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Dissertation Project On: "Rural and Social Entrepreneurship Cases From Bihar and Jharkhand"
Dissertation Project On: "Rural and Social Entrepreneurship Cases From Bihar and Jharkhand"
On
JULY 2020
DECLARATION
I hereby declare that this MBA thesis entitled “Rural and Social
Entrepreneurship; Cases from Bihar and Jharkhand” was carried out by
me for the degree of MASTER OF BUSINESS ADMINISTRATION
(AGRIBUSINESS) under the guidance and supervision of Mr. Kumud Ranjan
(Asst. Professor), FACULTY OF MANAGEMENT STUDIES, GNSU,
JAMUHAR (SASARAM).
I wish to sincerely thank all those who have contributed in one way or
another to this study. Words can only inadequately express my deep
gratitude to my guide, Mr. Kumud Ranjan (Asst. Professor), for her
meticulous care, kindness and generosity. Her fruitful comments and
insightful suggestions have been a crucial formative influence on the present
study. He has supported me in every possible way since the beginning of my
research. His critical and careful reading of my writing has saved me from a
lot of errors. Without his guidance and encouragement, my research would
have never come out in the present form. I have seen in his an unpretentious
and devoted scholar. Furthermore, it has been a memorable and enjoyable
experience for me to work with him..
I wish to express my sincere gratitude to Dr. Alok Kumar, the Dean of the
college, for his incessant inspiration, expert guidance, invaluable
suggestions, and, above all, his moral support.
Executive Summary.............................................................................................1
Introduction..........................................................................................................2
Scope And Objective...........................................................................................4
Literature Review.................................................................................................5
Research Methodology....................................................................................8
Data Analysis.......................................................................................................9
Case Study Of Samriddhi.................................................................................9
Evolution Of Samriddhii................................................................................10
Mission And Vision.......................................................................................11
Social Entrepreneurship: Potential For Transformation................................11
Simplified Organisation Structure.................................................................12
Innovative Three Tier Business Model..........................................................14
Growth And Innovations................................................................................16
Economic Development Of Bihar..................................................................19
Samriddhii And Its Competitors....................................................................20
Future Prospects.............................................................................................21
Age Of Respondents......................................................................................22
Gender Of Respondents.................................................................................23
Family Type Of The Respondents.................................................................24
Family Size Of The Respondents..................................................................24
Caste/Religion Of The Respondents..............................................................25
Martial Status Of The Respondents...............................................................25
Language Known By Respondents................................................................26
Educational Qualifications Of Respondents..................................................26
Do You Have Your Agricultural Land..........................................................27
Size Of Land That You Have( In (Acre).......................................................27
Where The Land Is Irrigated Or Non Irrigated..............................................28
Are You First Generation Entrepreneur Or Not............................................28
What Is Your Business?.................................................................................29
Duration Of Your Business( In (Years).........................................................30
What Is Your Initial Investment For This Business.......................................30
From Which Of The Following Sources You Availed Finance....................31
Your Annual Income (Approximate).............................................................32
Employment Opportunities Created By Your Business................................33
Finding...............................................................................................................34
Conclusion.........................................................................................................35
Appendix............................................................................................................36
References..........................................................................................................41
EXECUTIVE SUMMARY
1
INTRODUCTION
Social entrepreneurship in terms of operation and leadership could be
applicable to non-profit organizations as much as for-profit social enterprises
although in terms of activities and legal entity they are very different.”
Models for social entrepreneurship in India are Social for-profit enterprise,
non-profit and hybrid model, which are discussed in detail in the following
sections.In addition to the above-mentioned models, other ways of creating
impact in India are through philanthropy and through Corporate Social
Responsibiliy. India has been regularly receiving global philanthropic
money. Recently there has been a rise in local contributions from wealthy
individuals with short and long-term vision. A new breed of high-net-worth
individuals from the corporate sector is looking at investing philanthropic
money in the form of grants and impact investments. Currently strategic
philanthropy in India is still at a nascent stage.The practice of Corporate
Social Responsibility (CSR) in India still remains within the philanthropic
space, but has moved from institutional building (educational, research and
cultural) to community development. With the communities becoming more
active and demanding paired with global influences, CSR is becoming more
strategic in nature (i.e. getting linked with business than being
philanthropic). By discussing a company’s relationship to its stakeholders
and integrating CSR into its core operations, the impact needs to go beyond
communities and beyond the concept of philanthropy. This opens up big
opportunities for the development sector to unlock local capital for not only
solving short-term social problems but also investing into long-term social
entrepreneurship. With the new Companies Act Bill 2013 every company
with either:
● a net worth of INR 500 crore (c.78 milion US$) or
● a turnover of INR 1,000 crore (c.157 milion US$) or
●net profit of INR 5 crore (c.783’350 US$) needs to spend at least 2% of its
average net profit for the immediately preceding three financial years on
Corporate Social Responsibility (CSR) activities.
