Wa0014.

Jute for Life: reconciling the social and
business goals through sustainable

entrepreneurship
Mitali Tiwari and Amit Nakra
“We work the same way as we used to work on the first day of our business, and this is the key to Mitali Tiwari is Assistant
the growth and development which our firm has witnessed over the years.”–Anjali Singh, Professor based at the
Secretary, Jute Artisans Guild Association Department of Humanities,
Dr Ram Manohar Lohia
It was June 2020 when Anjali Singh, the founder and Secretary of Jute Artisans Guild National Law University,
Association [1] (hereafter Jute for Life, the brand name of the Association), was sitting in Lucknow, India. Amit Nakra
her car, moving back to her office in Lucknow, India, after having a meeting with Khadi & is Regional Sales Manager
at Star India Private
Village Industries Commission (KVIC) [2] officials. The Association was in talks with the
Limited, Lucknow, India.
Commission for quite some time regarding the procurement of a grant from the
Government of India (GoI) under the SFURTI [3] program. The discussion with
the officers proceeded as expected by Anjali, and she was hopeful of getting the final
approval soon. This was the second big project she was going to procure from KVIC,
after the recent retail outlet, which had already started functioning at the KVIC plaza
located at a prime place in Lucknow. This was Jute for Life’s first-ever retail outlet, which
had already attracted encouraging responses from her clients. While both the projects
were expected to be building blocks in her firm’s growth, something still concerned Anjali
in her mind. She was deeply lost reflecting upon her long journey in the firm, both a social
organization and a business enterprise. Both of its functions were equally important for
Anjali and the entire team of rural women artisans working with her. For several years, the
two distinct tasks had complemented each other in the journey. However, some of the
recent developments had created a dilemma for Anjali to make some crucial decisions
for her business.
After reaching the office, Anjali immediately called Shabnam, the Head artisan, and shared
her thoughts with her “Our Association is on the final stage of procuring the SFURTI project
while our retail outlet has just made a kickstart. The former is the step towards deeper
penetration of our social endeavors, and the latter is a milestone for our further business
penetration. However, there is a need for exclusive dedication and concerted effort for each
project. But with the present strength of our team, we will have to divide our attention which
may force us to work at sub-optimal levels and hence compromise our efficacy.” [4]
Shabnam listened to her attentively. She could sense a genuine concern in her voice, whom Disclaimer. This case is written
solely for educational purposes
she had seen standing rock solid throughout their journey of building this venture. Although and is not intended to represent
she was elated with the recent developments in these projects, Anjali’s thoughts also had successful or unsuccessful
managerial decision-making.
merit. Since the time she had teamed up with Anjali to start this Association, she had seen The authors may have
disguised names; financial and
Anjali shouldering the significant functions of the Association. Anjali also confided the same other recognisable information
thing to her husband Shailendra, the firm’s Executive Director. to protect confidentiality.
DOI 10.1108/EEMCS-03-2021-0083 VOL. 12 NO. 2 2022, pp. 1-34, © Emerald Publishing Limited, ISSN 2045-0621 j EMERALD EMERGING MARKETS CASE STUDIES j PAGE 1
While the Association was enthusiastic with its robust plan of growth and expansion of
business, there was a vital need to make certain crucial decisions on certain critical factors
before moving ahead. Going ahead with the SFURTI project would have entailed a lot of
time for the proprietor because she was the key person for delivering the vital tasks of the
program. On the other hand, owing to the encouraging response they had got from their
retail store, the Association was contemplating opening several such stores at other places
too. That was the first time Jute for Life moved further from wholesale operations to retail
operations. It had entailed high energy, time and an exclusively dedicated workforce. While
Anjali had primarily and wholeheartedly been a social worker, the corporate expansion of
the business was also hugely vital, as this was the source of their earnings. As any other
businessperson, Anjali had invested funds to procure land for the SFURTI project, a
prerequisite for approval. Thus, Anjali had to attend to these lurking issues before moving
ahead with any significant project or expansion plans. Was the Association required to
focus only on one of its goals – social or business, or was it supposed to continue with both?
Was the time ripe for significant restructuring of the firm? If yes, then how?
The Indian jute industry

Jute fiber is a natural, renewable, bio-degradable, and eco-friendly product mainly used for
the safe packaging of goods, shopping bags, floor coverings, home furnishings, wall
coverings and handicrafts. The jute products fare comparably much better than their
synthetic counterparts in ecological footprints and renewability.
India was the world’s largest producer of raw jute and jute goods, contributing around 50%
and 40%, respectively, in total global production in FY 2018-2019 (Indianmirror, 2020).
Indian jute industry accounted for INR 65,000 million annually and contributed exports to
INR10,000 million. It employed around 0.26 million workers directly and to 4.0 million
workers indirectly (Indianmirror, 2020).
India had around 94 composite jute mills scattered in all its states (Texmin, 2020).
Regulatory organizations in the Jute industry were statutory authorities such as the National
Jute Board and advisory bodies such as the Jute Advisory Board under the Ministry of
Textiles, Government of India.
The dawn of Jute for Life

Like any other teenager, Anjali had dreamt of becoming an Air Hostess, and of fulfilling it,
she joined a degree in Tourism from the University of Lucknow. Having post-graduated from
this discipline, she further looked for opportunities in the tourism sector. Be it destiny or
chance, there were not many viable options in the tourism sector at that time before her,
thus forcing her to join a job in a local service enterprise at an administrative post.
Reflecting on her initial tryst with a corporate job, she explained:
“It was not the job that I always wanted. But, abiding by the family rules, I continued to work in the
same field as I didn’t have an option [. . .] [. . .]” (Oliver, 2017).
Having become independent, Anjali did find some initial job satisfaction at her workplace,
but her entrepreneurial acumen and zeal for social service did not subside anytime with
passing days. In the eight long years of her previous job, she learned that clients/customers
could not be misguided and that customer satisfaction was indispensable for the success
of any business. She realized soon that skill development and product sophistication were
core to any business and that a positive attitude was a pre-requisite to success (Agrawal,
2014). Having acquired the much-needed confidence and a dose of independence that her
earlier job provided, Anjali felt confident enough to start her venture soon.
Anjali had inherited this zeal for social services from her father, M.P. Singh, who was the
Chief Mentor and guide of Jute for Life. After his retirement in 1997, Singh started an NGO,
PAGE 2 j EMERALD EMERGING MARKETS CASE STUDIES j VOL. 12 NO. 2 2022

Bhartiya Sewa Sansthan. He provided vocational training to rural women by organizing
training programs to develop skills in tailoring, handicrafts and making jute products. In
2006, he received a project by National Jute Board under the Ministry of Textiles, GoI. The
project’s objective was to provide livelihood training to Women Self Help Groups (WSHGs).
The NGO imparted training to around 2,500 women in jute bags designing and making.
However, despite being trained in jute product designing and making, these women could
not market their products or have adequate resources to start their businesses. Anjali
related to that time as:
“One day, I witnessed a group of women who approached my father, asking for jobs. They said,
‘The training is over now. Where is the job? Who will give us a job?’” (Oliver, 2017, p. 8)
The crucial question by these women reflected the grassroots problem of unemployment in
a developing country, wherein, despite having acquired adequate skills, people were
unable to find regular employment or start their venture due to a lack of other resources.
And it was here where the correct type of entrepreneurship, more of an opportunity-driven
rather than a necessity-driven (Reynolds et al., 2001), was needed.
Anjali, having an entrepreneurial understanding since the beginning, was quick to grab this
opportunity. She related, “there was readymade trained manpower before me; the only
thing was to channelize it in the right direction and put them to work”4. While the idea of
starting the enterprise was still in the incubation phase in her mind, she met Shabnam
Parveen, who was working in another jute bag-making firm where she was earning a
meager salary despite having experience in the field for seven to eight years. Anjali popped
up an offer to Shabnam ‘‘I have entrepreneurial insight and resources with me, and you
have the expertise and knowledge in the jute product making. If we both channelize our
resources together, we would generate profits for us and facilitate jobs for other women. But
initially, we will have to face several hiccups. Are you willing to take up the challenge?’’
Shabnam replied, ‘‘Madam, I have given so many years of my life doing a job that has
provided me petty income with no growth prospects. Now, when life allows me to change
my life, I will not say ‘No’ now’’4.
This confluence of the two factors of production – an entrepreneurial understanding and a
skilled workforce, originated into the Federation of Women Self Help Groups culminating
into Jute Artisans Guild Association in 2009, which was formally registered in 2010. The
brand name for its product was designated as Jute for Life, an initiative to provide
sustainable livelihood through skill-based training. Having become a known name in the jute
industry, the firm also started its private “for-profit” wing by Jute Artisans Guild Private
Limited in 2017. The organization thus served the twin purpose of ensuring a continuous
source of livelihood to rural women and at the same time developing its business of
manufacturing jute products. As the organization was primarily involved in generating
sustainable livelihood for women, the brand name “Jute for Life” aptly signified its purpose.
Product development
Anjali was determined to start an environment-friendly product-based social enterprise;
however, her initial dilemma was regarding the choice of a sustainable product. The time
coincided with the government’s drive to ban plastic and polythene and its emphasis on
alternative materials. Anjali researched that paper, cloth and jute were available to
substitute polythene bags. Through her initial research, she concluded, that paper bags
were not very durable, and cloth bags were costly. Therefore, the golden fiber jute could be
the best option for its products because it suited all the requirements of her business
venture, namely, eco-friendliness, cost-effectiveness and durability. Above all, as the jute
industry was a labor-intensive industry, it had immense employment creation opportunities,
especially for women. Moreover, the demand for jute products grew domestically and
internationally because of their versatile usage and attractiveness.
VOL. 12 NO. 2 2022 j EMERALD EMERGING MARKETS CASE STUDIES j PAGE 3

