What We're Reading July 2014: Communication Breakdown

Fast Company Co.Exist “Sustainability Doesn't Mean Less Profit, It Means Profit Forever” (16 June 2014)

Phillip Barlag of World 50 takes a deeper look at the intersection of profitability and social good. This quote in particular stood out:

“Sustainability thus becomes about evaluating your business for its ability to endure forever. It becomes about identifying the roadblocks to infinite market success and finding a way around or through them. It is not as much about good for good sake, but the enlightened self-interest of pursuit of doing well in a sustained manner.” 

This is a point we often make at Upaya when talking about the entrepreneurs we work with, some of whom may not always self-identify as “social entrepreneurs.” For many, they are focused on building profitable enterprises with the clear understanding that the positive externalities of doing so will allow them to play a transformative role in their communities for some time. 

The Chronicle of Philanthropy “How Foundations Can Be the Risk Takers They Want to Be” (16 June 2014) 

Kevin Jennings at the Arcus Foundation asks if foundation funding has become an impediment to innovation? He argues in part for a more honest conversation with grantmakers about failures and he longs for a forum in which nonprofits could present case studies on failed ventures in much the same way venture capitalists do.

This sort of “learning through failure” concept is not new and not limited to the entrepreneurship space. Physicians have been holding Morbidity and Mortality (M&M) Conferences for over a century. It was in this spirit that I moderated a panel titled “We F$&#ed Up!” at the 2013 Global Washington Conference, designed to give three development professionals a safe space to talk about their struggles.

With a packed room of more than 100 funders and nonprofit professionals, each panelist talked openly about the high-wire act of learning from their mistakes without the fear of losing support by alarming their funders. Their hesitation was understandable - in a sector where good intentions are the primary currency, many people are reluctant to disappoint. But as Jennings argues, if innovation is the goal, then a paradigm shift and open dialog about goals may be necessary on all sides.

Stanford Social Innovation Review “Filling Out the Middle” (Winter 2014 Issue)

This article gives a good overview of the Aspen Network of Development Entrepreneurs (ANDE) and their efforts to support the growth of small and growing businesses (SGBs).

In many ways the ANDE approach of embracing a wide variety of organizations recognizes the importance of the sector without endorsing one rigid model over another. Instead, ANDE is playing the role of a credible intermediary by creating forums for best practices to flourish, and connecting those with complementary resources and shared goals.

The article also gives a nice look at ANDE’s approach to promoting social metrics and the desire to standardize measures. As Genevieve Edens, ANDE’s impact assessment manager, put it, “by speaking the same language, we can start to compare one company to another, create benchmarks for performance, and create market intelligence.”

If we have any hopes of turning up the volume on the global conversation about small business and dignified employment, a credible forum and common tongue like what ANDE is developing could be the amplifier that is so badly needed.

New Frontiers: Measuring Progress Beyond the Pay Packet

Authored by Upaya's own Jyotsna Taparia, this article was submitted in June to the Devex/ USAID "Frontiers in Development" Essay Competition.  The competition prompted writes to submit their thoughts on a variety of questions under the heading How would you Eradicate Extreme Poverty by 2030? 

Q: Aside from income, how might we define and measure other dimensions of extreme poverty?

“Development requires the removal of major sources of unfreedom: poverty as well as tyranny, poor economic opportunities as well as systematic social deprivation, neglect of public facilities as well as intolerance or overactivity of repressive states.”

-Amartya Sen (1999), Development as Freedom

For far too long the discourse on poverty has been limited to income or lack of it thereof. The discourse on extreme poverty or absolute poverty has been taking its shape and form since early 80’s. In 1990, the World Bank proposed that global poverty should be measured through the standards of the poorest countries and arrived at a $1 a day poverty threshold, a figure that was last updated to $1.25 a day (based on 2005 PPP)[1]. This definition also became the basis for Millennium Development Goal #1: reduce by half the proportion of extreme poor (those living under $1.25 a day) by 2015.

However, income measures can only go so far as to capture the consumption capacity of an individual, calculated either in monetary terms or nutritional count. They are grossly insufficient in capturing extreme poverty as they do not exhibit any sensitivity towards the depth[2], duration and direction[3] of poverty.

