Category: Sustainable Livelihoods

Bridging the Gap: Skilling Initiatives for a Changing Workforce
In India, the need for skilling initiatives is paramount, as they hold the key to equipping individuals with the essential skills required to thrive in a rapidly changing job landscape. This blog delves into the challenges faced by Skilling programs that hinder the program effectiveness. It also highlights Samhita-CGF’s innovative approach to tackle these obstacles, emphasising on the significance of skill development in driving individual success and broader economic development in the face of rapid change.

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India’s demographic dividend, characterised by a youthful population, could potentially be a significant driver of economic growth. However, to harness this effectively, India needs a skilled and job-ready workforce. Unfortunately, India’s current skilling ecosystem grapples with a multitude of challenges that hinder its capacity to prepare individuals for the demands of the modern job market. In this context, let’s delve into the challenges confronting India’s current skilling ecosystem and explore potential solutions to address them.

Challenges with India’s Current Skilling Ecosystem

1. Limited access to skilling programs

A significant stumbling block in India’s skilling journey is the inadequate access to programs. Geographical barriers, lack of infrastructure, and financial constraints often stand in the way. This exclusion hampers social mobility and perpetuates income inequality. Empowering marginalised communities with readily available and affordable skilling initiatives is imperative.

2. Need for Greater Accountability for Training Institutes or Participants

One of the most pressing concerns within India’s skilling sector revolves around accountability. Numerous training institutes currently fail to deliver high-quality capacity-building opportunities, resulting in a lack of motivation among participants. To address this issue effectively, there is a critical need to establish stringent quality standards and implement robust monitoring mechanisms.

3. Lack of Placement Focus and Post-Placement Support

Insufficient emphasis on placement support and post-placement assistance within current skilling initiatives leaves a critical gap in the journey towards gainful employment. To address this deficiency, skilling programs must pivot their attention towards providing essential resources like financial aid, mentorship, and networking opportunities for facilitating a seamless transition into the workforce.

A holistic approach for empowering the workforce

India’s diverse workforce necessitates a multifaceted approach, encompassing financial aid and technology. These comprehensive strategies enable individuals to excel in an evolving work environment and navigate the challenges of the modern world, fostering sustainable progress.
1. One Individual, Multiple Interventions: It is crucial to provide a range of tailored interventions aligned with different stages of an individual’s career journey. These encompass skill-focused training, financial accessibility, and workplace support.
2. Access to Finance for Skilling: Overcoming financial barriers necessitates a gradual approach to financial assistance, encompassing initiatives like returnable grants and loans with credit guarantees. This empowers individuals to invest in skill development without financial constraints.
3. Create Public Goods for the Good of Everyone: Emphasising the creation of public goods that benefit not only individuals but also the broader skill development ecosystem is essential. Innovations such as pre-credit assessments boost confidence among ecosystem participants, supporting first-time borrowers.
4. Skilling for Sustained Labor Force Participation: Emphasising the significance of ongoing skill enhancement, it is essential to provide comprehensive, long-term training programs that equip individuals not only for career transitions but also for rapid advancements in their professional journeys.
5. Technology to Accelerate and Sustain Impact: Harnessing technology plays a pivotal role in expanding the reach and sustainability of these efforts. Advanced tracking systems facilitate progress monitoring, streamline onboarding, and provide ongoing support to workers throughout their career lifecycles.
Our skilling initiatives have made a significant impact, training over 52,000 individuals across 16 states through a network of 70+ centres, with a commendable 70% placement rate.

Skills for Life-Program

Acknowledging that India’s economic prosperity and global competitiveness relied on a skilled workforce, HSBC partnered with Samhita-CGF to initiate the Skills for Life Program. This dynamic initiative was designed to uplift unemployed and underskilled youth from disadvantaged socio-economic backgrounds. The program addressed the specific needs of these individuals by providing training opportunities for aspiring drivers while also equipping them with necessary skills to excel as General Duty Assistants within the health sector.

Covering a wide spectrum of 330 participants across three states – Delhi, Haryana, and Tamil Nadu – across 7 dedicated centres, this program served as a holistic training solution for young individuals, nurturing both their personal and professional development. Beyond the in-depth training, participants also received certification and benefited from the job placement support, enriching the education of unemployed youth with invaluable practical expertise.

By empowering individuals across various profiles, providing access to finance, and leveraging technology, Samhita-CGF is making a significant impact in bridging the gap between education and employment, ultimately contributing to India’s economic growth and development.

This article was editorialised by Aakriti Singh and Ayushi Bhatnagar
October 3, 2023
From Opportunity to Success: Microsoft’s Holistic Approach to Supporting Women Entrepreneurs
When it comes to keeping up with the digital age, women in India face several challenges, which have a significant influence on the growing digital gap in the country. Microsoft, through its CSR Program, has supported a total of 10,000 women entrepreneurs, with the last 5,000 beneficiaries benefiting from a comprehensive approach that includes digital and financial literacy, bookkeeping, mentoring, advanced training for participants, and access to government schemes, all of which are aligned with the theme of sustainable entrepreneurship.

Weaving Entrepreneurial Dreams, One Stitch at a Time: Manisha from Nuh, Haryana

“After the program, I felt that in order to grow the business, I need to be educated further.”

