Executive Summary of the case study on ‘Wild Ideas’ Wild Ideas is a for-profit rural enterprise started in Kananthampoondi village in Thiruvannamalai district in 2014 with two women, based on the vision of two individuals with urban backgrounds who had relocated to the village. Six years later, it is a limited liability partnership with over 80 women as partners. The annual sales revenue is approaching Rupees two crores. It makes personal care and food products based on naturally sourced materials and processes that rely more on human skills and endeavour than on machines. This case study documents its journey since inception to where it is today. The document aims to familiarize readers with the difficulties faced by visionary entrepreneurs in setting up a new business, especially in rural India and more so if they want to do things the correct way. The rules and regulations are many, are not clear and are in the nature of ‘one size fits all’ without regard to size, age and location of the businesses. They are couched in unfamiliar legal and English language for the most part. As things stand, rural start-ups cannot navigate these without being guided, mentored and anchored by promoters with an urban background and education. The process is too complex, cumbersome and unclear. Despite these challenges, Wild Ideas has managed to keep the original vision of the founders intact and continues to be guided by them. The case study gives an insight into the management issues and challenges that need to be kept in mind and overcome for businesses to grow amidst a befuddling regulatory landscape and a socio-economic development background that has kept skilled, talented and motivated human resource supply scarce. The authors of the case study wrote it with the purpose of sensitizing policymakers, management students and the public to the problems that need addressing and processes that need smoothening and fixing such that India is able to provide a life of opportunity, dignity and hope to millions. Finally and above all, ‘Wild Ideas’ may be a still-nascent and evolving enterprise but it has demonstrated the viability of one particular path to succeed as a bottom-up rural enterprise while making a difference to the environment and the community it is part of. More such wild ideas are not only necessary but are also possible in India. The potential is endless.
IntroductionTiruvannamalaidistrictinTamilNaduissituatedinNorth-CentralTamilNadu(SeeFigure1).Itisspreadoveranareaof6188sq.kmsandhasapopulationof24,64,8751.Lowpercapitaincomeandpoordevelopmentmakes itoneof thebackwarddistrictsofTamilNadu.Tiruvannamalaitown is a tourist attraction and is famous for its ancient Shiva temple and the ashramof SriRamana Maharshi. The district, while being a leading producer of rice, lags behind inindustrialisation.Afewsugarmills,cottonmillsandanindustrialestatearesomeofthesourcesofemploymentgeneration2. It is inthisbackwarddistrictthataUS-educatedengineerfromamultinational software company created a rural enterprise owned and managed by mostlyunletteredruralwomen.Thisisthestoryofthatruralenterprise–WildIdeas(WI).Thepaperisstructuredinthefollowingway.ThefirstsectiondescribesthemotivationbehindsettingupWI.Inthesecondsection,theregulatoryissuesthatWIfacedinregisteringitselfasabusinessentityaredescribed.Organizationalchallenges, inparticular,peoplemanagement, ingrowingaruralenterpriseconstitutethenextpart.ItisfollowedbyadescriptionoftheimpactWIhashadonthewomenwhoworkinitasacollective.ThepaperendsbybrieflyexploringsomechallengesandpotentialsolutionsbeingimplementedinWIasitmovestothenextlevelofitsjourney.WildIdeas–TheBeginningApairofwomensatunderalargeshadytreepoundingsoapnutswithsmallwoodenmallets.Anothergroupofwomenwasbusyweavingpalmleafbaskets.Theirfingerstwirlinganintricatedesignthatwoulddecoratethefinalproduct;arotibasketorlaundrybinorcouldevenbeagiftbox.Smokedriftedthroughthepalm-thatchedroofswheretheingredientsforthevadamwerebeingcooked.“Afewyearsbackthesewomendidnotseeevenaglimmerofhope”,MaithreyiLakshmiRatan,the‘anchor’ofWildIdeas(WI),saidscanningtheclusterofthetraditionallybuiltmanufacturing units just beside her house at Tiruvannamalai. “But today, they feel that it ispossible.Itispossibletodream”.Asshewalkedback,pastrowsofboxescontaininghairoilandsoaps,allsettobesenttoretailstoresinChennai,shestopped,andadded,“Thequestionthatkeepsmeawakeinthenightiswhen,andnotwhether,thesewomenwouldtrulyownthisenterprisesocompletelythattheycanrunitwithoutme”.WildIdeaswasconceivedasabridgethatconnectedtheurbandesireforachemicalfreehomeespeciallywithagrowingawarenessamidsttheurbanpopulationforeffective,authenticnaturalalternativeswhileprovidingruralwomenmuchneededlivelihoods.
Itall startedwithapersonal,domesticexperiment. In2014,MaithreyiandherhusbandAjayNityananda, anarchitect,decided tomake theirhome, inTiruvannamalai, chemical-free. Thethoughtwasalogicalstepforwardintheirpathtowardssustainabilityandconsciousliving.Bothhad‘gottentheirhandsdirty’byfarmingorganicallyontheirland,PonnilamoutsidethetownofThirukazhukundram near Chengalpet. When they moved to Tiruvannamalai, Maithreyi hadworked and trainedwomen from surrounding villages on vegetable cultivation towards foodsustainability in local schools. Thiswas ahighly successfully projectwhere theymanaged tosupplyalmost80%ofalocalschool’snutritionalneedswithaverysmallpieceofcultivablelandwhiletrainingruralwomenonvegetablecultivation–askill thattheyuseveryeffectively forlivelihoods till date. In the course of their work, they realised the inconsistency in callingthemselvesorganicfarmersandpracticingorganicfarmingtechniqueswhenthewaterfromtheirhomewascontaminated.Tofixthisinconsistencyandtotrulyseeifachemical-freehomewasevenpossible,theybegananintenseperiodofresearchandlearning.AsMaithreyirecalled:
“Anotherinvisibleformofwastethatdirectlyaffectedourlandandgroundwaterwerethechemicals fromthevastarrayofproducts thatweuseathome; fromhomecleaningproductstopersonalcareproducts.OurhousewasalreadybuilttotreatourbathandtoiletwastewithacombinationofEM,waterplants,fish,snailsand awhole host of organisms that lived in the ponds around it. Keeping thisnaturaleco-systemaliveandthrivingneededus toensure thatourwastewaterhadnochemicalsgoingintoit.Aquicklistingofalltheproductsweusedinourhousewhichhadchemicalsinthemturnedupalltheusualsuspects-dishwashingliquid, laundry soap, bath soap, shampoo, household cleaners etc. The waterleavingeachofourhouseswasfullofchemicals”.
So, from January to March 2014, it was a ‘whirlwind’ of ‘experimentation’ to find naturalalternativesfortheseproducts.Maithreyipointedout:
“Elders in tribalgroups, friends,and family shared theirknowledgeofamazingrecipesand ideas.We furtherexperimented,perfectedproportions, tested theproducts, and employed locally-available ingredients. Soon the householdwas100%chemical-free.3”
Thefirstsetofproductsthatcameduringthisphase–dishwashpowder,laundrypowder,soap,metalware powder – ensured that the house became relatively chemical-free. Furthermore,friendsandrelativeswhotriedtheseproductsprovidedencouragingandpositivefeedbackabout
itsquality.Restore,anorganicshopinChennaiwasinterestedtoknowwhethertheycouldsupplythesenaturalproductsregularlyandatsomescale.ThisquerymirroredawidertrendinIndiansociety;theincreasingdemandandgrowthofnaturalproductsinthepersonalcarespace.A2017Nielsenreportestimatedthat41%ofthetotalpersonalcaremarketwasnaturalandpeggeditatUSD3bn(Rs.18,500crores).Thereportalsosuggestedthatthenaturalsegmentwasgrowingat almost 1.7 times that of the total personal caremarket4. The growth was explainable asconsumerswerebecomingmoreawareofthebenefitsofnatural ingredientsinpersonalcareproducts.Forexample,areportinTheEconomicTimescitingasurveybyEuromonitorindicatedthatthepurchasedecisionsofmorethanhalfofIndianconsumerswereinfluencedby'natural'or'organic'labelsonthehairandskincareproducts5.In parallel, Maithreyi’s interaction with rural women took her to nearby villages ofTiruvannamalaidistrict,exposedhertothetravailsofthesewomen.Reflectingontheconditionofruralwomen,shesaid:
“Thechangingnatureofagriculturewithmechanizationandunpredictablerainmeantdecreasingseasonaljobsforwomen.Womenfromthecommunitywerestrugglingtomakeendsmeet.Theyneededjobstojustputfoodonthetableandtogetthroughthemonth.Burdenedwithdebt,violentfamilyenvironments,ill-health, addiction, disenfranchisement and heart-breaking family issues, thereseemednoeasywayoutoftheirsituation.Familieswithasingleearningmemberwere barely able to scrape through. With seasonal jobs and no predictableincome, one could not earn enough to keep up with rising prices. Debt keptincreasingto justkeepafloat.Qualityhealthcareandqualityeducationwerealuxuryfewcouldafford.”
