Aditi Joshi
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While India has long been recognized for its vast farmlands, the country is now equally known for its thriving enterprises, where the spirit of opportunity and innovation flourishes. Micro and nano enterprises are a crucial category of enterprise with India being home to about 11 million nano enterprises.
Nano entrepreneurs run small setups like kirana, furniture, tailoring, salons and welding units. These enterprises typically serve fewer than 100 households and are seen in rural, semi-urban and also urban parts of India. Medium, Small and Micro including nano enterprises (MSME) employ nearly one-third of India's workforce. They contribute nearly 30% to the country's GDP and are on the rise. With an estimated credit demand of $50 billion, they present a significant growth opportunity for India's future.
As this segment sees massive growth, so does its need for credit. However there still is a long way to go in guaranteeing access to credit and technology for nano-entrepreneurs. We look at ways in which technology and Rang De’s model of enabling access to affordable credit through peer to peer lending is enabling small enterprises across India -
Access to technology has revolutionized the nano enterprises in India.
It has empowered them to streamline operations, reach broader markets, and enhance customer engagement. Affordable access to the internet has helped them gain visibility and knowledge necessary to start their small setups and mobile payments have simplified transactions and boosted the cash flow. Online resources and training have further equipped these entrepreneurs with the skills needed to thrive in an increasingly competitive landscape.
Rajkumari Kushwaha from Niwari, Madhya Pradesh is a perfect example of how technology can be leveraged to build a successful business. With the support of her husband’s guidance who worked as a computer operator and through online tutorials, Rajkumari taught herself how to use a computer. Together, the couple dreamed of opening a cyber-cafe in their small town. Thanks to Rs. 30,000 in credit from Rang De’s social investors, Rajkumari was able to turn this dream into reality. Today, she successfully runs the cyber cafe, providing digital services to her community. She is committed to continuous learning, helping others, and expanding her business to secure a bright future through quality education for her two young sons.
Interest rate : 8% p.a. | Tenure : 12 months
Among the 11 million nano entrepreneurs in India, only an estimated five percent have access to formal credit.
Unlike larger MSMEs, nano entrepreneurs often lack the collateral or credit history required to qualify for loans. Many rely on personal savings or support from family and friends to start their businesses, with a recent study showing that 80% of nano entrepreneurs bootstrap their ventures this way. It’s critical that nano enterprises be recognized as a distinct segment with a need for credit solutions that can set them on a path to success.
An example of how affordable and timely credit can be life-changing is Gunjan Bhayani, a resilient young entrepreneur from Gir Somnath, Rajasthan. Gunjan lost her husband and in-laws to COVID-19 pandemic. She became a single mother and the sole breadwinner. With the support of her friend, she honed her beauty parlour skills and started rebuilding her life.
Gunjan got access to Rs. 50,000 in credit from Rang De that was affordable using which she could turn her life around. She bought products and equipment needed to start Radiance Beauty Studio - her beauty salon offering beauty and make-up services. The success of her venture is evident with the net annual profit of Rs. 1,27,000 that Gunjan earns today. Gunjan now plans to start a training center for women, teaching beauty skills and fostering entrepreneurship. Her vision is to empower women towards financial independence.
Interest rate : 6% p.a. | Tenure : 18 months
Rang De has been making a significant impact by unlocking access to affordable credit for India’s nano entrepreneurs. As a pioneering peer-to-peer lending platform, Rang De has disbursed more than Rs. 80 crore in affordable credit so far that has created days of livelihoods for thousands. By harnessing the power of technology to reach the farthest corners of India, Rang De has successfully fulfilled more than 22,000 loans - fueling dreams, driving growth, and fostering prosperity. Along with more than 10,000 social investors, Rang De is enabling farmers and rural entrepreneurs across the country - one social investment, one enterprise, one transformed life at a time.
Together let’s shape a better future for India and create thousands of days of livelihood for fellow Indians. Visit www.rangde.in today!