Manisha, is a determined young entrepreneur, from Bichhor village in Nuh district, Haryana. At the age of 19, she found herself in a challenging situation where she had to drop out of school to support her family financially. The conservative environment in Nu district further exacerbated the impact on Manisha’s life as her family opposed her desire to pursue education. As a result, she was confined to her home, without any opportunities for formal learning.

Despite facing these challenges, Manisha’s determination led her to seek guidance from her sister, who was skilled in tailoring. She quickly learned from her and began taking orders directly from home. However, the income from her limited customer base within the village was insufficient.

A major turning point for her was when she became a part of the REVIVE program, spearheaded by Microsoft. This program taught her how to utilise digital tools and effectively manage her cash flow, enabling her to expand the business and reach a larger customer base. Moreover, it made her realise the untapped potential of her own phone for conducting various business related activities beyond mere communication.

Additionally, the program’s impact extended well beyond the realm of business, positively influencing the overall wellbeing of the community. Nu district, known for its persistent problem of financial fraud and crime, had long been a burden on its residents. However, with the implementation of the REVIVE program, individuals like Manisha gained valuable skills to safeguard themselves from such incidents, fostering a newfound sense of resilience and empowerment that surpassed societal gender constraints.

Encouraged by such transformative effects and positive changes within the community, Manisha’s parents had a change of heart and agreed to support her in pursuing higher education. This marked the beginning of a promising chapter in her life, where she could simultaneously nurture her business and embrace the educational opportunities she had longed for.

Manisha’s case study exemplifies the impact of Microsoft’s holistic approach in supporting women entrepreneurs. By providing digital and financial literacy, access to tools and resources and mentoring, Microsoft has empowered women like her to overcome challenges, achieve business growth, and pursue their dreams.

UNDERSTANDING THE CHALLENGES

Entrepreneurship among women is a vital component of the overall solution. However, women-owned enterprises in India face a number of challenges, including:
- Inadequate access to skilling: Women entrepreneurs often lack the skills and training necessary to run a successful business. This might make it harder for them to compete with more established businesses.
- Lack of market linkages: This may be attributed to a lack of knowledge of their products and services, as well as social and cultural barriers that restrict women from accessing the market.
- Limited access to finance: Women frequently experience difficulties acquiring loans or other sources of funding. This might make it difficult for them to establish or grow their businesses.
- Socio-cultural barriers: Constraints such as inadequate access to skilling, lack of market linkages, limited financial access, and societal biases represent substantial hurdles for women entrepreneurs. These barriers impede their long-term viability and ability to innovate.
Moreover, the digital divide exacerbates these challenges, making it difficult for them to leverage technology for business growth and success. Therefore, addressing these challenges is essential to unlocking the full potential of women entrepreneurs.

MICROSOFT’S PROGRAM INTERVENTION

Microsoft’s CSR Program stands as a shining example of a holistic approach to bridge the digital divide and support women entrepreneurs in India. Recognising the significance of digital tools as a leapfrog intervention in economic empowerment. Microsoft aims to support women micro-entrepreneurs by providing them with the necessary tools and resources to thrive in the digital age.

Initiated as a pilot program targeting 5,000 women entrepreneurs in rural India, with the goal of providing them with digital and financial literacy skills as well as the capacity to effectively operate, manage, and develop their enterprises.

HOLISTIC SUPPORT FOR WOMEN ENTREPRENEURS

Using a blended support model, Samhita’s partnership with Microsoft has aimed to address barriers and strengthen the women’s entrepreneurship ecosystem across 10 states by focusing on the following key areas:
- Digital and Financial Literacy (DFL): Capacity Building Sessions were conducted to enhance women entrepreneurs’ digital and financial literacy. These sessions covered topics such as concepts of banking, insurance, and using digital tools such as mobile devices, internet, social media, email, and awareness of e-security and safety.
- Digital Bookkeeping Tools: Women micro-entrepreneurs were introduced to user-friendly digital bookkeeping tools that streamlined their financial processes. By using the tools, they were able to improve accuracy, enhance cash flow visibility, and make informed decisions based on real-time data. These tools, built on Microsoft Azure, provide flexibility so that they can be used both online and offline, ensuring accessibility even in areas with limited internet connectivity.
- Performance-linked incentives: To encourage and motivate digitization in the first phase, high-performing women entrepreneurs or those with progressive engagement were rewarded with incentives.
- Handholding support: To promote sustained use of digital tools, and follow-ups for additional resources or support.
THE PROGRAM’S OVERALL IMPACT

The first phase of the program successfully trained 5000 women entrepreneurs in digital and financial literacy, and provided them with access to user-friendly digital bookkeeping tools. These efforts yielded the following achievements:
- 44.1% of participants continue to actively maintain digital account books for their businesses.
- 62% of women began tracking their borrowing and lending by the end of the program as compared to only 27% at the start of the program.
- The number of women tracking inventory, banking operation, and payments increased by 10%, 14%, and 19%, respectively.
A significant proportion of women entrepreneurs were able to digitize their bookkeeping practices, and were also able to obtain small formal bank loans because of these efforts. These included women entrepreneurs from various cohorts such as artisans, street vendors, dairy farmers and tailors.

