DOCSLIB.ORG

Microfinance in India a State of Sector Report

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Microfinance in India a State of Sector Report 2007 By Prabhu Ghate Lead Author Access Development Services has been established as a national technical services company to support the growing microfinance sector in India. In addition, Access also focuses on developing sustainable solutions for upscaling livelihoods of the poor. As a part of its mandate, currently Access houses the microfinance India platform and also supports the largest microfinance network viz “Access Microfinance Alliance” for streamlined and structured services to emerging MFI's in the country. Access's vision is to be global partner of choice providing inclusive and innovative livelihoods solution enabling the poor to overcome poverty and live with dignity. www.accessdev.org LEAD AUTHOR Prabhu Ghate ([email protected]) is an independent researcher, journalist and consultant. He was in the IAS in UP, and a senior Economist at the ADB where he authored "Informal Finance: Some Findings from Asia" (OUP, Hong Kong, 1992). He has a Ph D in public policy from Princeton University. [email protected] Microfinance in India A State of the Sector Report, 2007 By Prabhu Ghate Sai Gunaranjan Vijay Mahajan Prasanth Regy Frances Sinha Sanjay Sinha Microfinance India 28 Hauz Khas Village, New Delhi 110 016 This report represents the personal views of the chapter authors. It does not represent the views of Microfinance India, or of its sponsors, or of the Microfinance India Advisory Group. 1 2 Contents Chapter Page No Foreword 5 Preface and Acknowledgments 6 Abbreviations 8 1 Overview 11 Prabhu Ghate 2 Progress Under the SHG Bank Linkage Programme 35 Prabhu Ghate 3 SHG Federations: Financiers or Nurturers? 49 Prabhu Ghate 4 MFI Performance: Efficiency with Growth 73 Sanjay Sinha 5 Urban Microfinance 83 Prabhu Ghate 6 Social Performance in Indian Microfinance 105 Frances Sinha 7 Micro Insurance 119 Sai Gunaranjan 8 Microfinance and Technology 131 Prasanth V Regy and Vijay Mahajan 9 Regulation: The Microfinance Bill: An Opportunity Being Lost? 149 Prabhu Ghate List of Tables Page No Table 2.1 Growth trends in the SBLP 36 Table 2.2 Growth of linked SHGs in 13 Priority States 37 Table 2.3 Growth trends in the SBLP for 2006-07, by state 43 Table 2.4 Growth of linked SHGs in the regions 38 Table 2.5 Agency- wise number of SHGs financed 38 Table 4.1 Regional distribution of Indian MFIs rated by M-CRIL 74 Table 4.2 Distribution of sample Indian MFIs by microfinance model 75 Table 4.3 Distribution of sample MFIs by legal form 75 Table 4.4 Operating expense ratios of Indian MFIs 78 Table 4.5 Capital adequacy ratios of Indian MFIs 80 Table 4.6 Portfolio yield relative to APR 81 Table 4.7 Outreach of efficient microfinance institutions 82 Table 9.1 Successive versions of the microfinance bill 163 Table 9.2 MFOs and MFIs 164 3 Appendix Tables Page No Table A.1 Fact Sheet on coverage and growth of India microfinance, 2006-07 179 Table A.2 Information on 129 MFIs covered in Sa-Dhan's Quick Report 2007 180 Table A.3 Lending by selected apex financing institutions and banks to MFIs 188 Table A.4 Salient features of India-oriented equity investors 189 Table A.5 Insurance coverage by selected MFIs 191 Table A.6 List of selected transformations 192 List of Boxes Page No Box 1.1 Cashpor: Stoppage of Partnership Funding 14 Box 1.2 The challenges of raising capital: Inside the entrepreneur’s mind 26 Box 3.1 “The SHG Revolution: What Next?” 50 Box 3.2 MYRADA’s Community Managed Resource Centres (CMRCs) 53 Box 3.3 DHAN Foundation federations: changing with the times 55 Box 3.4 Making non-financial federations viable: PRADAN’s experience 57 Box 3.5 Roshan Vikas: An urban SHG federation 62 Box 3.6 Swayanshree at the crossroads: To borrow or to facilitate direct linkages? 63 Box 5.1 The uses and abuses of moneylenders 86 Box 5.2 The ubiquity of moneylenders in Bangalore 87 Box 5.3 Mobility in a Delhi slum 89 Box 5.4 Segmentation by loan purpose 90 Box 5.5 Ujjivan’s approach to urban housing microfinance: helping customers climb the housing ladder 92 Box 5.6 Individual loans and product diversification at SEWA Bank 94 Box 6.1 Dimensions of social performance 106 Box 7.1 Providing sustainable and competitive insurance products to rural customers 121 Box 7.2 SEWA and rainfall insurance 127 Box 8.1 The evolution of MIS in Basix 135 Box 8.2 A hosted solution: FINO 137 Box 8.3 TAFI: Putting mobile phone technology to work as a BC for remittances 145 Box 9.1: The microfinance bill: a case study in dilution 162 Box 9.2 Misunderstandings about savings 165 Box 9.3 Grameen II and flexible, voluntary savings 166 Box 9.4 Sa-Dhan’s Voluntary Mutual Code of Conduct 167 Box 9.5 A bit of history: Self-regulation backed by legal