XIMB: Annual fest ‘Xpressions’ launched

The discussion was started by Mr Ramesh, who at the outset said that he felt that social entrepreneurship and venture capitalism go hand-in-hand. He highlighted that the focus on the issue at hand is relatively new and it is only off-late that venture capitalists (VCs) are moving funds into Micro-Finance Institutions (MFIs), in a big way, because of which, the potential is huge. He said that the general tendency was to use oneas capital for a start-up and the aversion to court outside capital must end and VCs must be courted with greater frequency. He then backed this by stressing the importance of VCs, who not only bring in finance, but valuable expertise as well. He also cautioned that the selection of the VC must be done with care and interest alignment must be given utmost priority. .

Next, Mr Vasudevan told the gathering about the activities of Equitas, which is Indiaas fourth largest and fastest growing MFI. He said that Equitas targets women in urban areas and addresses their credit needs. It also encourages group bonding, which develops a strong social capital which can be used as insurance. He emphasised the importance of credit in improving lifestyle a a fact which has been amply demonstrated by Equitas. However, he cautioned that one needs to think big and have a strong capital backing for oneas ideas to take root and proliferate.

The final speaker was Mr Sudeep Mahapatra, who highlighted in brief the contributions made by Bakul Foundation. He said that one his organisationas important projects were the development of a library for children, which runs only on peopleas contribution, sans funding. Using this example, he said that the most important part was to convey the idea, along with hope, to the people, and the funding would follow. He stressed that funding should not be the primary focus. The idea should be to encourage mobilisation, focus on peopleas strength, and aim to unite them into a strong group.

The conclave closed with Prof. Rajiv Roy giving his final comments on the issue. Although a general consensus could not be arrived at, it was largely accepted that venture capitalists with the proper orientation could make a difference in the social sector. However, the bottom line remains the motivation factor both, with the entrepreneur and the capitalist. Only if they are able to find a common ground, can some effective headway be made. Thus venture capitalism and social entrepreneurship are interdependent only if the dependence can be factored in.