Having a degree in management provided leverage to Anjali to market her products
accordingly. In her initial phase, she used her convincing powers and the right persuasive
skills to get orders through door-to-door marketing. She started with visiting the local
institutions, universities, colleges, offices, etc., to get orders by explaining her organization’s
mission. These institutions regularly conducted conferences, seminars, training programs,
workshops, etc., in which bags/kits/folders were given to the participants. She fondly
remembered her first order came from the Department of Western History, University of
Lucknow, her alma mater. She procured an order for producing 100 bags for INR [5]100
each. This order put a start to her venture, and she quickly purchased two primary
machines for jute making and diligently completed the order on time. As she delivered her
first order, her work was greatly appreciated, and this set the ball rolling for her, which
continued throughout. Shabnam, her Head designer, made beautiful samples of bags,
folders, mats, etc. It was then presented to the clients, and they gave orders by choosing
among the models. The initial products designed were cost-effective and straightforward
yet value for money. This venture started with manufacturing just 20-25 bags in the initial
phase and later made around 2,000 bags in a day, thus procuring an annual average
turnover of INR 3.5m. Also, the recent retail store was sure to add additional revenues for
the firm. It had allowed them to experiment and sell new and fancy designs on the entire
product category.
Business development
Jute for Life started with a tiny workshop and office at Anjali’s place in Indira Nagar,
Lucknow. Initially, persuading the women artisans and their family members to join their
business was challenging. In India, the village people were very apprehensive of women
doing a job or earning money, ‘‘People in the villages are very conservative. They cannot
tolerate the female family members going out to work. Hence, convincing them was the
toughest part. I succeeded, and soon the numbers of staffers began to swell.’’ (Oliver,
2017, p. 8)
The enterprise gradually set up six manufacturing centers on a rental basis in the villages
near Lucknow and Barabanki districts, primarily located at four places, namely,
Mehmoodpur in Bakshi Ka Talab, Sector 12 Indira Nagar, Fareedi Nagar near Kukrail and
Mayawati Colony in Chinhat. These centers were established to facilitate rural women to
reach their workplace easily. The workshop gainfully employed more than 1,000 women
directly and indirectly, out of which 88 women were regular employees and got permanent
salaries. The remaining were on a flexible employment basis who either worked in centers
near their villages or worked from home. These women could procure approximately INR
3,000 per month, working at flexible working hours from home.
It was Anjali and Shabnam who carried out the major work of business development in the
initial years. Anjali visited several universities, colleges, institutions, government and private
offices for procuring orders. Although plastic and synthetic-based products dominated this
field, gradually, with the increasing government directives and consumer awareness
regarding usage of eco-friendly alternatives, jute-based folders, kits and bags found their
relevance and a due place in the market. This was an opportunity for Anjali since the
beginning, and hence, orders kept running all the time. The initial products designed were
cost-effective and straightforward yet value for money. As the demand increased, her Head
Designer, Shabnam, gradually made classier, fancy and intricate designs.
Pricing strategies
The firm followed a competitive pricing strategy. Despite the growing demand for jute
products, there still was competition from synthetic derivatives. Hence, the higher price
strategy would have proven difficult. Accordingly, the products were priced at competitive

rates keeping in mind the rates of the other competing products, be it paper, cloth, or
plastic. The other thing to be kept in mind while determining prices was paying fair wages to
the employees. Owing to the social principles of the firm, a decent portion of the revenues
was kept in the form of salaries. This necessitated the profits margins to be held on a lower
side, thus sacrificing the proprietor’s share in the profits. The profit margins were therefore
kept at around 8% only.
Marketing strategies
By 2018–2019, Anjali had shifted part of its marketing from face-to-face meetings to online
platforms like WhatsApp and Skype. Photos of the samples were sent to the clients through
emails or WhatsApp, and the orders were procured accordingly. This had facilitated the
process of procuring the orders substantially as it benefitted both the enterprise and the
clients equally.
While the domestic orders were growing manifold, Shailendra, also the firm’s sales in-
charge, advised Anjali to procure international orders.
“While we have already held our feet firmly on the ground with domestic clients, we should also
expand our international clientele soon.”4 Although Anjali was not sure how this would even be
possible, Shailendra was quick to offer a solution, ‘‘the advent of technology and social media
platforms can be instrumental enough to market and sell the products globally. This is the new
trend with every business so that we may try the same as well.’’
The social media platforms gradually generated enough international orders for the firm.
The international clients approached her by seeing her progress through social media. The
handmade products developed mainly by women artisans made a unique appeal to
international clients, and hence these propelled overseas orders for Jute for Life. Some of
the firm’s significant clients from the overseas market were:
䊏 Klokargardens, Sweden
䊏 Press Alternatives Co. Ltd, Tokyo Japan
䊏 Drift, Isle of Wight, U.K.
䊏 Furushima International Company Ltd, Japan
䊏 Farm Chokchai, Thailand
The firm soon launched its website www.juteforlife.org. The website provided information
about the firm’s mission and goals and highlighted the social impact that the firm had made
on its ongoing business journey. Although the website showcased the products designed
and manufactured by the firm, it did not provide a mechanism for online selling of the
products yet. The firm mostly adopted below-the-line marketing strategies to procure orders
(Figure 1).
Operations management
The firm always procured the raw material directly from the suppliers eliminating any
intermediaries who would increase the cost of production. The timely and smooth payment
by the firm and a continuous flurry of orders for raw jute instantly earned goodwill for the firm
amongst its suppliers. Hence, essential material supply never became a constraint for the
firm. Handmade dyed jute fabrics were purchased from jute mills in Kolkata. The
accessories such as laces, buttons and decorative items were purchased from markets of
Lucknow and Kanpur. Observing the excellent name and performance of the company,
National Jute Board allotted a jute raw material bank for the firm, thus ensuring
uninterrupted supplies of natural jute. Also, in the beginning, the Board had given only two

Figure 1 Marketing tools adopted by the ﬁrm to promote its product range
sewing machines per SHG, but later it provided heavy motorized machines to cope with the
increasing demand.
The skill-based training was imparted at the production centers. After that, the raw materials
and other accessories were taken to the centers where each woman was allotted a specific
item to produce. After the items were ready, they were taken to the head office, where
quality control and checking were done. Packaging was done in corrugated sheet boxes
with proper lamination to avoid spoiling products in transportation and delivery. Quality and
timeliness had always been the core selling point of the enterprise, and hence, this was
ensured at every production level until delivery.
The various phases of operations included the following (Figure 2):
Revenue streams and finance