sanctions 168 List of Figures Page No Figure 4.1 Membership of sample MFIs 76 Figure 4.2 Average savings per member by model 77 Figure 4.3 OER by loan size 78 Figure 4.4 Relationship of portfolio size with efficiency 79 Figure 4.5 Sources of funds for microfinance operations 79 Figure 6.1 Assessing social performance 108 4 Foreword This is the second of a series of Annual Reports on the microfinance sector in India, prepared for presentation to the annual Microfinance India conference organized by ACCESS Development Services. The Microfinance India Conference, over the last four years, has become established as perhaps the most recognized sector event, and attracts large-scale interest from diverse stakeholders from the sector, and interested observers from within and outside the country, and has become known for insightful discussions and debates of key issues challenging the sector. This year's conference, the fourth in the series, is being held on October 9- 10. Among others, a specific significant contribution of Microfinance India, in addition to the conference, has been the publication of the State of the Sector Report annually released at the time of the Conference. Like last year, the State of the Sector Report contains two chapters on progress under each of the two main models of microfinance in India viz. linkage banking and MFIs. These two chapters are proposed to be carried every year and carry the most updated review of how the two models have progressed during the year. In addition, the Report includes five chapters on "new" topics and themes that could not be covered in the last State of the Sector Report, but continue to be of current and future significance to the Sector. These topics relate to SHG federations, evaluation of social performance, urban microfinance, developments in technology, and perspectives on regulatory issues, including the pending microfinance bill. A few topics such as developments in commercial bank lending to MFIs, equity investments, and issues relating to the mounting challenge of the growing need for quality human resource for the sector could not be covered again in this year's report for reasons of space, but are proposed to be taken up in subsequent years. In future years, we also hope to include themes, which have yet to be covered, such as livelihoods finance, financial inclusion, financial literacy, et al. The abundance of additional information collated by the author may necessitate a second edition of the report. In order to broad-base participation in preparation of the report and take fullest advantage of the rich expertise available in the sector, four of the chapters contained in this year's report have been contributed by well known sector experts. I am personally grateful to them for taking valuable time off from their other responsibilities. I acknowledge support extended for one of these chapters, that on the MFI model, by the MIX. All of them have been equally ambitious to continue to support this ACCESS - Microfinance initiative to make the State of the Sector Report as valuable to the sector as possible. To ensure widespread distribution of last year's State of the Sector Report, it has been brought out as book under the title of Microfinance in India: The Challenges of Rapid Growth. The book has been published by Sage Publications as a paperback so as to enhance affordability. I am also grateful to our sponsors Swiss Development Cooperation and Ford Foundation and the close association of both Adrian and Ajit at all stages of the Report's progress. And finally, I am immensely grateful to Prabhu, who, exhausted from the first effort, with some persuasion, agreed to author the 2007 report. I also would like to thank my team at ACCESS for the support provided to this effort. Most importantly, I am grateful to the sector at large for their very positive response to last year's report, which encouraged us to raise our ambition for the current year's report, and to persist with the idea of bringing it out annually. I hope the sector will find the State of the Sector Report 2007 equally valuable as last year and continue to support the effort through sharing information, contributing experiences from the field and bringing in their perspectives on the sector. Vipin Sharma CEO, ACCESS Development Services, New Delhi 5 Preface and Acknowledgements Like last year's report on the state of the Indian microfinance sector, this year's seeks to document developments, clarify issues, publicize studies, stimulate research, identify policy choices, generate understanding, and enhance support for the sector. Given the increasing complexity and diversity of the sector, each annual edition of the report can try, but is unlikely to succeed, in being a comprehensive record of everything that happened during the year.
