Unlocking insights on technology, collectives, and microentrepreneurship.
The Indian Institute of Management Udaipur organized a workshop funded by the Scheme for Promotion of Academic and Research Collaboration (SPARC), a Government of India initiative. The workshop was designed to disseminate the results and to encourage discussions and conversations around the facilitating role of technology in microenterprises. The workshop included two-panel discussions embodying incubators, funding organizations, leading practitioners, and academics working in entrepreneurship, technology, innovation, and marketing.
The first panel discussion focused on key challenges and opportunities micro-enterprises faces using technology to create value for their businesses. The second focused on the role of Collectives in providing networking opportunities, business training and mentorship, and facilitating access to funding for women-owned businesses.
The workshop was scheduled on January 3, 2023, from 3:00 PM - 5:45 PM (IST) and was held online through Zoom. Each panel had 50 minutes of discussion, followed by a 15-minute question and answer session. Prof. Sundar G Bharadwaj, Coca-Cola Company Chair and Professor of Marketing, The University of Georgia, facilitated interaction and dialogue between the panelists and the audience as a moderator.
We believe that our participants benefited significantly from the workshop and received a certificate of participation. Please find the summary of the workshop below
The Indian Institute of Management Udaipur (IIMU) organized a workshop funded by the Scheme for Promotion of Academic and Research Collaboration (SPARC), a Government of India initiative. The workshop aimed to bring together various stakeholders to share their experiences and insights on the potential of technology, collectives, and micro-entrepreneurship in promoting economic growth and development. The workshop included incubators, funding organizations, leading practitioners, and academics working in the space of entrepreneurship, technology, innovation, and marketing. The workshop had participation from a diverse range of organizations, including educational institutions, for-profit and not-for-profit institutions, and corporations, and the workshop received coverage from multiple publications, including Skill Outlook, India Education Diary, Patrika Jagat, The News Strike, Keval News, Big Breaking News, EDU Advice, and Twitter.
The workshop was designed to disseminate the results and to encourage discussions and conversations around the facilitating role of technology in microenterprises and the role of collectives in women entrepreneurship.
The workshop featured six speakers. Aravind Chinchure, the CEO of Deshpande Startups, is an Industry 4.0 expert, inventor, innovator, and mentor. Krishna Kumar Balaraman is an Associate Professor at the Indian Institute of Technology Jodhpur (IITJ) in the area of strategic and public policy and advises start-ups on business models and strategies. Mahavir Pratap Sharma is the Chair of TiE India Angels and RAIN (Rajasthan Angels), an entrepreneur, and a business leader. Smriti Kedia is the CEO of Sadhna, a women's handicraft enterprise, a board member of the fair-trade forum of India, and founder-trustee at the plus trust. Mayur Kamble is a District Development Manager at National Bank for Agriculture and Rural Development (NABARD), an apex developmental financial institution in India. Mr. Kamble has diverse experience in socio-economic developmental fields. Rakesh Pati is a highly accomplished academic and researcher, currently serving as a Senior Lecturer in Management and Deputy Director of the Women’s Entrepreneurship Research Alliance (WERA) at Deakin University in Melbourne. Sundar Bharadwaj, the moderator for the session, is a well-known marketing scholar and practitioner currently serving as The Coca-Cola Company Chair Professor of Marketing at the Terry College of Business at The University of Georgia.
The workshop had participation from a diverse range of organizations, including educational institutions such as IIMU, Jnana Prabodhini, Srishti Manipal Institute of Art, Design and Technology, Indian Institute of Technology Delhi, Pondicherry University, School of Management and Entrepreneurship Indian Institute of Technology Jodhpur, College of Engineering Trivandrum, and Kumaraguru College of Technology. Participants were also from for-profit and not-for-profit institutions such as Deshpande Startups, Deshpande Foundation, Raah Foundation, Goldratt Consulting, Meaningful Design Foundation, and Asha Handicrafts Association. The list also included corporations like Hindware Limited, Adani Total Gas Limited, ICICI Bank, and Cognizant, and technology companies like Xebia, Wooqer, and Zumen Software India Pvt Ltd.
