The Indian social sector, brimming with potential and driven by a passion for positive change, often faces a critical challenge: access to adequate funding. Traditional funding models may fall short in meeting the diverse and evolving needs of social enterprises. However, a new wave of innovative finance solutions is emerging, offering promising pathways to unlock private capital and fuel sustainable growth within the sector.

The Landscape of Innovative Finance: A Paradigm Shift

Innovative finance represents a departure from conventional funding models, embracing creative approaches to mobilise capital for social good. It goes beyond traditional grants and donations, tapping into the vast potential of private capital to fuel social enterprises and drive positive change.

Let's explore some key innovative finance solutions gaining traction in India:

Social Success Notes (SSNs):

SSNs are outcomes-based financing instruments where investors provide upfront capital to social enterprises and receive returns based on the achievement of pre-defined social outcomes. This model aligns the interests of investors with the social impact goals of the enterprise, creating a win-win scenario. For instance, an SSN could be used to fund a social enterprise working to improve access to clean drinking water in rural communities.

Investors would receive returns based on the number of people gaining access to clean water, ensuring that their financial gains are directly tied to positive social impact.

Long-Term, Low-Cost Debt Financing:

Many social enterprises struggle to access traditional bank loans due to their perceived risk or lack of collateral. Long-term, low-cost debt financing addresses this gap by providing social enterprises with the capital they need to scale their operations and impact. This type of financing often comes from impact investors or development finance institutions that understand the unique challenges and opportunities within the social sector.

Venture Capital Financing:

Venture capital (VC) financing is increasingly being directed towards early-stage social enterprises with high-growth potential. Impact-focused VC funds provide not only financial capital but also mentorship, strategic guidance, and access to networks, helping social enterprises scale their operations and achieve long-term sustainability.

Long-Term Grants:

While not a new concept, long-term grants continue to play a vital role in supporting social enterprises, particularly those working on complex social issues with longer gestation periods. These grants provide organisations with the flexibility and stability needed to focus on achieving their social impact goals without the pressure of immediate financial returns.

Harnessing Untapped Private Capital: Expanding the Reach of Impact

One of the key objectives of innovative finance is to harness the vast potential of private capital that lies outside the traditional social sector space. This involves attracting new sources of funding from individual investors, family offices, and corporations seeking to align their investment portfolios with their social and environmental values.

Impact Investing Platforms and Funds:

The rise of impact investing platforms and funds has made it easier for individual investors to participate in the social impact space. These platforms offer a curated selection of impact investment opportunities, allowing investors to choose projects aligned with their values and risk appetite.

Corporate Social Responsibility (CSR) and ESG Investing:

Corporations are increasingly incorporating social and environmental considerations into their investment strategies through CSR initiatives and ESG (Environmental, Social, and Governance) investing. This presents a significant opportunity for social enterprises to attract funding from corporations seeking to create positive social and environmental impact alongside financial returns.

Government Initiatives: Fostering a Supportive Ecosystem

The Indian government has recognised the importance of innovative finance in driving social change and has taken several initiatives to foster a supportive ecosystem for social enterprises.

Social Venture Funds: The government has established social venture funds to provide early-stage funding and capacity building support to social enterprises. These funds aim to catalyse the growth of the social enterprise sector and attract private investment.

NITI Aayog's Support: NITI Aayog, the government's think tank, has been actively promoting impact investing and social entrepreneurship through various initiatives. It has launched programs such as the Atal Innovation Mission and the Sustainable Development Goals (SDGs) India Index to encourage innovation and social impact.

Policy Reforms: The government is continuously working towards creating a conducive policy environment for impact investing. This includes tax incentives for impact investors, streamlined regulations for social enterprises, and the development of a social stock exchange to facilitate access to capital for social businesses.

Case Studies: Innovative Finance Empowering Grassroots Change
India: Empowering Rural Women Entrepreneurs

Rang De: This online micro-lending platform connects individual investors with rural women entrepreneurs in India, providing them with access to affordable microloans to start or grow their businesses. Rang De's unique model empowers women at the grassroots level, enabling them to become financially independent and contribute to their communities' economic development.

Under The Mango Tree (UTMT): UTMT works with tribal beekeepers in India, providing training, equipment, and market access to help them build sustainable livelihoods through honey production. UTMT's innovative approach not only promotes economic empowerment but also contributes to biodiversity conservation and sustainable agricultural practices.

International Example: Transforming Lives Through Microfinance

Grameen Bank: Founded in Bangladesh, Grameen Bank pioneered the concept of microfinance, providing small loans to low-income individuals, predominantly women, to help them start businesses and escape poverty. Grameen Bank's model has been replicated in countries around the world, demonstrating the power of microfinance in driving social and economic development at the grassroots level.

