Rural Track

Courtesy: Financial Express

Insurance, to most amongst us, would have seemed extremely complicated at some point in time. Now imagine explaining health insurance to, say, your vegetable vendor or maidservant who in most likelihood is also educationally deprived. Explaining the premiums and the benefits would still be relatively easier a task. Try convincing them to buy one. Think it would be difficult? Not for Mukti Bosco who has convinced 45,000 people to insure their health for less than a rupee a day. The promise: a health cover of Rs 20,000 for a family of five and personal accident benefits of Rs 25,000 each on member and spouse. If plans go well she would have extended insurance cover to 50,000 families by the end of the year. Commendable? But success hasn’t come easy to her. It took her two years to design a plan for them. The product, Parivar Suraksha Bima (Family Insurance Scheme), is recognised as the first of its kind by USAID and ILO. What makes it revolutionary is the state of healthcare in India. Nearly 90% of India’s population does not have any access to healthcare financing. 77% amongst them struggle to survive just above the inefficient measure called ‘poverty line’. Not to forget our rural brethren. Believe the estimates if you will — just 2% of them are insured. For a daily wage earner who earns just enough to survive the day, it is a difficult task to save. According to the World Bank, about one fourth of hospitalised Indians fall below the poverty line as a direct result of the hospital expenses. “It’s not just about creating awareness. It’s rather about creating an association. The community has to begin to trust you. Life insurance is simpler, micro health insurance far more complex,” says Bosco, the founder of Healing Fields Foundation. For a service fee of Rs 101 per policy, the Foundation is indeed doing credible work. “We wanted a revenue generation model that could make the project sustainable,” she reasons with complete conviction.
The concept of a social entrepreneur has been afloat in the US for a long time now. In India too it has been around for a while now. Dr Verghese Kurien (Amul) and Ela Bhatt (Sewa) can well be called the pioneers in India. They tested the waters way back in the early 1970s. “Eight years ago a mention of ‘social entrepreneur’ only drew blank stares. Today it has become a brand wagon that people want to ride, whether they are really social entrepreneurs or not,” says Sohini Bhattacharya, director, South Asia Partnerships, Ashoka Innovators for the Public. Ashoka, a global association of social entrepreneurs, has since 1981 encouraged over 1,800 entrepreneurs through fellowships. “Entrepreneurship has new frontiers of possibility. And this is just one of them,” feels Sushmita Ghosh. She leads the Global Academy of Social Entrepreneurs and is also the chairperson of Changemakers.net. “This is an extremely timely phenomenon for the business and the social sector to look at. Given the increasing potential of India in the global eyes, definitely,” Ghosh adds.
It is equally imperative to consider the different connotations of entrepreneurship. “At Ashoka we don’t just consider revenue models — we look at a range of systemic efforts for social change. Things are changing, but funding still remains a problem. We need to work closely with the mainstream financial sector. Until that happens, the challenge beckons,” says Sohini Bhattacharya, director, South Asia Partnerships, Ashoka Innovators for the Public.
Bosco is not the only one to subscribe to the philosophy of social entrepreneurship. There are several others who share her desire to bring change…they have the vision and also the entrepreneurial skills to achieve it. Like craft activist and industrial designer Neelam Chhiber. More than a decade back, in 1994, she decided to tap natural fibre crafts by setting up Industree. The turnover in the first year was non-existent and the labour largely made of unpaid voluntary workers. Today its turnover has touched Rs 40 million. Recently it turned down retail giant Ikea’s offer due to production issues. “We realised that our small business would have turned into a large scale factory in Bangalore city. This did not gel with our philosophy. We started to promote rural livelihood and wanted to continue doing it,” says Chhiber. The enterprise has tested Chhiber’s balancing skills a number of times — whether to have the product at 100% mark up price or more; whether to globalise completely or also cater to the booming domestic market; how to sell the products. “Typically, craft shops had the reputation of being government funded, with products collecting dust on shelves. By attracting contemporary furniture shoppers, we felt that we could catch clients in a different frame of mind and this selling strategy proved to be successful. And selling goods is an expensive venture. So, currently we sell our products in our own shops and also in partnership with an additional 50 retail points,” she adds. The perk of her job: to feel the difference created to 5,000 lives across India — right from Tamil Nadu to Madhya Pradesh and Orissa. Considering that artisans and craftspeople constitute the second largest employment group in India, Chhiber’s step comes across as extremely commendable.