Role of Technology in Microenterprises
Role of Collectives in women entrepreneurship
Role of government institutions in supporting collectives
Barriers to technology adoption in microenterprises
Dr. Aravind Chinchure spoke about micro-entrepreneurship and technology in India during the session. He expressed his gratitude for the opportunity to participate in the session, as micro-entrepreneurship is a topic that is not often discussed in India compared to tech entrepreneurship. Chinchure provided information about the Deshpande Foundation based in North Karnataka, India. The foundation works in four areas: agriculture, skilling, tech startups, and micro-entrepreneurship. The Micro-entrepreneurship Development Program has worked with more than 5000 micro-entrepreneurs in non-metro areas of India, focusing on the handicraft, textile, and food industries.
Dr. Chinchure highlighted the educational background of the micro-entrepreneurs in the program, stating that 80% of them had completed at least a 10th-grade education, with 20% having completed college degrees. In terms of technology adoption, Chinchure noted that most micro-entrepreneurs had adopted basic technologies such as Whatsapp for Business and digital payment methods.
However, Dr. Chinchure also noted that there was a reluctance among micro-entrepreneurs to adopt e-commerce and digital platforms for their businesses. He identified fear of the unknown, fear of decision, and fear of inexperience as the three primary reasons for this reluctance.
Dr. Chinchure stated that efforts were being made to address these fears and encourage micro-entrepreneurs to adopt new technologies in their businesses.
Challenges in scaling up and the technology roadmap for micro-entrepreneurs
Prof. Krishna Kumar Balaraman presented how Micro-entrepreneurs in India face numerous challenges when it comes to expanding their businesses beyond the initial entry point. He stated that the current government policies define micro-enterprises in a way that can limit their growth potential. This has led to a mindset among micro-entrepreneurs that often restricts their growth potential. Talking about his study aimed to identify the factors that lead to these challenges and explore opportunities for micro-entrepreneurs to overcome them, he mentioned that micro-enterprises often lack the knowledge and resources needed to take their businesses to the next level. The mindset of micro-entrepreneurs is also a factor in their limited growth potential. They often view growth in a linear manner, seeking to replicate their existing business in different locations rather than exploring new opportunities in the value chain.
The study also found that technology can play a key role in the growth and development of micro-enterprises. Technology can help in improving operational excellence and product and process development and can even be used as a business in itself. However, the adoption of technology by micro-entrepreneurs is currently limited due to a lack of awareness and resources. The study concluded that there is a need to redefine the definition of micro-enterprises in India to provide more opportunities for growth and development. This can be done by providing better access to resources and handholding to micro-entrepreneurs. Technology can also play a crucial role in the growth and development of micro-enterprises. The government and other organizations need to provide more awareness and resources to help micro-entrepreneurs adopt technology and explore new opportunities for growth.
Based on the findings of the study, the following recommendations are proposed:
Marketing and technology in microenterprises
Mr. Mahavir Pratap Sharma talked about his experiences as an angel investor and his involvement in various tech investments over the last decade. He also shared his insights on the challenges faced by micro and small enterprises, particularly in terms of marketing, branding, packaging, and access to capital. He mentioned that many entrepreneurs in this sector lack the skills to market and brand their products effectively and are often unfamiliar with modern design principles or packaging standards. Mr. Sharma suggested that these entrepreneurs could benefit from partnering with good design schools and designers, as well as focusing on creating next-generation products that appeal to younger consumers. In addition, he emphasized the importance of having a good marketing and branding strategy, protecting intellectual property through trademarks, and understanding unit economics and pricing when scaling up a business. Mr. Sharma also touched upon the challenges of negotiating with online sales platforms and accessing capital. Overall, he highlighted the need for better education and support for micro and small enterprises in order to help them overcome these challenges and succeed in today's competitive business landscape.
Challenges in Women Collectives and How to overcome them?
Ms. Smriti Kedia provided a brief overview of the organization she represents, Sadhna. The focus of her presentation was on the challenges faced by women collectives in the craft space, particularly from Sadhna's perspective. She discussed the member-centric nature of collectives and the importance of a common goal to keep them together. Sadhna is a craft enterprise that works with over 800 women artisans who work from home on hand embroidery, patchwork, and Taca. The challenges faced by women collectives were discussed, including the formation of the collective, production and quality, marketing and branding, empowering women, building leadership, ensuring social security, and profits and compliance. The formation of the collective was highlighted as a critical step, and Sadhna invested time in understanding the community's needs and resolving their daily problems to bring the group together.