Contributing to the Ecosystem of Change

Organisations like the Indian School of Development Management (ISDM) with its Centre for Innovative Finance and Social Impact (CIFSI) play a crucial role in this evolving ecosystem. Through research, education, and stakeholder engagement, they equip individuals and organisations with the knowledge and tools needed to navigate the complexities of innovative finance and drive meaningful change.

Unlocking private capital through innovative finance solutions is essential for empowering social enterprises and driving sustainable social change. By embracing these new models, collaborating across sectors, and fostering a culture of impact-driven investment, we can create a brighter future where social good and financial returns go hand in hand. The Indian government's initiatives and the dedicated efforts of organisations like ISDM and CIFSI contribute significantly to creating a thriving ecosystem for impact investing and social entrepreneurship in India, paving the way for a more just and equitable society.

To read the full report, click here.

The world is facing complex challenges, from poverty and inequality to climate change, access to quality education and healthcare. Traditional approaches to philanthropy and development aid are no longer sufficient to address these issues effectively. In response, a new wave of impact investing has emerged, aiming to generate both financial returns and measurable social impact. This blog delves into the evolving landscape of impact investing, exploring innovative financing models, showcasing inspiring case studies, and highlighting the importance of collaboration in creating a sustainable future.

The Rise of Impact Investing: A Paradigm Shift

Impact investing represents a paradigm shift in the way we approach social change. It goes beyond traditional philanthropy by seeking financial returns alongside positive social and environmental outcomes. This approach attracts a diverse range of investors, including individuals, foundations, pension funds, and corporations, all seeking to align their financial goals with their values.

Innovative Financing Models:

Social Impact Bonds (SIBs): These outcomes-based contracts bring together governments, investors, and service providers to tackle social challenges. Investors provide upfront capital, and if pre-defined outcomes are achieved, they receive a return from the government. This model transfers the risk from governments to investors while ensuring that funding is tied to measurable results. For example, a SIB could be used to fund a program aimed at reducing recidivism rates among ex-offenders. Investors would provide the capital for the program, and if the program is successful in reducing recidivism, the government would repay the investors with a return.

Development Impact Bonds (DIBs): Similar to SIBs, DIBs focus on development challenges in low- and middle-income countries. They often involve development agencies or philanthropic organisations as outcome funders. For instance, a DIB could be used to fund a program aimed at improving access to clean water in rural communities. Development agencies would provide the outcome funding, and investors would provide the upfront capital. If the program is successful in improving access to clean water, the investors would receive a return from the development agencies.

Venture Philanthropy: This approach combines venture capital principles with philanthropic goals, providing early-stage funding and strategic support to social enterprises with high growth potential. Venture philanthropists not only provide financial capital but also actively engage with the social enterprises they invest in, offering mentorship, strategic guidance, and access to networks. This hands-on approach helps social enterprises scale their impact and achieve long-term sustainability.

Blended Finance: This approach combines public and private sector funding to de-risk and catalyse private investment in sustainable development projects. For example, a blended finance structure could be used to fund a renewable energy project in a developing country. A development finance institution might provide a concessional loan to de-risk the project, while private investors provide the remaining capital. This blended approach helps attract private investment to projects that would otherwise be considered too risky.

Impact Investing in Action: Case Studies from India and Beyond

India: Education & Skills development

• Varthana: This social enterprise provides affordable loans to low-income private schools in India, enabling them to improve infrastructure, invest in teacher training, and enhance the quality of education for underprivileged children. Varthana focuses on schools that serve students from low-income families, often in rural areas or urban slums. By providing access to financing, Varthana helps these schools bridge the gap between the resources they have and the resources they need to provide a quality education. To date, Varthana has disbursed loans to over 4,500 schools, impacting the lives of over 1.2 million students.
• LabourNet: This social enterprise focuses on skills development and job placement for disadvantaged youth in India. They partner with corporations to provide training programmes that meet industry needs, creating pathways to sustainable livelihoods. LabourNet focuses on sectors such as construction, retail, and hospitality, where there is a high demand for skilled workers. They provide training in both technical and soft skills, helping young people develop the skills they need to succeed in the workforce. LabourNet also works with employers to ensure that graduates of their programmes have access to job opportunities.

International Examples:

• Acumen: This global impact investment fund invests in social enterprises across Africa, Latin America, South Asia, and the United States, focusing on sectors such as agriculture, energy, healthcare, and education. Acumen's investments are typically in early-stage companies that are tackling critical social challenges. They provide patient capital, allowing these companies to grow and scale their impact. Acumen also provides non-financial support, such as mentorship and access to networks, to help these companies succeed.
• Root Capital: This non-profit social investment fund provides financing and capacity building to agricultural businesses in Africa, Latin America, and Southeast Asia, supporting sustainable livelihoods and environmental stewardship. Root Capital works with businesses that are too large for microfinance but too small or risky for commercial banks. They provide loans, lines of credit, and other financial services, as well as training and technical assistance in areas such as financial management, agricultural practices, and environmental sustainability.

