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Keya Sarkar, a columnist with Business Standard, is a regular writer on microfinance issues. Here is a column from her on the microcredit phenomenon, and how it's gaining strength these days.

She recently attended an event organised by Aavishkaar, a microfinance fund which started operating as a Sebi-registered venture fund in 2002. It was an award ceremony organised in Mumbai to honour micro entrepreneurs. She says micro entrepreneurs are increasingly coming into focus these days thanks to the efforts by organisations like Aavishkaar.

Aavishkaar has a fund size of $1.5 million, and has invested so far in six companies, all with an orientation of innovative products and services that will have an impact in rural and semi-urban areas. Vineet Rai, who runs the Aavishkaar fund, says that he invests between $10,000 and $100,000 in each enterprise. Those that Aavishkaar has funded so far include a company that produces 30 per cent more efficient kerosene stoves and rain guns for irrigation; a company that specialises in technology for dairy co-operatives; one that focuses on rural energy solutions as in biomass processing and hydel devices; and more recently in a company that specialises in rural marketing. The last is in order that it can market the products of other companies in which investment has been made.

Having funded six so far, he says that a substantial portion of his fund still lies uninvested because it is difficult to find small entrepreneurs who are ready for funding. The award ceremony, (publicised mainly through word of mouth and its site aavishkaar.org) in Mumbai last week was precisely to encourage those with new ideas for the rural sector to approach Aavishkaar, says Sarkar.

So, if you know of any good micro entrepreneurs, you can direct them to Aavishkaar.

Related:

"Banks Are Ready To Lend To Microfinance Institutions, But There Are Hardly Any Good Ones"