Load more

Recommended publications
  • Microfinance in India –
    64966 Microfinance in India – Banyan Tree and Bonsai Public Disclosure Authorized A Review Paper for the World Bank By Vijay Mahajan Bharti Gupta Ramola Public Disclosure Authorized August 2003 Public Disclosure Authorized Public Disclosure Authorized i Table of Contents 1 Status and Performance of India’s Microfinance Sector........................................... 1 1.1 Introduction ......................................................................................................... 1 1.2 Microfinance Demand and Supply...................................................................... 3 1.3 What is the Microfinance Sector in India? ......................................................... 4 1.3.1 Definitional Issues ............................................................................................. 4 1.3.2 The Informal Sector ........................................................................................... 5 1.3.3 Mainstream Institutions ..................................................................................... 6 2 What Impact have Microfinance Programs had?.................................................... 12 2.1 Impact on the Livelihoods of the Poor .............................................................. 12 2.2 Impact on Sector Practices................................................................................ 14 2.2.1 Informal sector interest rate and approach ...................................................... 14 2.2.2 Developing New Approaches by Banks and Insurance Companies..................
    [Show full text]
  • The AP Microfinance Crisis 2010: Discipline Or Death?
    MANAGEMENT CASE The AP Microfinance Crisis 2010: describes a real-life situation faced, a decision or action Discipline or Death? taken by an individual manager or by an organiza- tion at the strategic, func- MS Sriram tional or operational level n October 15, 2010, the news that the Andhra Pradesh (AP) government had passed an ordinance to regulate the microfinance activities in the State Opushed all the MicroFinance Institutions (MFIs) with huge exposure to AP into a huddle. The microfinance sector had seen a high and a low in a short timespan. In July 2010, the largest MFI – SKS Microfinance – had a successful initial public offering (IPO). The same year, a series of controversies (including some unre- lated to each other) culminated in the ordinance passed by the State Government. This ordinance threatened the very existence of for-profit MFIs. Suddenly, a fairy- tale had turned into a nightmare. BACKGROUND Indian microfinance had come of age from the early steps taken in the later part of the decade of 1990s. While the roots of what is known today as microfinance is usu- ally traced to the establishment of the Shri Mahila Sewa Sahakari Bank (popularly known as Sewa Bank) in 1974, the growth picked up only in the new century. Mysore Resettlement and Development Agency (MYRADA) was seen as one of the early innovators of the concept of self-help groups (SHG)1. The concept had emerged in 1984-85, but it was only after the National Bank of Agriculture and Rural Develop- ment (NABARD) saw the merit in this model of microfinance that it was accepted as a predominant model of achieving financial inclusion, by the government agencies.
