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This is a comprehensive case study of the multiple initiatives of Swayam Shikshan Prayog (SSP), a learning and development organisation working in rural Maharashtra and other states. It documented lessons and insights from a women’s empowerment, entrepreneurship and governance approach that centres on facilitating access to microfinance, livelihoods, health and other services.
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INTEGRATING MICROFINANCE AND LIVELIHOODS The Swayam Shikshan Prayog Experience
By
Sangeetha Purushothaman Preethi Krishnan
Priya Pillai Malasree Dasgupta
Best Practices Foundation
Bangalore
Date: 2nd June 2011
Page 3 of 36
Table of contents
1.1. Introduction ................................................................................................................... 3
1.2. Objectives of the study .................................................................................................. 4
1.3. Conceptual Framework and Methodology.................................................................... 5
1.4. Context ......................................................................................................................... 6
1.5. Sakhi Samudaya Kosh (SSK) ...................................................................................... 7
1.6. Objectives of SSK ......................................................................................................... 7
1.7. Philosophy and Guiding Principles ............................................................................... 7
1.8. Institutional Processes and Coverage............................................................................ 8
1.9. Impact ........................................................................................................................... 8
1.10. Lessons Learnt ......................................................................................................... 12
1.11. Community Health Mutual Trust (SAST) ................................................................ 13
1.12. Objectives of SAST ................................................................................................. 13
1.13. Activities .................................................................................................................. 13
1.14. Impact ....................................................................................................................... 14
1.15. Challenges and Recommendations ........................................................................... 15
1.16. Sakhi Social Enterprise Network (SSEN) ................................................................ 15
1.17. Objectives of SSEN ................................................................................................. 15
1.18. Activities and Strategies ........................................................................................... 16
1.19. Impact ....................................................................................................................... 17
1.20. Challenges and Recommendations ........................................................................... 17
1.21. Synergies with credit, health and retail entrepreneurs ............................................ 18
1.22. Sakhi Retail Private Limited (SRPL) ........................................................................ 18
1.23. Objectives ............................................................................................................... 19
1.24. Activities .................................................................................................................. 19
1.25. Impact ....................................................................................................................... 19
1.26. Challenges and Recommendations ........................................................................... 20
1.27. Overall Strategies and Impact ................................................................................... 21
1.28. Focus on Livelihoods and Credit through MF .......................................................... 21
1.29. Social networks of women and larger Institutions ................................................... 22
1.30. Fostering Women’s Leadership ............................................................................... 23
Combining strategies that promote women leaders-entrepreneurs through social
enterprises not only can raise awareness on critical issues but provide women with income
opportunities to do so. Through active outreach products, women are not only able to raise
awareness but also help their communities access better healthcare and improve their
quality of life. Women who were actively engaged as arogya sakhis, field officers, sakhis
and health governance monitors as well as community leaders show their collective
support for SSP’s initiatives through melavas held annually as well as through their links to
the entities. To illustrate, every year almost 2000 women attend the melavas held by SSP,
where women leaders were recognized as role models and commit to social goals. ........ 23
Women’s leadership and their support is evidenced by number of women mobilized to
aware of services: ................................................................................................................ 23
1.31. Capacity Building ..................................................................................................... 24
1.32. Convergence ............................................................................................................ 24
Page 4 of 36
1.33. Political capital ......................................................................................................... 24
1.34. Institutional Impact .................................................................................................. 25
1.35. Main lessons.............................................................................................................. 26
1.36. The Way Forward .................................................................................................... 27
1.37. Context ...................................................................................................................... 27
1.38. Empowerment .......................................................................................................... 27
1.39. Gender based strategies ............................................................................................. 28
1.40. Increasing community ownership through the federations ....................................... 28
1.41. Growing SSP SHG networks and community relationships ................................... 29
1.42. Convergence: Current and Potential ......................................................................... 29
1.43. Final recommendations ............................................................................................. 33
1.44. Summary and Conclusions ....................................................................................... 34
1.1. Introduction
The case study by Best Practice Foundation documents lessons and insights from a women’s
empowerment, entrepreneurship and governance approach that centres around facilitating
access to microfinance, livelihoods, health and other services. It examines the multiple
initiatives of Swayam Shikshan Prayog (SSP), a learning and development organisation
working in rural Maharashtra and other states, primarily through the lens of empowering
women in poor communities in rural India.
SSP aims to bring women and poor communities from the margin to the mainstream of
development by forging partnerships with institutional actors and providing technical support
for community driven initiatives. Today, SSP partners with over 5,000 women SHGs with
around 72,000 members in 1,600+ villages across three states in India. Together, SSP,
grassroots federations and social enterprises provide range of solutions/initiatives to meet
health, energy, water, sanitation, food security and agriculture needs of the poor in a changing
climate.
SSP is headquartered in Mumbai and it began its work in the economically backward
Marathwada region in Maharashtra. This region experienced a massive earthquake in 1993.
Working to transform this mass-scale disaster into an opportunity for development, SSP
partnered with institutions, to develop a widespread network of women. After completion of
the reconstruction project in 1998, SSP was supported by HIVOS over multiple years to form
and strengthen grassroots institutions that went beyond savings and credit to build social,
political and economic competencies for its women members by enhancing access to finance
and markets and local institutions.
In the process of disaster reconstruction, SSP started promoting savings and credit groups to
provide economic and social capacity building support to women. However, groups could
not leverage the volumes of credit that were actually being demanded and hence the need for
a larger organizational structure came into being. Thus, the first federation was registered in
Tuljapur in the year 2000. The federation1 was a three-tier structure comprising of a network
of SHGs with the SHG at the village level, SHG representation at cluster level (10-15
villages) and the executive committee at the Taluk level. By 2005, there were a total of 2,427
1 A federation is a network of self help groups with the Apex body at the block level with the broad
objective of empowering women and providing them with livelihood options.
Page 5 of 36
SHGs promoted by SSP, which came together to form eight federations and this strategy
continued leading to a total of 16 federations.
In 2006, SSP and the SHG network promoted Sakhi Samudaya Kosh (SSK) as a community
driven Micro finance Institution (MFI) with a goal to improve livelihoods for women and
families. From 2006 to 2010, partnering with HIVOS, SSP moved steadily from a savings &
credit and micro-enterprise strategy to setting up social businesses that tap large scale
opportunities to provide sustainable “livelihoods” /incomes to women. SSP and the networks
readied themselves for this paradigm shift by espousing social and business models, securing
credit and capital, creating and running legal entities and building new skills sets.
Within this context, the concept of creating social businesses that could leverage and expand
on the skills of women was on top of the list of priorities. SSP then nurtured 800+ women
village level retail entrepreneurs in as many rural villages/towns by setting up Sakhi Retail
Private Limited (SRPL) in rural Maharashtra to market a line of affordable products with
high social impact that enhance the lives of both consumers and entrepreneurs to reach to
72,000 families. Sakhi Community Health Trust (SAST) an initiative for rural families with
low access to affordable health to benefit from cashless health insurance and doorstep health
services resulting in improved health security. Setting up a rural school of entrepreneurship
for women and youth, building and training micro -entrepreneurs and starting an incubator
for rural enterprises to enhance opportunities for women and young girls are key goals of the
Sakhi Social Enterprise Network (SSEN) entity.
1.2. Objectives of the study
To understand the Micro-finance programme, Sakhi Samudaya Kosh (SSK), and
additional non-microfinance interventions with respect to coverage, socio-economic
profile of the beneficiaries, services delivered, client satisfaction with services, and the
resultant expansion of ability to make strategic choices.
To analyse the context in which the Micro Finance Institution (MFI) is operating in order
to identify legal, socio-economic, cultural and political factors that impact upon women
being able to access, utilise and benefit from micro-finance services and their impact on
women’s ability to make strategic life choices.
To conduct an institutional analysis looking at the quality of the MFI internal procedures,
policies, M&E, MIS in terms of enabling MF specific learning and reflection on: service
delivery, product relevance, additional interventions, beneficiary/client satisfaction,
knowledge of context and relevant stakeholders/resource persons/organisations that can
play a supportive role towards wider (economic) empowerment of women.
To assess main lessons learned in terms of adequacy and relevance of the MF services
and additional interventions, their impact on wider women’s (economic) empowerment,
the potential sustainability of combined interventions, replicability and scalability, new
interventions that might be required, and unintended positive and negative outcomes.
1.3. Conceptual Framework and Methodology
The basic concepts which informed this study are from definitions and frameworks of
women’s empowerment conceptualized by Mayoux (2005), Longwe (1989, 1991), Rowlands
(1997) and Kabeer (1994) included in Appendix 2.1 and by DFID’s livelihood framework
(Appendix 2.2).
Page 6 of 36
The case study was conducted in three phases – planning and pre-appraisal, implementation
and follow up - over a period of two and a half months from November 1st 2010 to January
15th
2011. Phase one included secondary research, planning meetings of research team with
SSP staff, creation of the conceptual framework, preliminary design of instruments, pilot
field testing of instruments and finalisation of the methodology. The implementation phase of
20 days included a six day field visit, a quantitative survey of participants using and not using
microfinance services and the initial draft reports. In the final phase, a follow up visit to the
field along with a review of the initial draft and quality of the quantitative surveys jointly
assessed by BPF and SSP were conducted. Consequently, a second set of data collection was
carried out, to fill in the gaps and obtain the quantitative data needed to ensure a satisfactory
quality of the final sample surveyed.
The quantitative methodology was based on random stratified sampling methods, with three
equal samples of respondents (30) for those participants with a household income of less than
5,000 rupees per month. This ensured that groups of comparable socio-economic status were
sampled. The three samples included participants who have taken microfinance loans for
livelihoods, participants who have taken microfinance loans for consumption and participants
who have not taken loans from the MFI but were members of savings groups. Refer to
Appendix 2.3 for sample of respondents by village.
