International development?

It has now been almost 9 months since I spent a brief period in Mumbai, India, working with 3 exceptional social enterprises. I work with several social ventures that look to grow and scale; my role is to help them to do so, be that through articulating their value proposition, helping forecast their financial position or measuring the impact they are creating, or in any other way.

One thing that has stuck with me is the cultural differences and the meaning of ‘international development’ and ‘developing economies’ particularly in relation to Indian ventures. On my first evening in Mumbai, I remember vividly a conversation I had with an employee at Grassroutes in which we discussed a developing economy, and the western world’s role in this. He immediately drew attention to my use of the phrase developing economy and asked me what I meant by this. I was referring to the economic growth and GDP. He agreed with me in terms of financial and economic development, but he highlighted the fact that GDP didn’t account for happiness and wellbeing. Indeed the difference between the UK and India seemed vast. Having never been to India before, I saw the levels of poverty and deprivation in the media and wasn’t sure how I would react when confronted directly with this. I spent time with a venture based in slums, and what struck me was that on the whole people seemed content, even happy. What defines happiness? In the west, too often it seems that this is based on material possessions, with people feeling a sense of entitlement, something which isn’t present in the mentality in India from what I could see. Instead people were happy as they were together and had a sense of community. I mentioned this to one International Development Student who claimed that this was just because these people ‘didn’t know any better’ and that they didn’t have access to the same resources. Personally I felt that this was incredibly short sighted. Who are we to say what is ‘better’? And I remember visiting one slum, and although there was 1 toilet to hundreds of people, everyone had a smartphone – a very good indication as to why technology companies see such potential in India.

This ‘not knowing any better’ view was firmly disproved to me during this conversation with the Grassroutes employee. He recounted a story of a small village in India in which the women had to walk for 10 miles a day to find fresh water. Based on our conditions and standard of life in the west, we saw this as a terrible situation to be in (of course there are several problems with this from a hygiene perspective). Funds were raised and a fresh water well was built in this village. Women no longer had to walk 10 miles to fetch fresh water, instead they had it, literally, on tap. However, what wasn’t accounted for was the cultural effect this would have. The level of suicides among women increased in this village. Given the cultural situation in this particular village, women weren’t able to actively travel without purpose. This meant that they lost the 10 mile walk during which they would meet friends and speak. Instead they were now socially isolated within their homes for several hours a day, which was seen to be the reason for the increased suicides.

One venture I work with is run by someone of Indian decent. The concept was to get people to eat more healthy food as a family. Although after research and piloting, they found that there wasn’t a market due to pretty significant cultural differences – the UK has very different social eating habits. As a result they had to completely re-evaluate their proposition and pivot.

The purpose of this post isn’t to criticise behaviour or attitudes, but more to highlight differences and the need for an open mind. Simply because we live in the western world and see ourselves as more developed, doesn’t mean that we need to enforce that upon others.

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The Indian Adventure: Mirakle Couriers

Before working with the third and final social enterprise, I had the opportunity to meet some of Senior Management Team from RBS India, who had worked with RBS in the UK to recruit and deliver individuals to work with these high potential social enterprises on this consultancy project. I also had the chance to meet the Directorate of India’s UKTI, again providing a valuable insight into how business is done in India and how quickly the economy is emerging and growing in line with the UK.

The third venture was Mirakle Couriers. Mirakle Couriers is a delivery company which only employs deaf people. In India, there is still a view, which would be considered dated in the UK, that people with a disability are socially inferior. For obvious reasons this can mean that people who are born deaf never have the opportunity to get employment and the opportunity to develop real life skills and live normal lives in this sense. By basing their service on this group of people, they buck the trend and have already seen some fantastic results, both from the employees and from those using the courier service.

Through the use of writing boards, employees can deliver packages in the same way as any other courier service, but with the added benefit of breaking down this social perception, enhancing the employability of their staff and removing the social isolation which can occur with this group. In fact, the service has been so successful that many clients believe that the personal service offered by Mirakle Couriers outweighs that of the major players in the sector.

There were certainly synergies between the challenges faced by Mirakle Couriers and the other social enterprises I had worked with in India – in fact, many UK social enterprises encounter the same issue; namely, that of branding. There is often a difficult trade-off between promoting an organisation’s social values and the underlying theory of change which provides the foundations for the enterprise and the quality of product or service. Often the additional social element can create a competitive advantage from other competitors in that sector, although similarly it can be a deterrent. In Mirakle Courier’s case, given the social perceptions of people with disabilities in India, many potential clients wouldn’t use the service for this reason. However, all those who used the service felt that it was an efficient, personable and reliable service.

In general terms, given how strongly the Founders can feel about their social mission, promoting the enterprise purely based on the quality of the product or service delivered rather than the social aims can be challenging. But in this case, as in many others, this would increase the demand for the service, which in turn contributes towards the social objectives; the more people who use the service, the more deaf people they can employ and the further this group can enhance their skills. Ultimately this is what was suggested, and then worked on with Mirakle Couriers.

This topic has created much debate in the social enterprise arena, but what Company Directors must ask themselves is: do they want to deliver as much of their social good as possible, even if it means not fully promoting their cause, or do they want to fully advertise their social objectives and attempt to increase awareness for the issue, even if it means lower sales?

This blog is also available on the Kindle Store and you can follow me on Twitter (@benpfsmith) to find out more or get in touch

The Indian Adventure: the beginning

Gateway to IndiaHaving had the opportunity to live and work in France and Italy, when I was given the chance by RBS and Birmingham Leadership Foundation to go to India to work with three growing social enterprises as a consultant, I didn’t need to be asked twice!

Arriving at Mumbai International airport following a 10 hour flight via Istanbul – which seemed more like a street market than an airport: people everywhere with no real sense of where anything was – I was initially struck by the humidity. I finally got through immigration and out of the airport at 6am local time, the heat and humidity punching me in the face. It was then that I had my first experience of Indian roads…lunacy! Considering the time, in the UK the roads would be quite empty, not so in India. Cars littered the road and the sound of constant honking was alien to me. I’m told that people drive on the left-hand side of the road in India, although I remain unconvinced. However, I quickly adapted to this element of Indian life, and in fact, it soon became a highlight of my day. Fortunately I had a driver to take me to meetings and other locations; but the thrill of not quite knowing if I would reach my destination was quite exhilarating. Although the accommodation was located in Bandra East, most of our time was spent in Mumbai. I had arrived on a Saturday, so Sunday provided an opportunity to adjust, being given a guided tour of the vast city centre. This also gave me my first taste of the market stalls and bartering culture, something I found incredibly enjoyable.

Monday was the first day with company number one: Under the Mango Tree. They attempted to increase the production of fruit and vegetables for farmers through bee pollination; by selling farmers small bee hives and transforming them into bee keepers. Bees are proven to enhance the growth of fruits and vegetables, thus enhancing revenue for the farmers. Their social mission was clear: enhance food production to reduce hunger in India, a clear problem given the number of people who officially live below the poverty line – roughly 30%, although this is dropping. In order to generate money to support their social mission, they charge farmers for the bee hive units whilst also selling the honey which is produced; although, the bees chosen produce little honey, but are the most efficient in terms of food productivity. They were eager to build brand awareness and ambassadors to spread their word, and after several good sessions working with them, they left with the blueprint for a strategy and I left with a greater understanding of business in India.

This blog is also available on the Kindle Store and you can follow me on Twitter (@benpfsmith) to find out more or get in touch