Collaboration: The Key to Unlocking Impact

Collaboration is essential to maximise the impact of investments. By bringing together investors, social entrepreneurs, governments, and NGOs, we can leverage expertise, resources, and networks to tackle complex challenges and create lasting change.

Examples of Collaborative Initiatives

• The Global Impact Investing Network (GIIN): This organisation promotes best practices and standards in impact investing, fostering collaboration and knowledge sharing among stakeholders worldwide. The GIIN provides resources and tools to help investors measure and manage the impact of their investments. They also convene events and conferences to bring together stakeholders from across the impact investing ecosystem.
• The Impact Investors Council (IIC): This India-based association of impact investors works to build a supportive ecosystem for impact investing in India through policy advocacy, capacity building, and knowledge dissemination. The IIC advocates for policies that promote impact investing, such as tax incentives and regulatory reforms. They also provide training and resources to investors and social entrepreneurs.

Contributing to the Ecosystem of Change

Organisations like the Indian School of Development Management (ISDM) and its Centre for Innovative Finance and Social Impact (CIFSI) play a crucial role in this evolving ecosystem. Through research, knowledge creation, and stakeholder engagement, they equip individuals and organisations with the knowledge and tools needed to navigate the complexities of impact investing and drive meaningful change.

Impact investing is transforming the landscape of social change, offering innovative solutions to address pressing global challenges. By embracing collaboration, knowledge sharing, and a commitment to measuring impact, we can create a more just, equitable, and sustainable future for all.

To read the full report, click here.

The Social Enterprise Revolution: Redefining Success in India

In the vibrant tapestry of India, a new thread is being woven into the fabric of its business landscape. Gone are the days when solely chasing profit defined success. Today, a wave of for-profit social enterprises (FPSEs) are redefining success, proving that businesses can be powerful catalysts for positive change while generating financial returns.

These FPSEs are tackling some of India's most pressing challenges – poverty, lack of access to education and healthcare, and environmental degradation – across diverse sectors, from agriculture and sanitation to education and renewable energy. Their emergence signifies a paradigm shift in how businesses in India perceive their role, demonstrating that social impact can be an integral part of a sustainable business model.

Motivations for the Rise of FPSEs in India

Several factors are fuelling the rise of FPSEs in India:

Growing Social Consciousness: Indian consumers, particularly the young and tech-savvy  millennial generation, are increasingly making consumption decisions based on a company's social and environmental responsibility. FPSEs resonate with this growing social consciousness, offering products and services that address societal needs while ensuring ethical practises.

Untapped Market Potential: India's vast base of the pyramid (BoP) population, with its unique needs and aspirations, represents a significant untapped market. FPSEs see an opportunity to serve this population segment, not just as customers, but also as active participants in the value chain, creating shared prosperity.

Supporting Government Initiatives: Recognising the potential of FPSEs in achieving the Sustainable Development Goals (SDGs) and fostering inclusive growth, the Indian government has launched several initiatives. These include:

Startup India: This flagship initiative aims to create a vibrant ecosystem for startups, including FPSEs, by providing them with easier access to funding, streamlined regulations, and incubation support.

Stand Up India: This scheme specifically focuses on promoting entrepreneurship among women and Scheduled Castes (SCs) and Scheduled Tribes (STs) by facilitating bank loans for setting up greenfield ventures, including FPSEs.

The National Mission on Sustainable Agriculture (NMSA): This mission aims to promote sustainable agricultural practises through various schemes and programmes, providing opportunities for FPSEs working in the agricultural sector.

Innovation and Technology: Advancements in technology are enabling FPSEs to develop innovative solutions for social problems, making them more scalable and efficient. For example, mobile technology is being used to deliver healthcare services to remote areas, while blockchain technology is being used to ensure transparency and traceability in supply chains.

Examples of Thriving FPSEs in India

India is home to a diverse and vibrant FPSE ecosystem, with enterprises making significant contributions to various social and environmental challenges:

Aravind Eye Care System: This renowned FPSE provides high-quality, affordable eye care services to low-income communities, restoring vision and empowering individuals.

Selco India: Committed to clean energy access, Selco offers solar power solutions to rural areas, improving lives and livelihoods while combating climate change.

Akshaya Patra: This FPSE tackles malnutrition by providing nutritious mid-day meals to millions of underprivileged schoolchildren, contributing to their overall well-being and educational attainment.

Million Meals: Focused on addressing hunger, Million Meals delivers nutritious meals to low-income communities at subsidised prices, ensuring food security for the most vulnerable.

Challenges Faced by FPSEs in India

Despite their immense potential, FPSEs in India face several challenges:

Balancing Profit and Social Impact: Striking the right balance between financial sustainability and social impact remains a constant struggle. FPSEs often face the pressure to prioritise profit to secure funding and remain competitive, potentially jeopardising their social mission.

