The culture of social entrepreneurship in India

The idea of ‘social entrepreneurship’ has been gaining a lot of momentum lately, especially with the ever-increasing focus on self-reliance within the country. This is fueled by India’s long standing tradition of social enterprises, starting from Amul India’s establishment in 1950 as a milk co-operative that lifted thousands of dairy farmers from poverty. While Amul was not established as a social enterprise, it’s a promising and exceedingly famous example of one: after all, who here doesn’t have indelible memories of Amul’s catchy ads? 

By definition, a social enterprise is one that uses “techniques to start-up companies and find solutions to social, cultural or environmental issues”. There have been numerous large social enterprise ventures since then: most notably, Ashoka’s establishment in 1981, establishing a formal ecosystem of support for social entrepreneurs, embedding the idea of ‘Everybody is a changemaker’ in public consciousness. Other significant examples include Selco India (providing affordable solar energy solutions for the poor), Jaipur Foot (prosthetic solutions for persons with disabilities), or Shri Mahila Griha Udyog Lijjat Papad (a women’s organization that revolutionized the ‘papad’ industry). The emergence of these disruptive new organizations has brought significant social innovations & revenue to their fields.  

Growth and success of social entrepreneurship can have revolutionary impact on India’s economy. For one, the number of employment opportunities that can be generated, especially in local geographies, is immense. Development of home-grown solutions & services will not only contribute towards economic growth, but also result in enhancing social capital, a move that can go far when it comes to human development. 

For social enterprises to thrive, three things are of paramount importance: Assets, Network, and Culture. Within this context, access would imply access to both finances and knowledge. In the past decade, the ecosystem around social enterprises has also evolved exponentially, providing budding social entrepreneurs with the funding, knowledge, and mentorship required to succeed & scale. The financial ecosystem has been strengthened through government backing, including the CSR law; and through private impact investment funds like Acumen or Aavishkar Funds. Incubators have also emerged to bridge the knowledge & mentorship gap for aspiring entrepreneurs. Several incubators have been established by the Government of India at various IITs, IIMs, NITs and other educational institutions, not to mention the impact created by the private incubators like Dasra, Villgro, and more. 

The above also forms the formal networks social entrepreneurs have access to. In India, resources flow through informal channels, and through the social networks around the entrepreneur. These informal social networks help the entrepreneurs build trust & credibility within their community, and act as a bridge towards formal structures as well. This network of friends, business contacts, suppliers, fellow entrepreneurs, etc. is a strong tool to be wielded.

The last component, culture, is one that is currently being built. A majority of the country lives in rural areas, with limited access to sanitation, electricity, education, and productive employment opportunities. India’s development needs are vast: with innovations required in varied fields, like education, waste management, environment protection, energy generation, healthcare, and more. Success of movements like Startup India, and Make In India has highlighted the country’s readiness to engage in small enterprises. However, there’s a need to concentrate the energy of investors, governments, and entrepreneurs themselves on the social aspect of business, considering the scope of work left to be done, and the amount of success there is to be achieved.