MOTIVATION AND CHALLENGES FOR SOCIAL ENTREPRENUERS IN MICRO-FINANCE CONTEXT IN INDIA

Dr. Suman Ghalawat Ms. Vandana GoyatDr. Renu

contents• Need of social entrepreneur• Leading social entrepreneur• What is a social entrepreneur• Social entrepreneur in Indian scenario• Motivation for social entrepreneurship in

India• Challenges of a social entrepreneur• Social entrepreneurship in the micro

finance context

Need ofSocial Entrepreneur

LIFE………….It just last for a few days for so many children in India.

Some present day social entrepreneurs

Ela Bhatt(India)• Founder of the Self-Employed Women’s association(SEWA) and the SEWA cooperative bank In Gujarat.

Thinlas Chorol(India)

Arunachalam Muruganantham(India)• The man whoMade sanitary Napkins Accessible for Rural women In India

Bunker Roy(India)• Founder ofBare-foot college Which promotesRural developmentThrough innovative Education programs

what is a social entrepreneur?

How social entrepreneurs differ from non-government organisations (NGO’S)

• Social entrepreneurship is the process of bringing about social change on a major and more effective scale than a traditional NGO

• They aim to make broad-based ,long term changes instead of small scale time limited changes

• NGO raises funds through events activities and sometimes products

• Social entrepreneurs consider the affected people as part of the solution and not as passive beneficiaries.

• Success of social entrepreneur is measured not by the profit or revenue but by the no. of people whose life have been transformed due to his efforts

• They have to work in collaboration with both the government and the private sector , plugging the gap between the policies of the administration and their efforts to improve the society

Social entrepreneur in Indian scenario

• The growth post liberalization benefited the rich(the inc. in no. of Indian millionaires was second only to china) and a newly created middle class.

• What of the rest?• Most of India or 400 odd million people

live on less than $1 a day.• Income inequality has doubled in last 20

years

• The Gov. and NGO’s are trying, with varying degrees of success, but their interventions fall woefully fall short of what is needed to combat India’s pressing problems.

• Perhaps what is needed now is a unusual approach.

• This is where social enterprise (socents) can play a role.

• They use market-proven business practices to solve social problems.

• In the world of socents, business and philanthropy collide and strive to create a more equitable and sustainable world.

• They may not be sliver bullet for all of India’s gargantuan problems related to agriculture, poverty, infrastructure, education and healthcare, but they may perhaps be our best bet.

Motivation for social entrepreneur in India

Arvind eye care, healthcare for all• India has 15 million blind peoplewhile 80% ofblindness can be prevented and cured• The arvind eye care has put down the

cost of a cataract surgery from $200 to $5.

SELCO energy for all• 40% of Indian still don’t have access to

electricity.• Gov. solution to build huge power plant to

provide energy to big cities, but villagers nearby don’t have

access to this energy.• Made non-conventional energy accessible to all in a decentralized wayby making solar panel for rural population

Naandi foundation nutrition for all• 45% of malnourished children in the world are Indian.• Under a public-private partnership with

the government of india, naandi delivers everyday 1million free, nutritious and hot meals to school children.

• Naandi also works in the field of children rights access to water and sustainable livelihood.

Goonj , clothing for all• Thousandsof kgs of clothing arethrown away in India while poorest of the poor are unable to dress.• Goonj collects, recycles and distributes

20,000kg of clothing per month and is present in 20 states in india.

Challenges of a social entrepreneur

• There are no specific metrics to measure the performance of a social entrepreneurial venture.

• It all depends on what is the end objective and how you can quantify that end objective

• setting up a social entrepreneurship venture is actually more difficult than starting a regular business

• There are so many complications right form registering, to society, to clearances from RBI for micro-lending, to getting a payment gateway online.

• There are no standardized gov. procedure for a social enterprise.

• You can either be an NGO or a regular company there is no concept of social enterprise in india

Banks in India still don’t understand the concept of for-profit social entrepreneurial ventures

Social entrepreneurship in thecontext of microfinance

References• 1.http://online.wsj.com/article/

SB125012112518027581.htmlKetaki gokhale ,a global surge in tiny loans spurs credit bubble in slum, wall street journal, last accessed on 12 Nov 20122. Youth social entrepreneurship, times of India 3.The future of social entrepreneurship in india, social earth august 8 2011