Jute for Life started with a meager INR 0.15m, financed through owned funds. Initially, when
the operations began in 2009, there were no profits. A significant portion of the revenue
generated was paid as salaries. Paying salaries timely was significant since the primary
objective of the enterprise was providing livelihood. The income flows culminated only after
the completion and delivery of the orders. The payment for the orders did not come
instantly, and several times there were time lags between delivery and the payment for
orders. This necessitated making payment of salary through own pockets since rural
women being poor, mostly survived on daily wages, and any delay in their income would

Figure 2 Operations – Jute for Life
have defeated the very purpose of the enterprise. After three years since its inception, the
enterprise reached the break-even point. In the beginning, the firm and the proprietor being
a new name, it was not easy to procure funds from any financial institution. However, as the
operations started and the enterprise started getting recognition, further avenues of
institutional funding made their way. In 2011, Anjali could procure a loan of INR 0.5m by a
bank through cash credit. In 2013, the enterprise secured a loan amount of INR 1.3m under
Pradhan Mantri Employment Generation Program, Government of India. This loan was fully
paid back by the enterprise in 2017. In 2014–2015, they could get a sanction of a loan of
INR 2.5m through National Small Industries Corporation. But due to failure to provide any
guarantee for the same as a pre-requisite, they could only secure INR 0.5m (Figure 3).
The firm reported a monthly turnover of INR 0.15m on average. The overall annual turnover
for the firm was approximately INR 3.5m for FY 2019–2020 (juteforlife, 2020).
The value proposition

The business model of Jute for Life incorporated both social service and business
objectives. The firm’s model was not a typical social service organization where service was
usually provided to beneficiaries through grants and funds procured through government,
agencies, or other individual donors. Jute for Life was a self-sustaining enterprise that
funded its activities through its revenues generated out of business, a significant part of
which was disbursed as wages to its employees, and a portion of the profits was reinvested
to cater to the next cycle of business for its growth and expansion, as any other core
business enterprise would do (Figure 4).
Key activities
Capacity building
The enterprise aimed to train rural women in product development, design, quality control,
business administration, marketing skills, etc. It provided knowledge, tools, and equipment
to do the jobs efficiently and with greater capacity. The women were trained in Training cum

Figure 3 Success stories
Production centers located in the village, and then the work was allotted to them at their
doorsteps.
Training and entrepreneurship development

Anjali also conducted lectures on entrepreneurship training and business development.
Various local chapters of industry associations contacted and tied up with her to teach
women entrepreneurs how to do business, business expansion, growth, work-life balance,

Figure 4 The value proposition
etc. Several such training programs for specific target groups had been conducted by the
enterprise in partnership with other bodies:
䊏 Boost Your Business Program: training women entrepreneurs to manage, develop and
expand their business and generate profits through effective marketing and other skills.
䊏 FICCI FLO [6] conducted a Jute Bag Making workshop to spread the art of earning bread.
䊏 Jute for Life and FLO and Army Wives Welfare Association (AWWA) organized Jute
Training Program under We Skill Initiative for war widows and their daughters.
䊏 Salakhon Se Swavalamban Tak, a training program for female jail inmates at Lucknow
and Barabanki jail. The work was entrusted by the Director-General of Prisons,
Government of Uttar Pradesh, to set up training cum production centers where women
inmates (both convicted and under trial) were able to develop their skills in jute
products designing, which would fetch them labor costs while in jail and would help
them to rehabilitate themselves after serving their jail term. Through this program,
training was given to 212 women at Lucknow jail and 58 at Barabanki jail, out of which
15 and 13 women had started their work (Jute, 2020).

䊏 Training for rehabilitation of HIV+ women was conducted, out of which two women had
started their work. Anjali planned to restart the program with increased effort and new
techniques to make it more successful.
Sustaining lives and value creation

Uttar Pradesh Government was the most prominent out of her most frequent clients. Several
orders from various departments kept frequenting, and for bigger orders, the women
workers were given additional incentives as a gesture of encouragement from the
government. This served the twofold purpose of generating extra income on the one hand
and boosting the morale of the ladies on the other. Anjali had provided perennial income to
several women’s families who could cross the poverty line. Their living standards had
enhanced, and they could also send their children to schools. Moreover, women, who
initially had no say in the family, had finally had their say in the family’s decision-making and
thus had acquired the status of breadwinners. They were, therefore, able to earn respect
not only in their families but also in society and could live a decent and dignified life.
Human resource development

The firm followed a simplified organizational structure. The office bearers in 2020 were as
follows (Figure 5).
Guided by them were the rural women artisans who were the actual building blocks of the
organization. The best thing about Jute for Life was that it was a woman-led organization
working for women through the help of woman staff members. Hence, having a female
employer always kept the women staff at their comfort level.
There were timely incentive plans for workers to motivate and enjoy job satisfaction. The
women were also trained and encouraged to start their work if they wished to do so and
focused guidance and mentoring were provided.
Figure 5 Organization hierarchy

Figure 6 Employee welfare programs
Employee attrition was never a constraint for the firm as the frequent chain of training
programs conducted by Anjali adequately catered to the workforce demands of the firm.
There were several instances when women returned to work after their marriage or
pregnancy as their family wanted them to continue their work (Figure 6).
Creativity and innovation

Anjali had tied up with several design centers to keep her organization’s creativity and
innovation running and produce new, trendy products. Durability, as well as beauty, were
both taken care of. For this, Anjali had sought membership of the National Centre for Design
and Product Development, New Delhi, to educate women artisans with new designs and
technology. The enterprise had tied up with the Netherland-based organization “Women on
Wings” to develop other managerial and entrepreneurial skills. The organization had offered
to provide free business consultancy and training for various administrative aspects of
business, be it Information Technology, Marketing, Accounting, Finance, Production,
Human Resources, etc. Almost every month, at least one training program was organized at
the center. This had instilled professionalism within the workers, wherein the organization

felt empowered to exhibit core business proficiency – this ensured efficiency and
effectiveness in all aspects of organization management (Figure 7).
The competition
Jute for Life was the largest manufacturer of jute products in the Uttar Pradesh region, and
this provided it the advantage of being the only manufacturer in the area. The competition
was thus posed only by the retail suppliers of jute products available either at physical retail
Figure 7 Success stories

stores or e-commerce platforms (See Exhibit 4). Although the personal selling strategy
adopted by Anjali provided her a competitive advantage, the user-friendly e-commerce
platforms and quick online payment portals posed challenges for Jute for Life. The
emerging tech-savvy clients who had scarce time for physical shopping found an easy
alternative to choose from jute products available across the country and book orders
online. This posed new challenges for Jute for Life, which had not adopted any full-fledged
online mechanism for procuring business. Despite the goodwill and reputation, the firm had
earned over the years, this could create severe challenges in the industry.
Work–life balance
Anjali had received continuous support from all family members throughout her
entrepreneurial journey of so many years. Initially, her husband, Shailendra, was in a private
job, but when the operations and the firm’s scale expanded, she convinced her husband to
join her business. In 2010, he joined Jute for Life as a full-time member. He took charge as
Executive Director of the firm and managed the sales and promotion of the firm. Although
family support was there, the relatives and friends initially doubted Anjali’s entrepreneurial
abilities. However, her successful venture and the entrepreneurial journey were enough to
convert these doubts into praise and inspiration.
Challenges posed by COVID-19 pandemic

It was May 2020 when Anjali was worried about the impending problems due to the
nationwide lockdown announced by the government to curtail the spread of COVID-19
disease. This global pandemic spread worldwide and took a toll on millions of lives. The first
lockdown phase started in mid-March 2020 and continued until May 2020. The lockdown
had brought a standstill to all the business activities nationwide, barring only the essential
activities. The business for Jute for Life was also adversely affected, which Anjali was
worried about. Nobody was able to come to work. Orders were struck down manifold –
huge stock of finished items laid in the godown. Industry clients themselves were affected.
All women workers had become unemployed and devoid of income because of the
lockdown.
Although the lockdown was eased, and most economic activities had resumed to their
original levels, a shortage of new orders came for Jute for Life. This was because schools,
universities, colleges had still not resumed operations, and all group activities such as
seminars and conferences, had been postponed for an indefinite time. Because of this
uncertainty, new orders could not be procured. It had become tough to provide salaries to
the women workers and offer work to other rural women workers at their village centers.
The road ahead?

