Life has changed dramatically for Malan Mane in the past two years.
The 50-year-old wicker basket weaver was once considered unintelligent
and was often disregarded by her fellow villagers. Today, Mane manages
her cash flow efficiently, has a grip on market dynamics and trades with
panache. Her income has increased from US$30 a month in 2010 to US$100
at present.
Mane still makes baskets out of bamboo -- the woody grass that grows
in the tropics -- but now saves on raw material cost by buying directly
from the farmers instead of through a middleman. Encouraged by her
success and her growing respect in the community, Mane's husband, who
earlier used to stealthily sell her baskets to buy liquor, now helps her
in the business. This has enabled Mane, who lives in Vaduj village in
Satara district, 270 miles from Mumbai, to supply her goods to a larger
customer base of vegetable vendors and store keepers. She can now also
reach out to neighboring villages.
With the increase in sales, Mane is able to save US$10 every month.
She has taken two microloans totaling US$150 from the local Mann Deshi
Mahila Sahakari Bank, a co-operative bank run by women for women. Mane
used the first loan to attach a tin roof to the family hut. She also
bought a television. With the second loan, she wants to build a shed to
stock her baskets and raw materials. "People who used to call me names,
now respect me," she says.
Mane didn't become business savvy overnight. She's a product of the
Mann Deshi Business School (MDBS), a unique business school for
unlettered women. Set up in 2006, MDBS, which has its main center in
Mhaswad in the western Indian state of Maharashtra, is a symbol of
empowerment for rural women. Over the past six years, it has set up four
branches in Maharashtra and one in the southern state of Karnataka and
has transformed over 40,000 women into successful entrepreneurs.
Like Mane, the other women who have been educated at MDBS have little
in common with the well-heeled students in MBA programs around the
world. They are an eclectic mix of ages ranging from 19 to 50. They
include a potter, a spice and noodle maker, a seamstress, a goat and
sheep herder, a farmer, a homemaker and a bangle vendor. Most of the
women come from families that earn less than a dollar a day. And in most
cases, the women are the sole breadwinners trying to make ends meet.
"Most women came to us for loans to either start a new business or
scale up their existing ones. That's when we decided to start the
b-school," according to 53-year-old Chetna Gala Sinha, founder of the
Mann Deshi Bank and MDBS. "We didn't want to provide [the women]
just business capital. We wanted to also offer skills, knowledge and
motivation to run their enterprises." Sinha, who is married to a farmer
in Mhaswad, adds that MDBS is probably the world's first -- and so far
only -- business management school of its kind.
All the MDBS branches are co-located with the Mann Deshi Bank, except
in the district of Satara where the classes are conducted in any
available space, be it a field, ground, temple or a student's house. In
Mhaswad, MDBS has acquired an 18,000 square-foot plot and is currently
constructing a three-story building, which will house the Mann Deshi
Bank, four classrooms -- with a total seating capacity of 200 for MDBS,
and also a small guest house. By 2015, Sinha aims to have nine branches
of MDBS, four mobile B-schools and reach 100,000 women.
Ajit Rangnekar, dean of the Hyderabad-based Indian School of
Business, points out that India's education needs are huge and extremely
diverse, from global top leadership to dairy farmers, and one will have
to try out many different models to meet those needs. "Some of these
ideas will succeed, some may evolve, while others may fail," he says.
"The real challenge in India is not about doing these experiments, but
about codifying the learning from such initiatives, and scaling the
successful ones rapidly so that the growth can be shared across the
society."
It was in 1997 that Sinha, an economist, first set up the Mann Deshi
Bank to provide microloans to day laborers working on farms so that they
could purchase and sell fruits and vegetables. The objective was to
draw the women out of a day-to-day existence and nudge them to consider
other enterprises. The business school was a logical extension of the
bank. "The capital provided by the bank goes hand-in-hand with the
women's business goals," Sinha notes. "The bank is a patient investor
and the b-school provides mentorship and grooms women to become
entrepreneurs."
Vishal Kapoor, portfolio associate at Dasra, a Mumbai-based nonprofit
organization, says the microloan and business school enterprises are a
good fit. "Most microfinance institutions focus on providing loans
without the backend education piece, which is important to ensure that
the loans are used [effectively] for business purposes," he notes. Dasra
came on board in 2009 to enhance MDBS's product delivery and help it
scale up, build systems and processes, and manage growth.
MDBS is funded primarily by grants from various partners including
HSBC Bank, Godfrey Phillips, the Gibraltar-based Bonita Trust, Accenture
and the British Asian Trust. The grants have grown from Rs. 7 lakhs
(around US$13,500 at the current exchange rate of US$1 = Rs. 51) in 2006
and are expected to touch Rs. 2 crore (US$ 387,000) this year. "For the
past several years, Mann Deshi has proven that poor women are
bankable," according to Naina Lal Kidwai, country head for HSBC India
and director of HSBC Asia-Pacific. "The B-school has helped the women to
be creative, resourceful and business savvy, enabling the mainstreaming
of a significant number of women into India's economy."
HSBC became a sponsor of MDBS in 2006. At that time, the company had
offered the Mann Deshi Bank a microfinance-loan at 9% interest as part
of its mandatory priority sector lending obligation laid down by the
Reserve Bank of India. When Sinha requested HSBC to step in as the
founding sponsor of the business school, the firm obliged. After an
initial seed funding in 2006, HSBC now gives an annual grant of around
US$100,000 to MDBS.
