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Category: Sustainable Livelihoods

Empowering women farmers and FPOs: Samhita-CGF’s initiative supported by Walmart Foundation

Farmers in Maharashtra face severe challenges, particularly smallholder farmers, who make up 78% of the farming population and own less than two hectares of land (NSS 77th Round). Further, the state is particularly vulnerable to climate change that affects smallholder farmers who have the least capacity to cope (over 36 Mn Ha land was lost due to unseasonal rains in 5 years). Samhita-CGF, supported by the Walmart Foundation, is implementing a comprehensive intervention to address these challenges across 12 Farm Producer Organizations (FPOs), 7 of which are women-led and located in the Marathwada region, while 5 are mixed-gender FPOs based in the Amravati region.

The program

Mobilising Resources for Women Entrepreneurs: The Women Entrepreneurship Development Program

In today’s rapidly evolving world, empowering women to embark on entrepreneurial journeys is crucial for driving inclusive economic growth and societal progress. This blog explores the pivotal role of skill enhancement in enabling women to succeed as entrepreneurs, and various aspects such as financial and digital barriers for women entrepreneurs in India. Central to this narrative is the Women Entrepreneurship Development Program, a collaborative initiative with DXC Technology, which equips women with the knowledge and resources needed to navigate the entrepreneurial landscape.

In communities worldwide, women often face limited access to formal employment opportunities due to various socio-economic factors such as lack of education, mobility constraints, and gender norms. Micro-entrepreneurship offers a pathway for women to generate income and contribute to the economic development of their communities.

The ‘Women Entrepreneurship Development Program: Promoting Inclusion and Financial Empowerment,’ a collaborative effort by Samhita-CGF and DXC Technology, stands out in this regard. This program is not just about skill development ; it aims to transform the entrepreneurial landscape, enabling women to flourish in the business world.

Addressing the Financial Challenges of Women Entrepreneurs in India

Micro, Small, and Medium Enterprises (MSMEs) are pivotal to India’s economy, significantly contributing to both employment and GDP. Despite their vital role,  women entrepreneurs within the MSME sector face numerous obstacles that hinder their growth and sustainability. 

In India, there are approximately 15 million women-owned MSMEs, however, about 90%  of these women entrepreneurs haven’t accessed formal financial institutions for funding. This challenge has been intensified by the COVID-19 pandemic, which disproportionately affected women entrepreneurs, particularly those who lacked access to formal financial support networks.

In rural spaces, the dynamics differ significantly. Here, women entrepreneurs face unique challenges stemming from limited access to resources, infrastructure, and markets. Unlike urban environments, rural and semi-urban areas may lack established business networks and support systems, making it difficult for women to start and grow their ventures. The need for tailored financial literacy programs becomes important to not just foster inclusivity but also for driving economic development at the grassroots level, ensuring women entrepreneurs can thrive and contribute significantly to India’s economic landscape.

Leveraging Digital Technology for Empowering Women Entrepreneurs

Skill enhancement efforts delve into the realm of digital literacy to equip women with the tools they need to thrive in modern business environments. Recognizing the disparities highlighted by the program, where only 29% of women in India are digitally literate compared to 59% of men, it’s evident that bridging this gap is essential for inclusive economic growth.

Moreover, in addressing the financial hurdles encountered by women entrepreneurs in India, digital technology plays a pivotal role. Educating women on digital payment systems facilitates secure transactions, while insights into data analytics empower them to make informed decisions about their businesses’ financial health. By integrating digital literacy components into skill enhancement programs, women entrepreneurs are equipped not only to navigate the complexities of the digital realm but also to overcome financial barriers and thrive in dynamic business landscapes.

Women Entrepreneurship Development Program: A Case Study for Transforming Communities 

The program stands as a comprehensive blended learning initiative aimed at empowering women to embark on successful entrepreneurial journeys. Spanning 100 hours across three phases, this initiative is meticulously designed to equip women with the knowledge, skills, and resources necessary for entrepreneurial success.