SCALING UP AND ADDRESSING ADDITIONAL NEEDS

In the second phase, the program has been scaled up to support an additional 5,000 women entrepreneurs and it includes multiple interventions, in addition to digital literacy:
- Access to Finance: Access to formal financial resources remains a significant challenge for women entrepreneurs, which was addressed by facilitating access to credit and connecting women with financial institutions. By building relationships with banks and fostering partnerships, the program enabled the participants to secure financial resources. This support empowered them to invest in their business, expand their operations, and achieve sustainable growth.
- Social Protection: By unlocking relevant government schemes and services, women entrepreneurs were able to leverage them to access funding, business development resources, and market opportunities. This strategic approach propelled their enterprises forward by providing them with the necessary support and resources to overcome barriers.
- Mentoring and Peer Support: Through mentorship, these women entrepreneurs received valuable guidance, industry insights, and access to networks, enabling them to make informed decisions and seize new opportunities. Additionally, the program created peer support networks that fostered a sense of community, allowing women to share experiences and learn from one another.
KEY LESSONS FOR DRIVING IMPACT

Microsoft’s program has provided valuable lessons for scaling up and replicating holistic support models for women’s entrepreneurship. There are two key lessons that have emerged from this program:
- Customisation: It is essential to address the specific needs and contexts of women entrepreneurs. By tailoring interventions, organisations can effectively address the specific requirements of women entrepreneurs, increasing their chances of success.
- Partnerships: Collaborations with financial institutions, government agencies, and community organisations create a comprehensive ecosystem of support that helps in offering assistance and guidance to women entrepreneurs in their businesses.
These lessons serve as valuable guidelines for organisations aiming to develop impactful programs for women entrepreneurs, and Microsoft’s Program stands as a testament to the effectiveness of such an approach. Ultimately, when organisations combine tailored approaches with strategic partnerships, they can create an environment for women entrepreneurs to thrive.

This article was editorialised by Ayushi Bhatnagar and Evans Rebello.
July 27, 2023
The REVIVE Alliance – Creating A Sustainable Future For India’s Informal Sector

India’s informal sector makes up a significant portion of the country’s workforce ~43% and provides employment opportunities for millions, especially those from the marginalized communities.

However, despite its huge contribution to the economy, the informal sector operates without formal recognition. Currently only ~16% of all MSMEs have access to formal credit, creating a huge credit demand for working capital and capacity building support. This gap is further exacerbated for women, with 92.1% of women-owned MSMEs being unregistered / informal, and are therefore unable to access formal finance.

As majority of the micro enterprises are either New to Credit (NTC) or New to Income(NTI), they are not deemed to be creditworthy, and are considered “high-risk customers” by formal lending institutions (LIs).

This lack of support leaves individuals vulnerable to economic shocks, hindering their growth and preventing them from realizing their full potential.

Informal workers, including micro-entrepreneurs, have a huge potential to contribute to India’s economic growth, social progress, inclusive growth, and reduced poverty.

The REVIVE Alliance: A Catalyst for Change

Over 80% of solo, nano and micro entrepreneurs are either NTI, NTC, or New to Formal Credit (NTFC), have not completed basic KYC, GST, and other formalization activities, and do not have access to diverse markets.

This shows the dire need for support from the private, philanthropic, financial and public sectors to band together to bridge this credit gap, and enable the rapid formalization and growth of these entrepreneurs.

To support these efforts, Samhita-CGF founded the REVIVE Alliance, a collaborative platform that aims to increase incomes, improve livelihood opportunities, and enable the formalization of micro-entrepreneurs, making them more resilient to potential future shocks.

Through a multi-year, multi-intervention approach, REVIVE addresses critical challenges faced by informal workers, providing them with comprehensive support across 5 key interventions.

1 . Financial Literacy and Inclusion

REVIVE focuses on enhancing financial literacy, facilitating access to formal credit through the Returnable Grant, as well as offering savings and investment support.

Training programs and workshops are conducted to enhance financial literacy and promote savings habits. Additionally, REVIVE collaborates with financial institutions to facilitate access to formal credit and capital, catalyzed by the Returnable Grant that facilitates a graduation model.

By enabling participants to navigate the financial landscape, REVIVE paves the way for financial inclusion and improved financial stability.

2. Skills Development and Job Progression

Limited skills and job opportunities often result in low wages for informal sector workers. REVIVE addresses this challenge by offering skill development programs that upskill / reskill job seekers and entrepreneurs.

By partnering with training institutions, sector skills councils, and industry experts, REVIVE is able to deliver skilling programs to enhance technical and management skills, as well as entrepreneurial capabilities.

3. Enterprise Strengthening and Market Linkages

REVIVE aims to bridge this gap by providing enterprise development support and facilitating market linkages, so as to bridge the network gap and equip micro-entrepreneurs with the resources they need to thrive.

Through these connections, micro-entrepreneurs are able to scale their businesses and expand their customer base.

4. Digital Empowerment

REVIVE bridges the digital-divide through digital literacy and empowering participants with the necessary digital skills, covering topics like digital safety, financial tools as well as platforms that can help them with employment opportunities.

5. Social Protection

REVIVE unlocks government schemes and facilitates access to affordable healthcare, insurance, pension schemes, trade-specific benefits and other social security benefits that provide a safety net for informal sector workers for income security and protection against unforeseen risks.

Fostering an Enabling Environment

REVIVE brings together a whole ecosystem of players – the government, corporates,, foundations, financial institutions, nonprofits, and other such stakeholders to create an enabling environment.

Blended finance tools, such as the Returnable Grant, play a crucial role in providing NTC and NTI workers with access to capital on favorable terms, allowing them to invest in their businesses, scale their operations, skilling, get formal loans, etc.