The importance of skilling and a leadership system within the group was emphasized, with each group having a leader responsible for the performance and well-being of the group. The diversity in skill among the women artisans was noted as a challenge in production and quality. Sadhna has addressed this by providing training and interventions to improve the quality of its products. The ownership of the enterprise by the artisans was highlighted as a unique feature of Sadhna, and the profits made by the enterprise goes back to the artisans. Overall, Ms. Kedia shared some of the approaches that Sadhna has adapted to overcome the challenges women collectives face in the craft space.
During the workshop, Prof. Rakesh Pati discussed his experience with collective entrepreneurship and women entrepreneurship, specifically in the context of the Department of Cooperatives in Jharkhand. The Department of Cooperatives had started a training program to encourage women to start their own businesses, specifically with the goal of making them self-sufficient and empowered. The training program brought in 150 bangle makers from Rajasthan to train women in Jharkhand, but out of the 30 women who attended the training, none of them started their own venture. This was because the most difficult phase was to convince people to join the cooperative. The government had given the women Rs 130 per day to attend the training, but it did not incentivize them to start their businesses.
Prof. Pati and his colleague went to the training programs to learn how to make bangles themselves. After interviewing each of the 30 women to understand the challenges they faced, they found that one of the major challenges was the lack of social and family support and the fact that the women did not have enough money to buy a furnace. However, most of the women were confident in starting a venture. The easy problem that could be solved was the lack of funds to buy a furnace. After writing a report, the government approved the allocation of ₹1000 per group, and every five women were given one furnace.
After three months, the women were revisited to see how many groups had started businesses. Four groups had sold off the tools and shared the profits, one group was struggling with making bangles as they were unable to find a market, and the final group had not started at all due to conflicts. From this experience, it was learned that women were more concerned with short-term benefits than long-term investments. Additionally, collaboration and cooperation are crucial in any collective venture.
Lastly, working together in the right direction is crucial. After these discoveries, they created a new plan. The two tools would be loaned out to the women to maintain ownership. If the women could not start a venture, the tools would have to be returned within three months. They also approved a small shop to buy the products from the women artisans. Marketing training was also provided. After another three months, three groups started their ventures. It was discovered that the women were motivated by seeing the success of their peers, and thus it is important to convert them into cooperatives to work collectively.
Mr. Mayur Kamble, District Development Manager at NABARD, shared his insights about One of the NABARD’s projects in the Off-farm sector involving a focus on collectives, with women's collectives being a major priority. The main objective is to make women eligible for bank credit, help them sustain their livelihoods, and facilitate their growth. The next step towards empowering women is through the implementation of skill development programs that are target and goal-oriented. One such program is the Livelihood Enterprise Development Program (LEDP), which aims to train women in a specific activity, such as handicrafts or artwork in the local area, to help them earn a living. The implementing agency is selected based on a strict set of criteria, and it is expected that at least 60 to 70 women will be placed by the end of the program to achieve its objectives.
Graduation into major collectives is the next phase for women in the program, with provisions for market linkages, capacity building, exposure visits, and infrastructure. Under the "Off-Farm Produce Organizations" program, projects are implemented for a period of 2 to 3 years, with extensions possible in some cases.
In the Dharwad district, two main clusters have been implemented in recent years. One is the Kasuti embroidery cluster, where women were trained through three Ledp programs. They subsequently graduated into an off-farm produce organization called Saki Sapalia, which has 300 women artisans working for Kasuti embroidery. The second cluster is the Aari embroidery cluster, implemented by the Deshpande Foundation in Hubballi, where 140 women are working in the cluster. The project has been ongoing for a year and is expected to run for three years.
He mentioned that both the Kasuti and Aari embroidery clusters are doing well and thanked the agencies involved for the 100% effort and excellent implementation. Mobilization has been challenging but successful due to the best master trainers, workshops, and follow-up exposure visits. Funding and resource allocation have also been provided to ensure women get the best possible support. The Aari off-farm producer organization has just completed its second year, with a promising turnover. They have recently been sanctioned for two more programs, including a rural market and a branding initiative.
Aravind Chinchure
Krishna Kumar Balaraman
Mahavir Pratap Sharma
Smriti Kedia
Rakesh Pati
Mayur Kamble
Sundar Bharadwaj