Access to Funding: Traditional funding sources like banks might be hesitant to invest in FPSEs due to perceived risks associated with their dual mission. Additionally, complex legal structures and stringent regulations can make it difficult for FPSEs to access alternative funding sources like impact investing.

Impact Measurement: Measuring and quantifying the social impact of an FPSE's work can be a complex task, requiring specialised expertise and resources. Lack of robust impact measurement frameworks can hinder their ability to attract investors and donors and demonstrate their effectiveness in achieving social goals.

Regulatory Environment: The current regulatory framework might not be fully optimised to support the unique business models of FPSEs. Complex bureaucratic processes, rigid labour laws, and lack of specific policy frameworks for FPSEs can hinder

A Collective Responsibility

The FPSE movement in India represents a promising pathway towards a more equitable and sustainable future. However, realising its full potential requires a collective effort from various stakeholders:

Government: By fostering a supportive regulatory environment, promoting impact investment, and facilitating collaboration between sectors, the government can create a thriving ecosystem for FPSEs.

Businesses: Established businesses can play a significant role by partnering with FPSEs, leveraging their expertise and resources to scale their impact. Additionally, businesses can integrate social considerations into their own operations, contributing to a more sustainable and inclusive business environment.

Investors: By recognising the potential of FPSEs and investing in their ventures, impact investors can play a pivotal role in driving social change.

Social Sector Organisations: Collaboration between FPSEs and social sector organisations can lead to the development of more comprehensive and effective solutions to social challenges.

Individuals: Consumers can actively support FPSEs by making informed purchasing decisions and advocating for businesses that prioritise social responsibility.

By working together, all stakeholders can contribute to the success of the FPSE movement in India, paving the way for a future where businesses serve as powerful catalysts for positive social change.

The FPSE landscape in India is constantly evolving, with new challenges and opportunities emerging. As the sector matures, a continued focus on innovation, collaboration, and impact measurement will be critical to its success. By harnessing the collective talent and resources of diverse stakeholders, India can position itself as a global leader in the FPSE movement, inspiring and guiding other nations on their journeys towards achieving sustainable and inclusive development.

admin | Published: 11 March, 2024

For-profit social enterprises face specific challenges due to tax regulations, such as an 18% GST on their revenue, which can discourage funders. The tax burden makes it unattractive for funders to invest, knowing that a significant portion of the funding will go towards GST payments.

Innovative finance practices can be a potential strategy for for-profit enterprises to unlock social impact funding. However, CSR laws may restrict investing in for-profit social enterprises through innovative finance instruments.

To overcome these challenges, for-profit enterprises can consider longer-term partnerships with the social sector, as the social sector expects a longer-term perspective when it comes to social change initiatives.

Additionally, tailoring cost-effective instruments for the social sector and building the capacity of donors and recipients can also be effective strategies for for-profit enterprises to attract social impact funding.

Unlocking Social Impact Funding: Strategies for For-Profit Enterprises

In the realm of for-profit social enterprises, navigating the intricate landscape of social impact funding presents a unique set of challenges. Tax regulations, such as the 18% Goods and Services Tax (GST) on revenue, cast a shadow over potential funders, creating a hesitancy born out of the realization that a significant chunk of their investment would be earmarked for GST payments. In this blog, we delve into the complexities faced by for-profit enterprises and explore innovative strategies to unlock social impact funding, with a focus on overcoming tax burdens, complying with CSR laws, and fostering longer-term partnerships with the social sector.

The Tax Conundrum: Dissuading Potential Funders

One of the primary hurdles for for-profit social enterprises lies in the realm of taxation. The imposition of an 18% GST on revenue not only diminishes the available pool of funds but also acts as a deterrent for potential investors. It's a delicate balance for for-profit enterprises to strike – trying to fulfill their social mission while grappling with the financial burden of GST. The challenge is not merely economic but also perceptual. Funders may be wary of investing when a substantial portion of their contribution is earmarked for tax obligations rather than the actual social impact initiatives.

Innovative Finance Practices as a Potential Strategy

In the face of tax-related challenges, for-profit enterprises must look towards innovative finance practices as a potential lifeline. These practices can help redefine the financial landscape, offering creative solutions that cater to the dual objective of profitability and social impact. However, the road to innovation is not without its pitfalls. Corporate Social Responsibility (CSR) laws may pose a roadblock, restricting the avenues through which for-profit enterprises can access funding. It becomes imperative to navigate this regulatory maze while designing financial instruments that align with the broader goals of social impact.

Overcoming Regulatory Roadblocks: CSR Laws and Funding

CSR laws, while designed with the noble intention of promoting corporate responsibility, can inadvertently create barriers for for-profit social enterprises seeking funding. These laws traditionally focus on channeling funds into non-profit entities, leaving for-profits in a precarious position. To navigate this regulatory landscape, for-profit enterprises can explore strategic partnerships and collaborations that adhere to CSR laws while allowing for the infusion of funds into social enterprises.

