The Importance of Entrepreneurship in India

Chris Owen - Ross School of Business and School for Environment and Sustainability

People are pouring into cities.

In India alone, urban centers are expected to grow by 250 million during the next 20 years--nearly equivalent to the entire population of the United States. Rural Indian residents are moving into cities for work, for the lure of modern conveniences, or simply to be closer to fellow migrant family members. Indian farmers, in particular, have been forced into urban areas by water wars, below-market value pricing for their crops, and debilitating debt. Considering that India will also have the largest millennial workforce in the world by 2027, we must ask: Where will all of these people work?

Government funds are already being stretched thin by increasing demands on transportation infrastructure, waste management systems, and an expanding energy grid. National or international aid organizations may provide relief for society’s most destitute, but that still leaves a large middle class searching for economic stability.

This is precisely the purpose of Poornatha--my counterpart organization based here in Madurai, India. The mission of Poornatha is “to foster socio-economic vibrancy and entrepreneurial resilience, thereby contributing to nation-building.” In collaboration with the Michigan Academy for the Development of Entrepreneurs (MADE) and the William Davidson Institute (WDI) at the University of Michigan, Poornatha is designing an affordable, world-class coaching curriculum for entrepreneurs in emerging economies. The goal of this program is to equip and empower entrepreneurs as confident, evidence-based decision-makers who build enduringly successful businesses that strengthen their local communities.

Madurai is an ideal test site for this program. Located in the southern state of Tamil Nadu, Madurai is a gritty trading center with an aspiring manufacturing sector, reminiscent of an American Rust Belt metropolis. It’s home to rubber factories, sand mines, raw material distributors, a robust textile industry, and an engaged entrepreneurship network. Poonatha provides first, second, and third generation entrepreneurs in Madurai with training in cash flow analysis, marketing and brand management, leadership development and, most importantly, data-driven decision-making. Our hope is that this program helps cultivate a business ecosystem that ensures stable, sustainable economic growth for the region.

Overall, by investing in strong local economies, India can address its dual-challenges of rapid urbanization and rising unemployment. Indeed, for this reason, entrepreneurship in India--and the work of Poornatha--is becoming increasingly important.

About the Author: Chris Owen is a rising second-year dual-degree student with the Ross School of Business and the School for Environment and Sustainability at the University of Michigan. He is passionate about social entrepreneurship, sustainability, and people strategy. He joins the 2018 WDI Global Impact Fellows program after serving for three years in Ecuador with the U.S. Peace Corps, first as a business consultant in the natural resource conservation program and then as a Regional Volunteer Leader.

References:
1. https://www.mckinsey.com/featured-insights/urbanization/indias-urbanization-a-closer-look
2. https://www.financialexpress.com/economy/indias-millennial-generation-bigger-than-china-to-boost-nations-workforce-to-worlds-largest-by-2027/836248/
3. http://www.thehindu.com/news/national/growth-in-urbanisation/article23925543.ece

Measuring the impact of gender-equality programs in Brazil

Rebecca G-K  -  University of Michigan Ross School of Business and Medical School

I am thrilled to be a WDI fellow this summer working with Plan International Brazil. Plan international is a global development organization with a focus on the health, safety, and education of children. The organization was founded in 1937 and is now active in 70 countries. Programs in Brazil began in 1997 and are headquartered in São Paulo, with program offices throughout northeast Brazil where poverty rates are highest. In the remote northern state of Maranhão, the average per capita monthly income is $157, less than half of Brazil’s national average.

Local street market in São Paulo 

In recent years, Plan Brazil has shifted its program focus to gender equality; the current programs are designed to reduce gender-based violence, promote reproductive health and healthy relationships, and advance female leadership and representation in Brazilian society and politics. Child marriage is a particular problem in Brazil. Brazil ranks 4th in the world for absolute number of married or cohabiting girls under age 15. Brazil ranks 4th in the world for absolute number of women who gave birth by age 18, following India, Bangladesh and Nigeria.  A recent study by Plan and Promundo found that the high rate of child marriage in Northeast Brazil is closely associated with unplanned adolescent pregnancy, interpersonal violence, limited economic opportunities for girls, and social beliefs about gender. Plan notes that its work is especially crucial in a climate of reduced federal support for reducing gender-based violence; the funds for tackling violence and promoting women’s equality were reduced by 74% in this year’s federal budget.

Plan Brazil implements numerous interventions with young boys and girls. One of their flagship programs is a female football league, in which girls learn to challenge gender stereotypes and occupy social spaces traditionally dominated by boys. Other programs train adolescents to teach their peers about reproductive health, teach young children how to protect themselves against child abuse, and enroll young women in an extracurricular Leadership School with modules on human rights and political participation. To learn more, check out this video.

My project this summer is focused on performance measurement. Before arriving in Brazil, I spent one week at the WDI office preparing and learning a ton about social impact measurement from the brilliant Performance Measurement Initiative team. I’ll be working with the Plan team to analyze their current monitoring and evaluation practices and launch a new methodology in order to capture the social impact that Plan’s work aims to achieve. I’ll also be collaborating with the finance team on a cost analysis project. 

Flag on a car's side-mirror: World Cup spirit is everywhere! 

Outside of work-related news, this week Brazil played its third match in the World Cup. The streets are all decorated for the world cup with brazilian flag banners and street art. The entire country pauses business to watch the matches! The Plan office did not even open until after the 9:00am game today so that everyone could watch. It was a tense game, with Brazil tied against Costa Rica 0:0 up through the last few minutes of the game. Then Brazil scored 2 goals for a victory! The streets erupted with firecrackers and vuvuzela horns. You can root along for Brazil next Wednesday as they play their next game!

