Promoting
Entrepreneurship through CSR
India,
is the first country in the world to make CSR mandatory, following an
amendment to The Companies Act, 2013. However, many companies simply do
not have the bandwidth to undertake consistent CSR implementation. These
companies can implement their CSR initiatives using NGOs as
implementation partners. NGOs in India have the advantage of being
location specific, flexible and have good understanding of communities
so are well suited to provide streamlined, customised solutions to the
corporates.
Some companies have viewed CSR as a passing
fad, while others look at it as a creative opportunity to fundamentally
strengthen their businesses while contributing to society at the same
time. In this run, each and every company has found its own niche. With
the increasing impetus laid by the government on Skill India, Start-up
India, Make in India and Digital India, more and more companies are
investing their CSR money on entrepreneurship and capacity building
initiatives.
If we look at the entrepreneurship ecosystem
in India, while the large and medium enterprise ecosystem is well
established, the demand for micro and small enterprises still remains
unmet. Therefore, there is a dire need to create a continuous loop of
information and support solutions to enable these micro and small
entrepreneurs thrive in the enterprise development ecosystem.
Looking at the need, coupled with the
impetus laid by the government, Hongkong and Shanghai Banking
Corporation as part of it CSR, has joined hands with the Development
Alternatives Group for a two year pilot to promote entrepreneurship by
building knowledge of youth and women and directly providing technical,
financial, marketing and capacity building support to set up 375
enterprises with them.
In the pursuit of this, the project has two
specific objectives. The first is to demonstrate the setting up of 75
new enterprises across poorer districts of Delhi NCR, Uttarakhand and
Uttar Pradesh. The second objective is focused on scaling up enterprise
development through setting up a digital market place and a financing
platform to provide enterprise solutions for 300 additional
entrepreneurs.
In order to ensure sustainability, a special
purpose vehicle (SPV) will be nurtured to hold the digital market place
and the financing platform together towards the end of the project. This
entity will continue to provide technical support, financial access and
marketing solutions (through a network of banks, technical organisations
and micro credit institutions) to additional micro enterprises even
after the project duration thereby facilitating entrepreneurship
development at scale.
Initiated in January 2018, the project so
far has conducted need assessment surveys and conducted information
sessions with over 2000 individuals in an attempt to understand -
• How do women and youth perceive
opportunities and take decisions on establishing a micro enterprise?
• How challenges differ for those already
running a business as opposed to those who are on the verge of setting
up businesses?
• What are the capacity building needs of
youth and women?
• What are the aspirations of young women
and men in the current digital technology age?
As part of the need assessment and
infotainment sessions, it was found that on an average, only 5 out of 50
individuals thought about starting their own enterprise. The reason
majorly being the lack of information followed by barriers faced on
front of market and finance. This highlights the need to minimise
barriers through systemic changes that enable entrepreneurship at scale.
Looking specifically at motivating factors
for women, it was found that the independence derived from
entrepreneurship is the most important trigger for women to set-up an
enterprise.
Nearly 45% individuals reported that greater
access to information and capacity building training will make the
transition to entrepreneurship easier. 6 out of 10 youth said that they
did not receive any career counselling and 54% did not understand the
MSME space very clearly. Therefore, customised skill building
initiatives to equip them to start their own enterprises is the need of
the hour.
Therefore, as part of the project,
customised solutions have been developed to meet the needs of different
individuals. These include formulation of interactive games and custom
modules for bridging knowledge gap, providing financial literacy and
developing entrepreneurial skills.
Moving forward, the project plans to invest
its resources in a two-fold approach that aims, in a complimentary
manner, to create a nurturing ecosystem and bring about innovation in
processes. Also, in light of the growing demand for digitisation and
online platforms, the programme is building a digital platform where
people can access information, get online trainings and avail
technology, finance and market related information.
■
Ankita Pant
apant@devalt.org
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