Turning Baking into Business.

 

Meet Helping Hand self-help group, a nine-member group based in Sibomvu village, Lupane. In 2019, Hand in Hand Zimbabwe mobilized and trained the members on financial literacy, marketing strategies, production techniques, and overall business operations. Helping Hands SHG leveraged on support from the Market Linkages Project which helped them build a bakery. Their aim was to operate a confectionery business that would supply a variety of baked products.

The bakery production is  four times a week, focusing on baking plain buns, cream doughnuts, and bread. The production capacity is set at 10 kilograms per baking day, which translates to 11 200 plain buns.

In addition to plain buns, the group also bakes 10 loaves and 20 cream doughnuts per baking day. The bakery sells a loaf of bread at $1 and cream doughnuts at $0.25 each. This diversified product range allows them to cater for different customer preferences while maximizing their sales potential.

The total sales generated by these products provides insight into the group’s financial performance. The group makes a total monthly sale of $1 360 from buns, bread and cream doughnuts. The  group pegs its monthly production cost at $700.

Their net profit of $660 indicates that Helping Hand self-help group not only covers its operational costs but also generates a sustainable income for its members. Their take- home pay has enabled members to send their children to school and provide basic needs for their families.

The Helping Hand self-help group exemplifies how community-driven initiatives can lead to economic empowerment through entrepreneurship in rural settings. By effectively managing their bakery operations and diversifying their product offerings, they have established a profitable business model that benefits all members involved and the community at large.

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