Choosing the right sustainability model that defines us
Choosing a sustainable model in rural India, depending on the project you are working on, is vital. Do you want to go the NGO route, working with SHGs (Self Help Groups), or set up an FPO (Farmer Producer Organization) or a Section 8 company? The ideal structure depends heavily on your project’s goals, scale, and the community you aim to serve.
Before joining the SBI Youth for India, terms such as FPO and SHGs were completely alien to me. In my defense, many, if not a majority, of the people residing in cities and towns have no knowledge of its existence.
I remember that on the first day on the job with the NGO, I tagged along with the staff and a bank official as he was on a loan collection drive, and we were visiting village after village to collect what was due. From afar, sitting in the car, I watched as a farmer raced into his fields without a glance behind. The official told me that he was a defaulting farmer and was always absconding, and that day we saw him in action. The official told me horror stories of suicides, families barely eking out a living, and many more. The sad reality of the farming fraternity in rural India.
The second day, I was taken to see the formation of an SHG.
An SHG is a Self Help Group, which is an informal, voluntary association of people, usually of a similar socio-economic background, who come together to solve common problems. They typically promote savings schemes among their members, which can then be used to provide small loans to each other when needed. SHGs are a tool for poverty alleviation, economic empowerment, and social development, especially for rural and urban poor communities
Usually there are 10 to 20 adults in an SHG. The SHGs I visited usually had a minimum of 10 and a maximum of 15. It was the first time that I was introduced to the Panchasutra, or Five Codes of an SHG, as devised by the NRLM (Natural Rural Livelihood Mission). When translated, it means
Regular Meetings,
Regular Savings,
Regular Internal Lending,
Timely Repayment,
Proper Bookkeeping.
And it was through these meetings that I came across the Saraswati SHG in Udaypur Gaon.
Flashback Time:
It was 2011, and I was doing my MBA in finance at Christ University in Bangalore. There was a donation drive, and I wanted to do my part, so I introduced the ‘₹2 A Day Initiative.’ Every day, each student would put in ₹2 into a box, and at the end of the month, we would use the pooled funds to purchase a sports item for the slum kids. The monthly target was (40 students × 30 days × ₹2) ₹2400. At the end of 2 months we had collected close to ₹3200. Many students either forgot or just didn’t have the coins at that time. On our visit to the slum we donated a cricket set, a football, and a host of other items. Unfortunately we had to discontinue those donations due to the administrative constraints imposed by the college.
The concept for me has always been sustained micro donation. Making it a collective habit was the goal. After all, small steps lead to giant outcomes if done sustainably.
After my first SHG meeting, where I saw the monthly savings being collected (every woman needed to save ₹100 every month that would go into the SHG account), it dawned on me. What if I could convert the ‘₹2 A Day Initiative’ from a donation model to a savings model? That could be added over and above the ₹100, thereby increasing the monthly savings. When I tried to convince the NGO, as usual, I was met with resistance, as funding would be the issue. However, I did convince my local NGO head to give it a shot and said that the savings would be self-funded. I was advised to wait a few months to incorporate this initiative so that the SHGs would get accustomed to my visits first.
I was 4 months into my fellowship and was simultaneously working on the salt bricks and mineral mixture projects. Whenever the DO (Development Officer) asked me to accompany him, I gleefully complied. The more exposure to the workings of NGOs and the social sector, the better. Once I got the green signal to go ahead with the project, I was ecstatic and was certain the initiative would be a success.
This is where I learned my first harsh lesson in rural development. For anything to be successful in rural India, you must have a robust monitoring mechanism in place. Projects usually start with high enthusiasm but slowly wither away due to lack of consistency. During the first few months, we made good progress, but slowly engagement with the habit lost steam. Sometimes the women were not present due to work migration, lack of ₹2 coins, forgetfulness, and a host of other problems. This is where I learned the 3 pillars of rural development.
Consistency of work, continuity of work, and constantly monitored work.
Taking everything I learned into consideration, I had to be extremely careful in choosing a model for my social enterprise without losing focus on the SDG goals.
SDG goals, by default, were incorporated into the model.
After 13 months immersed in the realities of rural development through the SBI Youth for India fellowship, I finally returned to Pandhana; I came back with a clear vision. Starting an NGO would be a tedious process with various formalities, and I didn’t want to go through that. I wanted to invest in the community and work with the community. Donations were not the answer. Working with SHGs was out because of the infighting (I saw much of this) and my inability to provide work for all the women in the SHG. I didn’t want complaints because you need only one person having a problem to derail the whole project. So I decided to work with only a few.
I did a lot of research on existing companies, and one model that I identified was Neev Soaps from Jharkhand. Their model was an important factor in setting up mine. I wanted everyone in the whole process not only to learn but also to earn and evolve.
The core tenets that I based this model on were:
- As the company grows and develops, so does the village.
2. Integrating the supply chain adds to the economic value of the village.
3. We not only create income and employment, generating activities for the village, but also use it as a platform for social change.
4. The model not only has to be sustainable but also sustainably sustained.