    [Show full text]
  • State of India's Livelihoods Report 2014 State of India’S Livelihoods Report 2014
    State of India's Livelihoods Report 2014 State of India’s Livelihoods Report 2014 State of India’s Livelihoods Report 2014_FM.indd 1 21/11/14 12:20 pm CONTRIBUTORS Sankar Datta Vijay Mahajan Manas Ratha Suryamani Roul Ashok K. Sircar N. Srinivasan State of India’s Livelihoods Report 2014_FM.indd 2 21/11/14 12:20 pm State of India’s Livelihoods Report 2014 1 State of India’s Livelihoods Report 2014_FM.indd 3 21/11/14 12:20 pm 1 Oxford University Press is a department of the University of Oxford. It furthers the University’s objective of excellence in research, scholarship, and education by publishing worldwide. Oxford is a registered trademark of Oxford University Press in the UK and in certain other countries Published in India by Oxford University Press YMCA Library Building, 1 Jai Singh Road, New Delhi 110 001, India © ACCESS Development Services 2015 ACCESS Development Services 28, Hauz Khas Village New Delhi 110016 www.accessdev.org Th e moral rights of the authors have been asserted First Edition published in 2015 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, without the prior permission in writing of Oxford University Press, or as expressly permitted by law, by licence, or under terms agreed with the appropriate reprographics rights organization. Enquiries concerning reproduction outside the scope of the above should be sent to the Rights Department, Oxford University Press, at the address above You must not circulate this work in any other form and you must impose this same condition on any acquirer ISBN-13: 978-0-19-945827-1 ISBN-10: 0-19-945827-8 Typeset in 11/13.6 Adobe Garamond Pro by Tranistics Data Technologies, New Delhi 110 019 Printed in India by Rakmo Press, New Delhi 110 020 Contents List of Tables, Figures, Boxes vi List of Abbreviations viii Preface xiii 1.
    [Show full text]
  • Brief Profiles of BASICS Ltd Team: Mr. Vijay Mahajan ‐ Chairman ,BASIX
    Brief Profiles of BASICS Ltd Team: Mr. Vijay Mahajan ‐ Chairman ,BASIX Group Vijay Mahajan, 57, is the Founder and Chairman of the BASIX Group (www.basixindia.com), which promotes livelihoods of two million poor households. Vijay established BASIX in 1996 and it offers financial services including savings, micro‐ credit and micro‐insurance. BASIX also provides fee‐based agricultural, livestock and non‐farm enterprise development services to individual producers, and institutional development services to bring such producers into groups. Earlier, in 1983, Vijay co‐ founded PRADAN, an NGO deeply involved in livelihood promotion. Vijay served on the boards of major Indian NGOs and several major Indian policy forums such as the Rangarajan Committee on Financial Inclusion, the Raghuram Rajan Committee on Financial Sector Reforms and the Insurance Regulatory and Development Authority. Vijay co‐founded AP‐MAS in 1999 and Sa‐Dhan in 2000 and the Microfinance Institutions Network (MFIN) in 2008, as institutions for strengthening the microfinance sector in India. In 2010, Vijay was elected Chair of the ExCom of the Consultative Group to Assist the Poor (CGAP). Vijay studied at the Indian Institute of Technology, Delhi and the Indian Institute of Management, Ahmedabad, and was a mid‐career Fellow at the Woodrow Wilson School, Princeton University, USA. He co‐authored a book “The Forgotten Sector” and has written over 20 published papers and 60 articles. Vijay was selected as among the 60 “outstanding social entrepreneurs of the world” at Davos in 2003 and among the 50 most influential Indians by BusinessWeek, Asia in 2009. In 2011, the Financial Express named him among twenty Indians who will lead India’s reforms in the current decade.
