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India: Creating rural entrepreneurs

30 000 Shakti entrepreneurs reach 100 000 villages.

Woman carrying boxHelping women, creating entrepreneurs

Rojamma is a single parent living in Kurumurthy, a small village in the Indian state of Andhra Pradesh. When her husband left her, she earned a few rupees working in her mother's field but found it difficult to support her two daughters. Then she joined a women's self-help group and found out about Project Shakti. "From that moment my life changed", recalls Rojamma. 

To expand its markets, the challenge for Hindustan Lever (Unilever's business in India) was how to reach millions of potential consumers in small remote villages where there is no retail distribution network, no advertising coverage, and poor roads and transport. 

Women smilingThe solution was Project Shakti, launched in 2000 in partnership with non governmental organisations, banks and government. Women in self-help groups across India are invited to become direct-to-consumer sales distributors for Hindustan Lever’s soaps and shampoos. The company provides training in selling, commercial knowledge and bookkeeping to help them become micro-entrepreneurs.

Woman smilingIncreasing income

After an initial investment in stock - usually borrowing from self-help groups or micro-finance banks facilitated by Hindustan Lever - most Shakti entrepreneurs net a monthly profit of 700 - 1 000 rupees (US$15 - 22). This is a far cry from the few rupees single mothers like Rojamma had earned before, and for those with husbands who work in the fields, this typically doubles the household income. 

Indian womenBy the end of 2004, over 13 000 women entrepreneurs were selling to 70 million consumers in 12 states (a 30% increase in rural population reached by Hindustan Lever). By the end of 2006, 30 000 Shakti entrepreneurs reached 100 000 villages in 15 states. Shakti has brought them self-esteem, a sense of empowerment and a place in society. As Rojamma says: "When my husband left me I had nothing except my daughters. Today everyone knows me. I am someone now". It has meant she has been able to send her daughters to school, giving them the chance in life she didn't have.

Find out more from Rojamma's story on video, read the full story in the pdf below or visit the Shakti website.