Bright business idea but no money? watch a film

The idea was vetted and selected for funding and he received Rs 2.5 lakh. Today,he is not only a self-sufficient entrepreneur,but also a local hero. His idea has improved the economy of the whole village.

He is among 25 youngsters to have received capital investment from Be! Fund,an initiative of Delhi-based Going to School,a start-up by former teacher from UK,Lisa Heydlauff.

It combines the concept of venture capital with goodwill and faith a micro-finance initiative reposes in hardworking,able youth from underprivileged backgrounds.

Be! Fund is now looking at creating 20 successful entrepreneurs from slum communities in Mumbai and has received applications from hundreds of young people.

“We usually go around slum communities,showing short films on success stories of these entrepreneurs. We also air these films on Doordarshan and Star Utsav,and audio clips on All India Radio. That is how they hear about us and apply,” Heydlauff said.

When youngsters call in with their ideas,the Be! Fund team thinks it over and shortlists them for the first round of selection,an interview. The second round involves a panel of investors. This is followed by the final decision. Around 15 from Mumbai and five from rural Maharashtra have been shortlisted in the first round.

The ideas shortlisted to be scrutinised by investors include a community schoolbus,recycling of plastic from dumping grounds and chakri-making by widows of farmers.

“Mumbai is a place where people come to make money and we are looking at creating at least 20 young entrepreneurs from here,” said Heydlauff.

Be! Fund provides access to risk-capital of up to Rs 5 lakh to young people from low-income groups so that they can start sustainable enterprises to solve social and economic problems in areas where they live. Around 50% of the investment is for women entrepreneurs.

Recalling how Be! Fund was born,Heydlauff said,“We needed to change the mindset of the poor youth. We realised we did not have any real stories to show young poor people who started a business to solve a problem. That is where Be! Fund came in.”

The Be! Fund brainwave had hit Heydlauff nearly three years ago. Heydlauff approached banks and micro-finance firms. “I asked them if they will fund a young person who lives in poverty,is aged 18 to 29 and doesn’t have a track record for a new idea to start a business. I tried to tell them these youngsters are bright and hardworking but incapable of getting a loan themselves. But the idea did not fit into any of their risk profiles,” she said.

It was,however,received by two investors,Phaneesh Murthy and Dev Roy,who decided to kickstart the initiative by putting in their own money. Today,large corporates,as part of their corporate social responsibility put in money into the initiative. A corpus of Rs 40 lakh has been made to create 25 entrepreneurs,mostly in Karnataka,so far.

What makes the initiative different is that the loan has to be repaid only after the business starts making profits and in case the venture fails,the loan is written off and the young entrepreneur does not need to repay it. If the business succeeds,the entrepreneur starts repaying the loan. This money is again invested in the ideas of other entrepreneurs.