In his seminal work Development as Freedom (1999), Nobel laureate Amartya Sen outlines how the development debate should be structured. Sen postulates that development is closely linked to three sets of freedom: economic, social and political. Poverty in this framework is described as absence of at least one freedom. According to Joseph Wrensinski, a lifelong activist and founder of the ATD Fourth World, extreme poverty is a “... lack of basic security [that] simultaneously affects several aspects of people’s lives, when it is prolonged and when it severely compromises people’s chances of regaining their rights and of reassuming their responsibilities in the foreseeable future.” The underpinnings of this approach are largely similar to what Sen proposes - poverty is deeper than just the state of material deprivation and is not static in time.

From the postulations of Sen and Wrensinski, it’s clear that extreme poverty is a result of three crucial factors:

a. Availability and efficiency of human, financial and physical assets

b. Inequality in the availability of opportunities and ability to exercise agency

c. Interaction with measurable deprivations that reinforce the impact of others

Despite the longstanding focus on income as the sole indication, a significant body of work has emerged establishing the multidimensional nature of poverty both at the household and at the community level. However, identification of the extremely poor based on this multidimensionality poses its own set of unique challenges. For example, if the indicators being used are income, school attendance, nutritional status and health status, then there are some scholars who argue that a household falling below the minimum threshold on any one of the indicators should be considered poor. There are still others who contend that households should score low on all indicators in order to qualify as poor. With these conflicting approaches to poverty identification, one runs the risk of erroneously including or excluding a fraction of the poor population when developing programme interventions (also known as an error of commission or omission.)

Extreme poverty measurement is much more complex than a simple error of omission or commission. It has been observed that deprivation of one indicator actually has negative impact on other indicators, resulting in a self-perpetuating cycle of poverty that is often referred to as the “vicious cycle of poverty.” Thus any discussion of alternative measures must look at these trailing indicators as well as leading ones. These additional indicators can not only capture the effect of extreme poverty, but also show us the progress being made by a household. For example, a household that cannot afford to send its children to school will see them working either with their parents or elsewhere. The lack of formal education and skills won’t allow them to compete in the more remunerative skilled job market and will often result in a lower household income.

Following this logic, it is useful to look deeper at some of the trailing indicators of extreme poverty that are common to all contexts and benchmark them against established trends, such as:

●      Households that typically spend more than 50% of their income on food expenditure are more sensitive to income shocks and less likely to avail of services like health and education. Deprivation for these households would be on multiple counts - lack of food, education, quality health care and other services.  Therefore an increase in income should result in a decline in the food expenditure to income ratio[4] but also a concurrent increase in the uptake of the other services.

●      Households relying on manual labour (informal and unorganized) as their primary source of income are more likely to be in the extreme poor category as the availability of work is not only infrequent and erratic in nature but also low paying. Therefore, tracking changes in the nature of the work that generates income for the family can provide valuable insights.

●      The presence or absence of certain classes of assets is also an indicator of the extent of poverty in the household. A low percentage ownership of productive assets (land, livestock, simple machinery and tools etc.) is a likely trailing indicator of extreme poverty. 

●      Households rate of electrification against local and regional statistics. Electrification has a direct impact on trailing indicators - household assets, cooking and refrigeration, educational success - and therefore is often prioritized by households as income stabilizes or increases. Admittedly, the legality of such connections is often murky at best, but it is nonetheless an indicator of a household’s day-to-day income situation.

Because extreme poverty is relative, we must look at each case in the context of a larger community. Geography and surroundings play an important role in determining the common minimum threshold for a poverty measure or even if the measure will prove to be valuable in providing insights into the extent of deprivation. Therefore, the goal of poverty measurement should not be to create a one-size-fits-all multidimensional index but rather a set of robust indicators that is most relevant to the local context. While this route may not allow for seamless cross comparison, it is successful in achieving a high degree of universality.

---

[1]Ravillion et. al (2008). Dollar a Day revisited, http://www-wds.worldbank.org/servlet/WDSContentServer/WDSP/IB/2008/09/02/000158349_20080902095754/Rendered/PDF/wps4620.pdf

[2]Depth of poverty is related to the extent by which a household falls below the poverty line threshold.

[3]Households also show movement out of poverty to fall back again due to external shocks (for example, detection of an ailment with prolonged treatment, natural calamities etc.)

[4]For a richer discussion on this refer to http://www.ers.usda.gov/publications/err-economic-research-report/err89.aspx

What We're Reading June 2014: Let's See Action

A few interesting articles and a podcast from around the internet.