Closertoherhome,Maithreyiwasapproachedbyacoupleofstrugglingruralwomen;anoldwomanwhodidnotwanttobedependentonhersonsandayoungladymarriedtoanabusivehusband.Theyweredesperateforajobthatwouldofferasemblanceofstabilityandincome.Itwas at this juncture WI happened, with 2 employees and production in the living room ofMaithreyi’shouse.Bytheendof2014,theoperationshadexpandedtoinclude10womenfromtwoneighbouringvillages.ItwastimetothinkseriouslyaboutthenextphaseofWI.Maithreyiquitecandidlypointedoutthat,atthattime,shehadnoclearlongtermplansforWItobeagrand ruralbusiness. Starting fromapointof knowingnothingabout runninga rural
other words, growth in profit would be used primarily to aid in improving the socialconditions(educational,familial,medical,culturalexposure)ofthemembers.
• The vehicle ideally should be able to expand indefinitely includingmorewomen as it
But,AjayandMaithreyisoonrealisedthatregisteringsuchanentityandfleshingitoutofthedrawingboardposednumerouschallenges.ThefollowingsectionsdescribethechallengesthatWIfacedandthestepstakentoaddressit.ThefirstpartdescribestheregulatoryissuesthatWIhadtograpplewith.Adiscerningandwell-informed reader could suggest thatWI should have taken this particular regulatory route orapproachedthatparticulardepartmentforeasyprocessing.Thatisinhindsight.Theobjectivebehinddescribingthisregulatorymazeisnottoprovidecomprehensiveinformationondifferentpaths available nor is to describe the roles of multiple Government departments but toforegroundandemphasizethe‘hazeandconfusion’thatevenawell-educatedandmotivatedentrepreneur is likely to face. In other words, the next few pages provide a glimpse of theregulatory hurdles of setting up an enterprise in rural India. The second part deals withorganisationalchallengesandissues.
1.SettingupWildIdeas–MovingthroughtheRegulatoryMazeSetting up a business enterprise in India is not an easy task. The implications of this for theeconomyarewell-studied.For instance, theWorldBankreport, ‘DoingBusiness2018’clearlyindicatesthatwhenbusinessregulationsare‘accessible,transparentandpredictable’multiple
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entrepreneurial ideas bloom, which confers enormous economic benefits to the society. Incontrast,ifthebusinessregulationsare‘cumbersomeorambiguous’entrepreneurialinitiativestend to be ‘stifled’6. The ease of doing business rankingmeasured a country’s score on tenindicators -- ranging from measures such as the ease of registering property to enforcingcontracts--thathelpsetupnewbusinesses7.In2015,Indiawasplaced142nd(of189countries)inthisrankinglist.Ifsettingupofaprivatelimitedliabilitycompanyinanurbanenvironmentposeddifficulties,astheeaseofdoingbusinessrankingimplies,thestoryisfarmorecomplicatedforruralsocialenterprises8and,inparticular,forthekindofenterprisethatWildIdeaswantedtobecome.ABritishCouncilsurveyof258socialenterprisesinIndiaindicatedthatsomeofthekey barriers faced by these entities were lack of understanding and awareness about socialenterprises among banks and financial institutions, lack of access to technical support andadvisoryservices,taxationpoliciesandredtape9.WIfacedallthesebarriersandmore.1.1RegisteringanEnterpriseTobeginwith,afundamentalquestionthatWIfacedwithwasunderwhatcategoryWIshouldberegistered.SomestudiesshowthatinthelasttwodecadessocialenterprisesinIndiahavebeen followingaparticular trajectoryof registration. For instance, theBritishCouncil survey,citedearlier,showedthatposttheyear2000,therewasadiscernibleshiftforsocialenterprisestoregisterasaprivatelimitedcompanyasitprovidedgreaterautonomyfortheseenterprisestodeployitsprofitsandsurpluses.Italsomakesitanattractivetargetforequityinvestors.In2015,58%ofsocialenterprisesinIndiawereregisteredasprivatelimitedcompanies10.WIdidnotwanttotakethatpathasitwasclearthattheownershipoftheenterprisehadtobewiththegroupratherthanexternalinvestors.Registeringsuchanenterpriseprovedtobeaherculeantask.Tobegin with, there was no single repository or clearance window for setting up enterprises.Information was scattered across various Government departments and regulatory bodiesspread over different geographical areas. Compounding these difficulties, and perhapsexacerbatingit,wasalackofprofessionalswhocanguidebuddingentrepreneursthroughthelabyrinthofGovernmentregulationsonsettingupanenterprise.From2014,asingle-windowsystemofclearanceforsettingupbusinessenterpriseshasbeenwidelyhailedasanimportantreform.However,thefirstNITIAayogandIDFCInstituteenterprise6DoingBusiness2018,WorldBankGroup,https://www.doingbusiness.org7DoingBusiness2015,WorldBankGroup,https://www.doingbusiness.org8Asocialenterpriseisarevenue-generatingbusinesswithprimarilysocialobjectiveswhosesurplusesarereinvestedforthatpurposeinthebusinessorinthecommunity,ratherthanbeingdrivenbytheneedtodeliverprofittoshareholdersandowners.https://www.centreforsocialenterprise.com/9TheStateofSocialEnterpriseinIndia,2016,BritishCouncil,https://www.britishcouncil.org/sites/default/files/bc-report-ch4-india-digital_0.pdf10Ibid
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surveyon‘Easeofdoingbusiness’inIndiafoundthatawarenessaboutsinglewindowclearancewas low. Single window clearance was part of the reforms agreed upon by various stategovernmentsunderthe'MakeinIndia'initiativethatpromisedtosendallapprovalsrequiredtosetupabusinessunderonecommonapplicationwindow.Thereportindicatedthat:
"Only20%ofenterprisesthatstartedoperationsduringorafter2014saidthattheyhadusedasingle-windowsystemtoset-uptheirbusiness.41%oftheexpertsinterviewedinthesurveysaidtheywereawareofthisprocess.Despitebeinganagreed-upon process implemented by many states, awareness among theenterpriseswaslow,pointingtoeitherincompleteimplementationorinsufficientawarenessoftheprocessamongthepopulation."11(p.24)
“All answers were got through phone calls with friends of friends who hadexperiencewithsimilarprojects.Everyanswerwasdifferentandnebulous.MostpeoplepointedusintheSelf-HelpGroup(SHG)directionsinceit“felt”likeWIwasdoingstuff thatwasakin toacottage/home industryandsoweopenedabankaccountasanSHG”
notthesameasatrustthatengagesincommercialactivities.Fundsforapubliccharitabletrustaretax-deductibleifregisteredunder12AoftheIncomeTaxAct,1961,but,ontheotherhand,moneycomingintoa“businesstrust”istreatedasincome.Loans,corpus,financialinputsofanyform are taxable. In the absence of proper guidance,WI had to pay up taxes on donationsreceived.AsMaithreyipointedout,
“AOPwasnottailor-madeforreceivingdonations.Moneythatwecollectedfromwell-wisherstowardstheinfrastructureaslong-termloansweretreatedasincomeandthegroupendeduphavingtopayincometaxonthosedonationsresultingina loss of several lakhs of rupees which was a big blow for the fledglingorganization”.