Through the co-creation of public goods, such as a pre-credit score, REVIVE aims to enable micro-entrepreneurs to access formal finance easily. The pre-credit score, backed by a credit guarantee, can be used by financial institutions to offer credit to first time borrowers, acting as a proxy for credit ratings and proof of ability to repay.

Impact and Potential for Scale

The REVIVE Alliance has the potential to create a transformative impact on the lives of millions of informal workers. By enhancing their livelihoods through improving access to finance, and enabling skills development, REVIVE aims to uplift micro-entrepreneurs and drive socio-economic progress.

The ripple effect it can create extends beyond the immediate participants, positively impacting their families and communities.

With an initial target of impacting 10 million individuals, the REVIVE Alliance aims to scale its interventions and reach an even larger segment of the informal sector in the coming years.

By empowering informal workers through financial literacy, skills development, enterprise strengthening, and digital empowerment, REVIVE aims to build a thriving future where every individual has the opportunity to succeed and reach their full potential.

July 11, 2023
The Blended Finance Continuum: A Catalytic Pathway for Financial Inclusion
In India, the informal sector represents a significant portion of the workforce, employing more than 90% of workers and contributing around 50% to the country’s GDP. However more than 160 Million Indians remain underserved by formal credit systems

Access to formal credit, economic growth, and financial inclusion are critical for the development and empowerment for entrepreneurs in underserved communities. The lack of credit score and credit history is an impediment for getting credit opportunities, as many lenders are hesitant to extend credit to consumers without any credit history or score.

The innovative approach of a blended finance continuum can be a catalyst and pathway towards accessing future formal credit, driving economic growth, and providing financial inclusion for underserved communities.

In this blog, we will explore how the Returnable Grants, in conjunction with a pre-credit score, and credit guarantee, has the potential to create opportunities to transform lives for those in the informal sector.

Blended finance continuum: Opportunities or graduation into the formal economy

The blended finance continuum offers a progressive pathway for participants to move up the chain of financial instruments from grants to commercial debt. As participants repay grants, they build a credit history and become eligible to unlock more capital from mainstream financial institutions.

The aim of the model is to eventually make participants eligible for commercial loans. A large proportion of women are first-time borrowers and don’t have the credit history, collateral or documents to take formal loans.

The pre-credit score with financial institutions and experts can be used by banks and NBFCs to offer affordable credit to first time borrowers; acting as a proxy for credit ratings and proof of ability to payback.

Paving the Way for Financial Inclusion

The Returnable Grants(RG) serves as a stepping stone for individuals and enterprises to transition from the informal sector to the formal financial system. By providing safe and flexible capital, the RG model enables micro-entrepreneurs, artisans, and job seekers to expand their businesses, invest in raw materials, and access new markets.

As participants successfully utilize and repay the Returnable Grants, they build a credit history, gain financial knowledge, and establish their creditworthiness. This process aligns with the graduation model, which helps individuals progress from informality to formality, increasing their chances of accessing future formal credit.

“Fairoza Banu, a beauty-entrepreneur, used the RG model to expand her business. With the capital she received, Fairoza invested in high-quality materials and diversified her services. As Fairoza repaid the grant, she was able to show that she was able to pay back and be creditworthy.”

Pre-Credit Score: Unlocking Opportunities for New Borrowers

One of the significant barriers faced by individuals with no previous credit history is the lack of assets or creditworthiness. A pre-credit score framework is able to assess the creditworthiness and enable them to transition to the formal economy for accessing credit.

Through evaluating repayment behavior and financial capacity, the RG model assesses the creditworthiness of underbanked individuals. Data collected from first time borrowers of the returnable grants along with other interventions can serve as a proxy to a traditional borrower..

This approach can provide first to credit borrowers with an opportunity to establish a credit history, demonstrate their repayment abilities and credit worthiness.

Steps for building credit history:
- First-time borrower repays returnable grant/debt
- Provides access to financial, behavioral and repayments data which will feed into the pre-credit score
- Pre-credit score will be used to estimate repayment capability of the borrower when trying to avail commercial credit from Banks/NBFCs
“Repayment of the Returnable grant builds positive credit history and for entrepreneurs like Fairoza, can put the on a pathway toward formalization to access formal capital, so that in the future she could potentially take formal business loan and expand her business, and even support in the creation of jobs as her business expands.”

Improve access to relevant financial services on appropriate terms

A credit guarantee can mitigate the risk associated with lending to underserved communities and individuals. It acts as a form of assurance for financial institutions to provide formal credit to these marginalized groups.
1. Risk Mitigation: A credit guarantee reduces the risk for lenders by providing a backup plan in case of default. This increased security will encourage financial institutions to extend credit to underserved communities who would otherwise be denied access.
2. Access to Formal Credit: A credit guarantee can bridge the gap between underserved communities and formal financial institutions, ensuring they have equal access to credit opportunities, establish financial stability, and become part of the mainstream financial ecosystem.
“As Fairoza’s business grows she may want to access higher credit amounts and access financial services, with a pre-credit score and a credit guarantee, a bank, confident in the credit guarantee provided by the RG model, can offer Fairoza and entrepreneurs like her access to great financial services. Such a collaboration can not only facilitate Fairoza’s growth but also encourage other financial institutions to support underserved communities.”

The Returnable Grant (RG), in conjunction with the graduation model, pre-credit score, and credit guarantee, has the potential to be a transformative approach to improve access to future formal credit, increase economic growth, and provide financial inclusion for underserved communities.