The qualitative data collection and analysis included in-depth interviews with SSP staff,
profiling of participants, focus group discussions and interviews with external stakeholders of
the initiatives. One limitation of the quantitive methodology was the sample size of 90 which
may not be representative of the entire population of women in SSP. Also it does not
represent the impact on women leaders (Sakhis, Arogya Sakhis field officers and supervisors)
who were interviewed in separate FGDs. In this context the methodological framework was
expanded to include a definition of women’s empowerment that captured the new roles
played by women leaders, as innovators of solutions and as providers of access to services
and products to solve large scale problems through qualitative interviews and FGDs. The
qualitative sample interviewed included separate focus group discussions with women from
the three groups for the quantitative sample, women federation leaders, women leaders who
were in panchayats, women entrepreneurs trained under SSEN, consumers of insurance
products, consumers of Sakhi retail products, Arogya Sakhis, field officers, field supervisors,
Sakhis or women from the retail marketing network, women farmer group representatives and
trainers (also federation members). This was supplemented by in-depth staff interviews of
senior staff from SSP. The study was conducted through four visits to SSP and one from SSP
to BPF.
Appendix 2.4 provides the quantitative and quantitative instruments used in this study. These
include the instruments used in the interviews and FGDs for internal and external
stakeholders and participants. These instruments have been provided as a separately as a
zipped file.
1.4. Context
To assess the levels of poverty among the women criteria of the official Below Poverty Line2
indices such as annual incomes below 20,000 rupees and landholding status were examined.
2 The Below Poverty Line for rural areas was set at annual family income less than Rs. 20,000, less than
two hectares land, and no television or refrigerator in the ninth five year plan. However in the 10th five year
plan this was changed to look at he degree of deprivation in respect of 13 parameters, with scores from 0-4:
Page 7 of 36
Of the 80 who responded about 67 women (84%) reported landholdings below 4.8 acres. The
overall status of women interviewed in SSP showed were close to the poverty line with the
17% of families earning under 20,000 rupees annually. However this figure of Rs 20,000 has
been questioned in the 10th
five year plan as unrealistic “as to support the food requirements
and does not provide much for the other basic essential items like health, education etc. That
is why some times the poverty lines have been described as starvation lines.” Thus a more
realistic cut off would be at least Rs.3,000 per month or 36,000 rupees per year by which
figure SSP sample surveyed showed 61% earning less than Rs.3,000 per month.
Need for Microfinance: Women reported a need for credit especially to enhance their
livelihoods as the primary reason for accessing microfinance services. Earlier many reported
having to take loans from money lenders or relatives and in this sense the MF services filled a
dire need. In the current context of those who were already taking MF loans many said that
they needed loans of higher magnitudes without which they would still need to take loans
from other sources. They also wanted loans of varying durations according to seasonality
and fund flow from the livelihood activity which may require longer terms. Women in the
savings groups said that they had insufficient access to credit especially for livelihoods and
even those who accessed bank loans said these loans were of too small a size to enhance their
livelihoods as they ranged between 2000 to 3000 rupees per person, much smaller when
compared to the loan size from microfinance.
Need for Additional Interventions:
A major need identified reported by all women was the need to enhance their livelihoods,
which could be a reflection of SSP’s focus on livelihoods. Thus the need to provide broad
based livelihood opportunities on scale emerged which translated from micro-enterprise into
SSP creating social enterprise. Several women who were engaged in livelihoods or who were
potential entrepreneurs reported the need for training on marketing.
Several women in savings groups reported not having had enough food before joining the
groups. Even now some women reported facing issues like alcoholism, inadequate
infrastructure in their villages such as electricity supply, roads, sanitation and water supply.
Health expenditure was reported to be a major issue and many had taken insurance to resolve
this problem. NSS data shows that people in rural areas were able to manage only Rs.409 out
of Rs.1,000 from their own income during hospitalisation, and Rs.772 out of Rs.1,000 in the
case of outpatient treatment. The remaining was collected through borrowing, loans from
friends and relatives and even from distress sale of household assets which was confirmed by
women. SSP in their own needs assessment identified health care expenses to be a major
factor enhancing the economic vulnerabilities of the women and their families. They also
found that the most common reason for women accessing loans from their SHGs is for
health-related expenditures. This established the need for health insurance and access to
affordable health services which SSP responded to through their community based, voluntary
health insurance programme.
The entities that were set up in response to these needs had overlapping geographies with the
intent of servicing the same women and families. The microfinance initiative had reached out
to 31,454 members, the largest population, while the health initiative reach 13,873 consumers
landholding, type of house, clothing, food security, sanitation, consumer durables, literacy status, labour force,
means of livelihood, status of children, type of indebtedness, reasons for migrations, etc.
http://en.wikipedia.org/wiki/Below_Poverty_Line_%28India%29
Page 8 of 36
in 175 villages of which 562 had taken MF loans. The retail marketing network has serviced
more than 61,000 consumers through 850 sakhis across 850 villages. SSEN has trained
2,465 women of which 843 have taken MF loans. While the quantitative survey which did
not include Sakhis did not show much overlap, the interviews with Sakhis showed women
who had benefited from at least two of the initiatives. Women have to be a member of a
group to access MF loans but to get access to health or other products and services the
women did not have to belong to groups although many were from the same geographical
area. One limitation of the study was that it did not target and interview families who had
received multiple services from all entities to assess impact. However SSP is imminently
poised as each entity scales up to impact the same women and families with the multiple
services for health, environment, energy, and credit.
1.5. Sakhi Samudaya Kosh (SSK)
Sakhi Samudaya Kosh (SSK), the microfinance entity of Swayam Shikshan Prayog (SSP)
was formed with the mission “to provide a range of socially relevant financial services for
rural women and their communities to help reduce poverty and to improve quality of life.”
1.6. Objectives of SSK
To provide a range of financial services and options to women and community members
To empower women SHGs and their members to join the financial mainstream
To enable SHGs and their members to diversify their livelihood systems and reduce risks
through credit plus services.
SSK began operations in 2006 with an initial capital of Rs. 42 lakhs (one lakh is 100,000)
funded by SSP with federations playing some role in loan application generation initially. In
2008, the entire operation was handed over to SSK where several federation leaders were
absorbed as field officers. Over the years, SSK has evolved itself into a sustainable
microfinance institution. Registered under Section 25 of the Company Act, SSK is a not for
profit company and therefore does not leverage funds from investors with a profit motive and
mainly depends on bank loans for their working capital. SSK has leveraged funds from
private/public sector and rural banks. In year 2009-2010, SSK leveraged Rs. 68 million and
disbursed close to Rs. 110 million as loans.
1.7. Philosophy and Guiding Principles
Focus on SHG: SSK provides financial services to its poor rural women consumers through
SHGs and urban consumers through Joint Liability Groups (JLG)3. However, in focussing on
its primary commitment to serve the rural poor, SSK has continued to strengthen the
collective at the village level in the SHG. Sustained efforts are put to build the field officers’
relationship with group members who have prevented unequal distribution of loans, increased
3 SHG is a group of 10-20 women members, who meets once a month, saves similar amounts in the
group, has a bank account in the name of SHGs, does internal lending with the savings collected. The purpose
for group formation is larger including addressing social, economic and political issues. The group is
homogenous in terms of socio economic status and group life is longer. A JLG is a group of 5 women, of similar
socio economic status whose only purpose is to receive loans. The group dissolves after loans are repaid.
Savings is not mandatory, nor is internal lending. In both SHGs and JLGs, the group is given the loan and stands
guarantee for repayment and no loans are given to individuals. JLGs are not part of the federation and as the
MF operations have deepened within the same villages new groups do not necessarily belong to the federation.
Page 9 of 36
transparency within groups and increased awareness of the status of loans and accounts
among the members.
Livelihood Orientation: SSK focuses on loans for livelihoods than on consumption, evident
in their loan portfolio of 95% of loans being used for productive purposes.
Registration as a non profit entity: By registering as a non-profit entity from the beginning,
SSK has avoided the pitfalls of microfinance institutions which are driven by profit such as
high interest rates and coercive recovery methods.
1.8. Institutional Processes and Coverage
Coverage: The cumulative disbursement of SSK till Dec 2010 is Rs 300.44 million to 3,313
SHGs and 612 JLGs reaching 31,454 members.
Products: SSK has four loan products based on principles of flexibility and tailored to
livelihoods (Appendix 3.1). The products include a short term loan with a maximum size of
Rs.40,000, a medium term loan up to Rs.1,00,000, a long term loan up to Rs.3,00,000 and an
emergency loan up to Rs.30,000, with interest rates ranging from 20-22% with repayment
schedules ranging from 12 to 24 months.
Credit-related processes: The credit related processes consisted of promotion of loans,
generating of loan application, appraisal of the application, disbursement of loans, follow up
and recovery. The processes have been formalised to increase transparency, build group
health and trust, create checks and balances and monitor groups closely in ways by which
typical pitfalls of microfinance have been avoided. Monitoring of field officers’ progress is
done through the creation of incentive mechanisms that are then tracked. The overall
incentive structure is provided in Appendix 3.4
1.9. Impact
The main impact of the MFI is improved livelihoods and incomes leading to a better quality
of life. Access to on time need based credit for productive activities by poor women is a
major factor. SSK operations have been strengthened by using Key Monitoring Indicators
that measure outreach and portfolio quality and the MFI’s efficiency, productivity and
financial viability. These indicators look at the health of the MFI. SSK has been evaluated
over the years by CRISIL and M-CRIL rating agencies. It’s overall external rating has
improved over the years. See Appendix 3.3.
Impact on Women’s livelihoods and lives
An impact assessment survey was carried out with women SHG members. See Appendix.
3.5. Three groups of women were interviewed with a total sample of 90 women:
1. Accessed loans from the MFI for consumption
2. Accessed MFI loans for livelihoods
3. Savings groups - not accessed any loans from the MFI
Focus group discussions with the same women supplemented the survey findings.
Socio Economic Status
It was seen that microfinance initiatives had targeted poor women in small and marginal
farmer households with an annual income of less than Rs.36,000. See Tables 1.a to f in
Appendix 3.5. Comparing the three groups more women in the savings groups were
agricultural labourers and less were involved in agricultural production and trading compared
to the two microfinance groups. Also the group accessing MF loans for livelihoods had a
Page 10 of 36
lower proportion of women in Scheduled Castes and Scheduled Tribes (Table 1b) compared
to other groups.
Economic Impact
Economic impact has been examined looking at access and control over credit and incomes,
expanded livelihood options, changes in expenditure pattern and ability of women to make
decisions related to expenditure including assets, large and small purchases.
