This document discusses the challenges facing social entrepreneurship in India's dynamic ecosystem. It notes that India has progressed through historical stages of feudalism, socialism, and now market capitalism. This creates challenges as inequalities rise and disadvantaged groups are impacted. Additionally, India has moved from isolated domestic policies to increased globalization, creating structural challenges from competing global interests and regulatory gaps. The document also discusses institutional challenges from expanded market forces, and behavioral challenges from rising expectations that outpace available resources. It outlines Udyogini's work promoting social enterprises in rural India across agriculture, forestry, and handicraft sectors to help alleviate poverty.

1. 1 Social Entrepreneurship: The context and practice for inclusion Vanita Viswanath 2011 1

2. 2 Challenges of the dynamic eco-system Historical Political economy stages feudal, socialistic, or capitalistic (or mixed as India was termed) now market capitalism. Societies do not neatly jettison one stage and move into another. Perpetual hangovers and intersections of class, caste, gender and other interests challenge market forces as inequalities rise Social entrepreneurship has to understand these trajectories and creatively engage, particularly on behalf of disadvantaged groups 2

3. 3 Challenges of the dynamic eco-system Structural: Movement from largely insulated/isolated policies concerned with in-country developments and interests to globalized. Globalized world order has strong competing interests (web of managing interests has moved from in country, with a small eco-system to a larger one). Manifested in policy imbalances, regulatory gaps, governance deficits. Clash of societies, civilisations, political cultures more pronounced Political churning we see is a result of that -- new formations and alliances and policy responses that will affect social enterprises 3

4. 4 Challenges of the eco-system Institutional: Simple institutional arrangements – small, self-contained and more controllable eco-systems consistent with societal and political eco-system Globalized markets, imperatives of diversification, require expansion of institutional eco-systems created institutional and power imbalances – manifested in both consolidation among already powerful big companies to partnerships that smaller institutions have to initiate Social enterprises have to innovate through this new dynamic from their inception – 4

5. 5 Challenges of the eco-system Behavioural: Market forces caused rising expectations and aspirations but the world’s resources are not enough to meet them. Earlier, micro-societies found their own politico social balances to manage their economies. Now its been globalized. Faith, wisdom, restraint to underscore balancing in the bigger eco-system Social entrepreneurship for promoting restraint, balance, responsible processes 5

6. SE Response for inclusion Innovation should be about creative dynamics not mechanics (not a new low cost technological marvel but relationships between innovators, innovation and adopters. Changes over time and not one time best practice based on some adoption numbers that may not sustain). Ethics is not a moral obligation but a sustainability imperative Focus should not just be on sustainable business but on greater benefits accruing upstream than downstream (even at the cost of profits for promoters). There are political and social costs to missing out on this principle of ethics. 6

7. Social Enterprise Definitions For Profit: Businesses with primarily social objectives whose surpluses are principally reinvested for that purpose in the business or in the community, not for maximising profit for shareholders and owners. Certification: Social Enterprise Mark Hybrid: Business ventures operated by non-profits, whether they are societies, charities, or co-operatives. Sell goods or provide services in the market for the purpose of creating a blended return on investment, both financial and social. Non-profit: Organizations which have philanthropic goals and fundamentally motivated by the perception that such commitment will ultimately make the enterprise more financially valuable (no requirement to sell products and services to earn money). For a balanced eco-system focusing on dynamics we need all three types. 7

8. 8 What we do Udyogini is a business development service provider so vision horizon for enterprise is what the modern day market will allow i.e. 5-7 years for outcomes and strategic shifts within this period We work directly by mobilizing producers ourselves and also work through local NGOs and producer federations that have already a foothold in the community Agricultural commodities, non-timber forest produce, handicrafts Work in 8 really backward states of the country in more difficult areas within each state Currently work directly with around 10,000 poor families over 5 years in our enterprise promotion programs. Reach 3 times more annually with our training and counseling services

9. 9 Udyogini Hybrid Structure

10. UDYOGINI Investment and Support Investment and Support Investment and Governance Knowledge and reporting Consultancy Value Chain Development and Marketing Company BUSINESS DEVELOPMENT SERVICES UJAS R&D, Training, linkages Retail Aggregation Village Level Entrepreneurs Training Mobilisation, Training, Welfare program linkages, Credit linkages, Child care, production-level work Retail Aggregation Producers

11. 11 Value Chain Units

12. 12 Agriculture and Forest Products: Madhya Pradesh

13. 13 Uttarakhand: Honey, Medicinal Plants

14. 14 Sal Leaf-Plates: Orissa

15. Tasar Silk Upgradation: Bihar 15

16. 16 Textile Embroidery: Rajasthan

17. 17 Training: Producers and NGO Staff

18. Social Support: (Health, childcare, awareness-raising) 18