Having clientele with KVIC, Anjali had applied for their program SFURTI in 2019. This
program of MSME, Government of India, promoted cluster development and provided long-
term support to traditional artisans in rural areas. It aimed to set up a Common Facility
Centre for generating sustained employment opportunities for rural women. Funding
support was given to various entities for the project up to INR 80m depending on the size of
the respective clusters – Heritage, Major and Mini.
Jute for Life was hopeful of procuring a funding grant of INR 50m under this program in
2020. As a pre-requisite for getting this grant, the firm had to purchase a 12 thousand
square feet plot in village Rasoolpur Sadat, district Lucknow. This required a massive
investment of INR 5m, which the Association had to arrange through its resources. The
project was at its final stages of approval. It could support over 1,000 women artisans

through its facility centers if materialized. It was expected to be the most significant
employment hub for budding and existing entrepreneurs in the sector.
Other than this, KVIC had allotted a space of 48 square meters in their Khadi Plaza at
Lucknow to set up a firm’s retail outlet. This space was then set up as the first retail outlet of
Jute for Life. As the government eased the pandemic-driven lockdown, the outlet became
functional in June 2020. It offered an assortment of products displayed there for customers’
purchase on a retail basis. The product portfolio was enlarged to include exclusive
handicraft items of jute, cane, bamboo and terracotta. The retail shop had just started, and
the SFURTI project was also likely to get approval, as Anjali could anticipate after the
meeting with the KVIC officials. However, due to conflicting thoughts in her mind, she could
not come to a definite conclusion regarding the commitment she was to make for both
projects. She, therefore, called Shabnam and Shailendra to chalk out a different line of
action.
Shabnam opined, ‘‘While the SFURTI project was a step towards increased philanthropic
commitments, the retail project was a drive towards full-fledged restructuring of the
business necessitating the corporate style of development.’’ Anjali knew that having catered
to the philanthropic cause of the firm for so long, Shabnam was also not willing to isolate the
social goals of the firms. Although Shailendra supported the point raised by Shabnam, he
was also concerned about the firm’s business value and profit perspectives. In the wake of
challenges posed by pandemic and the threat posed by e-commerce platforms, he was
concerned about likely strategies to be adopted for enhancing its business proposition. He
opined, ‘‘We need to attend to the threat posed by the online competitors urgently. Our first
retail store has just been set up, and it requires consistent efforts on our part to increase the
footfall at the store and convert them into orders. Also, just one store would not suffice, we
need to set up several such stores. The pandemic has not yet subsided, and there are fears
that the second and third wave of infections might necessitate further such lockdowns in the
future. How will we procure orders then? Shifting to a diversified portfolio of items and
building our robust online selling system is a must for us at this juncture. We should adhere
to these requirements too; otherwise, how would we feed our employees and offer them
Keywords: work?’’
Entrepreneurship,
Anjali knew that chalking out solutions for this problem required meticulous planning, as
Social enterprise,
Strategic management/ both Shailendra and Shabnam had considerable merit in their arguments. Designing a
planning, suitable strategy for both the projects required finding answers to the pertinent questions
Sustainable development, before the firm. Was the Association needed to focus only on one of its goals – social or
Business development, business, or should it continue with both? Was the time ripe for a significant restructuring of
The social sector,
the firm? Who was/were to shoulder the responsibility of the SFURTI project and the retail
Women entrepreneurship,
Ecological products, project? What were the viable options in the retail sector? The avenues of growth before the
Capacity building, firm were multiple. However, these fundamental questions were must to be resolved before
Sustainable livelihood moving ahead.
Notes
1. Jute Artisans Guild Association is the name of the firm. However, throughout the discussion, the
firm will be referred to as “Jute for Life,” which is the product’s brand name.
2. Khadi and Village Industries Commission (KVIC) is a statutory body formed in 1957 by the
Government of India and is an apex body under the Ministry of Micro, Small & Medium Enterprises
(MSME) to promote and facilitate the establishment of khadi and village industries in rural areas
and also generable sustainable livelihood of rural artisans.
3. Scheme of Fund for Regeneration of Traditional Industries (SFURTI), A program of MSME,
Government of India, promoted cluster development and provided long-term support to traditional
artisans in rural areas. It aimed to set up Common Facility Centers for generating sustained
employment opportunities.
4. Face-to-face interview by the author with Anjali, the Secretary for Jute Artisans Guild Association

5. $1= INR 73.58 as on September 30, 2020
6. Female division of Federation of Indian Chambers of Commerce and Industry(FICCI), an Indian
industry association
References
Agrawal, R. (2014). Opportunity recognition and growth dynamics of an MSME unit– a case of women
entrepreneurship in India. Journal of Women’s Entrepreneurship and Education, 3-4, 83-94.
Jute. (2020). Success story, jute artisans guild association, Retrieved from www.jute.com/documents/
10194/2364434/Success+Story+UP.pdf/1052eddc-3131-4a1c-882f-24a315782665 (accessed 25
September 2020)
juteforlife (2020). She is providing economic stability to the rural women in Lucknow. Retrieved from www.
juteforlife.org/story?url=economicstabilitytotheruraLwomeninLucknow (accessed 21 September 2020).
Indianmirror (2020). “Indian jute industry at a glance in 2019-2020, Retrieved from www.indianmirror.
com/indian-industries/2020/jute-2020.html (accessed 21 September 2020).
Oliver, F. (2017). She has changed lives of over 200 women. Hindustan Times, Lucknow edition, February
10, Retrieved from www.hindustantimes.com/lucknow/she-has-changed-lives-of-over-200-women/story-
cmztQ2YChhKUrSKCVUvdLO.html (accessed 23 September 2020).
Reynolds, P. D. Camp, S. M. Bygrave, W. D. Autio, E., & Hay, M. (2001). Global entrepreneurship monitor
2001 executive report. Retrieved from www.gemconsortium.org/file/open?fileId=47100
Texmin (2020). The jute and textile industry, Retrieved from http://texmin.nic.in/sites/default/files/
note_on_jute_sector_1.pdf (accessed 21 September 2020).

Exhibit 1. Tie-ups and membership
Figure E1

Exhibit 2. Product assortment
Figure E2

Exhibit 3. Other existing online e-commerce platforms
Figure E3

Exhibit 4. Jute for Life workshop at Lucknow
Plate E1

Exhibit 5. Screenshot of company website retrieved from www.juteforlife.org
Figure E4

Exhibit 6. Retail Store at KVIC Plaza
Plate E2
Corresponding author
Mitali Tiwari can be contacted at: tiwarimitali@gmail.com

Teaching notes
Mitali Tiwari and Amit Nakra
Synopsis
Jute Artisans Guild Association was a not-for-profit enterprise set up by a female
entrepreneur Anjali Singh in the Lucknow district of Uttar Pradesh, India, in 2009. The
organization primarily worked to conduct a skill-based training program for women rural
artisans. It provided them jobs in jute products designing and making at the design centers
established at nearby villages in Lucknow and Barabanki district of Uttar Pradesh. Although
the organization’s core was conducting capacity-building programs and providing
sustainable livelihood, the firm generated revenue by selling hand-made jute products to its
customers. The organization also had clientele from outside India; however, the export
operations were not developed due to pressurizing domestic demand. The organization
solely carried out operations by procuring and delivering products on an order basis. In
2020, the organization opened its first retail outlet at a retail space provided by Khadi and
Village Industries Commission (KVIC) at their plaza in Lucknow. The store since then had
drawn a massive response from its customers. The organization was also in the final stage
of securing a cluster development project for women artisans in Lucknow under the SFURTI
program of the Ministry of Micro, Small, and Medium Enterprises (MSME), Government of
India. This vast program and its materialization would make it the most prominent
employment hub for rural women in Lucknow. In 2020 Anjali, the organization’s visionary
and founder, was contemplating the likely pressures on the firm in terms of resources, time
and effort because of handling two new projects simultaneously. While the retail outlet had
opened the avenues of opening more such retail stores in the country, the SFURTI project
was to materialize the spirit of the organization, which was social work. The case aims to
highlight these pertinent questions as to what strategies the organization must adopt to
handle both the tasks at the same time? Which program was to be given priority? How
would the retail business be taken care of? Should there be separate dedicated teams for
SFURTI and the retail projects? What were the avenues of expansion in the retail sector?
Methodology
The case study is based on both primary and secondary data. The case has been
developed by conducting a series of detailed interviews with Anjali Singh, the Head of the
Association, coupled with meetings with other key executives of the firm and the women
artisans. The case discussion has been supported by secondary data, primarily derived
from the company website, newspaper articles, business magazines, newsletters from
industry associations, government websites, etc. The authors have developed the exhibits
and figures based on the information derived from interviews and secondary sources.
Authors have clicked the photographs given during their visit to the production site and the
retail store.
Learning objectives
䊏 learn the value proposition of a small business enterprise engaged in social work;
䊏 understand the dilemma before the social enterprises in attending to the needs of
business development and social development at the same time;
䊏 analyze the pricing strategies of an organic product firm; and
䊏 conduct a SWOT and TOWS analysis and explore the enterprise’s business expansion
avenues.
Position in the course