Through the graduation model, individuals and enterprises in the informal sector can overcome the barriers that traditional financial institutions impose on them,
- The Returnable Grant: acts as a stepping stone for individuals to transition from the informal to the formal financial system, enabling them to access future formal credit and expand their businesses.
- Pre-Credit Score: Evaluates repayment behavior and financial capacity of participants, to establish a proxy credit score, which paves the way for accessing formal credit in the future.
- Credit Guarantee: mitigates the risk for financial institutions, encouraging them to lend to underserved communities and fostering economic growth.
The impact of the RG model can be seen through real-life examples of individuals who have transformed their lives and communities.

It has empowered women like Fairoza to access formal credit, formalize and expand their businesses, and contribute to local economic growth and her family’s needs.

Through partnerships with financial institutions and philanthropic agencies we aim to create public goods like the pre-credit score and credit guarantee facilities, and unlock the full potential of the MSME sector to drive sustainable and inclusive economic growth.
June 20, 2023
Becoming an all-rounder

Artisan: Salma Ben Rajanpur, Gujarat

Supported by STFC’s sewing training

44-year-old Salma Ben comes from the Rajanpur area of Gujarat. “I am an all-rounder,” she says when asked about her skill set that makes her a growing artisan and micro-entrepreneur. “I have my sewing, tailoring business that runs out of my house. I do all kinds of work – cutting, designing new patterns, stitching, tailoring, etc.”

Salma Ben has been associated with STFC for the past three years and it all began with the advent of COVID-19. “Everything was shut. My husband lost his job. We had no income to make ends meet,” says Salma, who is a mother of three daughters and two sons. “All my children have passed class 10th except one son who is still studying. None of them are working and so I was the only provider at that critical time,” she adds.
This kind of crisis was met by Salma after she was determined to find new work. “I was asking everyone if there was a way to find more work. And this is when through a relative, I was introduced to STFC. They instantly became my pillar of support as they pulled me into their tailoring training and the first thing I ever made for them were thousands of masks,” remembers Salma.

At that point when many households were struggling with basic income, STFC began running its training programs and onboarded women who could make masks, cloth bags, basket bags, etc. This training usually consists of about 25 women in each batch and continues for about 3 months totaling nearly 45 hours. “I feel so fortunate that STFC provided me with free training when it was most needed. Earlier, I was doing tailoring work but that didn’t amount to much income majorly because I was dependent on local orders, which would only come at festivals or weddings. Also, the sewing machine was an old one and it was only during the training that I was introduced to a better machine that helped me do all tasks without depending on others. I also learned very critical skills such as cutting, and pattern drawing/designing – which earlier, I had to get done from someone else thereby losing further money,” explains Salma.

The training was crucial in not only their support but also in providing raw materials and equipment at zero cost. “I had earlier taken private classes but since I had to purchase my raw material, I could not continue those classes for long. It became a super expensive affair,” she says. Adding to this, Salma ben was introduced to a pool of determined women just like hers who took charge of their households at such a crucial time. “I was in such awe to see so many neighboring women just like I come out of their houses and learn a skill and become an entrepreneur. My husband still makes very little income- about INR 3000/month and with the support of STFC, catering their orders alone amounts to INR 8000/month. Right now, without my support, we can’t run our family. And without STFC’s support, I couldn’t have reached here”.

Salma ben has not only been influenced by so many other women like her but has also inspired many other women who have joined the training courses and are determined to work towards raising their income levels. “During COVID, I used to work for 10-12 hours straight. But then I fell sick and could not sit for so long. I have trained my daughters and now they help me in finishing orders.”

While Salma ben has still not named her business, she is determined to reach an income of INR10,000-12,000/month by taking more orders through STFC.

March 20, 2023
The Need for Partnership: Empowering Women-led Businesses through Collaboration
In this series, we delve on the key lessons from the Samhita -Collective Good Foundation (Samhita-CGF) and Microsoft Project on how to empower women entrepreneurs through digital financial literacy and build a stronger framework for the second iteration.

Women Entrepreneurship: The Indian Landscape

The COVID-19 pandemic had long-lasting devastating effects on the Indian economy, especially when more than 75% of small-scale livelihood families, who were into jobs like farming, construction and owned shops/stalls lost their ability to earn their daily wage income. But it also inevitably encouraged a new wave of women entrepreneurship, as the women, who were traditionally homemakers, realised that they could utilise their basic skills to make masks and other products and generate money, and decided to take on the mantle to run their households for the sake of survival through those tough times.

This wave of change quickly transformed women entrepreneurship into a fast-growing sector, and as of 2022, there are more than 13.5 million women-led enterprises in India. But they still attribute to only 20% of the total entrepreneurship in India. There is much more that needs to be done, and that can happen with the help of digital and financial inclusion. Financial inclusion can be considered the basis for enhancing the economic growth and empowerment of a particular country, and is a core need when thinking of establishing any entrepreneurship. This is even more imperative for women, as they lack the financial independence that is naturally granted to men in a patriarchal society. This is in different forms as outlined below:

BARRIERS TO ENTRY
1. Socioeconomic and Cultural Barriers: There are many women who still end up handling a second shift model, where they are expected to handle both their businesses and homes simultaneously. 63% of women prefer to work from home for the same reason. This restricts their ability to expand their businesses, as they are not able to give in more time to establish it.
2. Lack of Access to Funding: Women entrepreneurs usually tend to depend on immediate family, friends and relatives for financial support to start up and establish their business. Due to lack of financial literacy, many women do not even know how to be able to handle their own bank accounts. As a result, even as of 2022, even with 85% women who have bank accounts, there is a 37% gap in funding for women enterprises.
3. Low level of awareness of government schemes: There are a variety of social security schemes provided by the Government of India like financial inclusion, insurance and direct benefit transfers (DBTs)which help to safeguard the future of Indian citizens, irrespective of gender, age, religion or class. However, a majority of women are not aware about them because it is not a topic that comes up in general discussions with other women.
All of these factors play a significant role in determining how women-led businesses are able to flourish in the Indian market.