  • The first phase is characterised by nearly 500 women also known as Village Level Entrepreneurs (VLEs), who are given training in Financial Literacy, Digital Literacy, and Menstrual Health Education.
  • From the initial group, champions are identified from the trained VLEs for the second phase. These champions will serve as leaders responsible for building the capacity of future entrepreneurs by facilitating and mentoring future participants.
  • The trained women from the second phase will further identify, enrol, and train 300+ future women entrepreneurs in the third phase. These women will acquire skills and accelerate livelihoods through four distinct skill sets: Fashionpreneur, Edupreneur, Spoken Tutorial and Swasthya Sakhi.

The program’s innovative approach not only focuses on individual skill development but also emphasises community transformation and leadership development. By empowering women to become entrepreneurs and mentors in their communities, the program aims to create a ripple effect of empowerment, driving societal change and economic growth. 

It’s time we realise that when women succeed, communities flourish, underscoring the transformative impact of women’s entrepreneurship on society at large. Only through comprehensive and targeted efforts can we truly unlock the full potential of women entrepreneurs across the spectrum of our society.

This article was authored by Aakriti Singh and Ayushi Bhatnagar

Mobilising Resources for Women Entrepreneurs: The Women Entrepreneurship Development Program

Mobilising Resources for Women Entrepreneurs: The Women Entrepreneurship Development Program

Mobilising Resources for Women Entrepreneurs:
The Women Entrepreneurship Development Program

In today’s rapidly evolving world, empowering women to embark on entrepreneurial journeys is crucial for driving inclusive economic growth and societal progress. This blog explores the pivotal role of skill enhancement in enabling women to succeed as entrepreneurs, and various aspects such as financial and digital barriers for women entrepreneurs in India. Central to this narrative is the Women Entrepreneurship Development Program, a collaborative initiative with DXC Technology, which equips women with the knowledge and resources needed to navigate the entrepreneurial landscape.

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In communities worldwide, women often face limited access to formal employment opportunities due to various socio-economic factors such as lack of education, mobility constraints, and gender norms. Micro-entrepreneurship offers a pathway for women to generate income and contribute to the economic development of their communities.

The ‘Women Entrepreneurship Development Program: Promoting Inclusion and Financial Empowerment,’ a collaborative effort by Samhita-CGF and  DXC Technology,  stands out in this regard. This program is not just about skill development ; it aims to transform  the entrepreneurial landscape, enabling women to flourish in the business world.

Addressing the Financial Challenges of Women Entrepreneurs in India

Micro, Small, and Medium Enterprises (MSMEs) are pivotal to India’s economy, significantly contributing to both employment and GDP. Despite their vital role,  women entrepreneurs within the MSME sector face numerous obstacles that hinder their growth and sustainability. 

In India, there are approximately 15 million women-owned MSMEs, however, about 90%  of these women entrepreneurs haven’t accessed formal financial institutions for funding. This challenge has been intensified by the COVID-19 pandemic, which disproportionately affected women entrepreneurs, particularly those who lacked access to formal financial support networks.

In rural spaces, the dynamics differ significantly. Here, women entrepreneurs face unique challenges stemming from limited access to resources, infrastructure, and markets. Unlike urban environments, rural and semi-urban areas may lack established business networks and support systems, making it difficult for women to start and grow their ventures. The need for tailored financial literacy programs becomes important to not just foster inclusivity but also for driving economic development at the grassroots level, ensuring women entrepreneurs can thrive and contribute significantly to India’s economic landscape.

Leveraging Digital Technology for Empowering Women Entrepreneurs

Skill enhancement efforts delve into the realm of digital literacy to equip women with the tools they need to thrive in modern business environments. Recognizing the disparities highlighted by the program, where only 29% of women in India are digitally literate compared to 59% of men, it’s evident that bridging this gap is essential for inclusive economic growth.

Moreover, in addressing the financial hurdles encountered by women entrepreneurs in India, digital technology plays a pivotal role. Educating women on digital payment systems facilitates secure transactions, while insights into data analytics empower them to make informed decisions about their businesses’ financial health. By integrating digital literacy components into skill enhancement programs, women entrepreneurs are equipped not only to navigate the complexities of the digital realm but also to overcome financial barriers and thrive in dynamic business landscapes.

Women Entrepreneurship Development Program: A Case Study for Transforming Communities 

The program stands as a comprehensive blended learning initiative aimed at empowering women to embark on successful entrepreneurial journeys. Spanning 100 hours across three phases, this initiative is meticulously designed to equip women with the knowledge, skills, and resources necessary for entrepreneurial success.