Economic Times "What is holding back the social entrepreneur?" (15 May 2014)

Exhibit A for the “too much money is chasing too few entrepreneurs” case:

“An April 2014 study by Intellecap, a strategy advisory firm, highlights the gravity of the situation. Of the $1.6 billion invested in social enterprises since 2000, around 70% was in the financial inclusion space (both microfinance and non-microfinance). Of the investments that went into other sectors—including agriculture, energy, education, healthcare and livelihoods—about 67% was in just 15 enterprises.”

The article also does a great job of breaking down fund economics to explain why more patient investments in ecosystem are virtually impossible. Overall, it is a great look at the challenges faced by early stage entrepreneurs in India.

New York Times “Upscale Dairies Grow in India, Promising Safer Milk” (3 June 2014) 

This article is a nice look at how small investments in quality control and chain of custody management allow dairy companies and farmers to profit more from their efforts.

The connection between pro-poor business models and higher-end goods is growing. Here in Seattle, we have Theo Chocolate, a company that is working hard to create maximum social benefit in their supply chain. To absorb the higher costs Theo has had to create a $4 chocolate bar but rather than cutting costs, the company’s founder Joe Whinney has set out to create the best darn luxury bar he can. And Theo is not alone – the work Arthur Karuletwa is doing with Starbucks is very much in the same spirit

Outlook Business "Social Entrepreneurs Are Reinventing The Wheel" (24 May 2014) 

This is a fascinating interview with Intellecap’s Aparajita Agarwal as she talks about social enterprise in India, the differences from working in Africa, and the constant battle entrepreneurs face when they’re trying to differentiate themselves.

Most interesting for me was the point about entrepreneurs trying to make their idea feel truly unique. I suspect much of this need is driven by interactions with impact investors and the benefit narrative those investors are trying to build around their work. Unlike traditional investors who can look simply at the financials and management team in their due diligence, self-defined impact investors often need to have their imagination captured by the social benefits of the business. As such, entrepreneurs often try to tell a story about how their product or service is “revolutionary” or “innovative,” when the reality is that their business might be most socially beneficial and profitable if they could focus their efforts on the fundamentals.

There is a saying that has been floating around Upaya for a long time that seems relevant here – sometimes a business is not innovative for what it is doing, but for where it is doing it. This interview shows we might not be alone in that thinking.

Do You Want More Upaya? Well You're in Luck!

The re-launch of upayasv.org is more than just new layouts, photos and fonts. It also is an opportunity for us to bring a new voice into the global conversation about ultra poverty, employment, and entrepreneurship. 

The people who make up the Upaya team each bring a unique set of experiences and perspectives to the organization. I would say twice a week I wake up to an email with some article, video, or podcast that one of my colleagues is struck by, and it usually sparks a fascinating dialog among people looking at a single issue from a variety of different angles. Think of it as a cross between Squawk Box, Stanford Social Innovation Review, and Guy Kawasaki’s How to Change the World blog, with a dash of boringdevelopment.com thrown in for a bit of pragmatism and humor. We always thought that one fine day we would  start sharing these conversations with the world, and that day has now come.

So what can you expect from this blog? More than anything, it will be a candid look at the conversation around a new approach to extreme poverty alleviation. Sometimes the conversation will be more academic, other times it will be more casual, but it will always give you an opportunity to learn something new. We will write for entrepreneurs and investors, students and social innovators, philanthropists and philosophers alike, and welcome all readers to share their thoughts in the comments section.

As we set out, we have four types of posts in mind:

1. “What We’re Seeing” - a list of three interesting articles, multimedia pieces, and events that caught our attention, along with a few lines about what makes them interesting. 
2. “New Frontiers” - As an organization we’re committed to getting beyond the metros and into communities to learn about new opportunities, and we’re happy to bring readers along on that journey. A member of the Upaya team will profile an industry or geography where we feel there is potential for job creation and explain why. 
3. “Best Practices” - from our work with our current partners and conversations with peers, we’re constantly learning about the issues entrepreneurs face and new tools to help them be successful.  
4. “Counterpoint” - Real change requires challenging current assumptions, and as an organization Upaya is not afraid to do just that. If we read or hear something we disagree with in the fields of development, entrepreneurship, or philanthropy, we’ll talk about it. We’re not afraid to take an unpopular opinion, but are always considerate of differing opinions.