Access and control to credit: Women who had taken microfinance loans reported that interest
rates at SSK was lower (24% per annum) in comparison to money lenders (60-72% per
annum). Of those surveyed, 33 women out of the 60 said that the loan processing procedures
for microfinance loans were simple (Table 4d). In the discussions, women who had accessed
loans from the banks complained that while the interest rates for banks was lower than SSK,
procedures were longer and complicated. Women preferred flexible use of loans. A third of
women surveyed felt that MF loans could not be used for diverse purposes and the size of
loans were usually small.
In terms of the decision to take a loan, women from all three groups said this was done
through in consultation with their husbands and family members (Table 6g). More women
who had not taken loan from the savings groups and not the MFI reported not consulting their
husbands. Very few women who took loans for starting businesses did so without consulting
their husband. This is possibly a function of both size of the loan and the fact that many of
these loans financed family businesses.
Expanded livelihood options: More than 96% of SSKs loan portfolio was for livelihood
initiatives with only 3.9% of the loans given for consumption purposes (See Appendix 3.6 for
portfolio distribution). Of the total portfolio, the non farm sector was 56%. Among the loans
taken to start businesses, around 30-40% of the loans were accessed by women as first time
micro entrepreneurs. This is a direct outcome of SSK’s emphasis on credit for livelihoods.
Among the other activities, women were substantially involved in livestock care and milk
production. In agriculture, women are primarily involved in cultivation and harvesting with
men primarily in charge of agricultural activities, assets and incomes.
By starting micro-enterprises and investing in livestock, women were also expanding their
choices of location and time of work and are contributing substantially to the family income.
In many cases, women have stopped working as agricultural labour. In the survey, about 50%
of the women who were financed for business by microfinance loans reported that these loans
were used for starting new businesses. See Table 4b.
Access to income and assets for households: Over 87% reported an increase in income as a
result of their livelihood activities funded by microfinance loans. See Table 4f. For e.g.
women accessing microfinance loans for livelihoods (Rs.3,467), higher than the other groups
at Rs 2,793 and Rs 3,163. See Table 1d. There was not much change in assets reported by
women comparing their assets now and two years ago (Table 6f). The few changes reported
were those that women tend to have greater control over sewing machine and livestock but
these changes were marginal. Micro enterprises created the most impact – for women who
had created new businesses like textile shops, tailoring business, bangle business and beauty
parlours on their own and increased confidence, higher levels of skills, expanded work
choices, decreased vulnerability and creating jobs for other women. The impact on incomes
because of microfinance livelihoods is evident in the form of increased confidence, higher
Page 11 of 36
levels of skills, expanded choices on the type of work women choose to undertake, decreased
vulnerability and even increased employment for other women. Women like Bhagirathi and
Baby Shiral serve as role models for other women not just as entrepreneurs, but also through
their orientation to helping other women join SHGs or start businesses (Appendix 3.7).
Control over incomes by women: There was a clear difference reported in control over
incomes between women who have got loans for businesses compared to other groups (Table
6a). The majority of women (28 out of 30) who received microfinance loans for businesses
reported having full or partial control over their own incomes, with only one woman in this
group reported having no control. In contrast about 7 women who had not taken loans from
the MFI and 5 women, who had taken MFI consumption loans, reported having no control.
Women reported greater control over incomes from assets such as sewing machines, flour
mills, and cereal processing units, shops and live stock (Table 6b). However in the case of
agricultural assets, it was largely men who had control over these assets and the incomes
from them (Table 6b).
Women reported not having much control over expenditures on small or large purchases or
over the decisions to purchase household assets. Comparing the three groups findings
indicate that women with MF loans for business had marginally higher control over small
purchases compared to women with MF loans for consumption. The savings group had much
less control over small purchases (Table 6d). In terms of large purchases (Table 6e) mostly
the decisions rested largely with men or were jointly made. However women with MF loans
for businesses reported having some control over large purchases for their own household run
businesses.
Overall in keeping with research findings on wider research on women’s economic
empowerment it was found that women had greater control over incomes from assets in their
own businesses but not over family purchases, large or small. Nor did they have control over
the decision to buy household assets.
Increase in Expenditure: Vulnerability regarding Nutrition, Health and Education: Women
across the three groups reported an increase in expenditure for health, food, education,
clothing and travel (Table 7a). More women who received MF loans for business reported
increases in expenditure especially for food and travel (all 30 or 100%) while 27 of them
(90%) reported increased expenditure on health, education, sanitation and clothing. The
other two groups also reported an increased expenditure but to a lesser extent. Women who
received MF loans for business attributed increased expenditure due to increased incomes
(Table 7b) while for the other groups, the highest numbers cited were due to inflation. Many
women reported feeling less vulnerable on issues related to health or family emergencies as a
result of access to higher incomes, information and contacts and mobility linked to their
businesses.
Women who had taken MF loans for livelihoods had accessed insurance (more than 50% or
16 women) in comparison to the other groups (13 women for the group with consumption
loans and 7 women who had not taken MF loans). See Table 7a. Of the 36 women who
reported having insurance, 13 said they got access to insurance through the MFI. SSP’s
initiatives on health insurance offer social protection through reduced health expenditure, and
providing access to health care and safeguards livelihoods of households where emergencies
do not wipe out their capital base.
Page 12 of 36
The other impact found was that women reported that expenditure on women and girls had
increased (Table 7c). More women (73%) who received MF loans for business reported
increased or similar expenditure with no woman reporting a decrease. Fewer women in the
other two groups (57%) reported increased expenditure on women and girls with some
women even reporting a decrease.
Social Impact
The empowerment indicators for social empowerment tested were mobility, confidence, and
improved status in the family and increased social capital as measured by support from the
self help group in times of crises.
Mobility: Women reported having to travel out of their homes to visit markets, banks,
panchayat and government offices, NGOs, hospitals and for entertainment. Across the board
women who had taken loans for livelihoods reported higher exposure and increase in social
contacts due to visits to markets, banks, government and panchayat offices (Table 9a). Of
these more women in this group also reported going to these places on their own (Table 9b).
This was in complete contrast to women’s earlier lives where they had not stepped out of
their house.
Confidence: More than two thirds of the women who had received MF loans for either
business or consumption reported an increased status in the family as a result of joining the
SHG. The vast majority of women who had received MF loans for business (97%) reported
increased self confidence due to the SHG, compared to 80% of the women who had received
MF loans for consumption and 70% who belonged to the savings groups.
Social Capital: All women were received MF loans for business or consumption reported that
the time spent in the groups was useful and they had received support during times of
difficulty (Table 2b). Higher number of women in the savings groups reported receiving
support for problems such as sickness, lack of food, payment of school fees, household
quarrels, than women who had taken MF loans (Table 2c).
Political Impact
Political empowerment was measured using indicators such as voting, independent casting of
votes, participation in Gram Sabhas and participation in elections (contesting local elections).
See Table 10.
Voting patterns: Most women reported casting their vote in the last elections (97-100% of all
three groups). The majority of women in all three groups (97%) said they caste their vote
independently deciding who to vote for.
Participation in GS: A third of the women who received MF loans for business said they
participated in Gram Sabhas (public meetings) but only 10 percent of the women in the
savings groups reported participating in Gram Sabhas.
Participation in elections: Very few women said they contested elections and of those who
did they were more were from the savings groups (10%). No woman from the MF group for
livelihoods said they ran for elections.
Overall in terms of political participation there seems to be high participation in voting but
much less participation in Gram Sabhas or in contesting elections.
Interviews with federation women leaders showed that many were elected village presidents
or members. Many federation leaders were seen to have evolved into politically active leaders
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showing that synergies with federations would be vital to increase women’s political
participation and leadership in development.
1.10. Lessons Learnt
The emphasis and focus of SSK on lending for livelihood purposes has the potential to result
in greater economic empowerment of women as compared to other MFIs, where loans are
primarily taken for consumption or household expenditures.
Relevance and Product Differentiation
The SSK management already identified the need for a nuanced livelihood analysis based on
seasonality of agriculture, higher investment for agriculture equipments and infrastructure,
loans for housing repair and construction, etc. Analysis is planned of micro businesses and
revenue streams of the varied livelihoods to tailor MF products to better suit the needs of
consumers. Currently SSK has already piloted tailored products such as agriculture loan with
a different repayment cycle appropriate to crop. They are planning relevant products for
dairy, agriculture infra structure and agriculture working capital. They are also building
partnerships with organisations such as Milaap which sources social funds at a lower interest
rate which can be on-lent for housing, health and education at lower interest. This has been
piloted with sakhis from Sakhi Retail Private Limited who received loans at lower interest
(12% in comparison to 22% of normal microfinance loan) for their business.
Social Relevance of the microfinance activities
SSK would have to develop KMPs that fit with its overall mission which should translate into
social incentives for staff at all levels where performance can be assessed not just on their
own organizational performance but also on their contribution to other verticals and for social
issues. A strong set of gender related inputs – conscientisation and awareness of rights for
MF consumers and field officers - orienting men and women to permit women’s freedom of
choice and mobility would add great value in improving women’s overall empowerment.
Synergies with the federation and SSP would help SSK achieve this objective. A stronger
gender related institutional focus and a deeper, sustained effort on building the capabilities of
the women to run businesses through better integration with SSEN could produce many more
women run and owned businesses.
1.11. Community Health Mutual Trust (SAST)
To increase access to health services and social protection for the poor, SSP promoted
community-owned Health Mutual Fund (HMF) which later evolved into Sakhi Arogya
Samudaya Trust (SAST). Women are centrally involved as service providers and create a
demand for improved health services by forming health governance groups in their villages.
With the active participation of the community federations, SAST was legally registered in
May 2009, to focus on health initiatives – preventive and promotive health care, health
insurance and monitoring of health services providers.
1.12. Objectives of SAST
To promote preventive and curative care in low income segments in rural/urban areas.
To set up and operate comprehensive health services and insurance to provide low cost
and quality health care for poor communities in rural and urban slums.
To provide preventive health care trainings and referral services.
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To establish doorstep services through community based health entrepreneurs (Arogya
Sakhis).
To increase women’s leadership in participation and monitoring on health care services.