    [Show full text]
  • ~~~~~A/ Vinay~ Company Secretary
    RBLBANK apno I< a bank April 27, 2018 The Secretary, The Manager, Listing Department, Listing Department, BSE Limited, The National Stock Exchange Limited, 1" Floor, Phiroze Jeejeebhoy Towers, Exchange Plaza, C-1, Block G, Dalal Street, Sandra Kurla Complex, Sandra (E) Mumbai- 400001 Mumbai -400051 Script Code: 540065 Script Name: RBLBANK Sub: Change in Directorship I Chairmanship Dear Sir/Madam, Keeping in view, the nearing of completion of tenure as approved by the Reserve Bank of India vide its letter dated September 8, 2016, the Board of Directors of the Bank at its meeting held today have approved the appointment of Mr. Prakash Chandra, Non-Executive Independent Director, as Part­ time Non-Executive Chairman of the Bank for a period of 2 years w.e.f. May 20, 2018 subject to the approval of the Reserve Bank of India and the Shareholders of the Bank at the ensuing Annual General Meeting of the Bank. Mr. Narayan Ramachandran will continue as the Part-time Non­ Executive Chairman of the Bank till the completion of his tenure i.e till the close of working hours of May 19, 2018. Further, The Board of the Directors of the Bank at its meeting held today also approved the appointment of Mr. Vijay Mahajan (DIN 00038794) as an Additional Director of the Bank w.e.f. April 27, 2018. The Profiles of Mr. Prakash Chandra and Mr. Vijay Mahajan are enclosed. Kindly take the same on record and oblige. Thank you. Yours faithfully, F\ RB~ Bank Limited ~~~~~A/ Vinay~ Company Secretary www.rb!bank.com RBL Bank Limited CORPORATE OFFICE - MUMBAI: One lndiabulls Centre, Tower 2B.
    [Show full text]
  • Call for an Inclusive Banking Structure for India by 2019, Fifty Years After Bank Nationalization
    Call for an Inclusive Banking Structure for India by 2019, Fifty Years after Bank Nationalization DISCUSSION PAPER Vijay Mahajan Founder and CEO, BASIX Social Enterprise Group Call for an Inclusive Banking Structure for India by 2019, Fifty Years after Bank Nationalization Disclaimer “This document is funded by the UK Department for International Development (DFID). The views expressed are not necessarily those of DFID.” SAMRIDHI Program The Samridhi programme is being implemented by the Small Industrial Development Bank of India, supported by UK Aid through the Department for International Development (DFID), UK. It aims to enhance poor and vulnerable people’s income, especially women, in four low income states, so they benefit from economic growth through enhanced private investment and better access to financial services in India. In the above context, this programme has a significant potential to support the existing models and service providers in scaling up, invest in development of new products and delivery mechanisms where required and support policy influencing and convergence at sectoral level for a conducive enabling environment for holistic financial inclusion. While some of these strategies are relevant at national level, the programme has focus on the four poor states of M. P., Odisha, Bihar and U. P. Expected Results of the Program: • 12 million poor people, reached with financial services, of which three-fourth are women. Over 9 million to experience increased incomes, by at least one-third over people who do not obtain project benefits. • Over 5 million women clients testify improvements in social status and mobility. Outputs: • Facilitate policy and institutional environment that encourages provision of financial services to poor people.