One last promise - you have my word that this will not just be a megaphone for updates about Upaya. That what our News page is for. This blog is a place where we can stretch our legs, talk about critical issues, and hear from those who are interested in the same issues we are.

So there you have it. We’ll try to post a few times a month to start, and more frequently as we continue to grow. Questions and comments are always welcome - just give us a shout.

- Steve

Tamul Plates CEO Arindam Dasgupta featured in Entrepreneur Magazine

Upaya partner Tamul Plates and its CEO Arindam Dasgupta were featured in this month's edition of Entrepreneur magazine. 

Click to read more.

Upaya Profiled on Stanford Social Innovation Review

Upaya was honored to have longtime supporter Suzanne Skees join our most recent visit to our partners in Assam and Uttar Pradesh. 

You can read about her trip and what we all learned on the Stanford Social Innovation Review blog.

2013 Annual Report Now Available

Click to Download

With 2013 in the books, it is time to take a look back at a year of growth for Upaya.

Click the image to download the organization's 2013 Annual Report.

Editorial for moneyspentwell.org: Strengthening the silk industry and its workers

This article was originally published 7 April 2014 on moneyspentwell.org.

The sleepy town of Bhagalpur, India, is famous for two things – fertile lands and fine silks. The second largest city in Bihar, Bhagalpur has earned the title of ‘Silk City’ for the high quality of Tussar Silk – a high-luster, strong, lightweight copper silk that wears very well in tropical heat, most valuable when woven by hand. Weaving in Bhagalpur is an art that has been passed on for generations. Working on large wooden pit-style looms found across the city that have been with families for decades, parents share the secrets of crafting fine Tussar Silk scarves and sarees. In fact, there are an estimated 30,000 handloom weavers and about 25,000 handlooms in Bhagalpur.

A silk weaver at his loom in Bhagalpur, Bihar, India. Courtesy: Upaya SV.

However, Tussar Silk weaving is also a dying trade in Bhagalpur as the majority of those 25,000 looms sit idle, unable to provide a livelihood for their owners. It is estimated that that market for sarees in the country stands at $2 billion and poised to grow, but the move to less delicate power looms and an influx of cheap imported chinese silks have flooded the domestic saree market.

Even in the face of this competition, a niche market that values handcrafted products remains. However, exploitative supply chains and a lack of market linkages to wholesale buyers have made it impossible for weavers to earn a viable and dependable living from their work. As such, the average weaver earns less than 25% of the final sale price of a saree that takes weeks to create. Furthermore, without continual skill-building and access to new materials, there is no way for the weavers to build skills needed to meet changing consumer trends and preferences.

Bhagalpur itself has seen very little industrial development, resulting in widespread migration to other parts of the country. As a result many weavers have left the trade altogether, migrating to urban centers to find construction work or taking up farming far from Bhagalpur. In fact, in 2004 the Government of India named Bhagalpur in the list of country’s 250 most backward (note: poor) districts (of a total of 640).

Those who continue weaving do so part time, cobbling together manual labor jobs and other unskilled activities to earn a living. One recent survey has indicated that most weaving households live on less than Rs. 3000 ($50) each month.

Compounding this situation is the fact that payments received from middlemen – local traders intent on buying products as cheaply as possible, regardless of their quality – are opaque and erratic.  Many weavers complain that, not only do they not receive payment that they deserve, and are forced to make multiple visits to these middlemen to get their due. Facing the prospect of being seen as “troublesome” and losing their current source of livelihood, many do not pursue the matter and allow the cycle of exploitation to continue.

Eco Kargha weaver prepares bobbins of silk thread in Bhagalpur, Bihar, India. Courtesy: Upaya SV

In November 2012, Upaya Social Ventures initiated a partnership with Bhagalpur based start-up Eco Kargha Marketing Private Limited headed by Dr. Ravi Chandra, a passionate Bihar native with a strong desire to see his state thrive. Hailing from the capital city of Patna, Ravi has worked tirelessly to create institutions in Bihar that can effect large scale economic growth and development in the state.

Eco Kargha was set up to improve the quality of life for rural weavers by providing the linkages and resources for the modernization of the ailing traditional handloom industry. The company trains marginalized Tussar Silk weavers on new skills, techniques, equipment and designs for producing high quality products for the modern retail marketplace. Eco Kargha also manages relationships with large national retailers such as Fab India and ANS Exports, bringing in bulk orders and ensuring that weavers can earn a full-time living from their work at the loom.