WIalsorealizedthatconsiderabletimewouldbespentonaparticularpathofregistrationonlyto leadtoasubstantialroadblockwhichtheywerenotmadeawareofearlieron.Thismeantback-trackingandwasteoftimeandresourcesoneffortsthatyieldednoresults.Forinstance,WI,withitsobjectiveofenablingthewomentobetrueownersoftheenterprise,wereadvisedtoformacooperative.Aftersixmonthsoftravelanddocumentationandwhenithadreacheditsfinal stages WI was told that once it became a cooperative the Government would be thedecision-maker13. This ran against the grain of WI philosophy. So, this process had to beabandoned.ItisatthisjuncturethatWIrealizedthatitalsohadtoberegisteredasanMSME(Micro,SmallandMediumEnterprises).Thiscrucialpieceof information, likemanyothers,emergedduringthe visits made to different Government departments. Again, adding to the confusion andmisleadingdirectionspointedtobydifferentsources,WIwasinformed,duringtheprocessofregistration,thattheMSMEtagwasrequiredonly if itwas interestedinavailingGovernmentloansortrainingprograms.Nevertheless,WIwentforwardwiththisregistration.ItwasamovethatprovedtobefortunateasWIrealizedsubsequentlythatMSMEregistrationwasessential
for organizations if they have to supply goods to retailers. WI discovered, by accident, theregulationthatcouldhaveeffectivelystoppedtheirbusinessifnotcompliedwith14.Box1:TakeawaysonRegistrationoftheEnterprise
• TheTrustlawsofIndiaarenoteasytounderstand.Apubliccharitabletrustisnotthesameasatrustthatengagesincommercialactivities.Donationscomingintoapubliccharitabletrust are tax deductible if registered under 12A but donations for a “business trust” aretreated as income. Loans, corpuses, financial inputs of any form are all taxable.Understanding tax laws as it applies to a Trust are not easily comprehensible. For smallbusinesses, especially rural enterprises like WI that would like to have a thoroughunderstanding of the law and be fully compliant at all times, there is a need for acomprehensivelayoutoftheseimplicationsinahumanlyunderstandableformat.Thiscausesevenregisteredorganizationstobeunsureoftheirstatusandtheircompliance.
• Generally, lawyersandaccountingprofessionalsarenot fullyawareof the legal structureoptions available for a rural enterprise. To complicate things further, each State has adifferentrule.Theselawsareconstantlychangingandthesechangesarenottransparentoraccessibleeasily.
• Whilethereareeasilyavailableresourcesfor incorporatinga limitedcompany,weneedasimilarsetofservices(legal,taxandcompliance)in‘easy-to-understand’terms,preferablyinthe local language for rural enterprises. Many small enterprises don’t even get throughregistration.
requirements,licensesoreveninformationonthenatureofcontentstobepublishedonthepackorwrapperofitsproducts.Someoftheseregulationsaresizeagnosticandsowhethertheenterprisehappenstobesmall-scale or a large manufacturing unit, a common set of specifications or requirements wereapplicable toall.Thisbecomesahugeburden formicro-entities likeWIwith limited funding.Take,forinstance,thelicenseformanufacturingcosmetics.WIrealized,afteraconversationwithsomefellowentrepreneurs,thatalicenseisamustformanufacturingcosmetics.Again,acrucialpieceof information that shouldhavebeenpartofapackage thatapotential singlewindowshouldhaveprovided.Intheabsence,invisibilityorinadequacyofsuchaprovision,informationtricklesinandthattoobarely.It isunderthesecircumstances,whereinformationisscarceordissipated,documentationiscomplexandcostsofnon-compliancecanprovefataltobusinessesthatmiddle-men thrive. AndWI had no option other than bringing in a ‘consultant’ to helpprocurealicense.TheDrugsandCosmeticsRules1945, regulate themanufacturingand importof cosmetics inIndia.Theserulesareelaborate,andasindicatedearlier,doesnotdifferentiateonthesizeornatureoforganizations.Theminimummanufacturingspacerequiredforeachproductcategoryis specified,alongsidespace required for rawmaterials,packaging,qualitycontrol,officeandother amenities. The rules also specify the qualification essential for a technical personwhowouldsupervisetheoperations.Andawholesetofdocumentsthathavetobesubmittedbeforeateamcomesintoinspectthepremises(Seethisfootnoteforasnapshotofrequirementsanddocuments)15.Thoughonecouldarguethatsuchrulesareessentialtoensurequalitytherigidityextracts disproportionate costs from small enterprises likeWI. Investment in infrastructure,machines(somenotrelevanttothescaleornatureofWI’sproductionprocess)andadditionallandaddedahugefinancialburdentoWI.Maithreyisaid,
"We were such a small operation that 250 square feet would be more thansufficienttomanufactureandsellsoapbutthiswasmandatory.Onesizefitsall.Wedecidedwewouldrentaspaceandgetthelicenseattherentedsite.Gettingan1100sq.ft.spacethatmeetsallthecriteriawasclosetoimpossibleandsotheonlywaywecoulddothistobuilditourselves.But,wherewasthelandormoneytodoso?Thatwouldbeasubstantialinvestment.Thelistofinfrastructureandequipmentthatwasneededwasdauntingbuttherewasnootheroption.”
Similarly, Factory license under the Factories Act 1948, is essential for manufacturingestablishmentsthatemploy10ormoreworkers16.Nodistinctionismadebetweenruralorurbanlocations.Thenetresultoftheserequirementsisadditionalexpensesandtimecommitmentforobtaininglicense.WIalsorealisedthatwhilerulesofferguidelines,certaindetails,absenceofwhich,mightleadtopenaltywerenotreadilyavailable.Take,forexample,thecontentsthathavetobeprintedontoa wrapper of a cosmetic or food product. Information about it had to be gleaned fromconversationswithmanufacturers,retailersandobservationsofotherpackagedproductsinthemarket.Lackofcredible,single-pointinformationmeantalackofclarityonwhatismandatedandwhatisnot.Rules,regulationsandGovernmentdepartmentsthatWIhadnotevenheardofmadetheirpresencefeltinmorewaysthanone.Forinstance,theDrugsandCosmeticsRules,1945mandatesthefollowingtobeprintedonthewrapper;thenameofthecosmetics,nameand address of the manufacturer, use before information, declaration of net contents andmeasures,distinctivebatchnumber17.Whilewhat therulebooksaysmightappearclear, thereality,andwhatisexpecteddiffers.Itisinthisgap,mishapshappen.
“Wewere contacted by theDepartment ofWeights andMeasures after a fewmonthsofsellingourproductsandfinedheavilyduetotwoissuesinourpackagingthatwehadnoideawasmandatory-theinclusionoftheemailaddress–oursonlyhadthephonenumberandthe"format"ofwritingtheweight(e.g.gramsshouldbewrittenasgandnotgrams)oftheproduct.Wehadnoideathisdepartmenteven existed and it was only at that stressful meeting we were told about arulebookwithexcruciatingdetailsthatwehadtomaster."
Despite theseburdens,WIcontinued tomanufacture itsproducts,byobtaininganexpensiveparty-to-party license. By 2018, it was clear that these interim ways of working cannot be16"factory"meansanypremisesincludingtheprecinctsthereof-(i)whereontenormoreworkersareworking,orwereworkingonanydayoftheprecedingtwelvemonths,andinanypartofwhichamanufacturingprocessisbeingcarriedonwiththeaidofpower,orisordinarilysocarriedon,or(ii)whereontwentyormoreworkersareworking,orwereworkingonanydayoftheprecedingtwelvemonths,andinanypartofwhichamanufacturingprocessisbeingcarriedonwithouttheaidofpower,orisordinarilysocarriedon.(Source:FactoriesAct,1948,https://labour.gov.in/sites/default/files/TheFactoriesAct1948.pdf)17TheDrugsandCosmeticsRules,1945.https://indiankanoon.org/doc/16293633/
“…wereoverwhelmedandhappywiththebuildingthatAjayhadbuiltwithnatural,earth-friendlymaterialwithplentyofventilationandsunlight.Theywonderedwhyallwork facilitieswere not built thiswayand endedup spendinga lot of timeunderstandingourworkandbeingwithus.TheywerealsoverysupportiveofTheVilvam Foundation’s efforts to focus on livelihood programs like Wild IdeasTrust19.”