Over 5 decades of independence of India and even after industrialization, the
agricultural sector till continue to be the backbone of our economy and our
society too. Other core feature of the agricultural workforce is that their
share in total workforce of the country is about 70 percent. One of the
negative results the agriculture workforce is that this sector is overcrowded
as far as employment is concerned. Again the continuous increase in
population is definitely obscurity to the rural development. Whereas urban
2
migrations of the farm-workers also have negative impact like
unemployment problem and increased numbers of population below poverty
line. Entrepreneurship in rural areas is finding a unique blend of resources,
either inside or outside of
agriculture. This can be achieved by widening the base of a farm business to
include all the non-agricultural uses that available resources can be put to or
through any major changes in land use or level of production other than
those related solely to agriculture. Thus, a rural entrepreneur is someone who
is prepared to stay in the rural area and contribute to the creation of local
wealth. Moreover the economic goals of an entrepreneur and the social goals
of rural development are more strongly interlinked than in urban areas. For
this reason entrepreneurship in rural areas is usually community based, has
strong extended family linkages and a relatively large impact on a rural
community.
Thus the rural entrepreneurship is a vital for rural economic development.
There are several reasons for the increasing interest in entrepreneurship
especially in rural regions and communities. ¨The rural entrepreneurs play
important role in driving local and national economies. The structure of rural
economies is essentially composed of small enterprises, which are
responsible for most of the job growth and the innovation. Moreover, small
businesses represent an appropriate scale of activity for most rural
economies. ¨Traditional approaches to recruitment and retention are just not
working for most places, and states are looking for viable alternatives which
mainly include entrepreneurship. Rural entrepreneurs have successfully
diversified into or started new businesses in markets as diverse as agri-food,
crafts, recycling, leisure and health.
According to researchers, while rural communities need entrepreneurs in
order to revitalize their economies, entrepreneurs are dependent on the
community for access to capital and other professional services.
Entrepreneurs and communities are interdependent; the challenge for both
lies in their ability to recognize the other’s unique needs.
3
SCOPE AND OBJECTIVE
The objectives of the study are
To understand the core benefits of rural entrepreneurship.
To identify and analyze about various problems faced by rural
entrepreneurs.
To suggest the remedial measures to solve the problems faced by
rural entrepreneurs.
To analyze the major challenges faced by rural entrepreneurship in
Bihar and Jharjhand
To understand the need for managerial caliber to resolve the issues in
rural entrepreneurship.
To study the basic framework of social entrepreneurship.
To underline the role and responsibilities of social entrepreneurs.
To list the challenges faced by social entrepreneurs in context.
To give suggestions on problems and challenges faced by social
entrepreneurship.
4
LITERATURE REVIEW
Social entrepreneurship as a practice that integrates economic and social
value creation has a long heritage and a global presence.
The global efforts of Ashoka, founded by Bill Drayton in 1980, to provide
seed funding for entrepreneurs with a social vision (http://www.ashoka.org);
the multiple activities of Grameen Bank, established by Professor
Muhammad Yunus in 1976 to eradicate poverty and empower women in
Bangladesh (http://www.grameen-info.org); or the use of arts to develop
community programs in Pittsburgh by the Manchester Craftsmen’s Guild,
founded by Bill Strickland in 1968 (http:// www. manchesterguild.org):
Williams (1999) argued that interest in entrepreneurship as a field of study
was crucially stimulated by community leaders’ belief that entrepreneurship
was a defining trend of the 21st century. Similarly, we observe that the rise
of scholarly interest in social entrepreneurship goes hand in hand with an
increasing interest in the phenomenon among elites.
(Busenitz, West III, Sheperd, Nelson, Chandler, &Zacharakis2003).
Entrepreneurship played a significant role in economic growth, innovation,
and alleviating poverty. And awareness regarding entrepreneurship is
needed. In many of the developing countries is questionably the least
studied. Entrepreneurship may affect economic growth in various ways.
They may introduce important innovations by entering markets with new
products or production processes. Entrepreneurial phenomena aimed at
economic development have received a great amount of scholarly attention
(Alvord, Brown, & Letts, 2004; Boschee, 1995; Dees and Elias, 1998;
Thompson, 2002) Entrepreneurship as a process to foster social progress has
only recently attracted the interest of researchers). The development of social
entrepreneurship as an area for research closely resembles the development
of research on entrepreneurship itself. Social entrepreneurship as a social
problem-solving endeavour is emerging as a socially innovative business
model for the required social transformation and change in the whole world.