“Customers across India know the quality of Tussar Silks and are ready to pay handsomely for them. Weavers in Bhagalpur are extremely talented and ready to produce the garments. All we are doing is bringing those producers and consumers together in a beneficial way,” said Dr. Chandra.

The company is able to break the stranglehold that middlemen and traders have on the industry by directly working with the artisans. By forming formal weaver groups with a master weaver at helm, these groups in collective are ensured of a steady stream of work and greater bargaining power. Through normalizing payments and improving transparency, Eco Kargha is tilting the economics of weaving back in the favor of the weavers. It has also worked to provide additional services – opening bank accounts, obtaining medical insurance cards – to these weavers through partnerships with existing Central and State Government programs.

In one year of operations it has been successful in earning revenues of over Rs. 80 lakhs ($130,000) by selling fabric, sarees and scarves to large export houses and established retail chains throughout India. To increase its footprint Eco Kargha has spent considerable time and effort on a conscious blend of B2B and B2C sales. The company has also launched Eco Stree, its in house brand of saree and scarves. Through their work they have been able to provide steady and predictable source of employment for over 100 weavers and increase their income levels by almost 50%.

One of the biggest pain points for Eco Kargha and other businesses that work directly with weavers is the high requirement for working capital.  A big component of the raw materials costs is the cost of yarn and dyes. This upfront advance payment constitutes almost 50% of the value of the order processed, but puts a strain on the company’s cash reserves. Due to the early stage of the company, financial institutions and lenders are reluctant to extend a line of credit.

Eco Kargha also faces the challenge of breaking into a saree market that has been dominated by a handful big players for decades. India’s saree market is estimated to generate $2 billion per year in sales and is projected to grow at 8.5% per annum. Within that market, Bhagalpur-made Tussar Silks remain a specialty product despite their nationwide renown. To tap this behemoth industry with deep-rooted interests is a challenge. To overcome the obstacles, Eco Kargha is assembling a professional and dynamic sales team with the right blend of industry experience and fresh talent.

Eco Kargha is projecting a growth rate of over 100% over the next two years, however, it will require equity investment up to $200,000 and an additional $160,000 in working capital debt to meet its goals.  The investment will allow Eco Kargha not only to ramp up its production capacity, but also to build infrastructure like dying units and establish a retail brand presence that will further enhance its competitive edge. Best of all, if Eco Kargha’s growth continues as projected, the company will be able to provide dignified employment to over 500 weavers and provide their families with a real path out of extreme poverty.

Upaya Presents at Harvard Social Enterprise Conference 2014

On March 30th Upaya board member Caroline Vance presented the organization’s work at the Harvard Social Enterprise Conference 2014 on a panel titled “Sustainable Businesses to Empower the Poor.”

Joining Caroline on the panel were leaders from across the social enterprise space including Jaipur Rugs Inc. President Asha Chaudhary, One Acre Fund USA Managing Director Matthew Forti, and Tugende Co-Founder and CEO Michael Wilkerson. The session was moderated by the Clinton Global Initiative’s Head of Market-Based Approaches Bulbul Gupta.

“The panel went great, and the standing room only audience was really engaged,” said Upaya Board Member Caroline Vance. “People were really into Upaya's model, and it was such a joy for me to tell the story,” said Vance.

Attended by Harvard students and faculty, the conference bills itself as “one of the world’s leading forums to explore the intersection of business and social impact.” Entirely student-run, the conference was jointly hosted by students from the Harvard Business School and the Harvard Kennedy School of Government. The theme for the 15th Anniversary of the Social Enterprise Conference was “Reflecting on the Past, Shaping the Future.”

Upaya board member Caroline Vance (left) presents on March 30th at the Harvard Social Enterprise Conference 2014

Tamul Plates Named Winner of NSDC 2014 “Power to Empower” Challenge

Upaya congratulates Tamul Plates CEO Arindam Dasgupta for winning the National Skill Development Corporation (NSDC) and India@75 “Power to Empower 2013 Challenge” (P2E 2013). 

“Winning this award is a great recognition of all the hard work Arindam and his team have put into growing Tamul Plates and the Tambul Plates brand,” said Upaya’s Director, Business Development Sreejith Nedumpully. “Not only is Tamul Plates building new skills in rural communities across the North East, but the company is ensuring that those who do gain new skills have a direct opportunity to earn a steady livelihood from them,” said Nedumpully.