Longer-Term Partnerships: Bridging the Divide

A key strategy to overcome the challenges posed by tax regulations and CSR laws is the cultivation of longer-term partnerships with the social sector. Unlike traditional for-profit ventures, social enterprises often grapple with a prolonged gestation period for social change initiatives. Funders in the social sector tend to have a proclivity for longer-term commitments, aligning with the nature of social impact initiatives. By fostering partnerships that extend beyond short-term financial gains, for-profit enterprises can not only alleviate the tax burden but also gain the trust and support of the social sector.

Tailoring Cost-Effective Instruments: Meeting Social Sector Needs

Another avenue for for-profit enterprises to attract social impact funding involves the customization of cost-effective financial instruments. Tailoring investment vehicles that specifically address the financial constraints faced by the social sector can create a win-win situation. By understanding the unique needs and challenges of the social sector, for-profit enterprises can design instruments that not only align with their own profitability goals but also serve the larger purpose of catalyzing social change.

Building Capacity: Empowering Donors and Recipients

To further enhance the attractiveness of for-profit enterprises for social impact funding, there is a need to focus on building the capacity of both donors and recipients. Donors should be equipped with a deeper understanding of the impact landscape, enabling them to make informed investment decisions. Simultaneously, recipients (social enterprises) need support in enhancing their operational efficiency and impact measurement capabilities. By investing in the capacity building of both sides, for-profit enterprises can create a more robust ecosystem that attracts and retains social impact funding.

Paving the Way for Social Impact Funding

In conclusion, the journey to unlock social impact funding for for-profit enterprises is fraught with challenges, from tax burdens to regulatory hurdles. However, innovative finance practices, longer-term partnerships, and tailored instruments can serve as beacons of hope in this landscape. The delicate balance between profitability and social impact requires strategic thinking, collaboration, and a commitment to reshaping the funding paradigm.

As for-profit enterprises chart their course in the realm of social impact, it is essential to acknowledge the role of institutions like the Indian School of Development Management (ISDM). ISDM, with its commitment to nurturing social leaders and fostering sustainable development, stands as a beacon in the journey towards unlocking social impact funding. By integrating insights from institutions like ISDM, for-profit enterprises can further refine their strategies, ensuring that the pursuit of social impact aligns seamlessly with financial sustainability. In the grand tapestry of social change, each innovative strategy and collaborative effort contributes to a future where for-profit enterprises become powerful catalysts for positive transformation.

Source: Bridging Perspectives: Innovative Finance Insights from India. ISDM February 2024
Authors: Priyanshi Chauhan, Ria Sinha
Licence: Creative Commons Attribution CC BY-NC-SA 4.0
DOI: dx.doi.org/10.58178/242.1033

ISDM | Published: 04 March, 2024

Introduction:

In the modern era, which is in a constant state of flux, societal concerns are growing more complex. This constant shift puts us in the dilemma of having to navigate through this uncertain terrain and build a better future. Social entrepreneurship blends creativity and business with a deep desire to tackle various social and environmental issues. But this is rarely a rose-covered route. It takes a combination of social awareness, business acumen, and a steadfast commitment to make a difference in the world to effectively navigate the maze that is social entrepreneurship management.

What is Social Entrepreneurship:

Social entrepreneurship is prioritizing social impact over financial gain; they deal with pressing social and environmental problems like pollution and poverty. Thus, social entrepreneurs put the creation of social value ahead of maximising earnings, in stark contrast to conventional entrepreneurship. They create innovative solutions that tackle the underlying societal issues, resulting in an enduring influence along with long-lasting transformation.

What is the role of Social Entrepreneurs and what is the key to its success?

Social entrepreneurs play a pivotal role in the advancement of positive social change because they tackle the most significant issues the world is currently facing. The success and sustainability of any social entrepreneurship venture depend on its effective management. Recognising this, the Indian School of Development Management (ISDM)’s Post Graduate Programme in Development Management (PGP DM) equips social entrepreneurs like you with the management skills and mindset needed to successfully navigate the intricacies of the social sector while maintaining financial sustainability, enabling you to fulfil your missions. In addition to a wide range of tasks like effect assessment, resource mobilisation, and strategy planning, social entrepreneurship management also includes organisational leadership and stakeholder involvement. The program integrates management theories with practical projects, mentorship programs, and interactions with industry leaders to foster a supportive system where you can hone your management skills to drive meaningful impact in society.

Are there any challenges in Social Entrepreneurship Management?

While there is immense potential for creating change in society through social entrepreneurship, the path is not clear of thorns. Common challenges for entrepreneurs include resistance to innovation, scalability issues, regulatory barriers, and limited access to funding. These are further exacerbated by management challenges such as measuring the social impact and balancing financial stability. However, there is light at the end of the tunnel; ISDM’s PGP DM course prepares you to face these challenges through creativity, resilience, and a collaborative approach with mentorship from successful entrepreneurs in the domain of leading social enterprises like NASHAURA, Khalsen Homestay, HUManity, etc.