Considering its assumed potential for solving the social problems, the arena
of S-ENT is receiving significant attention from both scholars as well as
practitioners globally.
(Peredo and McLean, 2006; Thompsonet.el., 2000)Social entrepreneurship
is exercised where some person or persons (1) aim either exclusively or in
some prominent way to create social value of some kind, and pursue that
goal through some combination of (2) recognizing and exploiting
5
opportunities to create this value, (3) employing innovation, (4) tolerating
risk and (5) declining to accept limitations in available resources.
(Ana Maria Peredo, Murdith McLean,2006). Entrepreneurship
development in rural areas will go a long way in boosting the overall
economic growth of India. Entrepreneurship refers to the act of setting up a
new business or reviving an existing one by taking advantage of new
opportunities.
(Poonam Bakhetia and Bhupinder Singh Dhillon, 2017).The research
analysing the importance of entrepreneurship in economic growth is
increasing across nations (Mir Shahid Satar,2016) Social entrepreneurship is
not a newer concept but the positioning of the concept has risen to new
heights in recent times. As government of India has made CSR a more
realistic responsibility than a mere formality, corporates are now looking for
their grater roles in helping the society in a way that is both economically
and socially beneficial. (Tripda Rawal, 2018).
E.D. Shetty (2002) documented a brief discussion of rural industrialization
in the prevailing economic situations and an overview of the kind of
industrialization in rural economy.
Kulawczuk (1998) argued that rural entrepreneurship occurs in
economically and socially depressed areas with inadequate infrastructure,
economic stagnation, low levels of education, low skilled workers, low
income, and a culture not supportive of entrepreneurship.
Leeds and Stainton (1978) defined micro entrepreneur as a person who
initiate production, takes decision, bears risks, involves, organize and
coordinates the other factors in their own prevailing rural conditions,
economic structure, social infrastructure and market forces. A.
Usha Devi (2004) explored the conceptual framework of rural area and rural
entrepreneurship and discussed the need for rural entrepreneurship in India
and the emerging entrepreneurs in the context of existing rural entrepreneurs
in India.
B.K. Pandey (2005) examined the rural micro-finance as development
initiatives and rural entrepreneurship promotional tool. M. Balasubramanian
(2004) highlighted entrepreneurial ambitions, compelling reasons, and
facilitating factors.
N. Namasivayam and S. Vijayakumar (2004) explored a complex and
varying combination of socio-economic, psychological and other factors. R.
V. Rao (2007) discussed about the strategy of rural development viz.
6
improving the economic conditions of the individual rural poor and
investment to develop overall rural economy to solve the problems of
unemployment, underemployment and poverty.
Mohanty, S.K. (2009) explored the rural entrepreneurship through poverty
alleviation programs and recommended measures to boost up rural
entrepreneurship.
Shetty (2002) analyzed the changes in entrepreneurial attitude orientation
and has measured attitudinal characteristics of rural Entrepreneurs as a result
of exposure with various entrepreneurial development and promotional
programs and activities by different agencies and institutions. He views rural
entrepreneurship as a pursuit of opportunities existing in the rural areas
without limiting oneself to the accepted within the existing norms and
confines of an organization.
Singh B Mnamboodiri K V N (2007) critically appraised the rural
unemployment in India and profiled the characteristics of rural entrepreneurs
in India.
Singh Kuldeep (2010) documented that in the Indian context, rural
entrepreneurship is one of the best solutions to eradicate the rural evils like
poverty, unemployment and the problems/challenges faced by rural
entrepreneurs in the shape of easy availability of credit and finance, shortage
of raw material,lack of market knowledge and inadequate infrastructure &
support system.
7
RESEARCH METHODOLOGY
The research methodology which is applied during the research study is
descriptive in nature The data collection of data is based on secondary and
primary basis and the research is strictly done to meet the objectives of
present research. The data which is furnished in the present study is based a
structured questionnaire and secondary data from various reports and studies.
The sources from where the data has been collected for the present study is
listed below;-
Reports of various industrial agency like CII, ASSOCHEM,FCCI has
been duly referred for the study.
Research paper based on related topics has been taken for the inputs.
Web resources related to the topic have been used for the information.
8
DATA ANALYSIS
9
Source: KGPL
The above cited two examples are just a sample of an unprecedented
exploitation of the Bihar farmers, who for long time had been fleeced by the
influential landlords and the bunch of middle men and mafia. This is a very
small depiction of the plight of these farm workers, who worked hard and
gained humiliation in return.