    [Show full text]
  • OUR BOARD of DIRECTORS Mr. Vijay Mahajan
    OUR BOARD OF DIRECTORS Mr. Vijay Mahajan (Chairman): Vijay Mahajan was educated at the Indian Institute of Technology, Delhi; the Indian Institute of Management, Ahmedabad; and at the Woodrow Wilson School of Public and International Affairs, Princeton University, USA. Vijay is the chairman of BASIX group and co‐founded PRADAN, Sa‐dhan and APMAS. He has co‐authored a book "The Forgotten Sector" on the rural non‐farm sector and written over 50 articles on rural livelihoods, development and micro‐finance. He is a member of the Committee on Financial Inclusion, the Microfinance Equity and Development Fund and is also on the Board of CGAP, the global microfinance apex. Vijay was selected "Outstanding Social Entrepreneur" by the Schwab Foundation of the World Economic Forum, Davos, 2003. Mr. Ashok Kumar Singha (Managing Director) Education: PGDBM, XIM, Bhubaneswar Years of Experience: 19 years Ashok Singha is a graduate in Agriculture and a postgraduate in Management, has over 19 years experience in Livelihood Enhancement, Micro‐Finance, Sector Transformation, Public Enterprise Reform, Policy Research, Governance and Performance Improvement areas. He has exposure to sector study, institutional analysis and capacity building at national and international levels. He is one of the six governance consultants with DFID in India. An alumnus of Xavier Institute of Management, Bhubaneswar , Ashok has worked in Power Sector Reform (Orissa, AP, MP, UP), Public Enterprise Reform (in power sector, forestry sector, irrigation and water sectors), Decentralization and Participatory Governance (with Pani Panchayats, Water user Associations, Power User Associations, capacity building of NGOs, CBOs and municipalities). Ashok has worked extensively on climate change issues.
    [Show full text]
  • Microfinance in India: Lessons from the Andhra Crisis*
    CHAPTER 1 Microfinance in India: Lessons from the * Andhra Crisis Vijay Mahajan** and T. Navin*** 1 The Two-Model Microfinance Industry in India The Indian economy was able to witness high levels of economic growth follow- ing the economic reforms that were introduced in the 1990s. The GDP grew at the rate of 8.45 % per annum between the years 2004 till 20111. Despite this, India continued to see high degree of poverty and low human development. While growth did create zones of prosperity, and reduce poverty and hunger, the residue was still very large – 37.2 % of the Indian population continued to be poor2, while 77 % of the population remained vulnerable to income shocks3. This proportion was even higher for the socially disadvantaged groups such as the Scheduled Castes, the Scheduled Tribes and Minorities. India continued to occupy a low rank – 134 – in the UNDP Human Development Index which takes into account health, education, income, inequality, poverty, gender, sustainability and demographic indicators4. With an estimated 385 million employed population, unemployment in India was estimated to be about 9.4 %. 5 The post independent Indian state adopted various means for addressing poverty and livelihood challenges. This began with land reforms, followed by increasing * This is an updated version of an earlier article by the authors, titled Microfinance in India – 2012 – Growth, Crisis and Future, which was published by the French Association d’Economie Financière in the Revue de Economie Financiere, No 102, Sep 2012. ** Founder and CEO of the BASIX Social Enterprise Group; President of the Microfi- nance Institutions Network of India; Chair of the Ex-Com of CGAP.
    [Show full text]
  • Report of the Committee on Financial Sector Reforms
    A Hundred Small Steps ii A HUNDRED SMALL STEPS A Hundred Small Steps Report of the Committee on Financial Sector Reforms Government of India Planning Commission New Delhi iv A HUNDRED SMALL STEPS Copyright © Planning Commission, Government of India, 2009 All rights reserved. No part of this book may be reproduced or utilized in any form or by any means, electronic or mechanical, including photocopying, recording or by any information storage or retrieval system, without permission in writing from the publisher. First published in 2009 by SAGE Publications India Pvt Ltd B1/I-1 Mohan Cooperative Industrial Area Mathura Road, New Delhi 110 044, India www.sagepub.in SAGE Publications Inc 2455 Teller Road Thousand Oaks California 91320, USA SAGE Publications Ltd 1 Oliver’s Yard 55 City Road London EC1Y 1SP, United Kingdom SAGE Publications Asia-Pacifi c Pte Ltd 33 Pekin Street #02-01 Far East Square Singapore 048763 Published by Vivek Mehra for SAGE Publications India Pvt Ltd, typeset in 10/12 Minion by Star Compugraphics Pvt Ltd, Delhi and printed at Artxel, New Delhi. Library of Congress Cataloging-in-Publication Data Available ISBN: 978-81-7829-950-1 (PB) The SAGE Team: Rekha Natarajan, Meena Chakravorty, Rajib Chatterjee and Umesh Kashyap Photo Credit: Mckay Savage Contents Members’ List and Terms of Reference vii Acknowledgements ix List of Abbreviations xi 1. Introduction, Executive Summary, and List of Main Proposals 1 2. The Macroeconomic Framework and Financial Sector Development 22 3. Broadening Access to Finance 49 4. Levelling the Playing Field 77 5. Creating More Effi cient and Liquid Markets 103 6.
