The Co-operative Movement of the Russian Far East

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Sakhalin small business credit society. Newsletter, June of 2002.



SSBCS monthly newsletter informs you about current events of Sakhalin Small Business Credit Society, its lending performance, staff, clients and partners as well as our plans for the future.

  • Tomary: Another good region seeking lending opportunities
  • SSBCS Membership Annual Meeting Upcoming
  • Success stories about our members
  • Training Program plans for July and August

Tomary Region - seeking lending opportunities

The interest about the SSBCS continues to grow from different areas of Sakhalin. The most recent evidence has been seen in the actions of the Tomary Administration, which in June requested the SSBCS to consider the possibility of opening a Cooperative branch office in this seaside town. During the meeting with the Project Director and SSBCS managers the Tomary Mayor, Yury Plokhov, noted that the absence of credit availability is one of the most urgent problems currently facing a Tomary entrepreneur. “The opening of a SSBCS branch office in Tomary might be a way out of this situation, - Yury Plokhov believes, - and we consider it as our duty to provide the Credit Society any assistance needed to implement this”.

Hoping for an SSBCS quick expansion into Tomary the local Administration arranged its own informational meeting about credit for local entrepreneurs, in which the SSBCS representatives took part. About 40 Tomary entrepreneurs came to get acquainted with the SSBCS activity and its lending experience in the Southern part of Sakhalin. The participants responded to the information with high positive interest and very much enthusiasm to just the possibility of the SSBCS’s contact office opening in their area.

However, for some entrepreneurs the problem of need for funding for business development is so urgent that they are ready to spend whatever time, effort and funds necessary to be able to get loans today, by working directly with the Yuzhno-Sakhalinsk office. While nothing is yet decided, work and planning goes on to try and meet the needs of these good potential clients.

SSBCS Membership Annual Meeting upcoming

The SSBCS has already started preparations for the Annual General Assembly of the Cooperative membership, which is to be held in October 2002. Annual Meeting is the superior authority of the SSBCS and represents a very important event in the life of the Society, in which all the members-shareholders take an active part.

At this first Annual Meeting of the Society members will have an opportunity to hear a report on the results of the Society’s work for the year 2001 and present. A very important action will be the election the SSBCS Board of Directors. In addition, the Cooperative member-shareholders will vote on a number of issues concerned with the Society activity. The meeting will become a great opportunity for the borrowers to get acquainted with the SSBCS personnel, ask all the interesting questions and express their view as to the Society work.

June successes

This month 47 more entrepreneurs got their first loans with the Society! In Kholmsk two new peer lending groups of 10 entrepreneurs have been formed, and 29 more people got their first loans in Yuzhno-Sakhalinsk and Korsakov. As of to date, 740 small business owners continuously obtain credits in the SSBCS. The results achieved by many of these borrowers in business can’t help but impress!

Nadezhda, wood-processing

When Nadezhda came to the SSBCS, her wood-processing business was represented by some space of room and a couple of processing machines. With such equipment the enterprise was only able to produce a limited range of similar and low quality items at high cost. As a result, Nadezhda’s business turned out to be incapable to withstand growing competition.

By successfully managing the funds she received through two different loans, Nadezhda was able to significantly improve her business situation. The first major step she did was to acquire new advanced equipment and the necessary set of manual tools to adequately fill production. The application of the newer technologies enabled her to increase her assortment and volume of production several times over. For example, Nadezhda’s workshop can now perform individual orders as well as carry out hand-made works requiring special design. The right choice of new equipment also enabled her to improve the quality of products as well as at the same time to reduce the cost.

The obtained credits enabled us to enter an entirely new level of product development, to come to a higher step and to become a competitive enterprise, - Nadezhda believes. – Several months ago I couldn’t even think of such changes in my business and now I can build plans for even further development and implement them with the help of SSBCS as my credit home and the growing income from my business.”.

In the future Nadezhda plans to start a wholesale supply of quality wood from the mainland (Siberia). This will result in significant savings of the funds that are currently used to make retail procurements of raw materials.

Training Program Plans for July and August

The ACDIVOCA Sakhalin Regional Micro Credit training program, implemented by RABTC, will conduct the following training seminars in July and August:

July August


  • Legal aspects of entrepreneurial activity” (July, 8-12)
  • Seminar for start-up entrepreneurs

(July, 15-22)

  • “Accounting for entrepreneurs without legal entity formation” (August, 12-16)
  • “Marketing for small business(August, 26-30)


Important Notice: Member-borrowers!! If you have a need or have an interest in a specific training area let your Credit Agent know. In an effort to serve the SSBCS members, if there is enough interest shown in a specific area we will try to provide such a training seminar especially for those interested borrowers. Discuss this benefit with your Credit Agent NOW!!!!!!!!!!!

If you have information or new ideas for the Society let us know. It is your business and your Society.

Thanks to all the people who contributed to this newsletter!