1.13. Activities
Arogya Sandhi or Community Health Trust Fund: The Community Health Mutual Fund
was initiated by SSP with Sakhi federations in 2006. Later, SSP converted the Community
Health Mutual into a partnership model with an
insurance company. Arogya Sandhi or an
opportunity for health was launched as a
comprehensive health services and insurance
product in January 2009 with Swasth India Services
(SIS), a for profit health venture. This model change
allowed SSP to provide one window services –
outpatient health care and hospital coverage at
affordable prices to those women and families with
low access to affordable health. The members pay an
affordable annual premium Rs. 750 which is
subsidised further for the poor. They are entitled to a
family coverage of Rs. 30,000 and accidental death
cover. Other benefits include discounted doctor fees,
drugs, compensation for wage loss, and onsite
referral services from Arogya Sakhis or community
health entrepreneurs. In addition, the Trust has set
up Sakhi Clinics which provide out patient services,
similar to public health centres in areas with limited
health care.. Box 4.1 provides the key features of the
Insurance programme, details of which are in
Appendix 4.2.
As of December 2010, the fund has around 13,873
people enrolled in 175 villages, with member
contributions of Rs.18.7 lakh serviced by 16
empanelled hospitals (Appendix 4.3), 18 empanelled
doctors, in turn linked to 18 pharmacies, 1 SAST pharmacy and 2 Sakhi clinics.
Health Governance and Monitoring: The Health Governance Groups (HGGs) constituted
of women leaders from SHGs, act as monitoring groups that hold the public health services
(PHCs, Taluk and District Hospitals) accountable to the community. Members are made
aware of their rights on public services and actively encouraged to access the PHC for
primary care thus increasing the demand for its services, forcing it to be responsive to the
community. Till date, around 25,000 women have been reached with AIDS testing, education
and follow up care.
1.14. Impact
The impact of the SAST initiative is clear in improved access to quality health care, reduced
health expenditure and decreased vulnerability among consumers.
Box 4.1: Features of the Arogya Sandhi
(Insurance Programme)
Group Insurance for a family of 5 members.
Differential pricing for BPL (Rs.450-
Rs.800) and APL (Rs.750-Rs.1100) families.
Rs.30,000 coverage for family flouter &
Rs.10,000 coverage per illness.
Cashless hospitalisation (requiring
minimum 24 hours stay) at empanelled
hospital.
20-30% discount on OPD consultations
from empanelled general practitioners and
specialists
30-40% discount on tests conducted from
the diagnostic labs in the network
30% discount on drugs at identified drugs
dispensing centres
Accidental death cover worth Rs.25,000
Rs.50 per day as compensation for wage
loss from the 4th day of hospitalisation
onwards subject to an upper limit of 15 days.
Sakhi Clinics which provide out patient
services, similar to PHCs in areas with limited
healthcare.
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Improved Access to Affordable Healthcare Service
Of the total members, 457 women made claims worth Rs.20 lakhs exceeding the total
contribution. They were supported at the backend by the public health insurance policy
(UHIs). Members benefit from services during in and out-patient treatment, are provided with
extensive information about places to access treatment, made aware about their rights. SAST
recorded a renewal rate of 55%, which shows the relevance of the insurance product for the
poor.
Creating Health Entrepreneurs to earn sustainable incomes
Arogya Sakhis earn a fixed income and a commission (between Rs.35-70 per policy
depending on the premium) for every member enrolled. On an average working a few hours
a day, Sakhi, earns around Rs. 500 to 1,000 per month.
Decreased Vulnerability and Improved Health Security
Members reported that insurance has reduced vulnerability, increased confidence during
health crisis, and mitigated the need to borrow during health emergencies. Per household,
OPD services usage resulted in a savings of Rs.250.
Improved Public Healthcare Services
SAST ensures better accountability and monitoring of public health services through the
network of women’s collectives with the health governance groups in each village lobbying
government agencies for better water, sanitation and health services. The mechanism
facilitates a higher quality and more affordable primary care resulting in an improved
healthcare experience for the rural poor.
Creating Health Leaders
The Arogya Sakhis are simultaneously health leaders and entrepreneurs who provide doorstep
healthcare services - curative and preventive - to the community. These include basic
consultations, first aid and emergency care, informed referrals, maternal and child care and
education on the importance of health insurance.
Health Prevention Education and Community Health Awareness
The community is provided preventive healthcare knowledge (good water and sanitation
practices, hygiene practices, healthy eating habits etc) through SAST, supplemented with
activities from other SSP entities (sale of water purifiers for safe drinking water, bio-fuel
stoves and organic fertilisers from SRPL and growing of nutritious vegetables through the
Krishi ghats, which are groups of women farmers) which help advance its application in the
day-to-day lives of the community.
1.15. Challenges and Recommendations
Effective Utilization and Sustainability of the Health Programme
Sustainability of initiative is a function of the increased membership to achieve breakeven
point, after eighteen months. Several factors are at play: (a) Affordability : Total claims often
exceed the contributions, showing it would be difficult to lower this cost. (b) Continuous
investment on product promotion to create consumer demand and intensive training of Sakhis
or community health workers to reach out and market to consumers more effectively.
Deepening penetration in existing geographical areas, with a later focus on horizontal
expansion could be a viable strategy so that services provided are met by costs to achieve a
breakeven point in cost centres.
Primary preventive
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To make preventive care effective and integral with (a) higher involvement and (b)
even spread of healthcare costs.
Enhanced community ownership
The current initiative needs to step up awareness of health and social protection to assist in
lowering costs, better and appropriate utilization of product benefits and reduce incidence of
preventable diseases.
1.16. Sakhi Social Enterprise Network (SSEN)
In keeping with its larger focus on livelihoods and women led enterprise strategy, SSP
initiated a Business Development Services. Over three years, the unit provided women SHG
members a forum for exchange with peers, skills and local business support besides
handholding to go to market. It was formally legalised as Sakhi Social Enterprise Network
(SSEN), in 2009 as a non profit Company. The main goal of SSEN is to function as an
incubator for rural social enterprise through which women can expand their livelihood
options.
1.17. Objectives of SSEN
To scope, identify and convert opportunities in Bottom of the Pyramid (BoP) economies
into business ideas and plans in partnership with local entrepreneurs.
To build a culture of entrepreneurship
To launch a Rural Entrepreneurship School and Business development services to
integrate women and youth into markets.
To mobilize and leverage the resources of different stakeholders and institutional actors in
the ecosystem, through strategic partnerships and alliances.
1.18. Activities and Strategies
SSEN operates through three verticals: (a) an Entrepreneurship School which focuses on
entrepreneurship development (b) a Vocational school focusing on vocational training and
placement, and (c) ‘Go Direct’, which provides services to government and corporate that can
also serve to subsidize the costs of the first two verticals.
School of Entrepreneurship: The school aims to inspire, educate and launch new
entrepreneurs, build a culture of entrepreneurship, create business ecosystems structured for
success and incubate scalable models of community entrepreneurship for replication, for
women and youth from marginalized communities. To achieve these objectives, SSEN
conducts needs assessment to understand aspirations and assess demand for further training.
The school has piloted locally designed and delivers entrepreneurship development through
community entrepreneurs who double up as trainers.
Entrepreneurship training is at two levels. Level 1 is the Entrepreneurship Awareness
Programme (EAP) which provides exposure to enterprise possibilities. Level 2 is the
Enterprise Development Programme (EDP) provides specific enterprise skills to women
according to local needs. SSEN is now is in the process of setting up the School of Rural
Entrepreneurship in collaboration with Start Up! A pan India organization that incubates
new ideas and models of social change. The School’s goal is to educate, inspire and help
women and youth launch socially-minded micro-businesses by developing their
entrepreneurial skills and mindsets. SSEN has sought knowledge partnerships with the Best
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Practices Foundation, Dharwad School of Management and the Tata Institute of Social
Sciences. This could result in recognition and certification for grassroots entrepreneurs, and
access to expert trainers and a time tested curriculum MOVE ((Market Oriented Value
Enhancement) which is a marketing and business management course tailored to landless,
asset-less women and youth.
Incubating collective enterprises: 500 women from Nanded district started collectives to
produce and market organic vegetables and seeds. Federation members travelled from
another district and started the same. Exposure visits to Agricultural University and
government extension centres helped improve agricultural productivity and exposed first time
women farmers to technology and markets. These farmers now liaise with local governments
and act as resource persons to advocate the importance of environment friendly farming
methods.
Vocational Training School: Expanding its constituency SSP piloted and launched
demand based training for young girls and boys who have completed their schooling.
Connecting rural youth to local industries and the service sector, SSEN introduced gap filling
courses and placement services thereby professionalising its services for a new segment.
For three years, demand based IT skills mobile centres were run in partnership with
Microsoft reaching out to over 500 youth in remote villages. In 2010, SSEN partnered with
the Government and DB Tech a pan India technical education entity to impart computer
literacy, retail management and career counselling.
Rural Marketing: An important revenue source, it designs and executes together with Sakhi
Retail, an end to end rural marketing and communication services tapping into corporate and
government agencies. Branding of products, market research, video clips, rural advertising,
consumer feedback surveys and test marketing have increased SSP’s bandwidth in the
corporate world.
1.19. Impact
SSEN strengthens the business acumen of SHG/Federation members to start new business
ventures or upgrade existing micro-enterprises. Until 2009, large numbers of women
members who took loans, gained business skills and confidence. Women moved up from
running micro to small enterprises with small investments. By March, 2010, SSEN has
developed specific economic skills where:
30,000 women are exposed to enterprise development through EAP training
2,465 women have undergone EDP training
960 women were trained in retail sales, promotion and customer relations
970 youth were trained in computer literacy 122 youth were trained through advanced computer courses (hardware and
networking) who now engage in computer maintenance of those centres and other
colleges in their area.4
Most new entrepreneurs reported increased confidence to move out of the house and travel
alone due to the business venture. Additionally, they learned to save, conduct bank
4 Ibid:p.9
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operations, and have access to markets. See Appendix 5.1 for evidence of women
entrepreneurs increased access to incomes.