1.3LabourLawsLabour laws in India, which govern conditions of work, wages and remuneration, industrialrelationsandjobsecurityofworkers,havebeenwidelycriticizedforbeingarchaic,complexandmakingIndianindustryuncompetitive.Forinstance,aFICCIreportindicatedthatthe44centraland100statelawseffectivelycurtailanyquickrightsizingorrestructuringthatenterpriseshavetomaketoremainnimbleandcompetitive.Moreover,thereportalsonotesthatthelabourlawstreatMSMEsonparwithlargeenterprisesinitsapplicationofrigorousprovisions.Thereportrecommendsthat it isessential thatMSMEsaresubject to ‘fewsimpleand lesscumbersomelabourlawswhichmakecomplianceeasier’20.Earlyon,WIhaditsbrushwithcertainprovisionsoflabourlaws,which,ironically,ratherthanmitigating the hardship of women employees addedmore burden on them.WI, had to payminimumwages,accordingtotheMinimumWagesAct,1948.Thewagesfordifferentcategoriesaredeterminedbythestategovernmentsonaregularbasis.So,forexample,theTamilNaduGovernmentfixedtheaverageminimumwagesforthegeneralworkersinshopsandcommercialestablishmentsacrossfourzones(panchayatstocities)atRs.5306permonth21.Inaddition,thelawalsoinsistedthatDearnessAllowance,whichwaslinkedtoandrevisedfrequentlybasedontheConsumerPriceIndexmovement,hadtobepaidtotheworkers.ForWI,itwasatallorder.Thoughtheenterprisewaspayingareasonablesalarytothewomen(asumthatwassubstantialto the women who before this job did not have a stable income -- details provided in asubsequentsection)itcouldnotmatchtheminimumwage22.Ifminimumwageshadtobepaidthenthenumberofwomenhadtobescaleddown.AmovethatwentagainsttheobjectiveofWItoeconomicallyempowerruralwomen.Commentingonthesedifficulties,Maithreyisaid,
"It'shardtokeepupwithrisingwages.Afterall,thiswasacooperativeofwomen.They were happy with what they earned and decided their own salaries. Thewomenwerelivid.So,wehadtofigureoutifwecouldaffordtokeepallofthemoronlyasubset.Thatwoulddefeattheverypurposeofstartingandsettingupthis
Similarly, another component of the labour laws, the Employees' Provident Funds &MiscellaneousProvisionsAct,1952,makesitmandatoryfororganizationsemployingmorethan20workers toopenanaccountwith theEmployeeProvident FundOrganization towards theprovisionofretirementbenefitsforemployees.Thecontributiontothisaccountismadebothbytheemployerandtheemployee.Foranurban,aboveminimum-wagesemployee,suchschemesarebeneficialasitbuildsasafetynetforthefuture.Butforwomeninruralenterprises,likeWI,settingaside12%oftheirpaytoaschemethatwouldbenefitthemwhentheyretireorsometimeinthefuturemakesnosenseastheytrytobattletoday’seconomicneed.Inaddition,forWItherevenuestreamisoftenunpredictable.ItmakesfixedallocationforbenefitslikeProvidentFunds(PF)almostimpossible.But,thelawthatregulatesbusinessesdemandsit.Inaway,thisisachallengeforpolicymakersaswell.Regulatoryprovisionsgoverningminimumwages and pension contributions forworkers arewell intended. They aremeant to preventexploitation of workers by unscrupulous employers. However, they can also undermine theviability of the enterprise thus defeating the very purpose of the regulation. Withoutemploymentinthefirstplace,thereisnoquestionofearninganywage–minimumorotherwise.Therefore, policymakersmust continue to explore ways to strike the right balance betweenensuring enterprise viability and protecting workers’ right to a living wage and fair workingconditions.Quantitativethresholdsorexemptionsforinitialfewyearsoragradualphasing-inofregulationscanandshouldbeconsidered.Otherwise,‘fearofgrowth’willstalksmallenterprises.Itisnotjustthecostbutthecomprehensionofcompliancerequirementsandtheconsequentharassment,incaseoffailuretocomply,thatisabigdeterrent.Theproblemislikelymoreacutein rural India.But, that iswhereentrepreneurialenergiesareneeded toensureemploymentgenerationanddiffusionofdevelopment.Further,ithastoberecognisedthatwhilestepslikeonboardingemployeesontoaPFschememightappeartoberelativelysimple,eithergoingbytheprocessmentionedintheGovernment'swebsitesorexperienceofurbanorganizationsandemployees,itisnotsoinaruralenvironment.Take,forexample,theopeningofabankaccount,whichissinequanon,forallsalary,pensionsorPFrelatedtransactions.Eventhat‘simple’stepcanbecomea‘complicatedprocess’.IlliteracyandlackofexposuretobanksandbankingprocessesmeantthatWIhadtodeputepeopletohelpwomenevenopenaccounts.Addedtoitwasthedifficultyofidentifyinganappropriatetypeof account for thewomen taking into consideration the purpose of the account, usage andbenefits.Theprocess,accordingtoMaithreyi,wastedious,time-consuminganddelayedWI‘soperations:
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“There is no clear information on types of accounts (zero balance vsminimumbalanceanditsprosandcons).IfonehadaJanDhanaccount,weweretoldthattherewasacaponhowmuchbalancecouldbeintheaccount.If itwasazero-balanceaccountthebankstaffwerenoteveninterestedinhelpingbecausetherewasnoincentiveforthemtodoso.Salariedaccountshavetohaveatleast5000Rupeescomingineverymonth;else,thereisapenalty.Theaveragetimetakenwasamonthforabanksalariedaccounttobesetup.Thatmeantthatwecouldnotprovide jobsuntilwesetthemupsincewehadtopayPFfromthedaytheworkerswerepaidasalary.”
Inconclusion,itcanbesaidthattheprevailingregulatoryenvironmentmakessettinguparuralenterpriseaverydauntingtask.Thedisregardfortheparticularitiesoftheruralenvironmentandruralenterprises, lackofsingle touchpointorclearancewindowandabsenceofprofessionalswho can guide enterprises in this regard remain big hindrances. Promoting ruralentrepreneurship is vital to ensuring rural livelihoods through gainful employment. Hence,makingiteasyforentrepreneursandvisionarieslikeMaithreyitosetupandrunruralenterpriseshastobeanimportantpolicyplankforstategovernments.EaseofDoingBusinesssurveysassessconditionsforcity-basedenterprises.Similarsurveysmustbeconductedforruralenterprises.Stategovernmentsmustundertakethemtoguidetheminthe policymaking process. Development of entrepreneurial, self-reliant and viable ruraleconomieswillhelpIndiatackleitsurbanisation,environmentandhealthchallengesaswell.As we conclude this section, we want to leave the following questions for discussion andconsideration.Manylawsarecreatedwithgoodintentions.Inpractice,ratherthanregulatingandfacilitatinglawfuleconomicactivity,theystiflethem.Insuchasituation,theoptionsopentotheentrepreneurarenoteconomicallydesirable.Theyeithergiveuporevadeorbribeorstaysmall to remain exempt. With these unintended consequences in mind, we leave a set ofquestions,posedtousbyMaithreyi,forconsiderationofourreaders.
• Can Provident Fund contributions be voluntary? By making these “good intentions” soexpensive,thegovernment,inadvertently,mightdemotivatesmallenterprisesfromgrowingorworsestillmightforcesomeenterprisestofudgebyhiringworkersofftherolls
• Infrastructure requirements should be in multiple slabs. This is essential. Small ruralenterprisescannotaffordthekindofspaceofficialrequirementsmandate.Forexample,thefloorspacerequirementforthemanufactureofsoapscanbetiedtothevolumeofproductioninstead of being a uniform prescriptive requirement for all soap manufacturing units.Constructingsuchafloorspaceiscostlyandmobilisingsuchresourcesisnoteasyforsmallenterprises.
• Finally,maybe,cantherebeaseparatesetofgoodsthatfallsunderrurallicensingthattheconsumer can buy at their own risk? Put differently, can the government allow small
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unregulated industriesworkingoutofhometocontinueastheyarebutunderaseparatelicensingcategorywheretheycanbekepttrackofbutwithmuchlessstringentrulesexceptthat the packaging carries a mandatory warning saying they buy at their own risk? Thegovernment can formalise such operations with some sort of “rural india enterprise”certification,iftheaimistocountthenumberoftheseorganizationsandgetthemintotheformal system. Let customers decide if they wish to support these “risky” products andventuresorpaypremiumforfullylicensedproducts.Themarketwillleadthewayforward.Manufacturerscandecideifandwhentheywanttomoveupthecertificationladder.
• The downside to the above is that potential institutional clients look forvendors/manufacturingenterpriseswithagovernment license to source from.Exemptionfromlicensingwillrunintothathurdle.Evenifthegovernmentexemptscertainunitsfromhaving to manufacture only under license but subjects them to occasional inspectionrequirements, even then potential buyersmight be reluctant. That is the paradox.Manyobserversviewregulatoryprocessesasarbitrary,pointlessandsubjecttocapture.Yet,therecognition conferred by the government is the imprimatur thatmany potential channelpartners seek. Then, the task for thegovernment is tomoveaway from ‘one size fits all’licensing requirements. See the point made above on the floor space requirement formanufacturingsoaps,asanillustration.
