Distributing Light and Livelihoods: Solar Products Create Economic Empowerment for Women in India January 2020 Overview to address barriers to growth by providing market intelligence, To date, Dharma Life has created a network of more than 16,000 Challenges for Women fostering business-to-business connections, strengthening last- rural entrepreneurs. More than 75 percent of these are women, India is the second most populous country in the world, with Entrepreneurs mile access, and raising consumer awareness of quality-assured and they reach more than 10 million beneficiaries in over 40,000 over 1.29 billion people – 66 percent of whom live in rural lighting products.VIII It is currently operational in the states of villages, across 13 states, including the low-income states of Women entrepreneurs in emerging markets face a unique set areas.I Rural India faces various developmental challenges, such Uttar Pradesh, Bihar, Rajasthan, Odisha, and Assam. Bihar, Uttar Pradesh, Rajasthan, Madhya Pradesh, and Chhattis- of challengesX in setting up, scaling, and growing sustainable as lack of connectivity, inadequate infrastructure (including garh. Since 2014, IFC and Dharma Life have partnered to help enterprises. These include: energyII and water) for the last-mile, and lack of sustainable The market for modern off-grid solar products including grow this network of women distribution agents and to support • Business Management Skills: Compared with men, women livelihoods. Access to distribution in rural markets is difficult for solar lamps and solar home systems in India was severely Dharma Life’s expansion into new geographies within India. IFC entrepreneurs have lesser exposure to formal business private sector companies as well as consumers. Fragmented and underdeveloped when the program started in 2012, with 400 provides advisory support to Dharma Life to train its existing training, especially in marketing and financial management, disorganised distribution channels make it difficult for companies million people relying on kerosene for basic lighting. In addition entrepreneurs for better impact, and to create awareness about and they are more likely to operate their enterprises from to identify existing networks or to build new ones. Large to the challenges of building demand among last-mile customers alternative and clean sources of lighting in its areas of operation. their homes. geographies with widely dispersed populations and non-existent and ensuring delivery to them, the early entry of low-quality solar transportation infrastructure increase the cost of distribution lighting also meant that customers were wary of spending money • Lower Confidence: Women tend to display lower confidence and after-sales service. To add to this, there is no ready access on potentially faulty products. in their abilities as entrepreneurs compared to their male to skilled individuals to work as marketing, sales, management, counterparts. or technical/after-sales service agents, especially in remote areas. The Lighting Asia/India Program recognized the need for creative • Smaller Networks: Women entrepreneurs operate in smaller, At the village level, there are few local distribution agents who approaches to persuade customers to adopt solar lighting. It less-diverse networks than men and are less likely to seek can deliver these products. Consumers face additional costs III also seized on the enormous opportunity to build gender-smart support from their social networks to grow their businesses. and long travel times to reach brick and mortar stores, which business solutions that address these challenges. • Limited Access to Finance: Banks and mainstream financial often offer only a limited range of relevant products. These institutions still consider women to be risky borrowers and challenges are compounded for women, who are more severely Partnering for Business often doubt their ability to succeed. impacted by mobility and time constraints. For example, the lack of efficient energy connections increases the time women must and Development Impact Dharma Life encountered all of these challenges as it sought to expand and deepen its scope and impact across rural spend to meet their household responsibilities, which in turn Dharma Life is a social enterprise focusing on rural entrepreneur India, since it started operations in 2009. Low confidence reduces their opportunities to engage in economic activities. It development and last-mile rural sales and distribution in India’s and motivation made it difficult to recruit more women also exposes them to health risks from kerosene oil and other villages. It typically recruits women in villages, and trains them entrepreneurs, while existing DLEs lacked appropriate business fuel-based lighting sources.IV Women in rural India also face to be entrepreneurs. Dharma Life entrepreneurs (DLEs) earn skills, leading to high attrition. particular constraints towards engaging in economic activities. between INR 1000 - 8000 per month (USDIX 14 - 117). They sell Only 5.6 percentV of women in rural India have regular salaried and distribute products with social impact including quality solar employment, and even when they are employed, it