensive overview of the current landscape.
5. Draft and Compile the Report:
   • Synthesized research findings into a detailed report outlining key insights, challenges, and opportunities.
   • Developed a microfinance product model tailored to the needs of youth entrepreneurs, incorporating recommendations for loan limits, interest rates, repayment terms, and support services.
6. Develop Policy Briefs:
   • Created policy briefs to advocate for the implementation of the proposed microfinance product and the integration of youth-friendly financial solutions.
7. Finalization and Presentation of the Report:
   • Finalized the research report by incorporating feedback from stakeholders to ensure accuracy and relevance.

Presented the report to key stakeholders, including project partners, government officials, and microfinance institutions, to facilitate the development and implementation of the youth-friendly microfinance scheme.

Through these services, Momentum played a pivotal role in shaping a financial solution that addresses the specific needs of young entrepreneurs in Southern Punjab, enhancing their economic empowerment and fostering regional economic growth.