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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