1.20. Challenges and Recommendations
Building a market oriented, demand driven curriculum
There is a need to create more demand driven businesses and for trainers themselves to be
trained in market oriented business skills development. While the impact on the lives of new
entrepreneurs in terms of their capacity to make decisions and choices was evident, the actual
revenues and marketability of products as an outcome of the training could be higher.
Some trainers voiced concerns that out of 30 women who had taken skills training on soya
processing; only three women had ventured to start a new business despite it being explained
as a profitable. Another trainer also reported that many women had started detergents
business in large groups thereby reducing profitability.
In this regard SSEN has already begun on a entrepreneurship approach instead of a enterprise
skills training that aims to change the mind set of women. Partnering on the MOVE, a market
oriented course is expected to show stronger results in terms of improving profitability of
enterprises. The revised fee based 3 month module with business counselling for a year will
push women to analyse the market first instead of just starting and improving existing
businesses.
Developing a cadre of business and market oriented trainers
Training of trainers is vital to ensure business orientation and build their marketing skills. In
previous experiments with business development training, Best Practices Foundation has
found that federation and SHG women were eminently capable of training entrepreneurs on
business provided that they themselves are rigorously trained in these skills. The necessary
human resource is due to the lack of a strong demand for SSEN services and therefore low
scale. SSEN needs to develop a cadre of master-trainers who could train women and provide
business nurturing services, and thereby build sustainable livelihoods. Federations can
support SSEN through active marketing and promotion.
1.21. Synergies with credit, health and retail entrepreneurs
SSEN has the highest potential to build synergies by training rural entrepreneurs. Greater
synergies could be developed between trainers and loan officers from SSK .Potential
entrepreneurs identified by SSK could be trained and credit given through SSK and the
potential borrowers can access training prior to accessing loans.
1.22. Sakhi Retail Private Limited (SRPL)
The journey began in early 2005, when Swayam Shikshan Prayog (SSP) was exploring
solutions to alleviate the physical drudgery and health hazards associated with fuel collection
and cooking of rural women. At the same time, British Petroleum (BP) was seeking NGO
partners to enter new and emerging markets in safe, eco-friendly energy.
Utilizing this co-creation opportunity, BP and SSP went to rural women’s groups to
understand their needs in the household energy sector. Research at the grassroots level and
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rural women’s direct involvement led not only to a product concept, but also to a delivery
model involving women’s groups in every business aspect. This led to the formation of a for
profit entity to stock and distribute the bio fuel stoves. At the same time, SSP in the HIVOS
supported project had initiated a door to door sales of high quality, locally procured grocery
items through federations. In January 2009, Sakhi Retail was established rural marketing and
distribution social enterprise with SSP linked promoters and women as shareholders. This
was envisaged as one platform to nurture village level women entrepreneurs and increase the
distribution network and move towards profitability by reducing overheads.
Sakhi Retail was established with the aim of providing consumer education and raising
awareness of rural low income households on use of clean, green appliances, eco friendly
fuels and other energy products. The lack of markets, resources and competitive products
often presented constraints for scalability of business of women. Increasing interest of
corporates in rural markets was an added impetus and opportunity that SSP used to establish
Sakhi Retail to augment the income of women.5 SSP started linking grassroots women's
networks (sakhis) as village level entrepreneurs directly with corporates. With British
Petroleum, SSP co-created the Oorja Stove, a smokeless stove operating on bio mass fuel.
Corporate partners include Godrej, HUL,Honeywell, First Energy, SELCO solar home
lighting, D. Light, OGP Nutraceuticals, and Olive Mobiles.
1.23. Objectives
To empower local women as retailers – Sakhis
To distribute needed products to rural, low income households
To develop supply chain for remote rural markets
To incubate products designed and tested with rural women
To educate consumers on clean, efficient energy products
1.24. Activities
Identification of Products: The criteria for product selection is clean, green, affordable,
quality products that the community needs but are not necessarily aware of, which entails
educating the consumer. Today, SRPL also targets products, unavailable in local markets.
Selection of products is based on customer feedback collected through top selling sakhis. On
an ongoing basis,SR surveys on shopping patterns of rural consumers to identify relevant
products. By engaging with multiple corporates on a range of products, SRPL has enabled the
rural poor to access quality products at affordable prices.
Building the Network of Sakhis: Sakhis with business acumen from rural communities are
selected. They have an assigned sales areas with a guaranteed customer base of 500-1,000
households. To prevent competition, one sakhi is not allowed to sell in a village where
another sakhi is operating. Each Sakhi makes an initial investment of Rs. 10,000 to purchase
the initial stock of goods. They earn commissions on sales and utilize part of their profit for
subsequent purchase of stocks.
Distribution Strategies: SRPL began with the strategy of door to door sales through sakhis
which over time expanded to show rooms to showcase products for direct sales from walk in
customers. The door to door sales strategy capitalises on the standing of the sakhi and the
5 SSP’s proposal to HIVOS 25th November 2005
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community’s trust in them. Recently, institutional sales for products such as Jumbo Stoves
targeting restaurants and hostels, has also begun.
1.25. Impact
The impact of the retail network can be seen at different levels: that of the individual
entrepreneur - the sakhi, on the community through the consumer and on the institution
through a sustainable social enterprise model. Currently SRPL reaches 64,000 customers in
735 villages in five districts supplying more than ten relevant /need based products in mission
driven sectors –water, bio fuels, solar energy, organic agriculture etc.
Impact on the Sakhis
SRPL has created a network of more than 850 rural women entrepreneurs, who have been
able to earn a monthly income ranging from Rs.750-3,000, thus contributing to family
income. See Appendix 6.1 for evidence of women entrepreneurs increased access to incomes.
The Sakhis use the products that they sell and in the process develop a strong awareness of
their health and environmental impact. Many have become a community leader-cum-educator
pursuing the goals of creating a better environment for her community. In a study done by
Catalyst Management Services in May 2008 sakhis reported several benefits from running the
retail business including earning more incomes and acquiring business skills. However in
recent years some sakhis reported that declining sales of Oorja stoves and biomass pellets
needed for these stoves. Sakhis found it difficult to sell products, both because of the growth
in prices and competition from other products. Despite this, many continue to be
entrepreneurs through other businesses because of skills gained through SRPL. Focus group
discussions and interviews showed two clear trends, the first being, the growth of
entrepreneurship and second being the difficulties in sales of the SRPL products and the
viability of the business itself over time. Both consumers and sakhis reported that the pricing
of the products especially of bio fuel pellets and solar lanterns, water purifiers as expensive
for the rural markets.
Impact on the Community
Products have positively influenced the lives of close to half a million rural women and
households. (a) bio-fuel stoves have reduced the drudgery and time spent on collecting
firewood and cooking, leading to saving of fuel and decreasing medical costs of women (b)
nearly 2,00,000 rural households are now aware about safe and clean drinking water,
renewable energy and advantages of organic farming (c) nearly 3,500 have installed solar
lighting and benefited from increased farm productivity and education of children (d) almost
64,000 rural homes benefited from a reduction of air pollution and greenhouse gas emission
through the use of smokeless stoves (e) nearly 10,000 people have a solution of safe drinking
water.
Impact on the Institution and Building new models
SRPL has emerged as an independent identity after going through several phases of
development as a rural retail marketing network: Phase 1 of building the rural supply chain,
Phase 2 of building product partnerships and Sakhi model and network and Phase 3 of
moving towards profitability. By developing a revenue model, SRPL has managed to become
self sustaining and is no longer dependent on external grants. The partnership between SRPL
and corporates has created a social enterprise model for other NGOs to emulate and redefine
terms of association with corporate. Simultaneously SRPL offers insights for corporates on
last mile delivery through community agents. SRPL’s distinguishing feature is that its focus
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remains pro-community and pro-women and pro-community. SRPL serves as a unique
bridge between civil society and private sector that allows a win-win situation for both
companies to reach rural markets and civil society to generate employment opportunities for
communities that it serves. The primary impact of the SRPL model from the institutional
perspective has been the capacity to achieve both scale and sustainability.
1.26. Challenges and Recommendations
Sustaining incomes for the sakhis:
The declining incomes of sakhis could indicate a possible mission drift due to the focus on
building a sustainable revenue model. To address this issue, SRPL has diversified products in
their portfolio, identifying products which provide the scope for repeat sales like water
purifying tablets from Aqua Tab from Medentek, and agricultural input products like
fertilizer. These products enable sakhis to have a steady incomes, maintain an ongoing
relationship with their consumers through which even introducing new, affordable products
will be easier. However, a critical first step towards ensuring that the benefits going to sakhis
remain substantive would be for SRPL to regularly track sakhi incomes which at present is
not systematically done.
Ensuring control of income to sakhis
The involvement of male family members with the business of the sakhis would need to be
examined carefully over time to assess its impact on sakhis’ control over their incomes.
Through its selection process and through the sales process, SRPL has prioritised promoting
the Sakhi as an entrepreneur.
Affordable and relevant products
SRPL has to continuously focus on the affordability of the products and tailoring the product
portfolio to be more relevant for rural communities. SRPL is also well aware of this and is
trying to source pellets closer to the customer base to lower transportation costs. Similarly,
the strategy of being the retail network for competitive products from corporates seeking to
enter the rural market has contributed to lowering prices. SRPL has also made it a norm to
ensure that consumer feedback is obtained to ensure relevance of products. SRPL
differentiates itself from kiranas and other rural networks by ensuring that their products
would be affordable, relevant and not easily accessible with strong social impact.
Synergy with other verticals
SRPL currently has piloted eight sakhis who have taken loans from SSK at a lower interest
rate for future scalability. With corporate investment SSEN could train drop out sakhis on
business skills. SSEN would need to conduct a needs assessment of sakhis to create courses
that are relevant for them.
For sakhis to benefit from health insurance initiative, SRPL has been considering the health
insurance with investments from sakhis and SRPL. SRPL in Tuljapur is piloting the sales of
both products and health insurance policies through the Sakhis to increase their incomes and
to forge synergies with SAST.
SRPL being a for profit company, can use profits from SRPL for the benefit of the women
sakhis. The SRPL board currently have sakhi or federation representation but has an Advisory
Committee with women leaders.There is a need to consider women’s participation at this
level, to ensure accountability to its mission.
