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Experiments in Entrepreneurship - Rural Women - Written 2008

 

Experiments with  Entrepreneurship by Rural Women. - Two Successful Rural Marts / Retail Outlets   by Dinesh K Kapila, - Written in 2008                                                            

Working  as DDM in NABARD in districts Ropar and Nawanshahr of Punjab I noticed a tremendous hunger for credit and entrepreneurial opportunities amongst women in rural areas. The main barriers were the gender insensitivity of a deeply feudalistic society, lack of collateral, low levels of  knowledge / literacy, lack of avenues of marketing and at times limited communication skills leading to low confidence. A pilot project was introduced at that time by NABARD wherein  groups of women, preferably from Self Help Groups would be encoyraged to set up retail outlets with limited financial support from NABARD (for rent, financial support to orgainse the outlet and limited salary for running it) .  The only condition was the women had to have a product / products to sell it, should have undergone some training in a skill (say food processing  -pickels, papads, clothing design / tailoring etc) by an agency (could be sponsored by NABARD through a NGO also) and be ready to work as a group transparently.  I could sponsor five rural marts (In NABARD terminology) in  Ropar district, of which two did particularly well and would be discussed in this artcle.  Incidentally, a small amount was paid to the NGO associating with the exercise also to defray its expenses.        

The Rural Mart close to my heart was of the Mahila Jagriti Producer Group, backed by the Ambuja Cement Foundation (ACF).  This group of 30 women from 3 villages i.e. Nuhon, Ratanpura & Daburj had been trained already for six months by the ACF through a programme sponsored by NABRD called  ARWIND (Assistance to Rural Women in Non-farm Development) in 2004. Fostering group enterprise and loaning was the objective of this project with training on tailoring, embroidering and designing skills. The aim of the project was to generate self-employment for the beneficiaries.  After this training, 12 trainees from ARWIND project formed a Producer’s Group and decided to set-up a retail outlet Centre at vill. Nuhon near Thermal Plant Colony. This was after protracted efforts by the staff of the ACF and me to encourage and motivate the target group as they were apprehensive about working together, the modalities of cost sharing and profits etc. These aspects had to be explained by repeat interactions and motivation as also forecasting of the possible profits and positive impact on their lives. On 10 May, 2006 the Rural Mart, called a Retail Outlet in local terms, became operational. The Group named itself as the Mahila Jagriti Producer Group and also formed a SHG and opened an Account at UCO bank, Nuhon. The group was guided on how to maintain registers like the Proceeding Book, the Cash Book, Ledgers, Stock Book etc. The Group committed to report the expenditure incurred to the ACF and NABARD regularly. Besides the Ambuja Cement Foundation took the responsibility to help the Group regarding the marketing of their products and nurturing.

 

Assistance of NABARD to a Producer Group ( for 15 months) was  The Rent of the Shop (@ Rs, 1500/- per month); Rs 22500/-, Honorarium for the Shop in charge ( @ Rs. Rs 2000/- per month), Rs 30000/- and Promotion expenses at Rs 15000/- as a lumpsum. Besides, the ACF was assured a grant of Rs 10,000/- for its efforts and dedicated support. The assistance concluded on July 2007. 

 

This group has been a success from the beginning, by July 2007 itself they reported a surplus of Rs 1.35 lakh. Presently I understand the group is earning an average surplus income of 10,000/- per month after deduction of all expenses such as rent, raw material, electricity, salary etc in a transparent manner. They have also started teaching other girls and women in the area. Of late a change of location has been a bump in their progress but they have recovered now.  

 

The women have the acceptability now in the area, initially they had to compete with three other such shops in the area but have managed to expand the market and to mark their presence. These women from totally rural backgrounds and mainly involved in small operations like maintaining a milch cattle or two, had been seeking a pathway to higher incomes and something to bring them out of the dreary life they led. Now as a team, some work at the rural mart and take orders, some work from home and do the stitching etc while some are adopting a mixed approach, all by mutual agreement. The most positive impact has been on their absorption of knowledge, their self confidence, their attendance at fairs at Chandigarh and the happiness they demonstrate. Books are maintained sincerely and the norms of payment as per work put in (type / effort) are adhered to. The ACF has played a major supportive role but ensured there was no dependency syndrome by encouraging them to move about for orders and not to seek support from orders from the Ambuja Cements factory. There is a major Super Thermal Power Plant in the area and the families of its employees also visit the shop as do ruralites. A possible gap is the knowledge in latest trends but the same is being closed by interaction etc also. The main products are salwaar kameez (shirt and salwaar), frocks, skirts, night suits, shirts for men, pants, nighties, baby dresses, embroidery on clothes, stitching as per order and also in bulk etc.    

