Dalit Bandhu spurs women entrepreneurship in Telangana

In Karimnagar alone, 343 women have set up enterprises with the grant given by the State government.

Hyderabad: Dalit Bandhu, the life changing welfare scheme from the State government, coupled with handholding and mentoring by WE-Hub, is now spawning a new success.

Dalit Bandhu, India’s biggest direct benefit transfer scheme, aims to alleviate poverty among the Schedule Caste community, which accounts for 17.5 percent of Telangana’s total population. The scheme grants a one-time subsidy of Rs.10 lakh to eligible SC candidates. The mandate – they must invest the money in an income generating activity.

In Karimnagar alone, 343 women have set up enterprises with the grant given by the State government. WE-Hub, the State supported for-women business incubator sat with them to understand their business idea, assess business viability and develop Core Project Reports. It also helped them understand nuances of business and get paperwork done. The WE-Hub intervention boosted their social capital too.

Each enterprise by the beneficiaries of Dalit Bandhu scheme is a story of resilience and an aspiration to move towards entrepreneurship.

Neereti Mounika, for instance, was taking home tuitions to contribute to the household income earlier. Setting up a kids garment shop or buying a car to operate as a taxi (by her husband) were her options. She convinced her husband that both could contribute if they set up a business. If they bought a car, her role would be limited as he would be driving. Now, she has her own venture – Mounika Computer Embroidery and Stationery. From earning Rs.4,000 a month as a tutor, she is now earning Rs.10,000 a month within just two months of setting up her own business.

Velpula Sharada, a resident of Huzurabad, joined hands with another Dalit Bandhu beneficiary to set up a non-woven carry bag manufacturing unit in the front yard of her house. The unit has a capacity to make 1,000kg of bags a day. Sharada’s venture brought employment to her children as well, who now take care of different aspects of the business.

Sharada was keen on setting up a saree centre or a kirana store. After the session with WE-Hub, she and her family realised the benefits of a manufacturing unit. The plastic ban in the area prompted them to start the non-woven bag manufacturing unit. From the earlier monthly household income of Rs.25,000, her family is now earning Rs.45,000-50,000 a month. Sharada and her entrepreneur friend are keen to make printed non-woven bags too.

Kankurthi Madhuri and her husband lost their footwear business to road widening. The WE-Hub session made her understand the importance of renting a commercial space for business. Now, the two run a footwear shop in Jammikunta. They were oriented in interacting with customers, accounting and bookkeeping. Her family’s economic standing improved after setting up the shop.

Pathri Radha from Keshavapatnam set up a ladies emporium. Another member Vijaya, is running a saree shop in Karimnagar. They are happy they are on their own. The businesses improved their standard of living as income streams increased by more than 100 percent in many cases. All these are now part of a case study by WE-Hub.
Role of WE Hub

WE Hub, which has been in operation for about 4.5 years, has so far worked with approximately 4,000 rural women entrepreneurs. WE Hub’s work in Ramagundam, where 127 loans were sanctioned to women entrepreneurs, set the precedent for continued handholding to ensure establishment of sustainable enterprises and entry of women into the formal economy. The Karimnagar district administration roped in WE-Hub to facilitate implementation of Dalit Bandhu in Huzurabad.

WE-Hub launched a support mechanism that spanned over three months. In the first round of orientation, an Entrepreneurship Development Programme was held for 790 SC women selected by the local administration for Dalit Bandhu. Of them, 343 women expressed interest to start their units. One-on-one sessions with them to understand the business ideas, assess their business viability and develop CPRs were held and the women were guided through a 7-step process of enterprise establishment.

This covered location scouting, documentation, support in getting registrations and licenses, connecting with vendors for purchasing machinery, getting quotations from vendors, verification of quotations and approval. They were conveyed to the Executive Director’s office for releasing the scheme amount.

“It is evident that a holistic approach is needed to meet the objectives of a Government scheme, and more so with direct cash transfer schemes. The potential entrepreneurs need handholding from availing the scheme to grounding an enterprise. Behavioral analysis is important to shift to a growth mindset. It is important to instill confidence that they are owners of a potentially successful enterprise. Interventions to support the SC community, particularly through economic enablement, are creating a foundation for change and impact,” WE-Hub Chief Executive Officer Deepthi Ravula said, adding that effort was to introduce business activities that are different from regularly promoted ones.