In short, thequestions shehas raised are about cost of doingbusiness for rural enterprises.Addressing them is essential for achieving and sustaining productivity and economic growth.Withsomanybottlenecksandhurdles,costofproductionisalwayshighandhencecost-pushinflation a pervasive reality in the country. Such an economy is not amenable to inflationmanagementandcontrolframeworksthatworkedinthedevelopedworld.InSection3,onthefuturedirectionsfor‘WildIdeas’,webrieflymentionthenewlegalstructurefor‘WildIdeas’–LimitedLiabilityPartnership(LLP).Thisstructureenablesthemembersofthecompanytoconsiderthemselvesowners.Theyarenotemployees.Consequently,itallowsthemtomanagetheiremployeecostssuchasProvidentFundcontributionsbetter.Oneofuswrote23inFebruary2017thatitwasonethingtoraisethecostsofinformalitybutanotherthingtolowerthe costsof formalisation. The latterhas tohappen ifmorebusinesses in the countryare tobecomepartoftheformaleconomicsystem.Nearlyfouryearslater,itstillisthecase.Thecostsofbeingaformalenterprisearetooprohibitiveforenterprisestobeformedandthrive.AsWildIdeaschangeditslegalstructuretothatofaLLP,ithastoreapplyforthelicensesitholdstomanufacturecosmeticsandfooditemsthough, inreality, nothing has changed. Themanufacturing location and the people are the same. The
productsarethesame.Onlythelegalstructurechanged.Yet,theprocessofobtainingthelicensehastobegonethrough,alloveragain!AswewentthroughtheGazetteNotification(https://tinyurl.com/y89wojza)pertainingtotheprocessofobtainingalicenseundertheDrugsandCosmeticsAct,1940,wewerestruckbytheOrwellianobsessionwithdetailsandtherulesspecifiedformanufacturingspace,laboratory,formaintenanceofequipment,etc.Further, the fees involved in applying for the license has now gone up substantially. Thecategories are no longer inclusive of many items but stand alone for each individual item(powders,creamsandoilsarenolongerinoncecategorybutinseparatecategories.Eachonewillcost10,000Rupees.)Therules framedunder theAct, thathavebeennotifiedby thisGazetteNotification,are toogranularandappeartobeapotentialtreasureforinspectorsastheyperpetuatetheinspector-Raj. Compliance with these will take away a huge chunk of an entrepreneur's time andmindspace.Withsuchmicroscopiclicensing,inspectionandcompliancerequirements,itisnotpossibleformicroandsmallenterprisestobeformedandthenrunefficientlyandviably.The thriving and perpetuated license-compliance-inspection regime will be fatal for theeconomy.Nocountryhassucceededinindustrialisingwithoutcreatingvibrantsmallandmediumbusinesseswhich, inGerman, is called the ‘Mittelstand’. Several commentators havewrittenabout India’s ‘premature de-industrialisation’. That is not quite correct. India did not quiteindustrialiseatall,notonthescaleoftoday’sdevelopedeconomies.Addressingtheindiscriminateapplicationofwell-intentionedbutultimatelycounterproductiveand costly compliance requirements is essential if India is not to miss the opportunity toindustrialise,inthewakeoftheshiftingsupplychainsfromChinawhichisbecomingadifficultplacetodobusinessin,formanyreasons.Putdifferently,thecruxofthechallengeofeconomicgrowthisthis:howdoesthegovernmentgetoutofthewayofcapitalformationandemploymentgeneration?Asthingsstand,thelicense-compliance-inspectionRajrendersthesegoalsdifficult,ifnotimpossible,toattain.2.WildIdeas–RunningtheEnterpriseWild Ideas stands on two key foundation stones. First, it produces and sells, acrossmultipleproduct categories, natural and earth-friendly alternatives to the chemical-based versions.Second,itdoessobybringingtogetheragroupofunder-privilegedruralwomenandinspiringthemtotakeupthetaskofrunninganenterprise.
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2.1GoodtothePlanetThoughWIstartedwithalimitedsetofproducts in2014,withinashortspantheproduct listwidenedtoincludeshampoos,oils,personalcareandhomecarepowders,creams,kajal,liquidsoaps, snacks, cotton bags and hand-woven palm baskets (See Exhibit – 1 for a snapshot ofproducts).WIensuredthat,inthekeypartsofthevaluechain,theproductsleftassmallacarbonfootprintaspossible.Therawmaterialsusedwerenatural,hand-pickedandsourcedlocally.Forexample,WI’sdishwashpowderwasmadefromwoodash,soapnuts(foreffectivecleansing),orange peels (for its anti-bacterial and anti-fungal properties), tamarind leaves (its acidityprovidesthesparkle)andsikakai(forremovingstainsofoil).Takingstrongcognizanceofhealth,WI’s foodproductsalsoexperimented,quite successfully,with small-milletsbasedvadams (aversionofpaapad).Theorganicgrainsthatwentintothesefoodproductsweresourcedfromlocalfarmers.Inthemakingoftheseproducts,WIveeredawayfromtheexcessiveuseofpowermachinesandtools.Nodoubt,theintroductionofmoreoftheseelectricity-consumingaids(forinstance,soapmakingmachines)wouldhaveincreasedproductionmanifold.ButWI,everconsciousofitskeyvalueproposition–beingenvironmentallyfriendly–madeaconsciousefforttorefraintakingrecoursetosuchequipmentthanwhatwasabsolutelyneeded.WIalsotookenormouseffortstoensureeco-friendlypackingformostofitsproducts.Thedishwashand laundrywashpowderswerepackagedusingabio-basedpolymercompoundmadefromrenewablevegetable sources.Ajaywhodrives thedesign,brandingandpackaging tookconsiderableeffortstoensureeco-friendlypackaging,reusabilityandaestheticswhichpeoplebegantoexpectwhenWI introduced itsproducts.Hisdesignsbecamewellknownsincetheywereaimednotjustatachievingconsumerinterestandretentionbutalsotookintoaccounttheunletteredwomenmanufacturingtheproducts.Hisdesignsmadeiteasierforhertomakesenseofmultipleandcomplexpackagingoptions.Forinstance,whentheyseethepurpleflower,thewomenknowthatitistheboxfortheirlaundrysolution.To encourage reusability and to reduce plastic consumption certain product categorieswereofferedonlyasrefillpacks.Inadashofinnovation,WIoffereditsliquidhandwashanddishwashwithanattractivepalmweavewrappedglassdispenserbottle.Consumerswereencouragedtofillthisbottlewiththerefillpackboughtfromthestore(SeeExhibit2).In short,WIhasbeen fairly successful inproducingand introducing to themarketa rangeofproducts that are friendly to earth. The range of products and customers have continued toexpand.By2019,WI’ssaleshadtouchedRs.1.41crores.(SeeFigure2fordetails).But,itisjustonepartofthestory.Theotherpart,whichisstillwork-in-progress,isfarmorechallenging;tobring together a groupof ruralwomenand runanenterprise. Thenextpartdescribes thesechallenges.