 The second success is of the Lutheri Producers Group in the Chamkaur Sahib block. The GNVBTP (Guru Nanak VBT Polytechnic) at SAS Nagar had proposed a project at Village Doomcherri in Block Morinda in 2005. This was in consultation with me as a very active farmers club with the Punjab Gramin Bank at Doomcheri village had formed active SHGs and requested for their training. This training was on stitching, tailoring and soft toys / bag making for eight weeks. Smt Jagdish Kaur was the trainer, herself residing in a village about 7-9 kms away. The aim of the project was to generate self-employment for the beneficiaries but subsequent to the training, the issue of marketing the products came up as also of obtaining orders. The Principal of the Polytechnic and I then sat with the Trainees and discussed about the concept of the Rural Mart.  Consequently, 12 trainees agreed to form the Producers Group under the leadership of their trainer. We scouted  for a suitably located shop, ultimately zeroing in on village Lutheri. The shop is at a crossing point for numerous villages nearby and Doomcherri is about 6 kms away. It was decided that Jagdish Kaur would mann the rural mart. However considerable efforts at group sensitization were required, all aspects of cost sharing and profits etc were discussed and maintaining registers / documents. On 1 Feb. 2006 the Rural Mart became operational. The Group named itself as the Lutheri Producers Group. The Women opened a bank account at the Cooperative Bank also.  The issues such as documerntation etc were taken up in detail here also and the GNVBTP closely guided the women. The main Assistance from NABARD to the Producer Group for for 15 months was for Rent of the Shop ( @ Rs, 2000/- per month),  Rs 30,000/-, Honorarium for the Shop in charge ( @ Rs. Rs 2000/- per month = Rs 30000/- and Promotion expenses, Rs 15000/- as a lumpsum. Besides, the GNVBTP was assured a grant of Rs 10,000/- for its efforts and dedicated support. The assistance concluded in April 2007. 

 

This group had a slow start and in the first 5 months’ a deficit of of Rs 15979/- after all expenses was reported, In the second band of 5 months’ onwards; surplus income was reported consistently, starting from as low as Rs 300/- or so to 12,777/- towards the end. Presently I am given to understand that the group is earning an average surplus income of 7500/- per month to Rs 8000/- per month after deduction of all expenses such as rent, raw material, electricity, salary, transportation etc in a transparent manner. They are teaching other girls and women in the area also.

 

This rural mart has evolved in that to attract customers, inner wear, cosmetics and bangles etc are also retailed though the complaint is earnings are less from such product lines, but the ladies enter the shop. The village is having shops which are run by men, at first this rural mart (a small shop really) was considered an anomaly but is now accepted and supported by other shopkeepers. However, in winters, the shop has to close early. These women are from totally rural backgrounds and were mainly involved in agricultural related operations, now they feel they have another outlet, even if it has not evolved fully as per their aspirations. The members of the rural mart are chiefly represented by Smt Jagdish Kaur who obtains the orders, the other members work from home and do the stitching etc while some are adopting a mixed approach, all by mutual agreement. The additional income is welcomed by all and they feel more self confident and happy also. Interestingly, I was told that the local bus drivers also readily agree to carry the clothes etc to Doomcherri and back free of cost. The leader is well versed with changing trends as per the village requirements and conservative tastes but the group still has to accept that in any business fluctuations in income are a reality. Such fluctuations dishearten them but then the subsequent increases in festival months and even otherwise raises their spirits. The main products are salwaar kameez (shirt and salwaar), frocks, skirts, soft toys, baby dresses, embroidery on clothes, pillow covers, rummala,  stitching as per order and also in bulk, cosmetics, etc..     

DKK

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