Tamul Plates was selected for Upaya's LiftUP Project initiative in December 2013, a choice that has resulted in equity funding and ongoing business development advisory support for the Barpeta, Assam-based company.

With this win Tamul Plates receives a cash gift from the Muthoot Pappachan Foundation. Additionally, Tamul Plates will gain access to the capacity building Empretec program (an initiative of the United Nations Conference on Trade and Development), along with admission to the iDiya program at Indian School of Business (ISB) Hyderabad and to the upcoming Diffusion workshop at ISB. Each of these forums will provide increased visibility for the company, its palm leaf plates and bowls, and its innovative technology for producing the highest quality disposable dinnerware products.

Tamul Plates CEO Arindam Dasgupta (left) receives the first place prize at the Power to Empower 2013 Challenge

Catch Upaya Onstage at Sankalp Unconvention Summit 2014!

Upaya's Sreejith Nedumpully will join a panel of industry leaders to discuss the experience of supporting promising entrepreneurs in their earliest days.

Bridging the Pioneer Gap: Are We Meeting the Needs of Social Startups & What Can We Do Better?

11:45 AM - 1:15 PM, April 11 2014

Grand Ballroom A3

Hotel Renaissance, Powai, Mumbai

Over the past few years we have heard the conversation about the needs of businesses in the “Pioneer Gap“ reach a fever pitch – particularly in a frothy impact investment market that finds itself starving for more established, less risky opportunities. At the same time, a chorus of ambitious social entrepreneurs with promising models talks about finding themselves in a desert of funding and advisory support. The reality is that, if we rely on traditional venture capital models, most social investment funds will be financially unable to find, fund, and advise these companies in their infancy.

With the majority of these entrepreneurs exhausting their limited runways long before their transformative potential can be realized, there is a strong need to mobilize our peers and create an ecosystem for Pioneering Capital to fill the gap. The assembled panel will explore what’s working, what’s not, and what steps the sector can take to mobilize more resources for the next generation of effective social enterprises.

Moderator:

Ashish Karamchandani, Partner, Monitor Group

Speakers:

Sreejith Nedumpully, Director, Business Development Upaya Social Ventures

Harish Hande, MD, SELCO

Aditi Shrivastava, Head, Intellecap Impact Investment Network

Simon Desjardins, Programme Manager, Shell Foundation

Paul Breloff, Managing Director, Accion Venture Lab

Elrhino and Upaya Social Ventures Come Together to Create Jobs, Protect Wildlife in Assam

Upaya Social Ventures is proud to announce that it has begun work with Guwahati, Assam-based Elrhino, a promising venture with an unlikely product - handcrafted luxury paper, stationery products, and packaging materials made from recycled rhinoceros and elephant dung and other natural waste. The company will receive seed capital and ongoing business development support from Upaya through the latter’s LiftUP Project framework.

Elrhino manages the entire dung paper production chain including collection, preparation, processing, and sale of finished dung paper goods. The company is led by Nisha Bora, a young Assam native who is building on the work begun by her father over three years ago to create new livelihoods and increase the value of rhinoceros and elephants to local villagers. In the two years since its creation, Elrhino has made its mark in the Indian market as well as in France, and has created significant brand equity.

“We started Elrhino because we wanted to see Assam and its rhinos thrive,” said Elrhino CEO Nisha Bora. “We are creating opportunities for people to earn a truly sustainable living, one that provides economic stability for families and encourages people to preserve the natural habitats of these great animals,” said Bora.

Elrhino sees opportunities to create jobs for and build the skills of people - in the rural areas around Guwahati and the reserve forests of Assam. With its current infrastructure, Elrhino has the capacity to produce 15 tonnes of paper per year, which at capacity will equate to approximately 100 full-time jobs in paper processing and an additional 500 part-time jobs through a combination of resource collection and value-add production.

“We are committed to creating rural livelihoods and a skilled workforce in Assam,” said Sreejith Nedumpully, Upaya’s Director, Business Development. “At Elrhino, people learn two skill sets: how to make paper, and how to convert paper into products. We are very excited by the job creation potential in both areas,” Nedumpully said.

While Elrhino is Upaya’s sixth overall investment and second partnership in Assam, Nisha Bora is the first female entrepreneur in Upaya’s LiftUP Project network.