EMPOWERING WOMEN

Financial and Digital Empowerment of Small Women-Led Businesses

In order to recognise the need to bridge the gap between women entrepreneurs and digital financial mechanisms, Microsoft decided to empower 5000 women through their pan-India scale-up project with Samhita-CGF. These interventions included:
1. Provision of access to government schemes and services: The women entrepreneurs were made aware about the schemes provided by the Government of India, broadly covering financial inclusion, insurance and direct benefit transfers (DBTs). They were educated about eligibility criteria, and were provided with hand-holding support in procuring the scheme related documents, and the post-application process.
2. Advanced entrepreneurship training: The women were trained on the MeraBills digital bookkeeping app, on topics like retaining a bank account, cash flow management and how to use the digital banking services. Additionally, they were taught financial planning. The entrepreneurs were also provided training the marketplaces to sell their products.
3. Mentoring and capacity building to help other members with their existing skill sets: The entrepreneurs who were provided with the advanced training were also moulded to become mentors to the other women in the cohort.
4. Enabling credit for their respective businesses: Samhita-CGF got in touch with the banks and non-banking financial companies to create a criterion for the beneficiaries to be connected to the right financial schemes that suit their business. The information included the process of loan disbursement, and how they can return the money in the signed period of time.
PARTNERSHIP FOR STRONGER IMPACT

One of the core reasons why partnerships like these are needed is because each firm has their own expertise, which can be utilised to help those that need it the most. For instance, Microsoft has access to the most innovative technological services available, while Samhita-CGF, through its REVIVE program has an understanding and expertise on financial inclusion. They also give businesses a chance to expand their particular customer base which makes it easier to reach out to more beneficiaries.

Stitching Her Business with Digital Empowerment: Meenakshi from Barmer

“Now I’m able to take money from my creditor and keep

monthly accounts of my deposits.”

Meenakshi, a 26-year-old resident of Barmer in Rajasthan has always had a strong desire to contribute to her family’s income through her tailoring business. However, managing the finances was a challenge for her, and she often had to depend on others for assistance. Her lack of familiarity with digital payments and bookkeeping made it difficult for her to transition to the new normal. Fortunately, through the REVIVE Project, Meenakshi was able to acquire the digital financial literacy skills needed to thrive.

Her story is a testament to the power of digital financial literacy in empowering women entrepreneurs. Here’s how she did it:

Meenakshi was introduced to the REVIVE Project through Pappu Kanwar, a master trainer from Barmer. She was taught how to operate the phone, use online banking, and send money using UPI. Additionally, Meenakshi was introduced to a digital bookkeeping app called MeraBills, which made it easy for her to keep track of her finances. In addition to reminders, financial reports, and budgeting, she no longer requires assistance with her finances and is independently operating her business.

Just like Meenakshi, there are several other women micro-entrepreneurs that are being connected to the digital world through skill building.

FINDINGS & WAY FORWARD/ ISSUES TO CONSIDER

Some of the considerations for the future could be as follows:
- Enabling online training via mobile phone: Women who participate in such cohorts usually come from a low-income background, hence have to delve into multiple odd jobs in order to support their families’ livelihoods. Enabling online training will allow more women to be able to participate at their convenience, and hence gain digital and financial literacy skills.
- Having a women-only training: This might prove to be effective in ensuring dissemination of learnings. Additionally, personalising the experience with one-on-one sessions, will help the women to develop more trust in the process and work harder on incorporating digital and financial literacy into their livelihoods.
- Provision of data connectivity: Teaching skills is effective only when the women will be able to practise and use the MeraBills digital bookkeeping app in their shops and neighbourhoods too. Hence, the provision of adequate data connectivity in common service centres, panchayat buildings should also be included as part of the programmes.
- Promoting more diverse learning: Curriculum content is better understood when it is supplemented with stories, videos and activity-based learning. The trainers can be equipped and encouraged to deliver their complex ideas in a simpler manner for the women to be able to better retain the information in the long-term.
- Associating the women with unique identification to track their progress: Women in these cohorts usually use their family’s phone numbers to register and implement the program. Creating a unique id will help to identify them as individuals, and monitor their individual areas of improvement and growth.
- Determining an effective pay-for performance process: On achieving a particular milestone, the women were paid ₹400 to encourage them. However, money can often be seen as charity and/or insufficient for the particular need. A change in amount and more clarity on the rationale to the beneficiaries will help to make the process more efficient.
The Samhita-CGF- Microsoft program has been instrumental in changing the lives of more than 5000 women entrepreneurs so far, and the second iteration will help to take this partnership forward to benefit many more women. It is inspiring to see stories of resilience like Meenakshi, and it is our hope that many such women are able to utilise the digital book-keeping and capacity building skills and tools to further advance their businesses and live a life of dignity.