Witnessing the drudgeries of farmers and street vendors in his hometown,
Kaushlendra was in a state of desperation to uplift the status of the people in
Bihar. He had several key concerns. He was in a dilemma as to How to
connect the small, marginal farmers and street vendors to the mainstream
market? How to improve the standard of living of the poor farmers? What to
do to curb the exploitation of poor and illiterate farmers? How to transform
the lives and lifestyles of thousands of farmers and vendors of Bihar? What
kind of training to be provided to the farmers towards market oriented
farming? How to generate livelihood opportunities for the rural or urban
poor?
Evolution of Samriddhii
Kaushalya foundation (KF), the brain child of Kaushlendra, was founded in
2007 as a non-government and non-profit organisation to help and enhance
the agro industry in the country with an objective to conjoin with state,
financial, academic and market foundations. It also formed a concert of
voluntary organisation and research bodies who were already engaged in
agriculture sphere with a view to elevate the life standards of rural
agriculturists and food sector people in a contextual manner. Samriddhii has
been the outcome of all these developments, which came into being on 31st
December, 2007 through Knids Green Pvt. Ltd. (KGPL), which is registered
as a private limited company under the Companies Act 1956. It has been a
team work of managerial brains from some of the top business schools who
had acquired a large amount of experience in the area of agri-business and
retailing. KGPL made its advent as a tiny outlet of pre-packaged farm fresh
vegetables, an idea never thought about ever. They had designed refrigerated
push carts for this unique selling methodology to ensure longevity of the
produce to consumer satisfaction. Thus came into being a new concept of
vegetable supply chain which helped to marshal in concentrating and
consolidating this depolarised vegetable sector of Bihar. Samridhii aims at
10
delivering canonised and dignified self-employment openings for the
hitherto famished, destitute and indigent sections of urban and rural
population with a view to bulwarking a nourishing and nurturing money
earning and ameliorated quality of life. Samriddhii, a unique concept of
vegetable supply chain, focuses on mobilising and organising informal and
fragmented vegetable sector of Bihar. The goal of Samriddhii is to provide
opportunities for exalted self-employment for impoverished sections of
urban and rural population, safeguarding a sustainable livelihood, enriched
environment and improved quality of life for them.
Mission statement
“To develop a model to increase income and generate employment at
the grass root level by an equitable and holistic development.”
Vision statement
“Professionalizing the informal trade channel of fresh farm produce
and creating gainful, dignified self-employment for the families
dependent on agriculture sector.”
Source: http://www.knidsgreen.in
Social entrepreneurship: potential for transformation
11
prevailing in the society to capitalise on social welfare (Jiao, 2011; Pirson,
2012).
It has been connoted by many researchers that social entrepreneurs are
motivated by their desire to have a social impact and to solve complex social
problems (Alvord et al., 2004; Shaw and Carter, 2007; Zahra and Dess,
2001). As rightly quoted by Abu-Saifan (2012) a social entrepreneur is a
“mission-driven individual who uses a set of entrepreneurial behaviours to
deliver a social value to the less privileged, all through an entrepreneurially
oriented entity that is financially independent, self-sufficient, or sustainable.”
Such social enterprises have the potential for transformation of the welfare
system, employment creation, social cohesion and evolution of the third
sector (Borzaga and Defourny, 2001). Henceforth, Kaushlendra joined IIM-
A for understanding the intricacies of Agriculture business taking the vow to
do something for the plight of farmers in his state. He opted to shun the path
of comfort and high pay for the uncertainty and hardships (NDTV, 2011).
Kaushlendra went back to his village to work for ameliorating the lives of
poor farmers in his native place. By setting up KGPL in 2008 as an
integrated supply chain company, he has demonstrated the typical
characteristics of a pragmatic and social entrepreneur.
Simplified organisation structure
Kaushlendra is no ordinary social entrepreneur. He is the shining example of
a ‘change agent’. He has been motivated by the singular mission to create
social value not for any personal benefit but for the greater public good. Very
few, possessing the limited resources, function relentlessly for the benefit of
others with a heightened sense of accountability. Further, it has adopted a no
frills organisational structure (Figure 3) in which the managing director
heads only three functional department (SANKALP, 2011) namely project
management, operations and HR department and Business department.
KGPL was being managed by a board of directors and advised by the
professional advisory board, majority of whom belonged to IIMs.