    [Show full text]
  • Microfinance - from the Fire to the Frying Pan? Online
    kDnqp [DOWNLOAD] Microfinance - from the fire to the frying pan? Online [kDnqp.ebook] Microfinance - from the fire to the frying pan? Pdf Free Mr. Vijay Mahajan audiobook | *ebooks | Download PDF | ePub | DOC Download Now Free Download Here Download eBook #6045573 in Books 2013-04-27Original language:English 9.00 x .60 x 6.00l, #File Name: 1484136772264 pages | File size: 57.Mb Mr. Vijay Mahajan : Microfinance - from the fire to the frying pan? before purchasing it in order to gage whether or not it would be worth my time, and all praised Microfinance - from the fire to the frying pan?: 1 of 1 people found the following review helpful. RelevantBy Mian Parvaiz HameedDeals with many issues which the microfinance sector is facing in Pakistan. The articles give good insight in policy level issues. The book came after decades of experience of the authors in microfinance operations. There was a lot of learning that each of them accrued in their journeys in implementing and managing microfinance programmes. Most of all, the authors, felt that their learning must not be lost and hence this book. It will serve as an introduction to microfinance for students and/or a resource to fall back upon for a professional/researcher. The beauty of the book will be that it will serve as a guide to learning about microfinance and learning about the tools and techniques of implementation on the ground. About the AuthorVIJAY MAHAJAN’S: Vijay Mahajan was listed among the world’s 60 “outstanding social entrepreneurs” by the World Economic forum, Davos in 2003.
    [Show full text]
  • Social Entrepreneurship & Successful Social
    IOSR Journal Of Humanities And Social Science (IOSR-JHSS) Volume 14, Issue 3 (Jul. - Aug. 2013), PP 07-12 e-ISSN: 2279-0837, p-ISSN: 2279-0845. www.Iosrjournals.Org “Social Entrepreneurship & Successful Social Entrepreneurs in the field of Rural Development in INDIA” 1R. Balambika, 2Venkata Subrahmanyam C. V., 3Dr. B. Tamilmani 1Research Scholar,Department of Cooperation,Gandhigram Rural Institute (DU), Gandhigram – 624 302 2Research Scholar, Department of Entrepreneurship Studies,Madurai Kamaraj University, Madurai – 625 021 3Professor & Head, Department of Cooperation,Gandhigram Rural Institute (DU), Gandhigram – 624 302 Abstract: This paper deals with the concepts of Social Entrepreneurship; how it is different from commercial entrepreneurship; and presents some successful social entrepreneurial cases and concludes with the need of social entrepreneurship in India. Key Words: Social Entrepreneurship; Social Entrepreneurship in India, Successful Social Entrepreneurship cases; Successful Social Entrepreneurs in India; I. Introduction ‘Social Entrepreneurship‘means identifying or recognizing a social problem and using entrepreneurial principles to organize, create, and manage a social venture to achieve a desired social change. Business entrepreneurs typically measure performance in profit and return, but social entrepreneurs also take into account a positive return to society. Social entrepreneurship typically furthers broad social, cultural, and environmental goals and is commonly associated with the voluntary and not-for-profit sectors. Profit can at times also be a consideration for certain companies or other enterprises. Social entrepreneurs are a special breed of people who use business sense to solve social challenges. Social entrepreneurs are individuals with innovative solutions to society‘s most pressing social problems. They are ambitious and persistent, tackling major social issues and offering new ideas for wide-scale change.
    [Show full text]