Why social investing?

Investment, even while governed by the greatest prudence, is a tool of hope to help sustain dreams. At times we seek not just aggrandizing of fortune by it but also hope to touch lives, be an initiator of change, a guardian of another’s dream and arrive at a result which is better reflected in the hopeful smile of a fellow human than in profit statements. If the smile is on the face of a person to whom dream realization is nothing short of a miracle, the difference is more telling!

When driven by a passionate desire to see India scale the heights of economic development rapidly and enter the ranks of advanced nations, there are very limited avenues to take to be a participant in the process. How does one become an active participant in the process of development?

Quite clearly, the largest scope for development exists in rural India and here lies the greatest challenge as well. The tools to effect change here in a manner which is personal yet effective and not be a mere contributor to faceless organizations is limited. Most often, the only means available are charities and charitable institutions. While these may address pressing social issues, it offers limited scope to provide self-sustaining solutions and, at times, encourages a culture of dependence. Further, donations or grants are suitable for supporting public and social causes but economic activities need capital and knowledge support.

Rural entrepreneurs face an uphill task of crossing the first threshold of taking an idea beyond the point of an experiment into a successful business. Even limited resources, in terms capital, business knowledge and a certain degree of hand-holding, applied at the right juncture go a long way in transforming local ideas into sustainable businesses.

Support investments, rather than grants, inculcate a discipline that values capital and the need to grow it, through prudent business decisions. This ensures two vital objectives. The ability of the enterprise to grow on its own steam over a period and give back enough to the investing institution to continue effecting change in and through other ventures.

The Rural Innovation Phenomena

To innovate and discover creative solutions is a natural human ability. The limiting factor at most times is lack of resources, which leads to an atmosphere of creative poverty.

The general impression of rural folks, being largely classified as poor, is of people poor in knowledge, innovation, etc.

Experience has shown that nothing could be farther from the truth. Men and woman, in rural India, regularly devise new methods and means to ease the burdens of their daily lives. These "rural innovations" not only improve the productivity and efficiency of local farmers or artisans, but also have significant environmental and social impact by developing eco-friendly "appropriate" solutions to local problems.

The creativity of these innovators and their innovations, at most times, remains confined to their immediate communities. In addition to this, transfer of appropriate technologies from universities and urban research centres to rural areas is far from prolific.

The task is to harness this creative ability for the collective benefit of all rural societies, increase their living standards and most importantly, reward the innovator so that the spirit of innovation grows.