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2.2EmpowermentofRuralWomenTocreate,sustainandultimatelyensurethatanenterpriseisrunbyagroupofruralwomenisunchartedterritory.Extantliteratureonpeoplemanagementinthisregardarenotveryhelpfulasmostofitisbuiltonstudiesoforganizationsthatemploysemi-qualifiedorqualifiedpersonneloperating in an urban environment. Others, mostly men, working in large production andindustrialunitsaremanagedbyahostof structural (forexample,collectivebargaining), legal(example, labour laws)andmanagerial (forexample, trainingofworkers) frameworks.Again,thereisasubstantialcorpusofliteraturethathasbeenbuiltaroundsuchmodesofmanagement.But,forWI,givenitsinternalconstituentsandplaceofoperation,ithadtoformulatecontext-sensitivemanagementpractices.ForWI,theruralcontextmatters.2.2.1RuralWomenEmployment–ABriefOverviewSeveralstudiesshowthattheLabourForceParticipationRate(LFPR)ofruralwomen,aged15yearsandabove,inIndiahasbeendecliningforseveralyearsnow.The2014NationalSampleSurveyOrganization(NSSO)surveyestimatedtheLFPRofruralwomenacrossIndiaat35.8%,lessthanhalfofthatofruralmen24.InTamilNadu,theLFPRforruralwomenwasslightlybetterat45.4%andatthedistrictlevelofThiruvannamalaiat48.6%25.Again,muchlessthanthatofmen.Atamacrolevel,ithasbeenarguedthatrelativelylowparticipationofwomenintheworkforceand other employment avenues is a lost opportunity for economies to boost their GDP. AMcKinsey reportobserved thatcontributionofwomento India’sGDPat18%wasoneof thelowestintheworld.Thereportarguedthatenhancinggenderequalitycouldpotentiallyadd$770billiontoIndia’sGDPby2025and“morethan70percentofthepotentialGDPopportunity(cancome)fromincreasingwomen’sparticipationinthelabourforceby10percentagepoints”26.But,itisundeniableandisattestedbymultiplereportsthatwomen,inparticularruralwomen,have been dropping out of labour force in large numbers. Enumerating the reasons for thiswithdrawal,anOxfamReporthadthefollowingobservations:
“Womendropoutofthelabourforcebecauseofthehighburdenofunpaidcarework inhouseholdswhich isoverwhelminglya female responsibility.Therearealsosocialbarrierstowomen’smobilityoutsidethehousewhichpreventsthemfrom engaging in paid labour. There are social constraints on owning land,wherebyalthoughanoverwhelmingnumberofwomenareresponsibleforfarm
Thiruvannamalaidistrictisnotimmunetosuchgender-baseddiscrimination.State-levelstudiespointtothepoorsocio-economicconditionsofThiruvannamalaidistrict.Withavery lowper-capitaincomeofRs.41,569(2011-12),thedistrictwasranked27th(outofatotal32districtsinTN) in the Human Development Index (HDI) which measured achievements across threeparameters;thestandardofliving,healthandeducation.Thedistrictalsoscoredpoorlyandwasranked26thintheGenderInequalityIndexsuggestingwidespreadgenderdiscrimination28.WIdrewitsgroupofwomenfromsuchamilieu.Mostofthemwereunschooledandwereeitherunemployedorworkedascasualworkersineitherfarmand/ornon-farmwork.Unstableincome,irregularfrequencyofworkandaharshworkatmospherewerewhatmostwomenwereexposedto.Addedtoitwereimmensedomesticandeconomicpressuresrangingfromdrunkandabusivehusbandstomountingdebts.ItisonthisfoundationWIbuiltandcontinuestobuilditshumancapital.ThefollowingsectionsoutlinethekeycomponentsofWI'speoplemanagementstrategy.
2.3CapacitybuildingAllorganizationsconsiderthecapacitybuildingofitsemployeesasoneofitstoppriorities.WIisnoexceptiontothat.However,giventhecontextinwhichitoperated,WIhadtocustomizeitscapacitybuildinginitiatives.Tobeginwith,ratherthanconsideringtheruralwomen'sexistingcapabilitiesasirrelevanttoaformalorevenasemi-formalworkenvironmentWIdecided,veryearlyon,toleverageonsomeofthe‘strengths’ofthesewomenandslowlybuildonit.Akeystrengththatruralwomenbringtothetableistheabilityandagilitytodophysicaltasks.Theyare, asMaithreyi observed, doers. And studies show given an opportune environment ruralwomansuccessfullyleveragethisstrength29.InWI,thefirstgroupofwomengotinvolvedinataskthattheywerecomfortablewith–mixingandcookingtheingredientsthatwentintotheproduction of vadams. An induction exercise that played to their strengths. But it had to benotchedup.Typically, all products that come out of WI contain ingredients that are mixed in certainproportionstoenhanceefficacy.So,forexample,anaturalhairoilcontainsamixtureofcoconutoil, hibiscus andmehendi leaves. The proportion and blend of these ingredients are critical.
“Every part of the women’s learning has happened here in WI, numeracy orlearningEnglishalphabets…someofthewomencan,tosomeextent,readEnglishwordsandall that happenedafter they came toWI…weensure that theyareconstantlyprovidedwithopportunitiesthathelpthemimbibetheselifeskills”
AsWI’soperationsgrewitbecameessentialthatthewomenenhancedtherangeoftheirskills.Maithreyi, in the early stages ofWI, had, to name a few tasks, managed external interface(interacting with customers, suppliers etc.), planning and operations. However, as WI wasaspiringtomakethewomen‘owners’oftheenterpriseitwasimperativethatitencouragedthemtotakepartinothermajoractivitiesoftheorganization,assumeleadershiproles,andnotrestrictthemselvestojustthemakingoftheproducts.ButWIalsorealizedthatsuch‘higher-order’skillsmightbewellbeyondthecomfortzoneofmostwomen.Toaddressthisgap,andasapilotinitiative,WIbrokedownthesebroadtasks,mentionedearlier,intoasmallersetofactivitiesandmatchedtherequirementsoftheseactivitieswiththeself-confessedinterestsandcapabilitiesofaselectfewwomen.So,forinstance,awomanwhohadearlierworkedasa‘co-ordinator’ofhergroupunderaGovernmentschemewasfoundtobeagoodfitfortheactivitythatinvolvedorderingandprocurementofrawmaterialsfrommultiplesuppliers.Similarly,awomanwhohadrelativelyfewerreservationstalkingtooutsiderswasgiventhetaskofreceivingordersandpassingitontootherwomen.Thesewomengotpaidextraforbearingtheseadditionalresponsibilities.Toensurewiderdisseminationofthisskillwithintheorganizationtheresponsibilitieswererotatedandmorewomenwereencouragedtolearnandtakeitupbyobservingothers.(SeeExhibit3forWomeninAction)InvestingincapacitybuildingisWildIdeas’biggeststrength.Thishasyieldedastrongsenseofownershipandbeliefthatthisistheirstoownandrun.
thedrivingforce.ThiswasahugelearningandsomethingMaithreyihadobservedover20yearsinherworkinvariousprojectsandprogramsinruralIndia.Itwouldbeclosetoimpossibletohaveanomadicsetofpeopleownandrunaruralenterprise.Peopleworkedinasteadyjobonlywhen they saw value and were absolutely motivated from within. This wonderful learningallowedfortheinclusionofsomeimportantmotivators.Tobesure,steadyincomewasdefinitelyabigmotivatingfactorforthewomeninWI.But,that’sjustonepartofalargersetofmotivators.WIassembledtogetherpiecesofitoveraperiodoftime.Itdevisedandexperimenteddifferentcontext-sensitivewaysofmotivatingruralwomennotmerelyfordoingtheirjobswellbutalsotowidentheirthinkingandskills,tohelpthemsustainahealthyandcordialworkenvironmentandultimatelytoinculcateasenseofownershipabouttheenterprise.Thoughtheprocess isongoing,thesubsequentparagraphsdescribesomekeymotivatingstrokesimplementedbyWI.Forthesakeofstructureandclarity,theseinitiativesaredescribedunderthebroadandinterrelatedheadsofextrinsicandintrinsicmotivators.2.4.1ExtrinsicmotivatorsForthewomen,infrequentwork,lowpayandharshworkenvironmentwasthenormuntiltheyjoinedWI.Thethoughtthattherecouldbeastableandreasonablygoodincomewasabigshotinthearmforthem. In2014, thefirst fewwomenwho joinedtheenterprisestartedwithanincomeofRs.3000/month.Thiswasasubstantialleapfromtheoccasionalfewhundredstheymadethroughthefarmandnon-farmwork.Bytheendof2019theamounthadsteadilyclimbedtoaroundRs.8500/month30.Thoughthis isperceivedbythewomenas ‘salary’,WIhadbeenconsistently communicating themon the need to treat it as a ‘surplus’. The reasonwas,WIwanted its women to understand that the enterprise was theirs and they were ‘sharing’ itsprofits.MaithreyitoldusthatshehasbeenconveyingthefollowingmessagerepeatedlytothewomenofWildIdeas:
“IhavebeensayingthisoftentothemthatwhatevermoneyismadeinWI,theexpensesaredeductedfromitandtheremainingissharedmoreorlessequallywithall.IfwedobetterweearnmoreandIhavealsoverycategoricallystatedtothemthatIwouldnottakeasinglepaisafromthesurplus.Itistheirs.Infact,whenItakesoapsorpowdersfromhereformypersonaluse,Ipayforit.IthinkthesestepsareabsolutelyessentialiftheyhavetogetagraspofthisbusinessandIhopethat, if not all, at least a few women would develop capabilities to run thisenterprise.”