What are the opportunities for my growth?

Despite these obstacles, the sector of social entrepreneurship offers a number of chances for development and innovation. Growing awareness of the significance of social effects, along with the growth of impact investment and corporate social responsibility (CSR), has opened up new channels for funding and cooperation. The PGP DM program serves as a catalyst, blending profit-driven businesses with social impact. An increase in acknowledgement by stakeholders and government bodies also plays a pivotal role in encouraging social entrepreneurs like you to effect positive change in society.

How do I develop the mindset of a social entrepreneur?

The entrepreneurial attitude, which includes qualities like ingenuity, resilience, and an unrelenting commitment to generating good progress, is the cornerstone of social entrepreneurship management. An entrepreneurial attitude is cultivated during PGP DM by accepting ambiguity, taking measured chances, and embracing failure as a learning opportunity. Social entrepreneurs can thus navigate the complexities of social entrepreneurship management and drive meaningful impact.

Conclusion:

In conclusion, a crucial role is played by social entrepreneurship management in driving social change which is sustainable and financially feasible, by combining the commitment to address societal issues with principles of entrepreneurship. By embracing creativity, resilience, and teamwork, you may create scalable and significant solutions to address the underlying causes of a number of social and environmental crises. By empowering you with the skills to manage and lead such change and foster an entrepreneurial mindset in you, ISDM’s PGP DM course will help you build a more equitable, sustainable, and prosperous future for all.

Published: 19 January, 2024

Over the past decade, more and more people have been drawn to the social development sector, driven by a desire to find purpose and meaning in their lives and work. This surge in interest has led to a substantial increase in the sector's budget, reaching Rs 8.28 lakh crore ($100.77 billion) for the year 2023-24 in India. However, a significant challenge arises from the lack of effective management in the development sector.

Mr. Ravi Sreedharan, the Co-Founder of ISDM has stressed this issue in his TED Talk: Tedx Talk by ISDM Founder Ravi Sreedharan - Management for Development

To address this issue, the social sector requires development management to enhance societal growth and achieve economic and social freedom. Unlike corporate management, development management is not about individual projects; instead, it focuses on a process-based system to eliminate stagnation in public service.

Hence, to tackle the acute lack of management skills and knowledge in the development sector, a group of experienced professionals from diverse backgrounds founded India’s first institute dedicated to development management, ISDM (Indian School of Development Management). It was built on the importance of making the leadership and management of social purpose organisations (SPOs) more professional by introducing PGP in development management.

Introducing Post Graduate Program in Development Management (PGP-DM)

In the ever-evolving landscape of professional development, the significance of hands-on learning and real-world application cannot be overstated. Aspiring to bridge the gap between academic theory and real-world challenges, the Post Graduate Program in Development Management (PGP-DM) introduced by ISDM is becoming the launchpad for individuals seeking not just knowledge, but the practical skills and insights needed to thrive in the complex realms of the real world.

The program is crafted to immerse students in the intricacies of development management through hands-on projects, simulations, and exposure to actual industry scenarios.

As we delve into the transformative journey of PGP-DM, it becomes clear that the magic lies in the synergy between theory and practice.

This article explores how the hands-on learning and real-world application in PGP-DM not only equip individuals with the necessary tools but also instill a mindset that is ready to tackle the challenges and seize the opportunities presented by the real world.

Watch this video to understand what makes ISDM one-of-its-kind: What makes ISDM, ISDM

Nurturing Young Professionals: ISDM’s Approach

The Post Graduate Programme in Development Management (PGP-DM) at ISDM is an 11-month program with 75+ global faculty, 300+ placement partners, 100% placement assistance, and the highest salary being 16 LPA.

The PGP-DM program is carefully crafted by experts and has a blended synergy of development and management theories. The course offers high-tech in-class sessions with collaborative group work and a field experience.

This course aims to produce tomorrow’s skilled and dedicated management professionals who are adequate to manage complex circumstances, diverse locations, and cultures, specifically for Social Purpose Organizations (SPOs). It imparts exceptional knowledge and methods enabling its students to plan interventions, construct, lead, and manage organisations for lasting social impact.

Skills needed for success in the Development Sector: PGP-DM Curriculum and Pedagogy

ISDM with its Post Graduate Program in Development Management, fosters young professionals through its rigorous coursework divided into 8 terms that include:

1. Corporate Social Responsibility & Sustainability
2. Economic Reasoning & Public Policy
3. Intervention Design for Social Impact
4. Fund Raising
5. Monitoring and Evaluation
6. Technology for Social Impact at Scale
7. Network and Partnerships
8. Concepts of Social Work

The above-given eight courses offered over the year fall into the following clusters:

1. Curated Development Management Courses (Term 1 to Term 2)

- Courses on business and development management.

- Teaches critical thinking by exploring the boundaries of the market.