Sustainability of the organization
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Being an innovation in the rural marketing sector, SRPL as a social enterprise is establishing
itself within the commercial business community. It takes time for the business community
and the banks, to understand this model and the need to invest in SRPL’s capital requirement.
As a social enterprise which aims at investment in the community and aims to enhance
women’s livelihood and income. The future challenge is to build a revenue model that can
interface with corporations as well as create a space for community decision-making.
1.27. Overall Strategies and Impact
SSP has developed a series of unique strategies around and livelihoods enterprise for women.
These include a combination of social enterprise, developing principled partnerships and
fostering economic leadership. The section below outlines the strategies and their impact.
1.28. Focus on Livelihoods and Credit through MF
The focus on livelihoods as evidenced by 96% of the MF portfolio has resulted in women’s
economic empowerment and impact.
Increased access to credit and incomes due to improved livelihoods strategies in the non-
farm sector is evidenced with the average income of women accessing microfinance loans
for livelihoods (Rs.3,467) being higher than women who have used loans for
consumption and not taken MF at Rs 2,793 and Rs 3,163. (See Table 1d and Chart 3.3.)
Women having increased access to skills as reported in the FGDs especially business
skills and financial and group management.
Increased expenditure on health, education and food: More women who received MF
loans for enterprise reported an increase in expenditure especially for food, health,
education and travel (90-100%). (See Table 7b).
Reduced vulnerability: Access to insurance reported was the highest (more than 50% or
16 women) among the group which had taken MF loans for livelihoods as compared to
women in other two groups (13 women for the group with consumption loans and 7
women who were part of savings groups). (See Table 7a). Of the 36 women who
reported having insurance, 13 said that they got access to insurance through the MFI.
SAST, by reducing vulnerability through the reduction of health expenditure, and
providing access to health care also safe guards livelihoods of households where
emergencies do not wipe out their capital base.
Overall evidence indicates that women who had taken MF loans for livelihoods had improved
standard of living, decreased vulnerability and increased choice for overall development.
1.29. Social networks of women and larger Institutions
The overriding approach across SSP was that there should be more investment in women
leaders, village entrepreneurs, who through their own increased awareness on health,
environment and energy were able to transmit the information to the community at large. A
unique feature of SSP, which is apparent across all verticals, is its capacity to promote
principled partnerships with large corporations, banks, insurance companies, NGOs as well as
government. The partnerships with corporate, entrepreneurs and women have resulted in a
series of learnings and social impact.
Increased access to health for women and their families and education of children as
indicated by increased expenditure reported above. The increased access affordable
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health care services is seen in 13,873 members through SAST who had availed
community health programme. The core of this effort is the partnerships with health care
providers, pharmaceutical companies and insurance agencies that have enhanced quality
health care for poor.
Increased choice of quality products which were also environmentally beneficial
evidenced by the sales of 70,000 Oorja stoves, in areas where incidence of water born
illness very high, conserving energy and electricity and selling organic manure, SRPL is
promoting sustainable natural resource management practices, improving the health of the
soil and increasing its long-term fertility while simultaneously producing nutritious
vegetables. This practice is complemented by organic farming initiatives of the federation
of 500 women farmers who, through a collective farming and marketing.
Increased awareness of environment, health and energy among 2,55,000 families where
they reside. Health awareness in the community is promoted through SAST to ensure
preventive health as well as to create awareness of their rights and demand for the use of
the public health delivery system.
Increase in social capital as evidenced by the 45,000 women in strong groups observed in
SSK. Campaigns on social issues such as sanitation and alcoholism reported by federation
leaders also pointed to the evidence of women’s participation in social issues. Health
governance groups actively monitoring local institutions and promoting health awareness
are other examples of social interventions by groups. SAST, by following a revenue
model, funds 175 sakhis to do health promotion and provide space to facilitate groups for
mutual support for women to address social issues beyond just the mandated health focus.
Women in groups where SSP has dealt with social and village development issues which
was not clearly evidenced in the groups formed only for microfinance.
Increased Recognition by Government: SSP has partnered with the government Krishi
Vigyan Kendras, Universities and with NABARD to get women recognised as farmers to
provide technical support for increasing productivity in vegetable and dry land agriculture
through onsite demonstrations and workshops. Women who are traditionally not
recognized as farmers and producers are now earning this recognition from government.
SSP partners actively with the public health on HIV/AIDS awareness, women’s health
and making primary health centres accountable to poor communities.
Credit based partnerships to expand loan products for women SSK has built partnerships
with banks, specifically public sector banks and agencies such as Milaap to obtain funds
at lower interest rates. These partnerships have helped to tailor loan products for
agriculture innovations, short term working capital products for women entrepreneurs,
etc. SSK is in the process of building new partnerships for creating loans for housing
repair and new housing.
Partnerships to expand women’s skills SSP has a partnership with Don Bosco Tech (DB-
Tech), India to train youth and women and link them to the industry and service sector.
This indicates the expanded choice available to women as a result of access to social
networks, credit and social capital.
1.30. Fostering Women’s Leadership
Combining strategies that promote women leaders-entrepreneurs through social enterprises
not only can raise awareness on critical issues but provide women with income opportunities
to do so. Through active outreach products, women are not only able to raise awareness but
also help their communities access better healthcare and improve their quality of life. Women
Page 24 of 36
who were actively engaged as arogya sakhis, field officers, sakhis and health governance
monitors as well as community leaders show their collective support for SSP’s initiatives
through melavas held annually as well as through their links to the entities. To illustrate,
every year almost 2000 women attend the melavas held by SSP, where women leaders were
recognized as role models and commit to social goals.
Women’s leadership and their support is evidenced by number of women mobilized to aware
of services:
61,454 women improve livelihoods and income
85,000 women directly using products (bio fuels, solar energy, safe water, organic
agriculture) that change their lives
20,000 women and families improving their health and social protection
3,00,000 women receiving information and aware of products and services, livelihood
opportunities and financial literacy.
Women leaders partner with SSP to play the roles of educators, promoters, monitors,
innovators and change agents. Women leaders who have standing in their communities are
the key intermediaries as Sakhis and microfinance officers and community promoters.
Collective leadership is built on health governance, social issues, community resilience and
local governance. Federations reported that in several villages, women’s groups worked with
their local governments for total sanitation, run campaigns on alcoholism, monitor ration
shops thereby promoting /strengthening women’s involvement.
A fellowship by federations to support upcoming leaders has resulted in grassroots innovation
lab. Over a year, women leaders form a peer cohort and take on localized innovations. They
are supported by experienced federation leaders through regular visits and review meetings.
This has resulted in a second line of bottom up leadership. Several emerging innovations
have been scaled up by women themselves. Promoting women to be innovative in organic
farming of vegetables is one such experiment that includes over 2,000 women farmers across
two districts. Other women leaders took on the task of ensuring that their village became
100% open defecation free. “Grassroots leaders, see themselves as change makers, develop
consensus for their ideas among their groups and apply for the Leadership fellowship to the
Federation on behalf of their group and/or villages. Women SHG leaders bring the priorities
to be addressed outlining how they will do it and educate their communities.” 6
1.31. Capacity Building
SSP and the social enterprises builds capacities of women to become credit worthy and
business ready. SHGs are providing with training on financial literacy, group management,
and their skills of bookkeeping and accounts improved. Vocational training for youth and
entrepreneurial skills for potential entrepreneurs are provided. Elected members and women’s
groups are trained to advocate with local authorities. It also provides inputs on governance
through its mobile-based initiative on gram panchayat to women. Sakhi Retail and SSEN
provide business, marketing and communication skills to sakhis and SHG entrepreneurs.
1.32. Convergence
Convergence are best seen across SSP in the common approaches adopted by all the social
enterprises. Across these enterprises, the common features are:
Build a core group of women leaders who are socially conscious namely the sakhis
6 Sakhi Federations - Groots India Network: Leadership Fund, SSP Documents
Page 25 of 36
Build sustainable business models
Provide permanent or long-term livelihood opportunities
Overlapping geographies to maximise social impact through access to multiple
services including health, education, credit as well as improved livelihoods and living
environment.
1.33. Political capital
Political impact has been seen in the form of women SHG leaders energising local
governance by raising women’s priorities in Gram Sabhas and on key issues such as health
and education. Women have also contested and won elections, although to a lesser extent.
There is greater recognition of the roles played by women’s groups by the District
Authorities. Women have transformed delivery of basic services by monitoring of water and
sanitation facilities, civil supplies for poor families, planning for primary health services and
village planning processes. Such recognition from government officials is an indicator of
their governance capacities.
1.34. Institutional Impact
The origin of these entities had their roots in the federations with each entity growing
independently to go on scale with the required managerial and professional skills. The
different entities are set up with independent processes and systems and leadership. Each
entity had its own independent source of revenue and has achieved varying degrees of
financial sustainability. The MFI and retail marketing network operations have shown break
even and minimum profits which are completely reinvested in the operations. The health
initiative being a community service will take longer to reach a break even point. According
to a high level evaluation team, “there are few scalable voluntary health insurance models,
and SSP is one of them. SSP will need over 5 years to reach 60,000 families on a grant model
to be sustainable thereafter.”
With regard to the staffing of SSP and all its entities, most of the staff at the field level are
women from the groups and federation. The professional staff are mostly from SSP’s
leadership with only the MF operations having new male staff at the managerial levels.
While SSP’s founder Director is a woman, the core leadership includes three men and two
women. SSP staff comprises 26 male and 43 female staff (62%) totalling 69 personnel while
the microfinance initiative comprises 15 male staff and 28 (65%) women staff. Of the total
112 staff, women constitute 63%.
In the process of scaling up their microfinance, livelihoods and social initiatives, SSP has
strategically adopted a market based approach that includes partnerships with corporates. In
doing so, it also had to prepare SHGs to make them business ready organizations, something
that is credit-worthy. Women leaders were linked as a network by involving them in business
processes such as marketing, outreach and operations and in product development. All these
required organizational transformation which entailed restructuring, changing attitudes of the
top leadership and preparing the organization to move from a grant based operation to a
revenue based model. SSP ‘s work with the corporate sector has resulted in sensitising heads
of large corporations started to change their overall rural marketing strategy, training and HR
policies to address needs of rural communities. In this manner, they coupled business agendas
with a clear focus on the underserved communities in rural and remote villages. The average
operational cost over the last five years is 2.5 crore rupees or 25 million rupees per year.