“Trust is a critical element of building successful companies in ultra poor communities, and across our portfolio we have seen a unique trust dynamic emerge between female managers and the women who work for the company,” said Nedumpully. “While she is the first woman leader we’ve partnered with, she will certainly not be the last,” he said.

Upaya's Sreejith Nedumpully Joined By Several LiftUP Project Partners at 3rd Annual Action for India Forum

This January Upaya's Director, Business Development Sreejith Nedumpully travelled to Delhi to participate in the 3rd Annual Action for India forum. The two-day, invitation-only national conference brought together 100 leading social innovators with an equal number of donors, technology leaders, impact investors, and senior government officials.

At the event Sreejith was joined by many of Upaya's LiftUP Project partners including Dr. Ravi Chandra of Eco Kargha, Swapnil Chaturvedi of Samagra, and Ajaya Mohapatra of Justrojgar.

"The forum was a wonderful opportunity for Upaya to meet the best of India's emerging and established social entrepreneurs, and to introduce our current LiftUP Project partners to the country's leading supporters of social innovation," said Nedumpully.

This year's forum was headlined by leaders from across the spectrum of Indian innovation and industry including Mr. Sam Pitroda, Mr. Desh Deshpande, and Mr. R Chandrasekaran.

December Newsletter: 1,139 Jobs and Counting!

Today, I am proud to share Upaya’s latest milestone - as of this week, our five LiftUP Project partners are collectively employing over 1,100 people!

Combining the continued growth of our early partners with the addition of Samagra and Tamul Plates to our LiftUP Project, Upaya has seen the number of people employed by its partners more than double since the spring.

Click here to read Upaya's quarterly newsletter and learn more!

Tamul Plates Teams With Upaya to Expand Arecanut Tableware Production Across Northeast India

Assam-based natural dinnerware producer Tamul Plates Marketing Pvt. Ltd. is pleased to announce that it has received a seed investment from Upaya Social Ventures through Upaya’s LiftUP Project. Based in the Barpeta District of Assam, Tamul Plates produces and markets high-quality, all-natural disposable plates and bowls made from arecanut (palm) tree leaves under the “Tambul Leaf Plates” brand.

Disposable arecanut dinnerware is hygienic, chemical-free, compostable, microwave safe, and in high demand among urban consumers around the world.

The production and sale of natural arecanut dinnerware not only reduces the deforestation and pollution associated with the production of traditional disposable dishes, but also provides a viable livelihood to disadvantaged communities.

“Unemployment is the root cause of so many problems plaguing the Northeast today, and Tamul Plates was launched to create new opportunities for rural youth to earn a dependable income,” said Tamul Plates CEO Arindam Dasgupta. “We feel that this partnership with Upaya affords us the resources needed to expand our operations and be a positive economic force in these communities,” said Dasgupta.

Tamul Plates produces dinnerware through a network of affiliates across tribal regions of Northeast India. The company ensures that each affiliate has the skills and machinery needed to produce superior-quality dinnerware. These affiliates are located in communities otherwise struggling with stubbornly high rates of unemployment, especially as heavy annual monsoons and floods diminish the ability of farmers to earn a dependable income from conventional agriculture alone.

Two men work a pair of presses in a community-run Tamul Plates production unit.

A woman cleans recently collected arecanut leaves to prepare them for pressing.

“There are more than 100,000 hectares of arecanut plantation in Northeast India - one of the poorest and most backward areas of the country - but there is virtually no one connecting these small farmers to the equipment and support needed to produce high-quality disposable arecanut leaf dinnerware,” said Upaya’s Director, Business Development Sreejith Nedumpully. “Upaya is very excited to be working with Arindam and his team as we believe they can provide those services and be a major employer in poor tribal communities across the Northeast,” said Nedumpully.

The International Foundation Announces Grant Support to Upaya

Upaya Social Ventures has been selected by the trustees of The International Foundation to receive grant funding to support the organization’s LiftUP Project work.

Supporting world-wide development since its founding in 1948, the International Foundation continually looks for opportunities to learn from experience and to gain an understanding of what produces satisfactory results in the promotion of sustainable development.

Upaya Bolsters India Team With Addition of Tanya Jairaj as Director, Strategy & Operations

Upaya Social Ventures is thrilled to welcome Tanya Jairaj as the organization’s Director, Strategy & Operations. Based in Bangalore, Tanya will complement Upaya’s current leadership in India by overseeing the organization’s domestic operations, expanding its social performance capability, leading local outreach and brand-building, and contributing to the success of Upaya’s LiftUP Project partnerships.