is often in lanterns and home systems, modern cook stoves, water purifiers, Gender-Smart low-skill and low-productivity jobs with poor or no pay.VI sewing machines, sanitary napkins, nutritional supplements, and Business Solutions services such as digital literacy and behavior change campaigns. IFC worked with Dharma Life to enhance the organization’s IFC’s Lighting Asia/India program aims to address these Dharma Life has extensive partnerships with more than 15 entrepreneur screening and training program to better challenges and accelerate access to clean and affordable energy in leading companies and brands including Unilever, P&G, Coca- identify and equip its entrepreneurs with appropriate rural India by promoting modern off-grid lighting products and Cola, and Samsung. business and personal skills. The objective was to build the home systems. The program works with the private sectorVII capacity of Dharma Life’s team to deliver entrepreneurship training and support the DLE network to scale up over a five year period. IFC and Dharma Life also decided to measure I World Bank, 2018, https://data.worldbank.org/indicator/SP.RUR.TOTL.ZS World Bank staff estimates based on the United Nations Population Division’s World Urbanization Prospects: 2018 Revision. the impact of the program for a period of six months post the II India has made tremendous progress towards achieving the goal of universal electrification with 100 percent of households being electrified as of March 2019. Nonetheless, according to 2018 research by the Prayas Energy Group - Watch Your Power Summary Analysis – October 2018, most rural households in these states experience frequent outages, with inconsistent access to training delivery to isolate the benefits of the new screening III electricity during the evening hours C.K. Prahalad, Fortune at the Bottom of the Pyramid (New Jersey: Pearson Publishing, 2005), https://www.ey.com/Publication/vwLUAssets/ey-rural-e-commerce-the-untapped-potential/$FILE/ tools and the tailored entrepreneurship training focused IV ey-rural-ecommerce-the-untapped-potential.pdf Deloitte, 2015, Women, Energy and Economic Empowerment, http://www.theatlantic.com/sponsored/deloitte-shifts/women-energy-and-economic-empowerment/261/ specifically on women’s needs. V ILO, 2017, https://www.ilo.org/global/about-the-ilo/newsroom/statements-and-speeches/WCMS_621364/lang--en/index.htm VI Indian rural women’s wages were around two-thirds of the average wages of rural male workers in 2016-17 according to data from the Centre for Monitoring Indian Economy, 2017 VII The program is currently working with d.light Energy, Greenlight Planet, Devidayal Solar Solutions Pvt Ltd, Frontier markets, Dharma Life, Signify Innovations India Ltd. and Omnivoltaic Power Company Limited VIII These are products that meet the World Bank Group’s Lighting Global Quality Standards X Insights from IFC, 2017, Women Entrepreneurs are Essential for Private Sector Development in Emerging Markets https://www.ifc.org/wps/wcm/connect/d7623440-8bb4-4827-9ce5-470dcb6f86b1/ IX Conversion rate of USD 1 = INR 71.35 (as on 30th December 2019) has been used throughout this case study Entrepreneurship+Offering+Brochure+July2017.pdf?MOD=AJPERES&CVID=lQps6KM 2 3 In September 2015, IFC and Dharma Life conducted a needs solar lighting sales. IFC is now partnering with Dharma Life Demonstrating Impact: assessment with DLEs in Bihar, where Dharma Life was seeking to undertake a similar campaign that will include Odisha and to train more women to join their distribution channels as Assam, in addition to the three states mentioned above. IFC’s partnership with Dharma Life has helped grow the DLE entrepreneurs. Learnings from this needs assessment were used network, improved consumer awareness, increased adoption In October 2017, IFC and Dharma Life hosted an event to of social impact products, and generated greater incomes for to design a customized entrepreneurship training solution commemorate International Girl Child Day, focusing on gender entrepreneurs. Through the new training program, Dharma Life (with a special focus on women) using an IFC training equality, women’s empowerment, and clean energy. The Beti has included and incentivized women in its rural distribution methodology (Figure 1). Padhao, Roshni Badhao event emphasized the commitment network and demonstrated the business case for women During 2015 and 2016, IFC also delivered the Suryoday (sunrise) of Dharma Life and IFC to provide clean sources of light that entrepreneurs. In 2016, IFC undertook an evaluation to campaign to increase the awareness of quality assured solar would improve quality of life for rural women, in partnership measure the impact of its new screening tools and training on lighting products in the states of Bihar, Rajasthan, and Uttar with women entrepreneurs at the village level. The event the performance of Dharma Life and its entrepreneurs.XII Pradesh. Dharma Life was one of the IFC’s partners in this XI brought 100 DLEs from rural areas in Uttar Pradesh to its It found the following: campaign, and it harnessed its DLE network to convert the this capital city - Lucknow. In 2018, IFC also worked with Dharma newly-generated awareness and interest into post-campaign sales Life on a needs assessment for digitizing its teaching and • Greater diversity in the distribution network: Dharma Life across 26 districts. Dharma Life reported that the campaign training curriculum. This explored ways to scale up the existing successfully increased its network of entrepreneurs from helped significantly in driving awareness of quality-assured curriculum to reach more women in remote areas, while reducing under 5,000 in 2015 to over 16,000 in 2019, of which lighting products and enhanced DLE performance in training costs. 