  • The first phase is characterised by nearly 500 women also known as Village Level Entrepreneurs (VLEs), who are given training in Financial Literacy, Digital Literacy, and Menstrual Health Education.
  • From the initial group, champions are identified from the trained VLEs for the second phase. These champions will serve as leaders responsible for building the capacity of future entrepreneurs by facilitating and mentoring future participants.
  • The trained women from the second phase will further identify, enrol, and train 300+  future women entrepreneurs in the third phase. These women will acquire skills and accelerate livelihoods through four distinct skill sets: Fashionpreneur, Edupreneur, Spoken Tutorial and Swasthya Sakhi.

The program’s innovative approach not only focuses on individual skill development but also emphasises community transformation and leadership development. By empowering women to become entrepreneurs and mentors in their communities, the program aims to create a ripple effect of empowerment, driving societal change and economic growth. 

It’s time we realise that when women succeed, communities flourish, underscoring the transformative impact of women’s entrepreneurship on society at large. Only through comprehensive and targeted efforts can we truly unlock the full potential of women entrepreneurs across the spectrum of our society.

This article was authored by Aakriti Singh and Ayushi Bhatnagar

Twice the Impact: why women entrepreneurs need credit guarantees today

The Credit Guarantee Program for Women Entrepreneurs in Gujarat, launched by Samhita-CGF and 360 ONE Foundation in partnership with SEWA, aims to provide credit access to 2600 women entrepreneurs with a total loan amount of up to INR 10 crore. This blog highlights the challenges faced by informal, unorganised MSMEs in accessing formal finance, it underscores the importance of credit guarantees and blended finance in empowering women and fostering inclusive economic growth.

In the bustling city of Ahmedabad, two women stand as pillars of resilience and determination. Truptiben Ambalal Chunara and Tejalben Kiritbhai Chunara, both informal entrepreneurs, have embarked on a journey to financial independence and stability. Their stories reflect the broader challenges faced by micro and small enterprises in India, especially those run by women, and demonstrate the transformative impact of access to formal credit.

Truptiben Ambalal Chunara, a 26-year-old vegetable vendor and dupatta seller, lives in a slum pocket in Ahmedabad. After separating from her husband due to domestic issues, she moved in with her brother and took on the responsibility of running the household. Her small vegetable stall, attached to her house, was her primary source of income. However, limited capital restricted her ability to keep a consistent stock of vegetables, affecting her daily earnings.

The turning point came when Truptiben received her first business loan of Rs. 40,000 from SEWA. This loan allowed her to purchase a more extensive and regular stock of vegetables, ensuring she could meet the demands of her customers. Additionally, she diversified her income by investing in dupattas, which she now sells from her home. With this strategic expansion, Truptiben’s daily earnings have increased to an average of Rs. 500 to Rs. 800.

Truptiben’s story highlights the critical role of access to formal credit in empowering informal entrepreneurs. It shows how financial support can help women like her overcome economic constraints, improve their livelihoods, and contribute to their communities.

Tejalben Kiritbhai Chunara, a 28-year-old door-to-door saree seller, shares a similar story of determination and growth. Living with her husband and two children, Tejalben’s business requires her to travel across Ahmedabad, selling sarees. Her income fluctuates with the seasons, earning her between Rs. 500 and Rs. 1,000 daily, which translates to a monthly income of Rs. 15,000 to Rs. 20,000. Her husband, an auto mechanic, contributes an additional Rs. 15,000 per month to the family income.

In December 2023, Tejalben received a Rs. 40,000 loan from SEWA. She utilised this loan to expand her saree inventory and set aside savings for future needs. With the increased stock, Tejalben’s business has become more stable and profitable. She started her EMI repayments in January 2024 and simultaneously began a recurring deposit of Rs. 400 per month with SEWA Bank.

Tejalben’s journey underscores the importance of formal credit in stabilising and expanding informal businesses. Her ability to plan for the future and manage her finances, moreover relearn about saving for personal and also business growth, effectively demonstrates the transformative potential of financial inclusion.

The stories of Truptiben and Tejalben are not unique but reflect a broader trend among MSMEs in India. MSMEs contribute around 30% of India’s GDP and employ over 110 million people. Despite their significant role, only about 16% of MSMEs have access to formal credit, creating a substantial gap in working capital and capacity-building support. This gap is even more pronounced for women, with 92.1% of women-owned MSMEs being unregistered, informal, and unable to access formal finance.