12
Figure 3 Organisation structure
ADVISORY BOARD
BOARD OF DIRECTORS
a ) K a u s h le n d ra : M a n a g in g D ire c to r a ) Prof. P.K. Sinha: Professor of
b ) Anuj Kumar: Director Marketing, IIM Ahmedabad
c ) Dhirendra Kumar: Director b ) Capt. Pawanexhkohli: Principal
Consultant-Advisor at Cross Tree
Techno-Visors
c ) Prof. Vaibhav Bhamoria: Prof. of
CMA area, IIM Ahmedabad
MANAGING DIRECTOR
Kaushlendra Kumar
SUPERVISOR Marketing
FINANCES
DELIVERY
Interstate trade
PR O JEC T
IM P L E M E N T A T IO N PROCUREMENT
Sales
Quality
Source: KGPL
13
Innovative three tier business model
Kaushlendra has been fully aware that zeal of a social entrepreneur must be
punctuated by a pragmatic business model. Accordingly, he adopted a three
pronged business setup (Figure 4). The Samriddhii Grameen Kendra
constitutes the foundation as it collects the produce from the farmers carries
out primary sorting and grading. The produce is then transferred for
processing into packaged vegetables to the Samriddhii processing centre; the
packaged vegetables are then delivered to institutional clients, retail outlets,
Samriddhii AC Green Carts and Mom and Kirana stores for sale to end
consumers. The most important aspect of Samriddhii’s business model is the
fixation of company’s logo on the packages as a mark of assurance of
authenticity. All of these are the hallmarks of the background of the trained
professional which Kaushlendra is.
Figure 4 Establishment of Samriddhii supply chain components
Samriddhii Grameen Kendra:
Source: KGPL
14
Figure 5 Business model (see online version for colours)
F arm ers
E n d c o n su m e r
15
Source: KGPL
Samriddhii demonstrates the introduction of ‘creative destructive process’
described by Schumpeter (1942). The model of Kaushlendra’s company
combines the front end and backend processes of a supply chain system.
While procurement of vegetables from small and marginal farmers in the
poor villages of his native state of Bihar does away with intermediaries,
processing and packaging of the produce by the company adds value to the
product (Figure 5). Supply of vegetables to vendors completes the process to
the benefits of both the company and the rural growers (Bank of Ideas and
Innovations: Government of India.http://www.ruralinnovations.gov.in/kaush
alya-foundation.htm). “Processing and packaging of vegetables meets the
yardstick of shifting economic resources from lower to higher areas of
productivity for a greater yield”, as advocated by Say (1971).
The unique feature of this model was that, it was owned by the Samriddhii
members and was managed by professionals groomed from within the
region. Samriddhii Grameen Kendra was capable of handling a vegetable
volume of as much as 8–10 metric tons a day and coordinated between rural
farmers, urban vendors and the final consumers.
Growth and innovations
Since its very onset Samridhii has seen a rocketed growth in the sales
turnover from a mere 75,000 INR (2007–2008) only three months to a
whooping 8,550,000 INR in 2008–2009, which is 114 times. This
encouraging trend has become a launch pad for the company which has
never looked back since then. They have on record sales turnovers
amounting to INR 34,668,020 (2014), 39,538,486 (2015) and 42,585,256
(2016)
respectively.
These tables are sourced from the balance sheet and profit and loss account
of the company (Tables 1 and 2).
Headmost, dilated upon its business in four Bihar Districts viz. Vaishali,
Nalanda, Bhojpur and Patna, they had a chain of over 3,000 farmers
accoutering vegetables to the Grameen Kendra of Samriddhii. Resemblantly,
some 500+ vegetable vendors were reaping vegetables from the processing
centers of Samriddhii (KGPL).
Subsequently, Samridhii setup its foot in Uttar Pradesh through ORVEM, a
joint venture between local partner of Uttar Pradesh and KGPL Seven
districts namely Sitapur, Hardoi, Unnao, Sultanpur, Rae Bareilly, Lucknow
and Barabanki.