Page 26 of 36
Building institutional sustainability of the MFI was the first step towards scaling up access to
credit. While scaling up, SSP was driven by its social mission and thus structure the
organisation and processes accordingly. By doing this, SSP avoided some of the pitfalls of
the microfinance industry such as high rates of interests and lending to individuals. By
creating transparent systems and bringing its operations closer to the SHGs, SSK built the
trust relationships with the groups and internally within SHG members as well.
SSK recognised that if women had to self monitor group loans, there needed to be a high
level of trust among members. SSK took concrete steps to improve the health of SHGs.
Group discipline and transparency was built through loan disbursement and repayment in
meetings. Instead of exerting pressure through loan officers, SSK trained women to recognise
that default by members as this would lead to stoppage of loans for the entire group. Field
officers with the history of belonging to SHGs, built a rapport with the groups and ensured
proper group functioning, financial literacy and membership awareness. SSKs loan products
are based on flexibility, purpose of loan and repayment schedules linked to range of
livelihoods. Scaling up was achieved by ensuring that all women in a group received 1 to 2
loans and similarly all groups in a village were linked to SSK. By deepening access to credit
and livelihoods in a focused geographic location and higher penetration within those villages
and groups, SSK achieved operational efficiency and deepened economic impact.
The other entities simultaneously have been able to develop themselves into revenue based
models many of which have either broken even or are aiming at reaching a break even point
shortly. SSP has received several awards and has been recognized in the media for its work
through this innovative model. Therefore investment in this type of a model where
microfinance is coupled with social enterprises that deliver effective services and products
through independent revenue streams would definitely be a recommendation for other
organizations to address issues beyond credit in a sustainable manner.
1.35. Main lessons
The main lessons learnt from SSP for similar initiatives would be to therefore to begin by a
strong investment in the base – the network, women leaders, groups and federations upon
which the verticals were built.
Center-staging the women in decision making and awareness generation in critical sectors
such as credit, health, environment and energy would be an important pre-requisite for such a
model for women’s social and economic empowerment. In this context SSP has engaged in
strategies that have fostered a social, economic and political process which has built women
leaders and their networks which allow for a quick transfer on information, knowledge and
the ability to solve big problems (eg: solving water-borne health issues through promoting
water purification products)
An important lesson is the strong emphasis on livelihoods from day one which has avoided
credit for wasteful consumption, a pitfall of other MF initiatives and helped build women led
enterprises. The creation of a non-profit MF entity has also contributed to avoiding pitfalls of
typical MFIs of increasing interest rates to meet expectations of investors and coercive
recovery methods. Another lesson has been the significant investment in the SHGs through
the MF operations which has built social capital and health of the group.
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Finally, the partnerships with corporates, banks and insurance agencies has increased access
to services on scale as well as enabled women social entrepreneurs to earn sustainable
livelihoods and build community awareness simultaneously.
Overall, the microfinance initiative coupled with a livelihood focus has led to very strong
economic impact as seen by enhanced livelihoods, increased number of enterprises, increased
incomes and increased access to financial capital. To a lesser extent, there has been a strong
social impact in the form of increased awareness on health, energy and environment and
increased social capital in the form of health governance groups.
1.36. The Way Forward
1.37. Context
In its evolution as a network organization, SSP has over the last five years, created five unique
organizational entities serving women groups and rural communities. Even while these
entities play a vital role in their specific area of intervention nevertheless synergies need to be
further built to create a transformative impact in the lives of marginalized women.
1.38. Empowerment
The study examined the extent to which women’s practical and strategic interests are met by
the various entities individually and collectively. Clear practical needs of livelihoods, credit
and health are addressed by each entity. However in terms of strategic gender interests, the
study found little evidence of challenging patriarchal relations and power relations. Despite
having improved livelihoods and contributing more to the family with higher status in the
family, evidence showed low control of women over decision making in families and low
degree of involvement in purchase of large and small assets. Addressing gender specific
issues such as women’s control over incomes from assets, women’s freedom from
domination, awareness of their rights, mobility, and change in power relations would
contribute to the overall empowerment of women.
Examining Longwe‘s (1989,1991) concepts of empowerment, the following findings
reinforce the need for a clear gender perspective for the staff at all levels in the way forward.
Women's access to the factors of production such as land, labour, credit and training was
evidenced in the farmer groups, in the microfinance and livelihood initiatives. Such pro
women innovations have emerged precisely wherever staff have been sensitised on gender.
For future gender sensitive innovations to emerge, gender sensitisation of staff would be a
first step. The training provided in SSEN was strong in terms of providing skills to women in
specific vocations and thereby expanding their choices and livelihood options but could be
further strengthened in terms of market orientation. Evidence was seen in federations where
women contested alcoholism and raising awareness on social issues. There was less evidence
of women being engaged in rights based issues based on an explicit understanding of gender
roles and women’s rights and oppression. Far greater inputs by SSP to the federations would
be required to enable women’s effective political participation, especially with respect to
women’s leadership in local planning of resources and finances.
Based on Rowland’s (1997) framework, the following aspects were examined. Some changes
in power relations within households were evident in the form of increased status and
confidence among women being able to contribute more to family incomes. It was less
Page 28 of 36
evident in terms of power relations in the communities and at macro-level. Even within
families, women would need to be aware of their rights in order to challenge traditional
notions of power. Organisation of the powerless to enhance individual abilities and/or ability
to challenge and change power relations was evidenced in the form of stronger groups, some
active federations, increased leadership among federation women, and increased innovation
within the federation. However in terms of organisation, evidence of financially healthy
SHG groups because of the MF intervention was high. But such intervention was absent in
terms of building strong federations which is more of an indication of where the NGO sector
has reached in terms of knowledge of how to build strong federations. In terms of the overall
strategy there seems to be greater emphasis on building individual leadership than on
building organisations of poor. As far as federations are concerned, SSP has invested in them
for 15 years. More emphasis would be needed on building the federation as a strong,
independent vertical. Inputs are required on writing proposals, regularizing meetings,
planning, executing action plans, financial management, engaging in local governance,
advocacy, legal literacy, gender inputs to name a few.
1.39. Gender based strategies
In terms of strategic gender interests, the quantitative study found little control over decision
making by women in families. Despite evidence of improved livelihoods and higher status in
the family, women have little control when it comes to purchasing large and small assets.
Specific gender inputs would be required to transform gender relations within the family and
the community. Strategic change was visible through the women leaders or sakhis where their
capacity as problem solvers has been built and they are now seen as women who can solve
problems and can access services be it health or banking.
SAST, through their arogya sakhis, engage in social issues beyond the issue of health, which
is the core mandate of the institution. Sakhis in SRPL could also play a similar role, provided
there is sufficient investment to provide social and gender based inputs. The microfinance
operations if provided gender sensitization could identify issues and can synergize with the
other entities to address them. While women need credit, capacity building, livelihood
opportunities and health security, a strong organization with an institutional culture that is
gender sensitive would be equally important to help these women leaders challenge
patriarchal norms and thus change gender inequality.
Women leaders from SHGs in villages are networked by SSP into governance groups (eg: the
health governance groups) to handle major issues at levels beyond just the group, as
evidenced by visits to the SSP villages. SSP also has created structured dialogues with
government through their governance groups, and participation on committees to challenge
existing norms and practices within institutions. In this sense the status of these women
leaders has grown within the households and the community.
A major recommendation therefore would be to invest in women leaders to ensure that the
social consciousness and awareness in the community is spread through peer learning and
building on such strategies. Empowering women socially and politically outside the home
which is best done through a self organizing process which is enabled by both investing in
leadership and creating opportunities for peer learning.
1.40. Increasing community ownership through the federations
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Neither individual women nor individual groups are able to address larger social issues by
themselves. A collective entity at higher levels, such as the federations, is vital in order to
deal with issues that emanate from society and which require advocacy and large-scale
change. For current and future leaderships to stay true to the overall mission of SSP,
community leadership and ownership of each entity is critical for long-term sustainability and
continuity of community leadership and participation. Going forward, each entity is
prioritizing the ownership and management by federations. SSK is now considering
converting itself to an entity with majority ownership by federations. SRPL has piloted the
the option of giving shares to women with 20 women entrepreneurs. SSEN has benefited
from its collaboration with federations through its master trainers who reside in the
community. Expanding this cadre of master trainers from among the federation leaders,
would allow them to not only provide relevant training, handholding and nurturing of local
businesses but also be available for any linkage between the trainee and the other entities of
SSP. In the case of SAST, federation members are on the board and by increasing community
ownership over the health funds and the programme, the community would have a larger
stake in ensuring the success of the health programme.
1.41. Growing SSP SHG networks and community relationships
Any future growth or scalability would need to take into account the larger mission of SSP, in
order to grow SSP and social enterprises. Investing in community governance and leadership
linked to all entities is part of the collective vision for the next five years. Regular visioning
workshops like this would be important to reinforce these concepts. Investing in women as
SHG entrepreneurs or Sakhis means that women earn higher incomes and have a strong social
orientation. Sakhis are currently chosen because they show leadership, train other women,
convince people on energy and environmental concerns, change men in their community to
take women entrepreneurs seriously, accompany new women to the market, take them to
banks and so on. In 2008 melava or information fairs, Sakhis agreed to monitor progress on
3-4 indicators of wellbeing for communities and women including girls going to school,
toilets for women, support deserted women on legal aid, and access to health services for
poor women. So Sakhis or SHG entrepreneurs earn incomes but are committed to spread
awareness, educate consumers, groups and their networks on health, energy and environment
issues.
The primary recommendation here would be to invest in Sakhis as micro-entrepreneurs to
achieve not just to meet the economic bottom line. The low cost outreach, marketing
approach through women is SSP‘s way of ensuring that products remain affordable and low
priced and large numbers of women are recognised as economic leaders. Therefore
investment in women leaders through peer learning networks can build a critical mass of
women who model change.
1.42. Convergence: Current and Potential
Overall, the four entities were created to empower women through their participation and
leadership in delivery of socially relevant, high impact services to rural communities. SSP
promotes capacity building for women to enhance their livelihoods and incomes through
access to credit and training in entrepreneurship. It improves their health and well being
through access to products that reduce physical drudgery and quality of life for the poor.