This case is primarily meant for undergraduate and postgraduate level management
students. The issue can effectively teach Entrepreneurship & Business Development
courses covering idea launching, management and growth. It can also be used by teachers
teaching NGO Management and Social Entrepreneurship. Although the case primarily
deals with the social sector, it can also teach general management issues such as
marketing and pricing strategies. The case can be prepared for introductory and advanced
level entrepreneurship courses.

Assignment questions
Q1. Examine the structure of Jute for Life as a social enterprise and draw its business
model canvas enumerating its essential characteristics.
Q2. Drawing instances from Anjali’s experiences, discuss the leadership and
entrepreneurial traits she exhibits.
Q3. Assessing the position of Anjali as a proprietor, what do you think should be her next
strategy to reconcile the objectives of business growth and social welfare of her
firm?
Q4. Conduct a SWOT analysis of Jute for Life and develop a TOWS matrix to explore
avenues of growth for the company for the next five years.
Teaching plan
The 90-min teaching plan can be discussed as per the below-mentioned timeline and
approaches:
Table 1
Discussion time
S. No. Discussion issues (90 min)
1 Business model canvas of Jute for Life 25 min

2 Traits of an entrepreneur 20 min
3 Strategies to reconcile the objectives of business growth and social welfare 20 min
4 SWOT & TOWS analysis and avenues of growth 25 min
Discussion plan 90 min
1. Business Model for Jute for Life

The instructor may begin the discussion by asking the students to tell what they meant by a
business enterprise. The students are likely to put forth the following points:
䊏 An enterprise that seeks profit by selling goods and/or services
䊏 One which sets up factory equipped with production plant and machinery.
䊏 A private limited company that may manufacture and sell domestically and
internationally.
䊏 A firm that hires factors of production, namely land, labor, and capital, combines them,
puts to the production process, manufactures goods, sells them in the market, earns
profits, distributes them amongst stakeholders and reinvests a part of the profit for next
round of business.
The instructor may list these points and then ask the students to explain what they meant by
the social organization or an NGO. The students are likely to suggest the following points,
which the instructor may list next to the points mentioned above.
䊏 An organization involved in social work.
䊏 One which gets funds from government, donors, etc., and works to uplift the
downtrodden.
䊏 One who is tied to some social mission and seeks to achieve that through social
activities.
䊏 An organization not meant for private profit or benefits but for the general good and
social benefits.
Before explaining the business model of Jute for Life, the instructor may ask the students to
point those factors out of the two lists which are inherent in Jute for Life. After they pick up
several elements from the lists, the instructor may explain what social enterprise is.

Social enterprise: Normally, the terms such as non-government, not-for-profit, philanthropy,
charities and third sector may be used interchangeably. However, if we analyze more technically,
there may be substantial differences between the two. In the USA, the term social enterprise refers
to a situation when social welfare objectives are met through private initiatives. In Europe, social
promotion and coordination of all efforts for this purpose are considered under social enterprise
(Grassl 2012). No doubt, there is no widely accepted definition of social enterprise. Technically,
the concept is the hybrid of the two forms, namely, social organization and business enterprise,
borrowing the first word from the former and the last one from the latter. Here the borrowing is not
only the terminology but also the functions of each entity. With “social” comes the responsibility
toward others, non-reciprocal philanthropy, where social considerations are paramount, and thus
no personal benefits are involved. The other term, “enterprise,” brings into account an initiative.
This economic environment encourages business through creativity and innovation involving a
transaction of some material value, be it the exchange of goods with money or of two goods/
services. NESsT, Brazil defines it as “a business created to further a social purpose in a financially
sustainable way” [7]. They provide income generation opportunities that are sustainable and
scalable. It involves the concept of business that takes social good as an equally important priority
as is the material good and propels an inclusive type of development.
Cheng and Ludlow (2008) categorize three models of social enterprise:
1. Model 1: the one that does a business activity that does not involve any direct social
value, reaps profits out of it and then transfers whole or a part of the profits to be used for
an activity that generates direct social gain. It is also called the “profit generator model.”
2. Model 2: the one that conducts an activity with some social return but always maintains
a tradeoff between social and financial returns. It is also called the “trade-off model.”
3. Model 3: this one engages in an activity that creates a direct social value creation and
generates financial returns that directly correlate with the social value created and
hence reconciles both the objectives of social welfare and business profits. This model
is termed as “lock-step model.”
The instructor may ask the students to suggest which three models apply to Jute for Life.
The students are likely to point to either Model 2 or 3. It is essential to point out that there are
more grey areas between the 2 and 3 models. Anjali’s organization conducts skill-based
training programs that provide livelihood generation for women artisans for a long time.
Talking about social impact creation, Anjali’s organization can be attributed to gender
development, empowerment, sustainable livelihoods and eco-friendly business products.
All of these are incorporated in UN Sustainable Development Goals (SDGs). Whereas
selling jute products brings in revenue generation and profits, training women artisans in
rural areas and then providing them livelihood creates beneficial social impact. Both these
activities are included in Models 2 and 3. However, one thing must be pointed out here.
Eco-friendly business products such as organic food sustainable materials such as jute,
hand-made paper, cloth, bamboo and clay, are not yet very mature markets although they
are very fast growing. Here, the consumer market is very niche. Once these markets
become mature and mainstream, they will generate commercial rates of return. Thus, Jute
for Life is more likely to be a Model 3 firm after a few more years.
Talking about business enterprise, they seek answers to several questions: how to raise
awareness about the company’s products or services? How do the consumers evaluate the
company’s value propositions? How to maintain post-purchase customer support? How to
deliver the value proposition to consumers? (Osterwalder, Pigneur, & Clark, 2010)
Other than these questions, a social enterprise needs to answer specific questions; how will
this social enterprise stand out in the market? How to raise awareness about their products
(especially as in Anjali’s case, if they compete with mainstream business, which is plastic
and synthetic product market in this case)? Who can be their potential partners to increase
their reach? Are there any more effective and efficient ways by which they may increase
their delivery of products or enhance the level of social impact?
Here, other than the commercial value proposition that the business firms offer, the social
enterprise also provides a social value proposition in addition to it. And that is where the
difference between business and social enterprise becomes evident. There is more clarity
between a corporate social responsibility activity, a not-for-profit organization, a social
service on one side and a social enterprise on the other side.