- Covers various topics like Perspectives on Society and Development, State, Market & Society, Systems Thinking,Financial Perspectives, Operations Management for Quality and Impact, Behaviour Change Communication, Marketing Management, Human Development in an Unequal World, Technology and Management, and Corporate Social Responsibility.

- ‘New age’ electives like Behavioural Sciences in Social Change, Introduction to Digital Marketing and Social Entrepreneurship are also offered for a more in-depth study.

2. Personal Mastery for Development Leadership (Term 1 to Term 7)

- Provides sessions and workshops like Personal Mastery for Development Leadership, Radical Transformational Leadership, and Group Dynamics.

- Focus on nurturing curiosity, courage, and compassion in students as they collaborate in teams, engage with communities, and design interventions.

- Throughout the year, distinguished speakers and leaders from diverse backgrounds are invited to encourage student discussions, debates, reflection, and learning.

- Workshops on Networks, Partnerships, and Alliances for Scale, Perspective on Organisations, Knowledge Management Systems, and Fundraising.

- In terms 5-7, students must complete self-paced Harvard ManageMentor Courses covering essential management topics such as Team Creation, Team Management, Budgeting, Project Management, Business Plan Development, and Negotiating. These courses offer a chance to enhance management skills.

3. Writing in the Discipline (Term 3)

- Students are provided individual mentorship and feedback on how to write, speak and present their ideas.

- Teaches choosing appropriate words, and tone that recognizes the complex nature of social change and the emergent nature of this work.

4. Context-Based Collaborative Learning (CBCL) (Term 1 to Term 7)

The context-based collaborative learning (CBCL) is an integral part of ISDM’s pedagogy. It is a method used to make the teaching and learning process more impactful.

- Lectures, case studies, workshops, group work, readings, and individual assignments are carefully integrated to enhance students' knowledge and application skills for the social sector.

- The course offers opportunities for practical application through specially designed group work, allowing students to apply what they've learned in real-world scenarios.

- Central to the CBCL process is collaborative inquiry and co-creation, supported by learning mentors known as Bricoleurs, working with students on a one-to-one basis and groups to discuss individual learning journeys and key development lenses to differentiate management for the social sector such as collaboration, equity and social justice.

5. Realising India Immersive Experience (Term 4 to Term 8)

- Realising India Immersive Experience is a two-week project that emphasizes scale and sustainability.

- It provides a practical experience by working on live projects with Social Purpose Organizations (SPOs).

- Integrates previous term learnings into a real, viable, and scaling strategy for the SPO.

- Concentrates on the 'what' and 'how' of managing SPOs.

- Aims to deepen students' understanding of people's lives at the district level.

- Prepares students to design effective interventions by immersing them in real-world experiences.

In addition to the eight core courses, the program provides elective options to nurture your leadership skills for the future. PGP-DM students learn to address community issues with empathy and understanding, considering systemic and cultural aspects, all while keeping a focus on impact, scalability, and sustainability.

The course also prepares future policymakers with skills such as teamwork, effective communication, empathetic engagement, critical thinking, data-driven decision-making, networking, stress management, and willingness to learn, unlearn, and relearn. These skills are taught by the unique method of ‘knowing’, ‘doing’, and ‘being’.

- 'Knowing' skills are about understanding the limits of the market and developing critical thinking skills.

- 'Doing' skills refer to thinking creatively and innovatively to frame and solve problems.

- 'Being' skills are about paying greater attention to personal development and grounding organizational decision-making in ethics and values of equity and fairness.

Assessment

The assessment process is a key part of the student's learning journey. It involves evaluating the student's progress through a mix of the following components to make you ready to kickstart your career in the development sector:

1. Classroom Attendance
2. Graded Individual and Group Assignments (Faculty and Bricoleurs)
3. Tests/Quizzes
4. Peer Assessment in Collaborative Groups

These assessments help build the students’ caliber and prepare them for real-world problems. With all these factors and a strong alumni network, the PGP-DM course can ensure the personal and professional growth of the student resulting in better career opportunities.

What job opportunities are available in the development sector for young development professionals?

Explore the myriad possibilities that await you as you embark on a journey toward a rewarding career in the social sector through our comprehensive PGP-DM program. Following are the career options in the development sector:

1. Programme Operations and Management:
   Develop program design aligning with the organisation's strategy.
2. Communications and Engagement:
   Shape the organisational brand and manage the communications strategy.
3. Fund Raising (Retail and Corporate):
   Formulate fundraising strategies and engage donors for organisational and programmatic funds.
4. Strategy & Data-based Decision Making:
   Contribute to the overall strategy and analyze data for informed decision-making.
5. Corporate Social Responsibility (CSR):
   Define CSR strategy, implement interventions, and ensure governance compliance.
6. Government Relations and Advocacy:
   Submit proposals, build relationships with government wings, and advocate for specific areas.
7. Strategic Partnerships and Alliances:
   Identify, onboard, and manage partners based on collaboration needs.
8. Monitoring & Evaluation:
   Develop M&E Framework, collaborate with technical partners, and analyze impact data.
9. EA to CEO:
   Assist the CEO in implementing organizational initiatives and data-driven decision-making.
10. Co-Founders:
    Collaborate with development sector entrepreneurs and organizations' founders.