The International Finance Corporation (IFC) reports that only 27% of women in India have access to formal credit, compared to over 40% of men. This disparity highlights the urgent need to address the credit gap for women entrepreneurs. The government and various organisations emphasise supporting this sector by providing holistic development opportunities through affordable finance and other interventions.

Here we bring in blended finance, a strategic approach that uses development finance from public and philanthropic sources to mobilise additional private sector capital for sustainable impact. By combining grant funding with other sources of capital, such as debt or equity, blended finance maximises funding and social impact capacity.

Credit guarantees are one such instrument promoted by the government to drive financial inclusion. While not new, existing credit guarantee schemes have not effectively met the demands of lending institutions for high-risk segments like New to Credit (NTC) or New to Investment (NTI) entrepreneurs. Informal and unorganised entrepreneurs, lacking past credit history and formal recognition, are often deemed high-risk by banks and NBFCs.

Through the Credit Guarantee Program for Women Entrepreneurs in Gujarat, Samhita-CGF and 360 ONE Foundation, in partnership with SEWA, aim to provide access to formal credit for 2600 women entrepreneurs. This initiative includes a unique pre-credit score survey for 10-15% of NTC participants to assess their creditworthiness. Business loans will be provided to selected women entrepreneurs by March 2024, with repayment durations of 2 to 3 years. The credit guarantee will unlock a total loan amount of up to INR 10 crore, lowering the perceived risk for financial institutions and facilitating affordable finance for unbanked, low or no CIBIL score borrowers.

Truptiben and Tejalben’s stories illustrate the transformative impact of access to formal credit on informal, unorganised entrepreneurs. Their journeys highlight the critical role of financial inclusion in empowering women and fostering inclusive economic growth. By leveraging innovative financial tools like blended finance and credit guarantees, we can support more women entrepreneurs, enabling them to overcome economic constraints and achieve financial independence. Their success stories are a testament to the potential of inclusive financial practices in creating a more equitable and prosperous society.

360 ONE Foundation, in collaboration with Samhita-CGF, is deploying innovative, 100% FCRA and CSR-compliant financing instruments – Returnable Grants (RGs) and Credit-Guarantees (CGs) – to underserved communities to drive financial inclusion across India.

Empowering Women Entrepreneurs: Unveiling the Women Economic Empowerment Index

To push towards sustainable development goals, the voice and agency of women are catalysts for change and progress. Recognizing this, Samhita-CGF has taken a bold step towards quantifying and fostering women’s economic empowerment through an initiative: the Women Economic Empowerment (WEE) Index. This comprehensive tool is designed to measure and monitor the progress of women entrepreneurs in India’s dynamic semi-formal and informal sectors, recognizing their pivotal role in driving economic growth and societal transformation.

Can the Microcredit Model Be Improved?

The problem here is not a lack of microcredit programs or their execution but rather something in the model itself. This leads us to ask: Can we modify or extend certain aspects of the microfinance model to achieve better outcomes for recipients?

Vikas Dimble, Director of Knowledge and Research at Samhita and Ahmed Moshfiq Mobarak, Professor of Economics at Yale University write on how microcredit can be used to help poor communities pull through unexpected shocks if the microcredit model is modified to incorporate inclusivity and flexible lending practices.

Click here to read the article

The most vulnerable dictate the strength of our value chains

COVID-19 has exposed the weakest links in our supply chains, the largest impact of which has been felt by the poor. As we rebuild rural livelihoods, we need to innovate towards decentralisation, write Harish Hande and Jeffrey Prins in India Development Review (IDR).

While we take a fresh look at how we innovate in value chains, they need to be understood from the perspective of the most vulnerable.

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Innovative lending practices can improve traditional microfinance

Research on the traditional microfinance model reveals the alterations that can be made to further small businesses and welfare gains. Vikas Dimble, Associate Director of Knowledge and Research at Samhita, and Ahmed Moshfiq Mobarak, Professor of Economics at Yale University emphasize the importance of flexible lending models, using local information to select eligible beneficiaries and allowing beneficiaries to make use of microcredit beyond entrepreneurial purposes.

Click here to read the article