Rural Entrepreneur Kalpana Mali Grows Cold-Pressed Oil Sales

Kalpana Mali, a graduate by qualification, found herself in a position many of us may relate to — desperately searching for a job to support her family. Despite her relentless efforts, she couldn't secure employment. It was during this period of uncertainty that Kalpana turned to the vast world of YouTube. There, she discovered the process of making cold-pressed oil, a venture that piqued her interest and seemed like a promising opportunity. However, her journey wasn’t easy.

Women-led businesses play a critical role in India’s socioeconomic development. According to a recent report, Micro, Small and Medium Enterprises (MSMEs) owned by women hired 11% more women employees than male-owned enterprises, and one-third of all new jobs created by women-owned MSMEs went to women. Along with boosting local economies, such trends have the potential to further financial inclusion and ensure gender parity in the Indian workforce. 

Recent data suggests that MSMEs owned and led by women constitute 20.5% of the total registered MSMEs in India, though their contribution to employment generation and investment continues to be low at 18.73% and 11.15%. This highlights the need for more workable solutions to unlock their true potential.  

Thanks to sustained efforts by the government and private sector through policy interventions and training and development programs, there’s been a significant shift in the traditional mindset, leading to more women from small towns and villages embarking on their entrepreneurial journeys. However, challenges, such as financial illiteracy, lack of access to formal credit, and limited awareness about the government support schemes make it harder for them to find their way in the business space.

The big financial hurdle

Research indicates that businesses founded by women yield higher returns for investors, potentially contributing up to $5 trillion to the global economy each year. However, despite this substantial market opportunity, many women-led MSMEs encounter financial management challenges that impede their growth. In the absence of financial literacy and training, women entrepreneurs are not able to master the art of financial planning, budgeting, and cash flow management, which has a bearing on their business prospects. 

For those who manage to get past this hurdle, the next big challenge is to obtain cost-effective credit from formal channels. Till date, many financial institutions perceive women entrepreneurs as ‘higher risk’ owing to prevailing gender biases and lack of collaterals. According to a recent study titled ‘Bharat Women Aspiration Index Report’ by Tide, a UK-based financial platform, nearly 47% of women entrepreneurs operating in the Indian MSME sector face huge challenges in accessing financial credit.

The lack of platforms to connect them with financial institutions, investors, and support networks that can provide them the necessary capital and advisory services aggravates the problem. This, when combined with limited knowledge about government welfare program, only makes their growth journey harder. The Tide report observes that almost 95% of women are not aware of various government schemes that can provide financial support for their businesses, resulting in their continued dependence on informal lenders. 

With no support from her family, who were skeptical due to the need for expensive machinery and raw materials, Kalpana faced a significant hurdle: being a first-time borrower, she had no credit score. This made it incredibly difficult to secure a loan from banks. Undeterred, and with a heart full of resolve, Kalpana mortgaged her gold, took a loan from Mann Deshi Mahila Sahakari Bank, and embarked on her entrepreneurial journey. 

The digital route

To overcome the traditional hurdles faced by women entrepreneurs, taking the digital route can be a game-changer. Digitalization equips women-led enterprises with the tools and resources to access finance, expand their market reach, manage their businesses efficiently, and compete in a dynamic environment. Further, digital platforms provide them with easy access to a vast wealth of information, enabling them to manage their finances better, improve budgeting, and optimize cash flow to make operations more profitable and sustainable. 

To sidestep the cumbersome procedures in the traditional banking system, women entrepreneurs can rely on digital banking and fintech solutions to access credit and other important financial services quickly and easily. For instance, digital lending platforms streamline the loan application process, making it literally seamless by eliminating the need to visit a physical branch and perform extensive paperwork. These platforms often use alternative credit scoring methods, allowing applicants without traditional credit histories to secure funding. 

Additionally, access to digital payments can enable women entrepreneurs to pay and get paid instantly, with enhanced transparency and security. This can also help them expand their business to markets outside their native town or village and build a solid digital footprint for future financial requirements.      

As Kalpana’s business started to grow, she joined Mann Deshi’s Chambers of Commerce which enabled her to obtain an FSSAI license and focus on branding and packaging of her products. Her participation in exhibitions and commitment to both B2C and B2B sales began to pay off.

Kalpana quickly realized the importance of digital marketing, but the registration fees for online platforms were prohibitively expensive for small rural businesses. A breakthrough came with the Mann Deshi Foundation’s partnership with ONDC, which enabled Kalpana to register her business on the ONDC platform. This expanded her reach beyond Maharashtra, allowing her to sell to consumers across India. Over just four months, she received orders for more than 500 liters of cold-pressed oil, generating Rs 200,000 in revenue.

The way forward

As someone who has dedicated decades of her life to turning women at the grassroots into thriving entrepreneurs and has been instrumental in starting the first rural women’s bank in India, one can say with great certainty that enterprises owned, led, or run by women are more efficient and responsible, and so, they can make a tremendous socioeconomic contribution. 

However, the journey of transforming women and women-led businesses requires a collaborative effort by the government, the private sector, and social sector like the Mann Deshi Foundation. With the help and support of the Mastercard Center for Inclusive Growth,           we have not only enabled credit access for over 30,000 women entrepreneurs but have also helped them build business skills, invest in digital technologies, and connect with potential buyers via e-commerce platforms.    

Kalpana Mali’s journey highlights a critical point. Women like her, armed with nothing but their courage as their capital, have the potential to inspire and transform communities. Kalpana Mali’s journey is a testament to the power of courage and the unwavering belief in one’s potential, which lies within us all.   

Author: Chetna Gala Sinha is Founder, Mann Deshi Foundation & Mann Deshi Mahila Sahakari Bank.