AnotherpieceofanextrinsicmotivatorthatWIfacilitatedaddressedagrowingtrendthatisveryevidentintoday'sruralIndia;increasinginterestanddemandforeducation.The71stroundofNSSOsurveyonsocialconsumptionrelatingtoeducationhighlightsthatinIndialiteracyrateshavegoneupand,inparticular,femaleliteracyratesinruralIndiahasincreased‘markedly’31.Maithreyi’sinteractionswithruralwomen,beforeandafterthesettingupofWI,clearlyindicatedthatruralwomen,inparticularwomenwhowereilliterate,wereverydeterminedtoensurethattheirchildrenbecamenotonlyliteratebutpursuedhighereducation.But,itwasanexpensivepropositionanditwasevidentthatitwaswellbeyondtheirmeans.Forexample,theNSSOsurveyindicatesthatinthestateofTamilNaduaruralhouseholdspentforgeneraleducationattheprimarylevelRs.6399perstudentforanacademicsession.Itwasmorethantwotimesthatofthenationalaverage.Atthegraduatelevel,theexpensesshootuptoreachalmostRs.22,000foranacademicsession.The technical/professionaleducationexpenseswerealmost three timesmorethanthatofgraduate-levelgeneraleducation32.Recognisingthisgap,WIinitiatedasponsorshipprogramforeducatingthechildrenofwomen.Leveragingonitsnetworks,individualurbansponsorswereidentifiedandlinkedwithwomentotake care of the educational expenses -- from primary to higher education level -- of theirchildren.By2019,theschemehadgrowntocover82children33.Thisinitiativehasrejuvenatedwomen. For some, it meant that they could now shift their children from poor qualityGovernment-aidedschools to relativelybetterprivateschools.Amovethatwouldhavebeenvirtually impossible, to even think of, a few years back. Awomanwho benefitted from thissponsorshipsaid,
“IneverthoughtIcouldaffordtosendmysontocollege…andIwasdreadingthathe might be forced to work much earlier to ease the family burden, but thissponsorshipprogramhaslightenedmyheart…Iseealotofhopenow”
WI also considers healthcare as an essential intervention. In addition to sensitizing them towellnessandnutritionalprograms,WIorganizesfreeandexclusivehealthcampsforthewomen.Physiciansfromreputedinstitutions,fromIndiaandabroad,arecalledintodiagnoseandtreatwomen. For example, in 2019 a leading gynaecologist fromApollo Hospitals in Chennaiwasinvitedtoleadthehealthcamptoclarifyandtreatwomen’shealthissues34.Inshort, forthewomen inWIthesteady incomestream, inculcationof financialplanningforhouseholdsandthestepstakenbytheorganizationtosatisfythehealthandeducationneedsof
thedependentshaveenhancedtheirlevelsofmotivation.AddedtotheseextrinsicelementsaremeasuresthatWIhastakentoboostthewomen’sself-belief.Thenextsectionelaboratesontheseintrinsicmotivators.2.4.2IntrinsicMotivatorsMaithreyi’sexperienceinruralIndiahadprovidedherwithcertaininsightsonwhatmotivatedruralwomen.Theydovaluea stable income. Inaddition, she realized that therewereother‘invisible’motivatingfactorsthathadtoberecognizedandtapped.Forinstance,beforesettingupWI, shehadworkedwithagroupofeightwomen from thenearbyvillages to convertanalmostbarrenpatchoflandintoafertilevegetableplotthatsuppliedorganicproducetoschoolchildren.Inexecutingthatproject,sherealizedthat,whilepaydoesmatter,thewomenfoundimmense‘joy’ intransformingmeresoiltovegetableswhich,veryimportantly,fedahundredschoolchildren.Thewomensawthe‘value’inwhattheyweredoing.Theywerealsoveryopentolearningnew,organicwaysofgrowingvegetables.Andfurthermore,thethoughtthattheircontributionwasvaluedassomethingspecialandnotjustworkdonebyyetanotherpairofhandsmadethewomen‘like’theirworka lotmore.TheseweresomeofthelessonsthatMaithreyibroughtintoWI.Anditreflectedinmanyemploymentpractices.Take,forinstance,smallthingslikewordsofappreciation.Ratherthangenericfeedbacklike'youdidwell',itwasimportantthatthewordsofappreciationchosenarespecific,morenuancedandimportantlyitshouldtouchandaffectthingsthatthesewomenvalue.So,asMaithreyipointedout:
“Whenever these women execute a complex design on the basket or mixingredientswithoutspillingorwastingitisnotenoughtosaywelldone.Whenitcomestoworking,‘body’andusingitiseverythinginruralIndiaanditisvalued.So,youhavetosaythingslike‘ohGod!lookatherfingers,howfasttheymove’.Thesearenotmerewordsforthem.Itisaprocessthroughwhichtheyreinforcetheirstrengths,buildself-esteemandperceivetheirworkasvaluable.Itmatterstothesewomen,alot”
For another woman, who left her parents and other relatives to come and settle nearThiruvannamalaitoworkinWI,theexperiencewaslikebeingat‘home’.Infact,assomeofthempointedout,‘betterthanhome’.Yetanotherintrinsicmotivatorwastheculturalexposurethewomenhad.Intheinterviews,theyrecollectedwithalotoffondnesstheyearlytripsthatWIsponsorsandorganizes.Asadeliberateandwell-thoughtoutstep,WIhaddecidedthatthewomenwouldtraveltodifferentpartsofTamilNaduandotherstatesonceayearforaweek.Theobjectivesweremanifold;itgaveruralwomenexposuretowhatlaybeyondtheirvillage,italsoexposedthemtovariouscultures,arts,foodandlifestyle.Butmostofallitwasgreatfun.Anotherwomansaid,
2.4.3BuildingaGroupIdentityAsindicatedearlier,oneofthekeyobjectivesofWIwastopreparethewomentosustainandgrowtheenterprise.Asimportantascapacitybuildingandhavingamotivated,steadystreamofworkerswastowardsbuildingasustainableruralenterprise,anequallyimportantsteptoachievethiswasthroughthebuildingofcoherentgroupidentity.Thefirstpartofthis istohelpthemunderstand “Why” Wild Ideas. This includes the value system of Wild Ideas, its ethos,commitmenttonaturalproducts,relationshipwiththeEarthaswomenandfinally, inputtingthemalltogetherinthewayswomenlivetheirdailylivesandhowtheyworktogetherasagroup.Thisisreiteratedineveryactiontheydoandineverymeeting.Thesecondpartistohelpthemunderstand how important these products are for people who use them and the Earth.Testimonialsarereadandtheyareencouragedtospeakwithcustomerswhothankthemforchemical-freeproducts.Thesefeedbackloopsdramaticallyincreasetheirconfidenceandmakethem reflect on the impact of their work as a group. Finally, the women enjoy the workenvironmentandthecompanyoftheircolleagues.Yet,asisthecasewithmanygroups,minorfissures, misunderstandings and conflicts do occur. Addressing these issues and making themembers learn how these episodes impact group coherence is an important activity forMaithreyi.
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GroupmeetingsarearegularfeatureinWI.Itiseitherconductedonaweeklybasisorcouldbeconvened to address an issue that cropped up that day. These meetings, led byMaithreyi,typically, resolve issues by emphasizing on a few important points. These points tend to getrepeatedineverymeeting,almostlikeamantra.Maithreyisaid,
“You have to have pay close attention to the pulse of the organization, themomentIfeelsomethingis'notright',Icallforameetingandinit,Ikeepinsistingon the following. I do hear them out and slowly move them to whatmatters…discourage them from pointing to a person but encourage them todiscuss the issue…and importantly asking them to think about how work gotaffected”
Thismessagingis incessantandhappensonmultipleoccasions.Tosomeextent, itappearstohaveworked.Somewomensaidthatwhenfacedwithaconflictingorunpleasantsocialsituationin the work environment they do repeat that message to the ‘trouble-makers’. During aconversation,oneofthewomenrecalledanexperience:
“ItoldmycolleaguetocontrolhertongueandIsaiditinadignifiedway.Isaid,‘youdoyourworkwell,whywouldyouwanttospeakneedlessly…youhavetorepaytheloanthatyouborrowedforyourdaughter’smarriageanditcanbedoneonly if the group makes money…why would you want to harm your owninterests’…thatkindofadvicedoeswork”
“EarlierIwouldhesitatetospeak…Initially,whenIjoinedhereIwassonervousthatIkepttotallyquiet.Iwouldnotevenspeakfreelywithmyco-workers.Now,in a few years look at me…I went to the RTO, spoke to different officers indepartmentsandpurchasedascooter.When I thinkabout it, Idon’tbelieve itmyself”
At their homes, some of these women have managed quite successfully to balance powerequations. They make their ‘voice’ matter at home. Take the case of a woman, who whenconfrontedbyherdrunkhusbandusedtocowerinthecornerandcry,andnow,afterbeingwithWIformorethanayear,shesaidshetakesa‘stand’:
“TheotherdayItoldmyhusbandverystronglythatIworkveryhard…Icyclefor10kmformyjob,earnenoughtofeedmychildren,educatethem…andIaskedhimwhat do you do…you just drink and spendmoney. I would not have saidanythinglikethisbefore…Iwouldhavebeenterrified.ButsomehowtheworkatWIandmyworkenvironmenthasgivenmesufficientconfidencetoatleasttalkbackatthingsathomewhenconfrontedwiththingsthatareunjustandunfair”
FrequentmeetingsinWI,whichdiscussedmultipleissues,includingkeytopicslike'bringingupchildren, seem to have had an effect on thesewomen. The importance of avoiding corporalpunishments, the need to discuss and make children understand the consequences ofinappropriatebehaviourandreinforcingtheimportanceofcontinuingeducationhaveallbeeningrainedbythesewomen.