16
Figure 6 Samriddhii AC Green Carts (see online version for colours)
17
Table 1 Balance sheet
As at 31st As at 31st As at 31st As at 31st
March March March March
2013 2014 2015 2016
Equity and liabilities
1 Shareholders’ funds
a Share capital 2,000,000 2,000,000 2,000,000 2,000,000
b Reserves and surplus 76,498 –154,657 1,611,610 –1,658,829
c Money received -- -- -- --
against share warrants
2 Share application -- -- -- --
money pending
allotment
3 Non-current liabilities -- -- -- --
a Long-term borrowings 3,001,562 1,742,739 2,560,926 2,331,386
b Deferred tax -- -- -- --
liabilities (net)
c Other long- -- -- -- --
term liabilities
d Long-term provisions 1,867,670 1,659,331 1,232,538 947,387
4 Current liabilities
a Short-term borrowings 1,933,289 1,834,031 1,997,610 1,747,309
b Trade payables -- -- -- --
c Other current liabilities 128,266 531,788 12,360 391,360
d Short-term provisions -- -- -- --
9,007,284 7,613,232 6,191,824 5,758,613
Assets
1 Non-current assets -- -- -- --
a Fixed assets -- -- -- --
Tangible assets 5,083,141 4,277,010 2,606,757 1,864,584
Intangible assets -- -- -- --
Capital work -- -- -- --
in progress
Intangible asset -- -- -- --
under development
Fixed assets held -- -- -- --
for sale
b Non current investments 500,000 500,000
c Deferred tax assets (net) 75,072 172,990 526,154 606,432
d Long-term loans -- -- -- --
and advances
e Other non-current assets -- -- -- --
Assets
2 Current assets
a Current investments
b Inventories
c Trade receivables
d Cash and cash
equivalents
e Short-term loans and
advances
f Other current assets
18
Source: KGPL
Source: KGPL
The integrated vegetable value chains model ‘the Samriddhii model’ – a
farm to field model was recognised by National Horticulture Mission,
Government of India, which recommended it to the 28 states of India to
adopt it.
Samriddhii model had been able to bring in various innovations in the
existing supply chain model including introducing Bamboo poly-houses,
Pusa Zero Energy Cool Chambers (PZECC), Integrated vegetable value
chain and Samriddhii AC Green Carts, to name a few. PZECC, a small
storage structure for storing produced vegetables, made up of bricks and
sand. It uses simple technology and does not require electricity to operate.
Vegetable growers only need to sprinkle water on sand to keep it wet to
ensure cooling. ‘Poly house’ is another such product which allows farmers to
grow non-seasonal products and earning better incomes (Singh, 2014).
Economic development of Bihar
Kaushlendra is a supreme example of grit and determination of a highly
educated social entrepreneur who has used his academic inputs for
transforming the lives of illiterate farmers, vendors and others in his native
state of Bihar. Being the native of the state and the son of a farmer has given
Kaushlendra a first-hand knowledge of the difficulties faced by small and
marginal farmers as well as vendors in plying their vocation.
Convenience people centricity and professionalism are embedded into the
business model of Samriddhii. The entrepreneurial drive undertaken by the
son of the soil has made a cost effective yet economically beneficial social
impact on the illiterate and exploited farmers and vendors. Through his
social entrepreneurship, Kaushlendra has pushed the income levels and
social levels of those engaged in small farming. The company has given the
19
once deprived section of the society a sense of inclusivity in the management
of the company. The farmers can now come together at the platform of Kisan
clubs to share knowledge about growing profitable variety of vegetables. The
vendors have been provided with AC vegetable carts wherein the produce
can remain fresh for a longer time period of up to five days (Gupta, 2010).
The customer can obtain fresh vegetables packaged with a bar code at fixed
prices with the option to return them if they found them to be stale or of bad
quality.
Middlemen are unique to any supply chain system. Samriddhii’s intervention
reduced the length of the chain and vanished the large number of intervening
intermediaries. It saves the farmers as well as the small retail vendors from
the exploitation by the middlemen. Let it be emphatically noted that
traditional vegetable supply chain has always been marked by the presence
of large number of middlemen who take away a greater part of the profits of
the business.
Use of various innovations in the existing supply chain model that includes
Bamboo poly-houses, PZECC, integrated vegetable value chain and
Samriddhii AC Green Carts, etc. has reduced the cost of production.
According to The IIM Sabziwala (2011), this unique model of supply chain
system caters to the advantage of around 3,000 farmers from Patna and
Nalanda districts whereby some eight to nine thousand tonnes of vegetables
are grown and sold every month.
Samridhii not only generated and effectuated but also bettered, improved and
enriched employment occasions of Bihar women too. The illiterate females
were provided chances to engage themselves in activities like sorting,
grading and packing, which do not require any specialised education for
obvious reasons. This helped those so far ignored poor ladies to raise their
living standards. This further strengthened their skills as they could learn the
use of electronic weighing and packing machines. Some more responsible
women were assigned the projects of Poly houses. Samriddhii is able to
provide direct employment to around 300 people and has touched the lives of
more than 6,000 farmer families in Bihar (akshay, 2013).
The farmers were enlightened about the environmental health of their farms
by dispensing the use of chemical fertilisers, pesticides and insecticides.
Adoption of such echo friendly practices provided the soil a new life and
made it more fertile and rich in terms of produce. The Ganga waters worked
icing on the cake and recharged, refreshed and restored the dropped fertility
rate precipitating in unforeseen growth in produce and leading the farmers to
the realm of financial prosperity.
