India offers a unique opportunity to social entrepreneurs - use India’s tech expertise to solve social issues through scalable mass-oriented social ventures – says Gururaj 'Desh' Deshpande, the American-Indian serial entrepreneur and venture capitalist.
However entrepreneurs need to bring in more execution prowess into social ventures to create sustainable businesses, Deshpande tells Sudipto Dey. Excerpts:
What are the key gaps in India's start-up ecosystem in the social sector?
Three years ago there was lot of excitement around entrepreneurship. Quality of social entrepreneurs (in India) has gone up a bit. However the concept itself is new to India. However we need more role models.
Indians techies who have worked for other companies and help build corporations have the opportunity to use their knowledge and expertise to solve social issues. Social entrepreneurs need to contextualise their solutions or products to social issue. There is need to have better access to capital and more mentors for such ventures.
Any lessons learnt as an investor from your involvement in the social sector in India?
One of the key learning over the years has been that there are two aspects to any investment in the social sector. For creating an impact on the ground one needs both, a deep social relevance, and innovation. It is very important for a social entrepreneur to start off with a deep understanding of the problem (they are out to solve).
Also, social entrepreneurs have to borrow few strategies from the books of for-profit ventures. In any for-profit venture, solutions have to be paid for by the market. And if they don’t execute well, or scale up, such ventures can die. Social or non-profit ventures have to inculcate the execution skills from for-profit ventures, and scale up their venture to create sustainable businesses.
How should social entrepreneurs strike this balance?
India has three things going for it (in the space of social investing). It has a section of population who are globally competent, and cutting-edge. Secondly, the social and economic divide in the country throws many opportunities for social entrepreneurs.
Finally, given our population and democratic framework, there is an opportunity to scale these ventures. So social ventures in India have to come out with innovative solutions and scale these up for creating a sustainable business. This is an opportunity that perhaps even the Chinese do not have.
Any plans to ramp up your investment commitment to the social sector?
Over the last eight years we have invested around $20-30 million across projects in India, United States and Canada. That means investing anywhere between $3-5million every year, the bulk of which has come to India.
Our effort has been to create a mindset shift on the ground to help people help themselves. Our social innovation Sandbox model in Hubli is now getting duplicated across the country.
