Integrating Microfinance and Livelihoods -The Swayam Shikshan Prayog (SSP) Experience

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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

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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


1.21. 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


1.27. 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

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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.

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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).

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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:

http://en.wikipedia.org/wiki/Family_income

http://en.wikipedia.org/wiki/Indian_rupee

http://en.wikipedia.org/wiki/Hectare

http://en.wikipedia.org/wiki/Television

http://en.wikipedia.org/wiki/Refrigerator

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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

http://en.wikipedia.org/wiki/Landholder

http://en.wikipedia.org/wiki/House

http://en.wikipedia.org/wiki/Clothing

http://en.wikipedia.org/wiki/Food_security

http://en.wikipedia.org/wiki/Sanitation

http://en.wikipedia.org/wiki/Consumer_durable

http://en.wikipedia.org/wiki/Literacy

http://en.wikipedia.org/wiki/Livelihood

http://en.wikipedia.org/wiki/Human_migration

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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.

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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

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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

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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.

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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

Page 17 of 36

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.


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.


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.

Page 27 of 36

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

Page 32 of 36

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.

Page 35 of 36

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