20
Samriddhii and its competitors
Like any other business organisation, Samriddhii too faced both direct and
indirect competition. Direct competition came from the traditional vegetable
supply chain and from high profile business houses (Table 3). The indirect
competition was faced from ready to cook food market. Only in recent years,
some big business houses like Reliance, ITC, Godrej, Namdhari Fresh,
Spencers, Food Bazaar, Wal-Mart and Metro, etc. had entered this business
as a back-end supply chain for their retail or food processing business
(Anjaly and Bhamoriya, 2011). These modern outlets and supermarkets gave
tough direct competition to Samriddhii in terms of convenience,
professionalism, lowering the wastage of the produce and quality of the
vegetables. Despite of strong competition, Samriddhii had an upper edge
with respect to being more people centric with positive social impact. The
farmers enjoyed inclusivity, a sense of being an integral part of the
management at different levels. Samriddhii had become the symbol of
quality and quantity and ensured minimum wastage of not only the
vegetables but also, of human labour at the same time (SANKALP, 2011).
Samriddhii also faced indirect competition with the companies making ready
to cook food and packaged food like Delmonte, Morton, Markfed and
Panama, etc. Apart from the above stated fierce competitive scenario with
the modern outlets, Samriddhii still has several strategic advantages over
these players.
Future prospects
As a result of the government encomium and commendations for uplifting
the financial prosperity, social status, security aspect and life style of the
farmers to heights beyond expectations, Kaushlendra and team set out to
explore tremendous potential (Table 3) to expand this successful model to
the whole of India.
Kaushlendra rightly believed in his mission to set free the poor vegetables
growers from the clutches of big landlords who would ingest the lion’s share
of their earnings thus leaving them to endure the desperation caused by such
malice practices. They also had some more questions which needed to be
answered, such as:
Would the Samriddhii model be commercially viable in the National and
International markets? Would they be able to market the vegetables and
fruits successfully internationally, while retaining their freshness? If so, what
would be the strategies needed and technology used in order to transport the
vegetables from Bihar to other parts of the country or to the international
markets?
21
22
Age of Respondents?
No. of Respondents
22; 37%
Interpretation
Most of the entrepreneurs are age between 28-33 years old, followed by the
age group above 33 which is 23% of the total respondents.
23
Gender of respondents
No of respondents
7%
masle
female
93%
Interpretation
Above chart shows dominance of male which is 93% of total respondents.
24
Family type of the respondents
No of Respondents
27%
HUF
Nuclear
73%
Interpretation
Above chart shows that most of respondents still live in HUF family .
No of Respondents
4; 7%
2 to 5
12; 20%
6 to 9
30; 50% 9 to 13
above
14; 23%
Interpretation
Above chart shows that most of respondents have small family size of 2 to 5
which is 50%.
25
Caste/Religion of the respondents
No of respndents
4; 7%
14; 23% Muslim
OBC
22; 37% SC/ST
Brahmin
20; 33%
Interpretation
Most of respondents the respondents are OBC and SC/ST which of 22 and 0
respectively.
No of Respondents
10; 17%
Yes
No
50; 83%
Interpretation
Above chart shows that 83% respondents are married and have a family.
26
Language known by respondents
No of respondents
10; 17%
Hindi
english
Both
50; 83%
Interpretation
As this study belongs to rural areas so most of respondents know hindi
language and few know both English and hindi.
No of Respondents
4; 7% Diploma
14; 23% Primary school
16; 27% Degree
PG
Job Oriented
4; 7% 16; 27% No schooling
6; 10%
Interpretation
Above chart shows that most of the respondents have done job oriented and
diploma course for staring a business.
27
Do you have your agricultural land
No of respondents
18; 31%
yes
No
41; 69%
Interpretation
Above chart shows that most of the rural entrepreneurs have their own land to
start or run their business.
No of respondents
6; 10%
6; 10% <1
1 to 3
4 to 5
10; 17% 36; 62% or above
Interpretation
Due to land distribution issue in India ,most of the respondents have less than 1
acre land.
28
Where the land is irrigated or non irrigated
No of respondents
18; 30%
irrigated
non irrigated
42; 70%
Interpretation
Above chart shows that more respondents uses their land which are used for
irrigation before it.
No of respondents
yes
No
60; 100%
Interpretation
Above chart shows all the 60 respondents are the first gen entrepreneurs .
29
What is your business?