East Bali Cashews: Empowering East Balinese women and farmers one cashew at a time

Nadia Putri - University of Michigan Ross School of Business

In 2012, Aaron Fishman travelled to rural East Bali as a healthcare volunteer and was amazed by the beauty of this region. But, he soon discovered that behind the beauty, East Bali is an impoverished region of farmers. 98% of people who live in Desa Ban (Ban Village), Karangasem Region, East Bali are cashew farmers. Farmers sold raw cashews to traders who shipped them overseas for processing. Aaron saw an opportunity to create a sustainable economic solution for these farmers and their families through agriculture and food processing. That’s how East Bali Cashews (EBC) was born in Desa Ban. Now, EBC employs more than 400 people with the majority being women from local area.

Factory employee carries a bucket of cashews to the splitting machine

The company has touched many lives of people in Desa Ban, as beautifully expressed by Ibu Lasmi, “I’m only a high school graduate, yet, the company believes in me and my potential. Never would I have imagined moving up from a daily worker to managing more than 50 workers myself.”

 

Nadia Putri - Ross School of Business

In addition, not only focusing on its social impact, EBC also puts high importance on its product quality. Boasting a wide variety of unique ingredients from East Bali, the company is aiming to deliver tropical indulgence from Desa Ban to consumers worldwide.

This summer, I’m honored to be chosen as one of WDI Global Impact Fellows to work at EBC as a business development intern. As a rapidly growing social enterprise, one person at this company wears many hats and so do I. My role in the company is divided into two: while I’m at Desa Ban factory, I’ll be working on quality improvement projects and also summarizing the company’s impact on women employees. In comparison, while I’m at Bali/Jakarta office, I’ll be looking into US market entry strategy. I'm very excited to be back in home country, working at a company that delivers real social impact to the community.

My first couple of weeks at EBC factory has been quite eventful. While in Desa Ban, I’m staying at EBC’s campsite (called East Bali Immersion) where I get to sleep in a tipi. As a city girl myself, it’s an amazing feeling to wake up to rooster crows, sleep to cricket’s sound, and shower under the open sky.

My bed and belongings inside East Bali Immersion's tipi

At the factory, everyone is very welcoming and open to share their stories. It’s especially humbling to see such high curiosity and willingness to learn from the factory employees. This serves as my daily reminder that situation you grew up or lived in does not define who you could be. More stories to come!

Improving maternal health in Kenya - Jacaranda Maternity

Andrea Arathoon – University of Michigan School of Public Health

Jacaranda Health is an organization that “aims to make pregnancy and childbirth safer for women and newborns by transforming maternity care in East Africa”¹. They started operations in 2011 with a mobile clinic that provided prenatal care to women in Kenya. It has now grown into two distinct arms that still work towards the same goal but cover two different aspects of maternal health.  Jacaranda Health’s NGO arm focuses on research and healthcare innovations. In 2017 they worked with 15 public/mission hospitals in two counties and this year they are expanding to three counties and more facilities. Jacaranda’s other arm, Jacaranda Maternity, is an 18-bed private hospital located in the outskirts of Nairobi. The hospital conducts over 25,000 outpatient visits per year and delivers an average of 115 babies every month. I have the privilege of working as a summer intern with Jacaranda Maternity.  

Jacaranda Maternity, located in Kahawa West

Jacaranda Maternity focuses on delivering high-quality, affordable healthcare to women and children. Quality care is based on three pillars: accessibility, excellent outcomes and continuous improvement. Jacaranda provides outpatient services every day of the week and is open for deliveries and emergencies 24 hours a day. In terms of outcomes, the hospital has not had a maternal death in over 4,000 deliveries, which is a testament to the highly qualified staff in the institution. Continuous improvement is also an essential part of the care provided. The staff has daily huddles, during which the previous day’s activities are discussed, and where opportunities for learning constantly arise. They also attend weekly educational workshops that allow them to be up-to-date on a variety of topics related to patient care.

Jacaranda Maternity’s target population is primarily low-income women and children around Kahawa West, a peri-urban area located north-east of Nairobi. Most of the hospital’s patients are women receiving pre and post-natal care in the facilities. These women also deliver their babies in the hospital and return for their child’s immunizations and wellness checks. The hospital also offers general medical outpatient consultations for adults and children, and includes a pharmacy and laboratory where patients can purchase their medications and receive a wide variety of tests, respectively.

The biggest challenge for an organization like Jacaranda Maternity that provides high-quality care while serving mostly low-income populations is financial sustainability. Over the past few months, there have been many efforts by Jacaranda Maternity to reduce costs and to increase patient volumes, while at the same time maintaining the high quality of care that Jacaranda is known for. One potential intervention that can have a positive impact on profitability is the improvement of patient flow in the facility. If patient flow is streamlined, waiting times can be reduced and consultations can be more efficient, which in turn, increases patient volumes and reduces costs. As part of my summer internship project, I have been tasked with mapping and optimizing the processes for outpatient visits and inpatient stays.  These improvements in patient flow include the rollout of an outpatient care checklist, which will simplify the current medical record and will ensure that the organization complies with World Health Organization and Kenyan Ministry of Health guidelines for patient care. This checklist will also serve as a decision-support tool that can aid providers in their clinical decision-making process, promoting high quality care.

I am very excited about my summer project and the impact that it can have in improving maternity care for women and children in the country.  

References

1.     Jacaranda Health. (n.d.). Retrieved June 12, 2018, from http://jacarandahealth.org/