Sumita Ghose has chosen a similar area of work but in a different place — largely western Rajasthan. Rangsutra, her project, is an extremely thought-provoking one. After lot of deliberation on different organisational models — cooperative, society, charitable trust, company — she decided to settle for the company format. And to ensure that the craftspeople get a substantial part of the wealth they create, she decided to make them shareholders. “The idea was to build up social capital with economic viability,” she says adding, “one can adopt a balanced approach. Empowerment of artisans and increase in sales can coexist.” Three-year-old Rangsutra has been able to achieve a three crore turnover — a gradual approach to Ghose’s 10-year vision which is to have at least 1,00,000 artisans as shareholders.
Anita Ahuja’s field of work is absolutely different from Ghose’s and Chhiber’s. She probably is one person in the capital who can afford not to feel guilty about indispensable plastic (the ‘menace’). Consider this: According to a study, recently released by the Canadian International Development Authority, New Delhi is imbued with solid waste. Of the 4,000-odd tonnes of waste, which the capital generates everyday, nearly 60 ton comprises plastic. To some extent Ahuja has been able to tame the plastic. Her entrepreneurial model, Conserve, is working with nearly 300 rag pickers to convert waste plastic into a range of commercially successful products — umbrellas, diaries, bags, raincoats… supplied to the likes of Benetton and Unicef. She noticed how the rag pickers were reduced to a mere footnote in the entire system and decided to mainstream them. The least her effort has done is to restore dignity to their job. The rag pickers now proudly take back a salary of Rs 3,000 every month. She even helps the rag pickers set up their own fabrication groups that use her patented technology to make plastic sheets. “Training them wasn’t an easy task,” she says. When she found that most rag pickers couldn’t identify colours, she used Bollywood to bridge the gap. So, Pink became Kareena and Shah Rukh became black. Five successful years of operation have made Conserve a social brand now. How successful exactly you may ask. Well, the brand that barely managed a breakeven in its first year of operation, registered a turnover of Rs 1.5 crore in the last fiscal.
Here are people who did not wait for things to change on their own. They knew that would not happen ever — someone had to take the initiative to change them. And they decided to become that ‘someone’. Chetna Gala Sinha, the founder of Mann Deshi Mahila Sahakari Bank is mention worthy in the same breath. Social Entrepreneur ‘07 finalist for Nand & Jeet Khemka Foundation, Sinha’s is an interesting story. Reserve Bank of India rejected her application for a bank because there were more thumb impressions than signatures on the proposal note. The rural women, determined, attended adult literacy classes and approached the chief general manager soon after. They were technically literate now. But they drew their real confidence from their level of social intelligence: “we can calculate the interest for any amount without using a calculator. Can any of your employees do that?” Gala-Sinha, an economist-activist herself, humbly shares the Bank’s genesis. “You need to understand how it works at the grassroots. Why do people approach moneylenders but not banks despite the significant difference in the rates of interest? We tried to understand what they really needed and took banking to their doorstep. These people are bankable too. We gave loans to street vendors for sun umbrellas when we found that due to sunstroke they were losing their daily income,”she adds. In less than 10 years the Bank has been able to earn 72,000 women clients. It has four branches in Satara district (Maharashtra) alone. Credit Gala-Sinha, also for setting up Udyogini, a rural business school for women. “We learn from these women. They tell us what they need…like when they told us that selling prepaid vouchers for cell phones can help them earn, we taught them to do that,” she says. In the last fiscal, it posted net profits of Rs 2,31,000 and reported a loan recovery rate of 97%.
Vineet Rai couldn’t have agreed more. He found his calling in helping rural innovators set up their enterprise. That led to the creation of Aavishkaar India, a social micro venture capital fund. “The banks weren’t interested in giving loans to them because they found it too risky. But there was definitely a need, and a market. And I don’t see any problem with the for-profit format,” says Rai. Eight of the 14 investments he has made so far are making profit.
However, the above instances are in no way an attempt to be hypercritical about NGOs. They too have managed to sustain themselves economically. Like the Sesame Workshop of the Galli Galli Sim Sim fame (the multi platform education initiative.) “We have been non-profit for 40 years in the US and in India too we run on the same format. “We primarily sustain ourselves through philanthropic grants, corporate social responsibility funds, donations, licensing of our products across toys, publishing, home videos, broadcast fees, content development and training,” says Sashwati Banerjee, executive director, Sesame Workshop India. Sustainability, she feels, is not just about being economically viable. It is defined by capacities we build for the development process to continue.”