National Media Coverage May, 2013
Business Today
World Bank funds social enterprises in India
Rural India is a very tough terrain to think of business models and executing them well. But the World Bank is combing out those who are working against odds to extend welfare services to underserved communities in low-income states.
The India Development Marketplace, a World Bank initiative to fund and support social enterprises, has announced grants worth $2 million to a total of 20 social entrepreneurs in Jharkhand, Madhya Pradesh and Chhattisgarh. Each winner received a grant of $100, 000 at a felicitation ceremony that took place on May 1 in Bhopal. The finalists, which were selected from nearly 200 proposals, were ranked on the basis of social impact, sustainability, growth potential and innovation.
The business models of these entrepreneurs range from livelihood and employment creation, agriculture, energy, health-care and financial services. About 40 per cent of them were focused on women’s welfare solutions. Headed by Onno Ruhl, the World Bank Country Director in India, the India Development Marketplace will also provide support to build capacity and mentor the businesses for the next 18 months.
The World Bank kicked off its Development Marketplace initiative in 1998. Since then $60 million has been disbursed in grants to about 1,200 innovative projects across several countries. The initiative was launched in India in 2011, when 14 enterprises in Odisha, Rajasthan and Bihar received grants.
One of the biggest successes that have emerged from the 2011 batch was Operation ASHA, founded by Dr. Shelly Batra and Sandeep Ahuja. ASHA works for the eradication of tuberculosis and has now expanded to four countries. Other past projects that have done well are Selco Solar, which provides affordable energy to underserved households, and the Bihar Development Trust, which provides market access to women artisans in rural pockets.
Of the 20 winners this year, seven are for-profit organisations while 12 are non-profit organisations.
Some noteworthy development solutions include low-cost infant warmers by Embrace Innovation in Jharkhand and mobile science labs for rural schools in Madhya Pradesh by Agastya International Foundation. The Mango Tree works in Madhya Pradesh for reducing poverty in tribal farmers by promoting the use of bees. Bilt Tree Technology in Chhattisgarh is changing the lives of tribal farmers through sustainable agro forestry. Enterprises such as Kherwadi Social Welfare Association are targeting multiple states to train one million rural youth for employment.
http://blogs.intoday.in/businesstoday/World-Bank-funds-social-enterprises-in-India-63041.html
The Hindu Business Line
20 social projects get $ 1, 00,000 each from World Bank
Twenty social enterprises were on Wednesday awarded grants of $100,000 each by the India Development Marketplace funded by the World Bank Group at the Indian Institute of Forest Management, Bhopal.
The Development Marketplace is a competitive grants programme seeking to support scalable, replicable social enterprise projects.
This year, the 20 projects, selected from 195 applicants, include a wide range of products and services targeted at the bottom of the pyramid in three States – Chhattisgarh, Jharkhand and Madhya Pradesh. Of the 20, seven are registered for-profit organizations, 12 have non-profit base and one operates as a hybrid. The selected enterprises were judged on five parameters — innovation, scalability or growth potential, sustainability, social impact and gender issues.
Elaborating on the sustainability of the selected projects, Drew von Glahn, Program Lead, Development Marketplace, said of the 14 projects awarded grants in 2011 in Rajasthan, Odisha and Bihar, “seven have been able to raise funds in the market and are examples of successful business models. They no longer need our funds.”
However, the role of World Bank doesn’t end with disbursing funds. “In the next 18 months, these enterprises will undergo business mentoring, receive technical assistance in areas of business development, financial management and strategic planning,” said Parvathi Menon, Managing Director, Innovation Alchemy, Lead Partner, India Development Marketplace. Innovation Alchemy is a Bangalore-based firm focussed on supporting social enterprises.
One of the winners this year, Waterlife India Pvt Ltd, is a for-profit model that provides low-cost, clean drinking water in rural areas. Under the model, the Government installs capital-intensive structures (pipeline, filtration plant) while Waterlife provides operational assistance and charges about Rs 4-7 to provide 20 litres of water.
Sudesh Menon, Managing Director, Waterlife, an engineer from IIT Kharagpur (batch 1991) was working for General Electric before he started this enterprise. “A lot of people told me that rural people will never pay for water, but I had a desire and intent to give back to the society and with this grant I will scale up work in the existing 12 States,” he said.
On social enterprises, Onno Ruhl, India Country Director, South Asia, World Bank, said, “Their method and rigour and how they implement their technology is commendable. This year, we gave a little more focus on enterprises working with women and children, as I feel development process cannot succeed without focusing on opportunities that women can provide.” Out of the 20 winners this year, eight are targeted at the uplift of women and children.
Another enterprise, Under The Mango Tree (UTMT), run by Vijaya Pastala, trains Indian farmers in bee-keeping. “My enterprise focuses on three issues — falling agricultural productivity, market access and agricultural livelihoods. We work in partnership with field-based NGOs to develop a cadre of local master trainers in bee-keeping. The model works as it is not very expensive and the returns are good.” She said what was unique about UTMT was that it was a hybrid model. Under the set-up, UTMT Society focuses on training and capacity building for farmers, while UTMT Naturals and Organics Pvt Ltd is involved with marketing and selling honey produced.
“We are working with about 3,000 farmers right now and aim to reach 10,000 farmers in Madhya Pradesh with this grant,” Pastala added.
“I feel as if a panchayat bank has been recognised by the World Bank,” said K.S. Sunanda, Chairperson, Alternative For India Development, an enterprise that works for delivery of banking/financial inclusion products/ services to excluded families by combining panchayat kiosk banking outlets and self-help group strategies.