A Five-Day MBA
At present, MDBS offers a menu of 25 courses, largely developed
in-house. These include classes in financial and marketing management,
and also vocational skills like computer training, dress designing and
English language instruction. Typically, the women start by learning a
skill at MDBS and then go on to take a management course before
embarking on an entrepreneurial enterprise. A five-day homegrown MBA
program introduced in 2010 and branded Deshi MBA educates entrepreneurs
on branding, advertising, packaging and marketing their products. It
also provides market access and visits to big and small business
entities. "The women are exposed to concepts like sourcing and the
benefits of purchasing raw material in advance so as not to go through
price volatility," says Dasra's Kapoor. A Deshi MBA student is also
provided with a mentor for a year.
Last year staff at Accion, an American nonprofit organization,
developed teaching modules on cash management and self-management for
the Deshi MBA program.Accion trained 19 MDBS coordinators in these new
modules and also helped then to become more interactive in their
teaching. "Earlier, they did not have a professional approach to
training methodology. For instance, financial literacy was taught with
savings as a means to an end," notes Usha Gopinath, director for client
education at Accion.
The women who come to MDBS undergo a free counseling session to gauge
their skillsets and interests to help them choose courses. For a
nominal fee ranging from less than US three cents to US$6, a woman can
enroll in MDBS at any time, irrespective of her age or educational
background. The duration of the different courses vary from a day to
around three months. Vanita Shinde, chief administrative officer at
MDBS, says that since most of the women are farm laborers or housewives,
classes are scheduled to suit them -- between 11a.m. and 3 p.m. The
trainers are handpicked by Sinha and her team. They earn a nominal
salary of US$60 a month, plus 50% of the fees paid by each of their
students. The rest of the fee amount goes to MDBS. "This structure
motivates trainers to bring more students to the school," says Rekha Kulkarni, CEO of the bank.
In order to expand MDBS' reach, in 2007, Sinha got Sycamore Networks'
Gururaj 'Desh' Deshpande to sponsor a mobile school in his hometown of
Hubli in Karnataka. The interiors of the bus are designed like
classrooms to offer courses including computer training, fashion design
and tailoring. Electricity is provided by an eight-hour battery back-up.
The MDBS mobile school also offers financial products like savings
accounts, loans, pensions and insurance backed by financial literacy
training. "The women cannot afford to come to us, so we go to the
people," Sinha notes. Another mobile school caters to women in the
villages surrounding Mhaswad.
Attracting more students is important not just for MDBS, but for the
country as a whole. In the drought-prone Mhaswad village alone, nearly
three-quarters of the population live below the poverty line. Around 65%
of the women are illiterate and lack access to education and job
opportunities. This is a longstanding issue across India. According to
UNICEF India, 90 million women in the country are illiterate and 20% of
children between the ages of 6 and 14 are not in school. The
government's inability to solve this problem has spurred social
entrepreneurs like Sinha take on the responsibility to educate women at
the bottom of the pyramid. Abha Thorat-Shah, director at the British
Asian Trust, the London-based social fund that supports high impact
charities in education, enterprise and health in South Asia, says her
organization doesn't typically fund hybrid businesses, "but Mann Deshi
is an exception. I love the fact that it's rural, training and skilling
people in the state, and not promoting migration."
The gradual rise of the semi-literate housewife Vanita Pise, who has
become the public face of Mann Deshi, is an interesting example of the
impact that MDBS can have. In 2006, when avian flu destroyed her
family's poultry business, Pise, who reared buffaloes and also ran a
small tailoring class in her house, became the main earner. She wanted
to boost her income and approached the Mann Deshi Bank. When Sinha
suggested she take up the manufacturing of disposable paper cups, Pise
defied her family and approached the bank for a loan to buy a machine to
kick off the new business. Though she mastered the art of manufacturing
cups, Pise had no clue about marketing. So she joined the business
school. Armed with her new knowledge, she expanded into disposable
plates, and saw an exponential growth in business. Pise now owns 12
machines to make cups and plates, and earns US$300 a month. She is also
looking at further expanding into making cardboard folders and spice
powder.
Pise's grit and entrepreneurial skills secured her a seat on the Mann
Deshi Bank Board in 2011. "The eighth grade-educated Vanita now handles
demand drafts and check clearances. She is definitely a role model for
our women," Kulkarni notes.
Challenges Ahead
But the road ahead for MDBS is not without roadblocks. Pointing out that the school aims to serve 100,000 women by 2015, HSBC's
Kidwai says: "The biggest challenge for the organization is to be able
to extend its reach to remote geographical areas and reach out to a
greater number of underserved women without compromising on the quality
of services currently offered. As the organization expands its base and
scales up its operations, it will also need to ensure that it has a
viable model in place for the school to be financially sustainable in
the long run." ISB's Rangnekar notes that there is an important role in
India for micro and small firms. "Such initiatives [like MDBS]
will hopefully further foster and boost the development of small
entrepreneurs. [The organization's] challenge will be geographic growth,
and evolving the program over time," he states.
Rangnekar makes another point. "The students of Mann Deshi
b-school may initially require more support than their urban
counterparts, and the institution is right in recognizing this and
providing the support, but it must be careful not to directly or
indirectly subsidize these ventures." According to Rangnekar, business
schools have to recognize that students must take responsibility for
their actions. "A school can guide and support students in their
initiatives, but cannot take over the primary responsibility for their
success," he adds.
There is also another issue. Some observers note that the entire
organization is centered on the founder, Sinha. She does not agree
though. She points out that efforts are already underway to gradually
project Pise as the face of Mann Deshi. Other women are also being
mentored to take over key operations. "People knew only Chetna [Sinha]
earlier, now they know the Mann Deshi brand," Sinha says. "As a big
organization evolves, you develop a brand.