Women and families are less vulnerable through social protection and health insurance
measures. All social enterprises promoted by SSP follow a vision, and mission that has
Page 30 of 36
community needs at its centre. The immediate priority is to invest in order to move on the
path of sustainability. SSP’s leadership process has set goals for the long term to maximise
convergence through a shared vision, value based approach. Operationally information
outreach, marketing and promotion are done across the social businesses, thus optimising
human resources.The current strategies for convergence between key sectors/services are
portrayed in Figure 7.1 There is potential for greater integration that the SSP leadership
recognizes as shared benefits and impacts at the level of communities can complement the
efforts of the social enterprises in terms of reach, relevance, effectiveness and impact overall
sustainability.
Federation
and SHGs
SRPL
SSK
SAST
Political
Economic
Social
SSP
Credit
Health
Livelihood
Capacity Building
Revenue sharing
Clean, green products
Contracts Multiple
Capacity Building
Organic Farming
ENTITY STRATEGY OUTCOME
Figure 7.1: Convergence between social
enterprises
- 31 -
SSEN
SSK SAST SRPL
Social
Empowerment
NETWORK OF SHGs
Capacity building for
livelihoods, governance,
organization management,
gender and leadership
Provide reach to women who can
then sustain revenue model of
SSEN
Campaigns and outreach programmes
on health awareness.
Provide access to women for
insurance sales.
Ownership of SSK as a NBFC
Provide feedback for tailoring
products relevant to specific needs
Promotion for SRPL products
Ownership of SRPL through shares
Feedback on relevance and quality of
products
Campaigns and outreach programmes
on programmes and schemes
Leadership roles in federation
management would also lead to more
women participating in governance
Emergency loans
for health at low
interest
Low interest loans
for SRPL sakhis
SSP AS A NETWORK ORGANISATION
Figure 7.2: Potential Synergies between entities
Economic
Empowerment
Political
Empowerment
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The potential convergence of these entities are portrayed in Figure 7.2. Currently SSK
already has its focus clearly aligned to livelihoods with almost 95% of their loan
portfolio servicing livelihoods. SSEN has the potential to be a resource centre with
women leaders as master trainers to build capacities among women in livelihoods,
entrepreneurship and leadership. SSP can play the role of enhancing local leadership,
by acting as resource centre at block and cluster levels.
SSP can facilitate upstream linkages, grassroots advocacy and networking of
federations at the district and across states. Such a model is already being piloted by
Mahila Samakhya in Andhra Pradesh whose focus is to build autonomous and
sustainable federations7. Similarly, SSEN can also strengthen their current role in
building Sakhi Retail entrepreneurs in new areas and accelerate the expansion of
social enterprises. SAST, with its community health and social protection programme
has an equally important role to play in terms of ensuring that these entrepreneurs do
not fail in their businesses because of unforeseen health emergencies and resultant
vulnerabilities that could wipe out their savings and capital.
Today each social enterprise has inbuilt varying degrees of women’s participation and
leadership. In future, SSP and the social enterprises will have to build a robust process
that continually engages women and communities. Fostering a community
governance model, is critical to ensure products and services stay attuned to the
changing needs and aspirations of women consumers, families and communities.
Furthermore future expansion plans should be in the same community geographically
for the synergies and convergence across the entities to ensure that MF operations go
beyond just credit to meet the overall needs of the community.
1.43. Final recommendations
Policy makers donors and bilateral institutions need to acknowledge and position
grassroots women as knowledge holders and experts and invest in them to scale up
effective practices and empowerment. Specifically support should go to :
1. Grassroots women’s organizations can understand the needs and develop solutions
that transform/ change communities. Hence women’s leadership and solutions should
be centre staged and replicated by supporting transfer process.
2. Support demonstration initiatives that build capacities of women as information
providers, and innovators.
Community innovation fund These funds have helped groups act as learning
laboratories for grassroots women and partner institutions.
To illustrate, MFI funds need to funnel product innovations –like short term capital
for small business entrepreneurs, farmer groups etc.
7 ibid
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3. Create operational mechanisms that enable joint planning and assessment with
grassroots and local governments.
Invest in building networks both among women leaders as well as with institutional
partners. This can be done by supporting joint policy or issue framing workshops
between grassroots leaders and banks, government, exposure visits and dialogues with
officials, joint study mechanisms.
4. Advocate for policies and programmes that builds incentives for governments and
local authorities to engage with grassroots women.
Support advocacy by grassroots leaders starting with community market and
agriculture surveys and setting up of appropriate funding mechanism for grassroots
initiatives and their scaling up.
1.44. Summary and Conclusions
Overall, this study on microfinance and additional interventions highlights the
following aspects of the interventions:
1. Microfinance along side livelihood interventions has led to increased access to
resources
The study shows that over 87% of the sample surveyed reported an increase in income
as a result of their livelihood activities funded by microfinance loans. The other
impact found was that women reported that expenditure on women and girls had
increased. Overall, the microfinance initiative coupled with a livelihood focus has led
to very strong economic impact as seen by enhanced livelihoods, increased number of
enterprises, increased incomes and increased access to financial capital. To a lesser
extent, there has been a strong social impact in the form of increased awareness on
health, energy, and environment and increased social capital in the form of health
governance groups.
2. Increased leadership as a result of additional interventions
The impact on incomes because of microfinance livelihoods is evident in the form of
increased confidence, higher levels of skills, expanded choices on the type of work
women choose to undertake, decreased vulnerability and even increased employment
for other women. Women like Bhagirathi and Baby Shiral serve as role models for
other women not just as entrepreneurs, but also through their orientation to helping
other women join SHGs or start businesses. Women who were actively engaged as
arogya sakhis, field officers, sakhis and health governance monitors as well as
community leaders show their collective support for SSP’s initiatives through melavas
held annually as well as through their links to the entities. Collective leadership is
built on health governance, social issues, community resilience and local governance.
Federations reported that in several villages, women’s groups worked with their local
governments for total sanitation, run campaigns on alcoholism, monitor ration shops
thereby promoting /strengthening women’s involvement.
Page 34 of 36
SSP has engaged in strategies that have fostered a social, economic and political
process which has built women leaders and their networks which allow for a quick
transfer on information, knowledge and the ability to solve big problems.
3. Microfinance is a necessary but not a sufficient condition for economic
empowerment of women
Thus SSP interventions show how credit when accompanied by livelihood
interventions, leadership investment, and health initiatives provide a much larger
contribution towards empowerment than just credit alone. Members reported that
insurance has reduced vulnerability, increased confidence during health crisis, and
mitigated the need to borrow during health emergencies. SAST ensures better
accountability and monitoring of public health services through the network of
women’s collectives with the health governance groups in each village lobbying
government agencies for better water, sanitation, and health services. The mechanism
facilitates a higher quality and more affordable primary care resulting in an improved
healthcare experience for the rural poor. The Arogya Sakhis are simultaneously health
leaders and entrepreneurs who provide doorstep healthcare services - curative and
preventive - to the community. The Sakhis use the products that they sell and in the
process develop a strong awareness of their health and environmental impact. Many
have become a community leader-cum-educator pursuing the goals of creating a
better environment for her community. Campaigns on social issues such as sanitation
and alcoholism reported by federation leaders also pointed to the evidence of
women’s participation in social issues. Health governance groups actively monitoring
local institutions and promoting health awareness are other examples of social
interventions by groups.
The overriding approach across SSP was that there should be more investment in
women leaders, village entrepreneurs, who through their own increased awareness on
health, environment and energy were able to transmit the information to the
community at large.
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Glossary
Anganwadi Government childcare centers
ANM Auxiliary Nurse and Midwife
Arogya Sakhis Trained Community Based
Health Workers
Arogya Sandhi Health Insurance Fund
ASHA Accredited Social Health
Activist
Bachat gats Savings And Credit Groups
BDSS Business Development Support
Services
BoP Bottom of the Pyramid
BPF Best Practices Foundation
BPL Below Poverty Line
CBHI Central Bureau of Health
Intelligence
CBPPI Community-based Pro-poor
Initiatives
CDRF Community Disaster Resilience
Fund
CEO Chief Executive Officer
CHP Community Health Program
CHTF Community Health Trust Fund
CHWs Community Health Workers
CMS Catalyst Management Service
Crore 1,00,00,000 (approx Euro
161,000)
CSR Corporate Social Responsibility
CTLC Computer Training and
Learning Courses
DFID Department for International
Development
EAP Enterprise Awareness
Programme
EDP Enterprise Development
Programme
FEMO Software used by MFIs
FGD Focus Group Discussions
GoI Government of India
GoM Government of Maharashtra
HGGs Health Governance Groups
HIV/AIDS Human Immunodeficiency
Virus
HMF Health Mutual Fund
HR Human Resources
ICDS Integrated Child Development
Services
IPD In Patient Department
JLG Joint Liability Group
KMPs Key Monitoring Parameters
Lakh 100,000 (approx Euro1600)
M&E Monitoring and Evaluation
MF Micro finance
MFI Micro Finance
Institution
MIS Management
Information Systems
MoRD Ministry of Rural
Development
MOVE Market Orientation
Value Enhancement
MRP Maximum Retail Price
NBFC Non-Banking Financial
Company
NRHM National Rural Health
Mission
NSS National Sample Survey
OM Operations Manager
OPD Out Patient Department
PHC Primary Healthcare
Centre
PRA Participatory Rural Appraisal
PRI Panchayati Raj
Institution
UHI Universal Health
Insurance
Sakhis Women Entrepreneurs
Samvad Sahayaks Communication
Assistants
SAST Sakhi Arogya Samudaya
Trust
SGSY Swarnajayanthi Gram
Swarojghar Yojana
SHG Self Help Group
SIS Swasth India Services
SKUs Stock Keeping Units
SRPL Sakhi Retail Private
Limited
SSEN Sakhi Social Enterprise
Network
SSK Sakhi Samudhaya Kosh
SSP Swayam Shikshan
Prayog
Taluk Block
TISS Tata Institute for Social
Sciences
VHC Village Health
Committees
VLE Village Level
Entrepreneur
VTP Vocational Training
Programme