This article was editorialised by Ayushi Bhatnagar and Tanvi Deshmukh
March 15, 2023
Against All Odds

“During these tough times I was struggling, distressed and did not have any stable source of income. This is when the Returnable Grant came to my rescue.”

Fatima encountered many Pandemic induced ups and downs before she could conquer a state of being independent and having a reasonable growth in her business. She is a beauty entrepreneur based in Sangam Vihar of Delhi.

“People were scared to come to the parlour and instead started calling parlour services at home. And even when people started going out they were more comfortable taking parlour services at my home rather than visiting my parlour. And few who were coming to the parlour were getting their towels or band for their safety and hygiene,” says Fatima on the impact of COVID-19 on her business.

Before the pandemic, she was also conducting beauty training sessions and provided a 6-month training session with 2 hours of class every day and charge a fee of Rs 500 for each trainee. Everything was going on smoothly in her life until COVID-19 engulfed her in unexpected turmoil and havoc. She had to close her training centre because trainees stopped showing up for the sessions. As a result, a source of stable income began crippling. “Even if 4-5 children would take my session I could pay off my rent,” says Fatima.

With reduced customers, the income started dangling and soon Fatima didn’t have enough to run her business. This is when she got in touch with Dhriiti, a social enterprise based in Delhi. It was here that she was provided a Returnable grant in the form of zero-interest loan with the intention of helping her to restart her lost business.

Fatima used the money and training efficiently. She took advantage of this opportunity and started brushing up on her beautician skills through the training sessions conducted by Dhriiti. The returnable grant helped her reshape her business and also assisted her to venture into the business of cosmetics. “The process of procuring returnable grant was easy and comfortable as we had no such condition of providing a guarantor, no compulsion of visiting the bank, no fixed amount to pay back and zero-interest. There were no compulsions or boundations. This was of the best facility provided through returnable grant,” she adds.

With the support that she received from Dhriiti, Fatima was able to take the first leap toward income stabalisation post pandemic. She opened a parlour near her home. “My mentors at Dhriiti suggested that I open a beauty training centre as I was good at providing training and I had previously trained many young students,” recalls Fatima. “It’s a big parlour compared to my previous one, which was quite small. The previous one had no cosmetic business and could accommodate only one chair with a small counter,” she adds.

The bigger facility not only provided her with enough space to run her parlour but also supported her with apt space to conduct her training sessions. “My spacious parlour has definitely helped me increase my business”, Fatima happily remarks.

Even though Fatima received a small returnable grant amount, she says it was sufficient enough for her to kickstart her life and business. It gave her the confidence and strength to stand on her feet and took her on the road of being financially independent. Since she had repaid the entire amount, her credit score has helped her enter the formal system of banking, and increased her awareness of banking and loan schemes. Fatima desires to train as many young students as she can and take her parlour to great heights.
“The money that we received helped us in some way or another. The strength that ignited in us gave us the hope that we will be able to help and grow our business,” adds Fatima.

This story was editorialised by Avantika Seth

June 7, 2022
Driving Her Happiness

“It’s almost like this rickshaw is currently our caretaker. It’s the sole reason we’re able to survive.”

When the pandemic hit, Usha ben was making sense of the losses she had incurred by setting up a roadside chow mien stall. With the lockdown in place, she had to stall her business. Her only resort was to make her rickshaw run. But with everything going downhill, the rickshaw, too, couldn’t support her much. In the middle of the lockdown, its battery drained. As there was no money even to get basic food on the table, repairing the vehicle was out of the question.

“It was one of the most painful times of my life,” recalls Usha ben. However, a ray of hope showed up when she got in touch with SEWA Bharat and understood that the returnable grant of INR 20,000 could help her get the rickshaw’s battery repaired to enter the market once again. She first came to the SEWA Bharat centre to get her younger daughter’s ‘janampatri’ made, and that’s how she continued to remain in touch with the centre. After three-four years, she applied for an account in the bank with the help of SEWA and that’s when their journey began.

Since 1999, the SEWA Delhi microfinance program has enabled women to be financially included and independent. The aim is to ensure that members have access to savings and loans, particularly for working capital, and are prevented from exploitation by moneylenders.

“I was very disappointed as my work had stopped. I was facing severe issues, my income dropped and our ration was finishing. I approached Dolly didi from SEWA Bharat and she guided me through the process of procuring an interest-free loan. It helped me get the rickshaw battery changed and I was back on the road,” adds Usha ben.

Usha used to make electrical seals at her home before working as an e-rickshaw driver. For 1000 pieces she would get Rs 50 and in a day she could only make 220-250 seals in spite of working for more than 12 hours. Therefore, her elder brother suggested that she should drive an e-rickshaw. Usha has fond memories attached to the vehicle. Her elder brother not only went along with her for the purchase but also taught her how to drive.

“At the beginning, I was quite scared of how to drive the rickshaw and was so nervous thinking what if I hit someone or something. My brother sat beside me and taught me how to drive. I am very happy every time when the people of the centre are my passengers,” she tells.

Today, she earns anywhere between INR 700-800 per day and can provide for the education of her two young girls. “I take care of this rickshaw more than anything else in my life right now. I make sure it is always in good shape, I make sure I don’t park it randomly and so the chances of theft reduce, basically I make sure it is up and working -because this is the whole and sole of our lives right now,” she further adds.