75 percent were women. Prior to this training, women represented only 15 – 20 percent of their entrepreneur network. Figure 1: Entrepreneurship Development Program created by IFC and Dharma Life • Increased sales and income: After the successful delivery of the training program in 2015, IFC undertook an evaluation to measure the impact of its new screening tools and Basic Entrepreneurship Development Program the entrepreneurship training on the performance of the Approach and Methodology: An instructor led blended learning program focusing on overall personality entrepreneurs. Conducted in 2016, this evaluation compared • Enhanced employee satisfaction: Both men and women development of the entrepreneurs. the incomes of 369 trained women entrepreneurs with 121 DLEs reported higher employee satisfaction, and enhanced women entrepreneurs in the same location who did not Modules Program Details community and familial recognition of their work. DLEs also undergo the training between 2015 and 2016.XIII It was found reported higher confidence in conducting awareness activities • Marketing - Concepts and Promotional Skills Program Classroom Training On Field Taining Total that entrepreneurs who were screened through IFC screening • Sales - Concepts and Selling Skills and driving behavior change campaigns. mechanisms before undergoing training had 17% higher • Financial Management • Lower Attrition: Dharma Life reported that attrition among earnings than those who were not. Additionally, women • Business Planning 5 hours women DLEs fell by 15 percent within the first year of training. TEJASVINI I 15 hours 20 hours DLEs who underwent the IFC-designed training increased • Tracking and MIS (to be started) They attributed this to the screening tools and training • Behavioral and Soft Skills their average monthly income by almost seven times.XIV In developed by IFC. addition, DLEs recruited using the IFC screening tools and who received training reported higher incomes compared to trained DLEs who were not recruited using screening tools Experiential Learning Discovery Learning Simulation Based Learning (INR 3,272/USD 48 vs INR 2,786/USD 40.97 respectively). Since 2016, Dharma has successfully trained • Participatory tools like role plays, case • Field study on real life market • Extensive simulations on real DLEs who were neither appointed using the screening tools over 16,000 entrepreneurs, of whom 75 studies, GDs facilitating the process assessment to understand the pulse market to acquire skills in marketing, of meaningful reflection, engagement of the market promotion and acquiring customers nor undertook IFC’s training earned INR 2,487/USD 36.57. percent are women. Today, Dharma Life and skilling on real life field situations • Games, activities and trainer tales continues to deploy the entire Saksham to discover the softer aspects of personality needed to become a (capable) and Tejasvini (intelligent) modules successful entrepreneur in its entrepreneurship training curriculum. XII This evaluation attempted to isolate the benefits of the new screening tools and the new entrepreneurship training designed by IFC. The study analyzed the behavior and income of three batches of DLEs: (i) Batch I –Trainees selected through IFC screening tools & attended IFC training, (ii) Batch II -Trainees not selected through IFC screening tools & attended IFC training, (iii) Batch III –Trainees neither selected through ICECD screening tools nor attended IFC training. It also compared a sample of trained women (2016 income) to a small set of women and separately a sample of men who didn’t undergo the training (baseline from the previous year) but within Dharma’s network as a control group. XIII The data set from 2015 (prior to training) is smaller because Dharma did not have too many women DLEs before the IFC training, which focuses on training women entrepreneurs XI To know more about the campaign, visit https://www.youtube.com/watch?v=UBc3BCNmjYk XIV An increase from USD 1 to USD 7 or INR 63 to INR 478 4 5 Case Study: Bindu Devi Age: 32 Village: Hiramanpur, Block: Chiraigaon District: Varanasi, State: Uttar Pradesh Bindu Devi always had an interest in sewing and designing, but she lacked the confidence to pursue it as a livelihood. Her husband was the only paid income earner in the family, but his health was poor and when his condition deteriorated, he was unable to work for several months. Bindu did not know how her family would meet its basic needs. Then Bindu came across a Dharma Life staff member recruiting entrepreneurs in her village. After learning about Dharma Life’s business model, she