No of respondents
18
16
16
14
12
10 9
8
6
6 5 5
4 4
4 3 3
2 2
2 1
0
s S es es e y p ft ll p r
te
l
on rs
ed PD iti or ag ac ho ra ta ou rlo ti he
se tiv St ar m s i c
it
s g r a Ho rta Ot
/ ac al G ar i lo
r nd ru p yP o
er er Ph Ta Ha /f hel ut sp
til
iz iry n lf -
Be
a
an
Da e le Se Tr
F er /G ab
ry t
ce ge
G ro Ve
Interpretation
Above chart shows that most entrepreneur do dairy activities followed by
grocery store and vegetable and fruit stall.
30
Duration of your business( in (years)
No of respondents
11; 18%
1 to 3
25; 42% 3 to 5
8; 13% 5 to 7
7 or above
16; 27%
Interpretation
Most respondents starting business nearly in 1 to 3 years.
No of respondents
Interpretation
Above chart shows that mostly rural entrepreneurs invest 50k and 1lakh to
starting a business.
31
From which of the following sources you availed finance.
No of respondents
2; 3%
6; 10% Government Rural Banks
14; 23% 4; 7% Co-op Bank
Private finance
Family support
Savings
Others
34; 57%
Interpretation
It is clearly showed from above table that most have their family support for
starting and running their works.
32
Your Annual Income (approximate)
No of respondents
4; 7%
14; 23% Less than `25000/-
25000/- to `75000/-
`75000/- to `125000/-
24; 40% `125000/- to `175000/-
Above `175000/-
18; 30%
Interpretation
Yellow color is showing the most respondent annual income is 25k to 75k.
33
Employment opportunities created by your business
No of respondents
6; 10% 1 person
14; 23% 2 person
12; 20% 3 person
4 person
5 person
6 and above persons
28; 47%
Interpretation
3 person are mostly employed by most entrepreneurs.
34
FINDING
Most of the entrepreneurs are age between 28-33 years old, followed
by the age group above 33 which is 23% of the total respondents.
dominance of male which is 93% of total respondents.
most of respondents still live in HUF family .
most of respondents have small family size of 2 to 5 which is 50%.
the respondents are OBC and SC/ST which of 22 and 0 respectively.
83% respondents are married and have a family. most of respondents
know hindi language and few know both English and hindi.
most of the respondents have done job oriented and diploma course for
staring a business.
most of the rural entrepreneurs have their own land to start or run their
business.
Due to land distribution issue in India ,most of the respondents have
less than 1 acre land.
Most of the entrepreneurs are age between 28-33 years old, followed
by the age group above 33 which is 23% of the total respondents.
respondents uses their land which are used for irrigation before it.
all the 60 respondents are the first gen entrepreneurs .
most entrepreneur do dairy activities followed by grocery store and
vegetable and fruit stall. rural entrepreneurs invest 50k and 1lakh to
starting a business.
most respondent annual income is 25k to 75k.
35
CONCLUSION
36
APPENDIX
QUESTIONNAIRE
1. Name of the Respondent
2. Age
3. Gender
a. Male
b. Female
4. Marital Status
Married
Unmarried
5. Languages you know (Either to speak or write)
a. Hindi
b. English
6. Educational Qualification
Diploma
Primary
Degree
PG
Job oriented
No schooling
37
d. 5 acres and above
9. Whether the Agriculture land is
a. Irrigated
b. Non-irrigated
10. Are you a first generation entrepreneur?
a. Yes
b. No
11. Your Business is
a. Fertilizer / seeds
b. Farm equipment
c. PDS
d. Dairy activities
e. Grocery/General Stores
f. Garments Shop
g. Garage
h. Kitchen / Utensil ware
i. Pharmacy
j. Shoe store
38
k. Electronic goods
l. Commission agents
m. Sanitary goods
n. Tailor shop
o. Handicraft
p. Vegetable / fruit stall
q. Self-help group
r. Beauty Parlor
s. Goldsmith
t. Blacksmith
u. Carpenter
v. Cycle repair
w. Photographer
x. Sweet stall
y. Electric Shop
z. Stationary shop
aa. Flour mill
bb. Telephone booth / PCO
cc. Tea stall
dd. Hotel
ee. SSU
ff. Dish Operator
gg. Transportation
hh. Others
39
12. Since how many years you are running this business?
a. 1-3 years
b. 3-5 years
c. 5-7 years
d. 7 years and above
13. What is your initial investment for this business?
40
Above `175000/-
17.If yes, how many years of experience you have
a. 1-3 years
b. 3-5 years
c. 5-7 years
d. 7 and above years
18. Employment opportunities created by your business
1 person
2 person
3 person
4 person
5 person
6 and above persons
41
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