In the Returnable grant program by Samhita, 202 women micro-entrepreneurs were aimed to be supported in Delhi. They are from Jahagirpuri, Sundarnagri, Gokulpuri, New Ashok Nagar and Raghubir Nagar areas of Delhi and are associated with SEWA Delhi Trust and Delhi credit cooperative. These women are from the backward communities and informal sector who have lost their livelihood during COVID-19. Mostly women micro-entrepreneurs involved in some trades i.e Home Based worker, Vendor, Domestic Worker, Self Employed. Like Usha ben, most of them have set up their small business such as selling garments, jewellery or tie&dye dupattas. The Grant has helped them scale their reach and led to a consistent source of income.

Usha ben received the Returnable Grant in the first cycle, September 2021. With the help of her rickshaw business, she will complete the repayment of the loan (INR 6000) by July 2022.

“After all being your own boss is the best, isn’t it? I can drive this rickshaw as much on as many days as I feel. When I’m sick, I can just let it park. No one’s going to ask me questions on that, no? It’s a great feeling,” she concludes.

This story was editorialised by Avantika Seth

June 6, 2022
Women At Work In New India
In India, the COVID-19 pandemic has disproportionately affected the lives and livelihoods of working women compared to working men. To understand the extent of this impact on women workers, Samhita-Collective Good Foundation(CGF), commissioned by the Foreign, Commonwealth & Development Office (FCDO) in India, undertook a study that analysed the pandemic experiences of thirty women workers and entrepreneurs across professions in India. The findings and recommendations of the study are presented in this report.

The research study adopted a qualitative approach and exploratory design. Furthermore, it looked at the challenges through an intersectional lens, since the pandemic has affected women differently based on their demographic, geographical and socio-economic backgrounds. While for some women, economic and social recovery has been relatively easier and faster, given their social location, networks, skill sets, nature of their trade, access to digital and other infrastructure, most women continue to struggle to bounce back.

Prior to the primary data collection conducted on field across the ten cohorts and five states the women belonged to, certain themes were identified from a secondary review of existing literature. Thereafter, several of these themes were corroborated through a thematic analysis of the narratives presented by thirty women participants.

Four major themes emerged from this research, which are listed as below:
- Challenges faced due to the COVID-19 pandemic
- Social and systemic support availed during the crisis
- Adaptation and transition in livelihood choices during the pandemic
- Aspirations and ambitions of women workers
This research study advocates using the learnings and evidence from the women’s narratives to inform policy and programme design. With an intended target audience consisting of private sector, development funders and social purpose organizations, this research serves to be a call for action for commitments to support women in the workforce and in business value chains. In aligning its recommendations with the ILO’s Decent Work framework and the United Nations Sustainable Development Goals(SDGs), as a way forward, this report also proposes collaborative models such as building large multi-stakeholder and multi-cause alliances to deliver at scale, innovate and integrate core competencies of all development stakeholders, to ensure continuous and sustained support for women to enter, sustain and grow in the workforce. In this report, as a way forward, Samhita-CGF proposes the ‘SACCI model’ – stakeholder Alliance Creation for Collaborative Impact, given the problem’s magnitude, complexity, and urgency. An Alliance will bring together different development stakeholders such as the government, private sector, institutional funders, development experts and social purpose organisations to plug in the gaps in the current system and actively promote and support women in the workforce.

Download Full Report
March 2, 2022
Samhita–CGF partners with AMHSSC to aid 50,000 women to create thriving livelihood pathways
The REVIVE Alliance was set up with the mission of creating economic opportunities for vulnerable communities disproportionately impacted by the COVID-19 pandemic.

One of the Alliance’s mission, REVIVE Women@Work is to collectively drive economic recovery and resilience for low-income working women (small women-entrepreneurs and workers) through financial and digital inclusion, access to social security, skilling, and market linkages. Through these interventions, we aim to create sustainable and impactful livelihood opportunities for women to enter, sustain, and grow at their workplaces.

As part of this mission, we are happy to announce that Samhita – Collective Good Foundation (Samhita – CGF) has partnered with Apparel Made-Ups and Home Furnishings Sector Skill Council (AMHSSC) to complement the Government of India’s skilling mandate and augment the journey of 50,000 women to grow beyond gainful employment and create thriving livelihood pathways.

“Economically empowered women can be powerful catalysts for change. They tend to invest more of their income into the well-being of their families, have greater control over their reproductive health, and can significantly drive economic growth. Samhita’s partnership with AMHSSC aims to serve as a model to increase meaningful participation of women in the workforce and enhance their journey through skill building, adoption of positive health practices, and eventually become an agent of change in her community”
Priya Naik, Founder & CEO, Samhita Social Ventures.

Through this partnership, Samhita – CGF will enable livelihood linkages of 50,000 women to manufacturing units of large corporate houses, and support AMHSSC in offering customised and relevant services across 4 key areas critical to thrive in the workforce:
- Worker health & well-being education and services
- Awareness and Protection from Violence and harassment in the workplace
- Economic Empowerment and Professional development
- Encouraging Entrepreneurship
“In today’s world, one not only needs to be skilled in a Particular sector but must also be aware of his/her rights, especially for women to know their gender related rights. AMHSSC along with CGF is committed to provide such insights to the concerned stake holders, and support their journey into meaningful employment opportunities”
Dr Roopak Vasishtha, CEO, AMHSSC

Through Revive Women@Work, we envisage a better normal where more women are gainfully employed and acquire the necessary skills to take control of their own lives.
February 2, 2022