realized that it was the opportunity she had been waiting for. She attended the training and became a Dharma Life entrepreneur. Now, depending on the season, Bindu earns between INR 500 – 3,000 (USD 7 - 42). She was able to save enough money to buy a scooty (an automatic lightweight self-start scooter) which she uses to visit other villages and grow her sales even further. Bindu has now opened her own workshop. She has set up a sewing unit and trains 40 other women in her village to make school uniforms. She says her business has benefited from Dharma life’s new consumer credit model. This simple credit facility enables rural consumers to overcome high upfront costs associated with products such as induction cooktops and puts What Dharma Life says What a Dharma Life entrepreneur says women in a better position to make purchasing decisions. Bindu “ “ The IFC Lighting Asia/India partnership has been one of the Earlier my family’s income was less than INR 2,000 also participated in Facebook’s free ‘She Means Business’ digital key collaborations that has helped Dharma Life achieve (USD 28) per month. Now, after being involved in multiple marketing training, and she plans to use her new social media several milestones. With support from IFC, we shifted projects with Dharma Life, I am earning enough to be skills to further expand her business. She has also contacted local our focus to nurturing women entrepreneurs from village able to keep savings in my bank account and maintain a schools and hopes to receive regular orders for student uniforms. “ communities, since we believe that including women in contingency fund for emergencies.” In addition to earning her own income, Bindu has won I did not want my kids to face the same difficulties the workforce translates to gender empowerment. It has recognition from the wider community. Women and men in that my husband and I faced due to lack of education. Bindu Devi been established that women around the world invest the village look up to her as a role model. Bindu also joined a Being a DLE has helped me to provide them with DLE, Uttar Pradesh 90 percent of their income back into their families and team assigned to take care of her community’s water purifying a good education and plan a better future for them.” communities, which translates into greater access to What IFC says plant that uses reverse osmosis technology, ensuring access to Bindu Devi clean drinking water. In recognition of her work, Bindu has been “ nutritious foods, education, healthcare, and increased Promoting clean and inclusive growth is a key strategic economic activities.” officially awarded the title of SHG (self-help group) Sahayika priority for IFC and we have been working with the private Gaurav Mehta (helper) and she also now mentors ten SHGs. Bindu feels secure, sector to develop innovative business solutions in this Founder and CEO, Dharma Life self-sufficient, and proud of being recognized as a change maker market. Our partnership with Dharma Life to develop in her village.XV and expand the network of women entrepreneurs in rural areas and reach the last mile with quality solar products is an example of how we support gender-smart business solutions by working and growing with our partners.” Jun Zhang IFC Country Manager, India XV To know more about IFC's Lighting Asia/ India program and Dharma Life Entrepeneurs, visit https://youtu.be/ZBvnCbos6_c 6 LIGHTING UP THE LIVELIHOODS OF WOMEN THROUGH SOLAR PRODUCTS | 7 Photographer credits: IFC and Dharma Life About IFC IFC—a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities where they are needed most. In fiscal year 2019, we delivered more than $19 billion in long-term financing for developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity. For more information, visit www.ifc.org About Lighting Asia/India Lighting Asia/India is an IFC program that aims to increase access to clean, affordable energy in rural India by promoting modern off-grid lighting products and systems. The program works with the private sector to remove market entry barriers, provide market intelligence, foster B2B linkages and raise consumer awareness on modern lighting options. The program is currently operational in the states of Bihar, Uttar Pradesh, Rajasthan, Odisha and Assam. Lighting Asia/India Program is implemented in partnership with Australia, Austria, Canada, Hungary, Iceland, Italy, Luxemburg, Netherlands and Norway. For more information, visit http://lightingasia.org/india/ Copyright and Disclaimer Notice © International Finance Corporation 2020. All rights reserved. 2121 Pennsylvania Avenue, N.W. Washington, D.C. 20433 www.ifc.org The material in this work is copyrighted. Copying and/or transmitting portions or all of this work without permission may be a violation of applicable law. IFC does not guarantee the accuracy, reliability or completeness of the content included in this work, or for the conclusions or judgments described herein, and accepts no responsibility or liability for any omissions or errors (including, without limitation, typographical errors and technical errors) in the content whatsoever or for reliance thereon. 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