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When asked about interactions with their children the following comment by a womanencapsulatestheirbehaviour:
“Iwasusedtoawayofbringingupchildren…thatoneneedstobehardandhavetopunish.Ihaveneverhesitatedinhittingthemforevensmallmistakes…butafterthese meetings I am consciously trying to change my behaviour…I am willingmyselftobemorepatientandunderstandingwithmychildren…itisdifficultkickoldhabits,butIamtryinghard”
Another woman manages ‘production’ related responsibilities and considers ‘planning’ and‘thinking’askeycomponentsofherjob:
“I am an illiterate…so whatever I know is because of WI. My job requiresapplicationofthought…forexample,Ihavetodecideonhowmanynumbersofvadamscanaboxholdwithoutbreakagesand if therearebreakages Ihavetorethinkthenexttime…Ialsoneedtothinkaboutloadingthevanwithproductsatthe right time and so I also have to plan for ensuring that the numbers areavailableatthecorrecttime”
So, in the last six years, WI has grown significantly. Starting with two women theorganizationnowhasmorethan80womenandhasmadeameaningfulimpacttotheirlives.Theproductofferingshavediversifiedconsiderably.WIhasmoveditsoperationsfromasmallmanufacturingunittoalarge,permanentstructurewithmorecapacity.Fromamerefewlakhsofturnoverin2014itwouldtouchclosetotwocroresbyMarch202135.It is also fully compliant with all the rules and regulations that govern such units. ItcontinuestoattractmoreruralwomenandisseenasabeaconfortheunderprivilegedofTiruvannamalaidistrict.Moreover, throughexposuretotheproductsofWIandmediareports,peoplefromotherpartsofIndiahavevisitedWIandMaithreyitobeinspiredand
3.FutureDirectionsBytheendof2019,WIhadplanstoembarkonthenextphase.ThefirstlegofthatjourneywastoregisterWIasaLimitedLiabilityCompany(LLP).Thisregistration,whichitobtainedattheendof2020, is a ‘hybrid’ structure thathaselementsof corporateandpartnership structures. Inaddition,thistypeofregistrationcomeswithlowcompliancecosts36.ThesecondtaskforWIwastofocusonthebusinessbeingtrulysustainableandreducingthedependenceontheanchor/founders.Thisinvolvedtakingalookattheentirebusinessanditsworkingsandidentifyingthoseareasthatcouldbefullyownedbythewomenandthoseforwhichtheyneededextraanchorsorspecialists.WIhasagroupofwomenwhoover6yearshavebeen trainedwellandgainedenoughskill,confidenceandmaturitytoleadandimplementcertaincriticalactivitiesoftheenterprise.Overtheyears,themanufacturingofWI’sproductshasbeensowellstandardisedthatwomenwhoare barely literate can hand-craft or produce high quality soaps and eatables with leastsupervision.This leg is inanalmost ‘automatic’mode.Womenmeasureandmix ingredients,packagethefinishedproductsandloadthemontothevehicleforshippingout.Thewomenhavealsogainedenoughconfidencetointeractwithretailersforreceivingandfulfillingorders.Theexistingarrangementoffewwomen,selectedfromthegroup,overseeingtheseoperationshaveproventobeverysuccessful.Thus,this‘core’partoftheenterpriseiscompletelyownedbythewomen.Inaway,itconstitutesasignificantstepforwardinthedirectionofwomendevelopmentandempowerment.Thesecoreactivitiesrunentirelybythewomenarelistedbelow:
Wehavegoneintogreatdetailinthissectioninhighlightingthejourneyof‘WildIdeas’intoaruralcommercialenterprisewhichisontracktoachieveaturnoverofRupees2.0croresinthefinancial year 2020-21 despite having to face a nation-wide lockdown and a series of rollinglockdownsinthestateforthebetterpartoftheyear,inthewakeoftheCovid-19pandemic.ThereasonisthataspiringruralentrepreneurshavetobeawareofthestrengthsandgapsinruralIndia.Runningaruralenterpriseoncommerciallines,meetinglegalandregulatorycompliancerequirements and finding the management and staff talent to keep it growing is at oncechallenging,energisingandfulfilling.Keepingupmoraleandmotivationwhilemanagingworkingcapitalandlaunchingnewproductsinthischallengingyearforbusinessesgloballyisnomeanachievement.ThewomenofWildIdeashavedoneit.Thattherearegapsintheircurrentskill-setandendowmentofexperiencesisnosurprise.Itistrue foranygrowingenterprise– ruralorurban, localornationalorglobal.Thechallengeoffinding,retainingandnurturingtherequiredskillsandexperiencecanbebiggerinruralIndia,inarelativelybackwarddistrict.That,nearlyseventy-fiveyearsafterindependencefromcolonialrule,inarelativelyadvancedstateinthecountrylikeTamilNadu,itisnoteasytofindmanagerialand technical staff for a successful and flourishing enterprise is a story of the country’s still-evolvingeconomicandhumandevelopment.Findinggainfulemploymentforthecountry’syouthdemographicbulgewillrequirethesegapstobepluggedreasonablyquickly.Ofcourse,runninganenterpriseonaday-to-daybasisandalsomanagingitsgrowtharedifferentfromstrategizingforfuturegrowth,expansion,businessdevelopmentandchartingthelong-termfutureanddirectionofthecompany.Asofnow,thewomenofWild IdeaswouldcontinuetodependonMaithreyiasthementorortheunofficialCEOuntiloneofthemisreadytoassumethat role or they find someonewho iswilling to come and live in theirmidst and lead theirenterprise.Nonetheless,whathasbeenachievedby thewomenof ‘Wild Ideas’ in less thanadecadeofexistenceisimpressive.Thatithasbeenachievedinaruralcontextbywomenwithbarelyanyfunctional literacyisnothingshortofamiracle.Themiracleisshowingnosignofending.It isgrowing.4.ConcludingremarksThis case study has dealtwith the origin and the growthof ‘Wild Ideas’, a sustainable, ruralcommercial enterprise in two parts. Part 1 dealt with the interface with agencies of thegovernment for commencing business, for obtaining license and the challenges of meetingongoingcompliancerequirements.Thechallengesencounteredby ‘Wild Ideas’gototheveryheart of the question of creating a viable industrial sector in the country. As the country
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approachesthe75thanniversaryofitsindependencefromcolonialrule,theseissuesremainbigandunaddressedtoalargeextent.Ifanything,someofthenewtechnologicaldevelopmentsmaybehelpingthestatemonitoreconomicactivityratherthanfacilitatethem.Part1isaboutthepolicydimensionofthebirthandgrowthof‘WildIdeas’.Part2 isabouttheunderlyingphilosophyofWildIdeasanddocuments itsgrowingpainsasacommercialenterprise.Thispartisaboutthemanagementdimensionof‘WildIdeas’.Itisstatingthe obvious to note here that the first part impinges the second one a great deal. Slow orinadequate economic development of second and third tier cities makes them unattractivedestinations for skills and talent needed to create and sustain enterprises and generateemployment.Withoutthem,thestatedoesnotgeneraterevenuestoundertakedevelopmentandtheregionsmaywither.Itisaviciouscircle.ThesecondpartalsogivesacademicsandstudentsofmanagementeducationaflavouroftheorganisationalandmanagerialchallengesfacedbyruralandsmallenterprisesoperatinginIndia.Theyhavetofigureouttherelevanceoftheirconceptsandtheories,largelyimportedfromtheWest,toIndiaandespeciallytoruralIndiaandsmallenterprisesinruralIndia.Thevalueoftheireducationanditscontributiontothecountrycannotbegreaterthaninthesuccessfuladaptationoftheirlearningtothiscontext.Finally,ourpurposeincombiningboththepartsinonedocumentistoenablereaderstoseetheinter-linkagesmoreclearlythaniftheyweretreatedseparately.Ifwehaveachievedthatevenpartially,wewillhavesucceededinourendeavour.