Going through the above analysis, Jute for Life reflects the spirit of a social enterprise, one
where primarily the goal of the enterprise is social value creation, yet this is not done
through mere donations or government funding only. The enterprise is competent enough
to generate its funds through its business activity, and that is how the enterprise has
sustained itself during all these years. Also, the primary aim of the enterprise is to instill
confidence among women artisans, to make them capable enough to become
independent, self-reliant and economically empowered. Hence, what better example could
the enterprise have set other than its own to exemplify its self-reliance and self-sufficiency
model.
Here, the Instructor may explain an organization’s Business Model Canvas (Osterwalder
2013). It is a template to depict a visual chart of the organization’s key partners, key
resources, customer relationships, channels, customer segments, value proposition, key
activities, cost structures, revenue streams, etc. A mature business organization may use
this model to manage its strategy, whereas a start-up enterprise may use it to choose the
suitable business model for them.
The Business Model for Jute for Life can be designed keeping in mind both the facets of
business and social work carried out in the organization. Hence, the following design may
be developed (Tables 2 to 4).
2. Traits of an entrepreneur
The Instructor may explain the leadership theories to the students and then ask them to cite the
instances from the case study where Anjali demonstrates those leadership qualities. This will
help them relate to the theories more practically. The discussion may proceed as follows:
Many studies have suggested that women entrepreneurs face a more significant problem
setting business than men (Mauchi, Mutengezanwa & Damiyano, 2014; Estrin & Mickiewicz,
2011; Cuberes & Teignier, 2015; Brush & Cooper 2012). This is because there are
numerous prejudices related to the efficiency of women as an entrepreneur and hence
funding agencies, suppliers, stakeholders and even the government. In the case of Anjali,
numerous instances show that there have been several drivers and impediments, which
have come across her in her entrepreneurial journey. She started with a meager sum of INR
0.15m only in the initial phase through owned funds. She could not procure finances from
any bank or financial institution in her early years. Anjali’s initial work experience was from
an administrative post, and thus the initial experience does not match the entrepreneurial
problems she had to face. Lack of business proficiency or formal training in
Table 2
Key partners Key activities Key resources
Commercial: Commercial: Commercial:

1) Government of Uttar Pradesh 1) Designing of samples 1) Owned funds and profits
2) National Centre for Design and 2) Procuring orders and generated through business
Development, Ministry of Textiles, development of jute items 2)Tools, equipment, cutting
Government of India 3) Delivery of orders machines, sewing machines, dyes,
3) Council of Handicrafts 4) Managerial activities such as paints, etc.
Development Corporation marketing, human resource, 3) Retail shop space, Design
(COHANDS), New Delhi, accounting, etc. centers space, workshop space
4) NSIC Social: 4)Loans through banks
5) U.P. Export Corporation Ltd, 1) Providing skill-based training for 5) Support staff
Lucknow product designing, development, Social:
6) Women on Wings, The and production 1) Loans and funds from NSIC,
Netherlands 2) Organizing women artisans to KVIC, banks, etc.
Social: form Self Help Groups 2)12000 sq. feet land for SFURTI
1) Bharatiya Sewa Sansthan 3) Conducting Entrepreneurship program
2) MSME Training and Development 3) Trainers and resource persons
3) KVIC Workshops for potential and
4) NJB, Ministry of Textiles, GOI existing women entrepreneurs
5) FICCI, FLO 4) Conducting group workshops in
skill development for other
agencies, NGOs, etc.
Source: Adapted from Retrieved from www.strategyzer.com/canvas/business-model-canvas (Osterwalder, 2013)

Table 3 Business model of jute for life
Value propositions Channels Customer relationships Customer segments
Commercial: Commercial: Commercial: Commercial:

1) Eco-friendly customized 1) Personal visits to offices 1) Customize logo 1) Private and government
products of potential customers embossment on items, Universities, offices,
2) Moderate prices 2) WhatsApp, Facebook, customized color and colleges, schools
3) Festival offers and phone calls detailing 2) Training centers
discounts 3) Pamphlets and 2) Offers, discounts and 3) Commercial firms and
4) Professional training to advertising promotional packages shops
staff 4) Word of mouth 3) Loyalty benefits 4) Industry associations
5) Incentive-based work Social: 4) Long-term relationships Social:
Social: 1) Personal contact and through timely and easy 1) Rural women artisans
1) Developing professional communication through delivery 2) Self-help groups
skills and providing personal visits to rural areas 5) Strict quality control 3) Microfinance institutions
sustained livelihood to rural 2) Meeting family members Social: 4) Industrial clusters
women of rural women through their 1) Long-term relation with 5) NGOs, training agencies
2) Developing home visits rural women artisans 6) Entrepreneurship
entrepreneurial acumen 3) Being open for 2) Maintaining a personal development centers
through entrepreneurial communication to them for relationship 7) Women Entrepreneur
training any guidance 3) Offering need-based, Networks
3) Providing market to items 4) Personal guidance and professional skill training
made by rural women mentoring 4) Creating long-term
4) Enhancing national impact
income through increased 5) Hiring them for a job in
employment the core team
Table 4 Business model of jute for life

Revenue streams Cost structure
Commercial: Commercial:
1) Payments from customer orders 1) Rent of retail space at KVIC and workshop center
2) Retail selling at a retail shop 2) Wages and salaries
3) Export selling 3) Machinery & Equipment
Social: 4) Jute fabric and other raw material and accessories
1) No revenue generation through social activities 5) Utilities
as activities are purely not-for-profit 6) Travel, conveyance, advertising and marketing, bank interest
on loans, accounting and other professional fees
7) Taxes
8) Costs on participation in trade fairs, exhibitions, etc.
Social:
1) Support and participation cost
2) Travel to rural areas
3) Equipment and training cost
4) Training for support staff
5) Resource person honorarium
entrepreneurship or business is also an impediment. Her background was also non-

business, so it was nearly impossible to have any such experience beforehand. Because of
this, the initial start in such organizations is on a relatively slow pace. However, just as the
entrepreneur gains experience, it gained momentum in subsequent years. Those starting
their entrepreneurial journey without any work experience may face communication
problems also in the beginning. Those women who had initially been within the four walls of
the house, find it difficult to go out and reach out to their clients and other stakeholders.
However, with Anjali this was not the case as she already had a professional degree, and
having worked in a private firm never created any communication problems with her.

Anjali’s entrepreneurial traits may be best described as an opportunity-driven entrepreneur
(Reynolds et al., 2001). She effectively captured the business opportunities available at the
ideation phase of Jute for Life. Hence, what was lying as a trained but idle workforce initially,
quickly channelized to create production opportunities. A readymade crew was harnessed
to enhance the production of goods and create a compelling and sustainable income
generation opportunity. Such entrepreneurship is not driven by necessities arising from the
desperate search for employment but is an intelligent and concerted action to meet specific
goals. The modalities to achieve these objectives were also ecological so that minimal
carbon imprints were arising out of production. The firm opted for sustainable business
processes that provide advantages to its beneficiaries and serve a larger purpose of
environmental conservation and national growth.
Anjali exhibits extraordinary leadership qualities and traits (Stogdill, 1974), and several
leadership theories (Robbins, Judge, & Sanghi, 2007) can be drawn through several
instances in the case study. She was conversant and well versed in convincing her potential
clients, and her sense of reasoning and oratory skill were significant drivers to impress her
clients and procure orders for her. She convinced the women artisans to join her group and
understand and guide them in their work (Trait theory). She successfully provided skill-
based training to women with her extraordinary oratory skills and convinced them to start
working in her design centers in rural areas. Convincing the family of female workers to let
her go out and work in rural areas was a tedious task to handle because there were several
stereotypes related to man and woman roles widely prevalent in the Indian social system.
But this never became an impediment for Anjali because she convinced several families of
women workers to send them for work (Relationship leadership theory). Anjali was lucky
enough not to have faced any inhibitions from her family, be it her parents, husband or in-
laws. However, that she would do her own business was never taken seriously among her
relatives. There was, thus, a lack of cultural acceptance of women starting up an enterprise
of their own. This cultural non-acceptance developed into an institutional non-acceptance
of them as entrepreneurs and consequentially proved as a hindrance in providing funds
and credit for their business. Cultural factors thus, give rise to institutional inhibiting factors.
As a woman, Anjali had never undermined the capabilities of other women, and therefore
80% of her core staff were women. This is a strong example for those who view women-led
social enterprises as a failure. The case exhibits the leadership qualities of a women
entrepreneur, but it also demonstrates that women workers are the real drivers of growth.
Anjali talked and discussed business with her women employees, and her colleagues have
a say in business decision-making (Participative leadership theory). Anjali had maintained a
long-term cordial relationship with her workers, who had been working there for several
years, and with her raw jute suppliers based at Kolkata and her clients. Undoubtedly, this
had created her goodwill in the market, and most marketing was thus done through word of
mouth based on all the excellent work her organization had done in the past. The women
workers who became associated with her initially were still connected and actively
participating in the organization. This was a strong workforce that Anjali had created over
the years, gaining expertise and proficiency in handling several enterprise tasks. Believing
in the potential of other women, many women workers were assigned essential roles in her
enterprise (Relationship leadership theory). The enterprise had an incentive-based wage
rate plan and awarded the outstanding performers every month. The enterprise workers
raised their quality of living by sending their children to schools, having recreational
opportunities, opening bank accounts, self-grooming, etc. All this had been possible due to
the enterprise policy of keeping the employees motivated through providing them with feel-
good factors (Transactional theory of leadership).
3. Strategies to reconcile the objectives of business growth and social welfare
The discussion may begin by asking questions; Do you think an entrepreneur can give
sincere attention to any one of the goals without undermining the other one? Is the
delegation of responsibility possible for Anjali? What model would you suggest for Jute for
Life to effectively carry out its retail business, and at the same time, go ahead with the
SFURTI program? The students are likely to be divided in answering these questions. Some
may be apprehensive of the capabilities and resourcefulness of the enterprise to serve the
two purposes. Others may feel that since the organization had been able to carry out both
the activities throughout these years successfully, it had the potential to continue to do so.
Jute for Life had been in business for more than ten years, and in this regard, it had crossed
the start-up phase of the enterprise life cycle. However, it had not achieved maturity as
many business options remained unharnessed. The organization started its export
business in 2011. However, it did not expand its overseas operations fully due to