ISDM Alumni Success Stories: Diverse Roles and Impactful Positions in the Social Sector

The Post Graduate Program in Development Management equips students with a plethora of career options, offering diverse roles and responsibilities within the social sector. With a commitment to fostering impactful careers, ISDM collaborates with over 300 placement opportunities, ensuring our PGP-DM students have access to a wide array of professional pathways. It offered 100% placements in its previous batches as the placement process at ISDM is student-centric, and not organization-centric.

No matter what your educational or professional background is, this program is designed to provide you with an enriching experience, empowering you to make meaningful contributions to the field of devlopment management.

One such example is ISDM alumna Ayushi Jauhari. Ayushi was an engineer at a multinational company before joining ISDM. Volunteering at the CSR of her former employee made her want to pursue the path of social development management as a career.

Here is what Ayushi has to say about her journey from engineering to social development management: From an Engineer to Changemaker: Ayushi's Transformative Journey in the Development Sector

So was the case with Simran Bhola, an ISDM alumna, who was working at EY as the Assurance Associate. Finding her zeal for the social sector, Simran joined ISDM for a comprehensive and holistic understanding of the sector and its problems. Here’s what Simran has to say about her experience with ISDM and her career journey: My journey at ISDM | The social sector's next place to be

Here is a list of ISDM alumni working in different positions in the social sector as per their interests and choices:

1. CSR Fund/Foundation:

- Rama Krishna Teja, PGP-DM 2019, CSR Lead at Tata Consultancy Services, B.Tech from K.L University.

- Viswanathan V, PGP-DM 2017, Assistant Manager CSR at Aditya Birla Fashion and Retail Ltd., BE in Electronics and Communication from Jeppiaar Institute of Technology.

2. Social Welfare Organizations:

- Nilanjan Panda, PGP-DM 2019, PRADAN - Professional Assistance for Development Action, BSW from Visva-Bharti and MA in Development from Azim Premji University.

- Akshay Jha, PGP-DM 2020, Program Manager Aftercare at M.A.D (Make a Difference), B.Pharm. & M.Pharm.-Pharmacy from Guru Nanak College of Pharmacy.

3. Policy Consulting Firms:

- B Shrija, PGP-DM 2018, Project Manager at Egov Foundation, B Sc Agriculture from Banaras Hindu University.

- Ashish Manjunath, PGP-DM 2020, Innovation Officer at Water Aid India, BE-Arts from M S Ramaiah Institute of Technology.

4. For-Profit Social Organizations:

- Swati, PGP-DM 2017, Project Manager at Janaagraha, B.Sc from St. Joseph's College & MA in Rural Development from IGNOU.

- Sanket Sunil Aher, PGP-DM 2019, Swades Foundation, BS in Physics from St. Xavier's College, Mumbai.

5. Not for Profit/NGOs:

- Arpit Jain, PGP-DM 2017, Consultant at Dalberg, B.tech from NIT Karnataka, PG Diploma in Liberal Studies from Ashoka University.

- Abhishek Tyagi, PGP-DM 2019, Senior Associate at CSR Box, Political Science Hons from Delhi University.

6. Impact Investing Firm:

- Grishma Kajbaje, PGP-DM 2021, Samhita, B.COM from R A Podar College of Commerce and Economics.

- Priyanka Nalawade, PGP-DM 2018, Programme Associate MNE at Under The Mango Tree, B Tech in Computer Science and Technology.

7. Social Impact Consultancy:

- Supreeth V Kashyap, PGP-DM 2019, Wellbi, B.E in Computer Science & Engineering from The National Institute of Engineering, Mysore.

8. Social Enterprise:

- Tanushree Jain, PGP-DM 2018, Naushaura, Founder, Engineering, Mody University.

9. Education/Think Tanks/Research:

- Abinaya Rangarajan, PGP-DM 2018, Officer - Skill Education at Lend - A Hand India, B tech Industrial Biotechnology from Sastra University Thanjavur.

10. Bilateral Agencies:

- Radhika Nair, PGP-DM 2017, Consultant at Women's Fund Asia, BA in Communication from Amrita School of Communication.

Wrapping Up

The PGP-DM program is all about learning through hands-on experience. Perfect for those in or aspiring to join the social sector. The program's unique design acknowledges that regular management principles don't cut it for the complexities of the social sector. It seamlessly combines development and management, blending theory with real-world practice. Our community of teachers, mentors, and alumni is here to guide you at every step toward your dream opportunity.

If you're ready to make a meaningful impact, seize the moment and submit your application now!