“I am excited to be joining an organization with such a unique approach to meeting the basic needs of the very poorest,” said Jairaj. “I’ve spent the majority of my career promoting real change for those facing the injustices produced by extreme poverty, and believe Upaya’s work can have a very positive impact on India’s neediest communities,” she said.

A trained lawyer with experience litigating civil and consumer cases in Indian courts, Tanya has spent the last 10 years working in the development space in areas of good governance, education, women's and children's rights.

“From the first conversation we were impressed with Tanya's passion and desire to make a difference in the lives of the ultra poor,” said Upaya’s Executive Sachi Shenoy. “As we enter the next phase of the organization’s growth, we believe that Tanya’s unique blend of skills and experiences will be a tremendous asset to Upaya, its partners, and all those we are working to serve,” said Shenoy.

Prior to joining Upaya, Tanya was a Rural Business Development Advisor with Sun Edison, one of the world’s largest solar development and management companies. This followed several years with Ashoka: Innovators for the Public where she set up an initiative that gave access to social entrepreneurs to high quality legal services, helped law firms in India systematise pro bono lawyering into their practice, and managed a fellowship program that has since engaged more than 350 Ashoka Fellows. Tanya holds a B.A.LL.B, Law from University Law College.

With this addition, Tanya is taking over the title of Director, Strategy & Operations from Upaya Co-Founder Steve Schwartz, a move that reflects Upaya’s expansion of its India-based team and infrastructure. Steve is transitioning to Director, External Relations where he will lead the organization’s fundraising and outreach efforts, as well as continue providing ongoing strategic marketing support to Upaya's partners. 

Eco Kargha Baseline Social Metrics Report (November 2013)

In November 2012, Upaya initiated a partnership with Bhagalpur-based start-up Eco Kargha Marketing Pvt. Ltd., a company working to improve the lives of rural weavers through the production and sales of traditional handloom products. Surveyed in mid-2013, this Baseline Social Metrics report provides a snapshot of social metrics for 119 weavers working with Eco Kargha at the time of their hire, serving as a baseline for reporting their progress out of poverty.

The data in this report was collected before these households started their employment with Eco Kargha, and prior to receiving their new income stream. Before Eco Kargha was established, the only option open to these weavers was to sell their products to local wholesale agents and receive devastatingly low margins and irregular payments. Due to the uncertainty of demand from these traders they would end up with little to no work - especially in the summer months.

Among the report’s findings:

• While only 15% of households live under the $1.25 a day extreme poverty line, the per capita earnings are just $0.49 per day for each member of the average five-person household.
• For most of the households weaving not only employs a majority of their family members, but its contribution in the family pool of income is also the highest.
• The majority of houses include one form of sturdy building material – either wall or roof – however 89% are categorized as “semi-pucca,” meaning that quality materials are augmented with mud or thatch.
• Food expenditures consume 85% of the average weaving household income, which is 30 percentage points higher than the Indian national average.

The business generated by Eco Kargha comes as a shot in the arm for weaving households, increasing household earnings and allowing them to rely on their craft as their primary source of income, year round. Subsequent metrics reports will track these households’ progress and report on improvements in their quality of life as a result of these new jobs.

You can download the full report here.

Upaya Announces Collaboration with the Bill & Melinda Gates Foundation, Samagra

Starting in November 2013, Upaya Social Ventures and the Bill & Melinda Gates Foundation are teaming up to incubate a Foundation-backed urban sanitation venture within Upaya's LiftUP Project framework.

Through this collaboration, members of the Upaya team will work with the founder of Pune-based Samagra to explore and refine the promising start-up's business model, and prepare the venture for follow-on growth funding.

Upaya Transitions Out of its LiftUP Project Partnership with Justrojgar

Upaya has decided to wind down its LiftUP Project partnership with Delhi-based Justrojgar following a difference with management about operating practices. With this change, Upaya will continue to hold its equity position in the company, however, the Upaya team will no longer provide technical support that is central to its LiftUP Project partnerships.

“While we are altering the structure of our partnership with Justrojgar, we maintain our fundamental belief that the facilities management sector - both commercial and residential - represents a tremendous opportunity to create large-scale employment for ultra poor slumdwellers” said Upaya Director, Business Development Sreejith Nedumpully.