pressurizing domestic demands. Lack of adequate staff and the near absence of
specialized managers were potent factors. The new business option that Jute for Life had
adopted was its first retail outlet. This, too, had been made available due to the offer by
KVIC to provide retail space in its plaza at concessional rates. This development called for
increased energy, effort and time and money investment to bear fruitful results. However,
the problem was that the SFURTI program had also been at the doorsteps, which equally
required time and energy, if not money, as the government itself provided it. However, the
cost of the land as a prerequisite for the SFURTI program was to be borne by the
organization through its owned funds. This was sure to create financial pressures on the
organization and thus catalyzed the need for enough profit generation through business
activity. Although one goal complemented the other in general, they competed for an
investment of time, energy and efficiency. While meeting the social objectives had been the
organization’s primary goal, the need for adequate profit generation was also pertinent
given the rising costs.
Jute for Life did not contemplate bringing any change from the “not-for-profit” status to the
for-profit status of the firm. The firm’s “for profit” wing was established in the name of Jute
Artisans Guild Private Limited in 2017 and was carrying out its operations. Hence, no
discussion on the pros and cons of both types of set-ups was required at this stage.
The firm had generated an annual turnover of INR 0.15m on an average since it became
functional in 2017. The private limited wing of the firm was thus ripe enough to take
complete charge of all manufacturing activities, the operations of which were supposed to
be carried out through gradual hiring of managerial professionals in the field. As the
revenues would start pouring in, new design centers and facilities may be opened to
accommodate more artisans to work. This would increase the productive capacity of the
firm in one place while at the same time increasing the employment potential of the firm to a
greater extent. This model would ensure that both the social and commercial goals were
achieved but that one goal would be instrumental in meeting the others’ targets. This would
also save the company from getting caught up in the unnecessary legal changeover of the
firm as no adjustments were required to be done with the vision and mission of the firm.
Delegation of responsibility: The time had come for Jute for Life to initiate delegation of
responsibility now. The core staff of Jute for Life had remained loyal for several years and
hence had gained expertise and experience. There was a need to delegate higher
responsibilities to deserving ones according to their knowledge, expertise and interests.
This required strategic departmentalization of the firm, wherein each department would be
headed by a specialist manager. This was to be either procured through external
recruitment or assigned to someone internally, provided they had adequate skills. Students
may be divided on this point. As Jute for Life had undertaken full-fledged business
operations, some may feel that it must hire experienced managers to fulfill this
responsibility. Others may think that since the core staff had been associated with the
organization for such a long time, their experience with the organization may be fruitful in
meeting the needs of the enterprise. The Instructor may nudge the students to discuss both
the alternatives’ pros and cons. For any business organization, channeling new ideas and
strategies is very important. It may bring innovation, development and creativity in
managerial decision-making. However, retaining and nurturing in-house talent and
experience is also vital for steering the organization. Hence, the entrepreneur may take
caution to balance the two.
Restructuring and departmentalization: This would entail increased costs on the firm, which
must be accounted for tactfully. To deal with this, the firm may gradually incorporate the
departmentalization process. Initially, the marketing and operations department need be
created, as these functions develop manifold due to increased activities of the firm, and
thus become overwhelming for the limited staff to handle them. Granting an independent
status to these departments having a dedicated manager for each would eventually fetch
more orders for the company and keep the revenue meters rolling faster than before. Once
sufficient funds are generated, the firm may create other departments, thus maturing into a
full-fledged company in 5–10 years. The proposed organizational structure of Jute for Life
can therefore be as follows (Figure 8).
4. SWOT and TOWS analysis and avenues of growth
The Instructor may ask the students to point out the Jute for Life’s Strength, Weaknesses,
Opportunities and Threats (SWOT). The Instructor may encourage the students to pull the
points considering the facts that have been mentioned in the main case. The Instructor may
keep writing these points on the board (Figure 9).

Figure 8 Proposed organizational structure
Figure 9 SWOT analysis of Jute for Life
The Instructor may then ask the students what, according to them, were the viable growth
and expansion options before Jute for Life. Appealing to the students’ inherent business
acumen, the Instructor may now ask the students to propose new business strategies for
the firm, which the firm may adopt to enhance its market value and brand image. In this
regard, the students may be encouraged to use the TOWS matrix Weihrich (1982) to evolve
the strategies for the firm. The following strategies may be proposed using the matrix
(Figure 10).

Figure 10 TOWS Matrix
The discussion may move as follows:

New retail options: There was to be a full-time store manager for the retail outlet. The store
manager would do the inventory management in the store arrange the display of the items
on the shelf creatively and attractively so that each item was accorded its place, and it does
not skip the eyes of the customer. A store manager may be appointed within the
organization itself because an insider may have more familiarity with the type and variety of
items made, their prices, usage, etc. Soft skill training in communication, proficiency in both
Hindi and English, speaking and reading would add value in handling the store operations.
Jute for Life should further look for a full-fledged operation in the retail business. This may
be in the form of opening new stores in the city, hiring single retail space in business
complexes, malls, etc., or through multi-brand retail stores such as Walmart, Big Bazar,
Spencer and V- Mart. There was also a huge potential to explore e-commerce platforms
such as Amazon, Flipkart and Snapdeal. The far better option before the enterprise would
be to start online shopping of its products through its website www.juteforlife.org. The
website had yet not been harnessed to facilitate online selling of the items, which the
existing competitors were already doing. Since the outbreak of the COVID-19 pandemic,
customers avoided buying through personal visits through retail shops, and thus, the
popularity of online shopping had increased substantially. Other potential competitors
selling similar products had their online platforms, namely, Jaypore, Fabindia, itokri and e-
handcraft. The time was ripe enough to offer online shopping to its clients due to its
convenience, safety and popularity. This was also vital for increasing the market share of
the products of Jute for Life.
Product diversification: The firm’s product portfolio could be enlarged to include exclusive
handicraft items of jute, cane, bamboo and terracotta. The firm may start manufacturing
hospital linen products mainly considering the COVID-19 crisis wherein the country was

facing scarcity. The array of items that could be produced without any significant pressure
on the costs were PPE kits, scrub suits, gowns, masks, aprons, bed sheets, drawsheets
and cut sheets, all made by disposable material. The products could efficiently be made
with care by rural women artisans.
Pricing strategy: Jute for Life has adopted a competitive pricing policy since the beginning.
The profit margins over the cost were just 8%, making the prices competitive. The Instructor
might ask the students if any change in pricing strategy was needed at the time? The
operations and the client orders for the firm were rising. Also, there was a need to generate
revenues for business expansion to increase the number of retail outlets or choose other
retail options. The students may initiate the discussion by pointing out the difference
between competitive and value-based pricing. They may also be asked to read about the
theories of pricing beforehand. The Instructor may start by asking the meaning of
“competitive pricing” and “value-based pricing.” After the conceptual understanding of
pricing theories, the Instructor may ask whether there was a need to change the firm’s
pricing model. Some students may strongly argue to continue with the present system of
pricing. They may point out the following factors:
䊏 The increase in prices by adopting value-based pricing may drop the demand for the
products. The primary customers of Jute for Life were universities, schools and
government offices that had to operate within limited budgets and funds for their
programs. Hence, increased prices of items would entail a loss of orders from them.
䊏 Fall in sales volume may bring down the revenues, affecting the wages and salaries of
the artisans.
䊏 The competition posed by the synthetic counterparts having a higher market share and
lower prices must also be considered.
Here, the Instructor must also point out the physical conditions prevalent when the case was
set. The case was established in 2020 when the pandemic gripped the whole world. Several
activities, such as organizing seminars and conferences, stood canceled, resulting in the
cancellation of orders for jute bags and kits. By the second half of the year, the infections
had not subsided, and hence there were grave uncertainties regarding the time gap
needed to return to normalcy. In this scenario, the orders were not likely to increase anytime
soon, and nothing could be said of when the charges would return to their previous levels.
In such a case, an increase in pricing was likely to affect the orders further.
Value-based pricing: The value-based pricing model (Tatyana, 2011) cannot be dismissed
here. It can be tried on a differential basis for several lines of jute and other products
produced by the firm. As regards the global pandemic, that was a short-term problem.
Hence, the value-based pricing model may not be adopted in the immediate future.
However, the long-term strategy may include opting for value-based product pricing on a
differential basis. The core jute product segment, such as office bags, seminar kits and
folders, may continue with the current competitive pricing model. However, the firm could
also diversify into decorative items rather than necessities. Such things were mainly
purchased by upper-middle-class and higher-income groups for decorative purposes in
their homes, offices, shops, etc. They could be safely categorized as items of luxury to be
purchased by the elite class. In addition to this, the firm could consider eco-friendly goods
that have become fashionable with growing awareness of eco-friendly items. There is also a
preference for handmade stuff prepared by rural artisans, especially women, to contribute
to the income of the marginalized classes. All these factors make a case for value-based
pricing. The awareness of “who has made it?” and “what purpose our buying will serve to
those who made it?” increases the product’s potential value. Hence, the customers are
more willing to pay a higher price due to this emotional appeal inherent in the items. Other
products that do not qualify for these criteria may continue to have a current pricing
strategy. The successful examples of high-priced handicraft and decorative items such as
Fabindia show that the assumptions mentioned above regarding consumer preferences
have been tested and firmly grounded in the market. Hence, Jute for Life may be open too
for emulating them.
Conclusion
While the firm had both social and commercial considerations at its disposal, due caution
was to be given to the objective with which the organization started its operations in the first
place. It should not be forgotten or ignored at any time as to what was the vision of the firm

initially and that it was this vision that had brought Jute for Life to the present stature,
position and recognition that it had acquired in the market. The firm’s spirit lies in the
capacity building and the sustainable livelihood opportunities it offers to disadvantaged
rural women, and this should always remain the firm’s core mission.
The Instructor may finally wind up the discussions by summing up the business model,
women’s entrepreneurial traits and core strategies of Jute for Life on the board.
What happened?
Jute for Life made its private wing fully operational. All the manufacturing activities were
shifted to the private wing, and the capacity development was moved to the social branch.
A full-time store manager was hired to look after the retail store at KVIC plaza under Mr. S.P.
Singh, the Sales Head. The firm also acquired Federation of Export Organization
membership, and several international orders had lined up to be taken up. The firm
contemplated starting the online retail selling through its website and took a subscription to
www. amazon.in, an e-commerce platform for creating its online operations. The retail store
had exhibited good response, and hence the plans to open several such stores at several
places are also in the pipeline. To take care of loss of orders due to COVID-19, the firm had
started manufacturing hospital linen, masks, sanitizers and immunity-boosting products.
Although it was created to take care of the post lockdown sales, it was now given a
permanent place in the product assortment of Jute for Life. Anjali and her core women team
were preparing for the SFURTI program, which would begin soon once all formalities were
done (Figure 11).
Figure 11 Board Plan

References
Brush C. G., and Cooper S.Y. (2012). “Female entrepreneurship and economic
development: an international perspective.” Entrepreneurship and Regional Development
24 (1–2): 1–6. www.tandfonline.com/doi/abs/10.1080/08985626.2012.637340
Cheng P. & Ludlow J. (2008). “The Three Models of Social Enterprises: Creating social
impact through trading activities: Part 1”, Venturesome, Charities Aid Foundation, accessed
on September 27, 2020, file:///D:/ventursome3modelsofsocialenterprise_part1jan2008.pdf
Cuberes D., and Teignier M. (2015). “Aggregate Effects of Gender Gaps in the Labor
Market: A Quantitative Estimate.” Economics Working Paper E14/308, University of
Barcelona, Barcelona. www.marcteignier.com/research_files/GGLMAP_CT.pdf
Estrin S. and Mickiewicz T. (2011). “Institutions and Female Entrepreneurship.” Small
Business Economics, 37(4): 397–415 available at www.researchgate.net/publication/
254556146_Institutions_and_female_entrepreneurship
Mauchi F.N., Mutengezanwa M. and Damiyano D. (2014), “Challenges faced by women
entrepreneurs: a case study of Mashonaland Central province”, International Journal of
Development and Sustainability, Vol. 3 No. 3, pp. 466– 480, available at https://isdsnet.com/
ijds-v3n3-5.pdf
Osterwalder A. (2013). “A better way to think about your business model”, Harvard
Business Review, https://hbr.org/2013/05/a-better-way-to-think-about-yo
Osterwalder, A., Pigneur, Y. and Clark, T. (2010). Business Model Generation: A Handbook
for Visionaries, Game Changers, and Challengers; Strategyzer Series, John Wiley & Sons,
Hoboken, NJ, www.wiley.com/en-us/Business+Model+Generation:+A+Handbook+for
+Visionaries,+Game+Changers,+and+Challengers-p-9780470876411
Robbins S. P., Judge T. A., & Sanghi S. (2007). Organizational Behavior, New Delhi:
Pearson Education
Stogdill R.M. (1974). Handbook of Leadership: A Survey of the Literature, NY: Free Press.
Tatyana, NP (2011). “Value-based pricing: A success factor in the competitive struggle”.
Marketing. 42. 227–236. www.researchgate.net/publication/276228917_Value-based_pric
ing_A_success_factor_in_the_competitive_struggle
Weihrich, H. (1982). “The TOWS Matrix a tool for situational analysis,” Long Range Planning,
15, (2), 54–66, www.studocu.com/en-gb/document/university-of-northampton/managing-
project-teams/the-tows-matrix-a-tool-for-situational-analysis-weihrich-1982/17635991
Wolfgang, G. (2012). “Business models of social enterprise: a design approach to
hybridity”. ACRN Journal of Entrepreneurship Perspectives. 1(1) 37–60, www.acrn.eu/
resources/Journals/JoE012012/Grassl_SE-Hybridity.pdf
Note
1. “What is a social enterprise” accessed on September 27, 2020, available at https://www.nesst.org/
social-enterprise

Abstract
Title – Jute for Life: reconciling the social and business goals through sustainable entrepreneurship.
Learning outcomes – The case has practical value exhibiting forces creating sustainable livelihood at
grassroots level and at the same time depicting how business and social goals can be reconciled
through innovative mechanisms.
Case overview/synopsis – The case covers the journey of a social enterprise lead by a woman
entrepreneur, run by women workers and providing livelihood to several rural women entrepreneurs
through providing skill development training in making hand-made jute bags.
Complexity academic level – MBA and BBA
Supplementary materials – Teaching notes are available for educators only.
Subject code – CSS 3: Entrepreneurship

Wa0014.

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Wa0014.

Uploaded by

Copyright:

Available Formats

Jute for Life: reconciling the social and

business goals through sustainable

The Indian jute industry

The dawn of Jute for Life

PAGE 2 j EMERALD EMERGING MARKETS CASE STUDIES j VOL. 12 NO. 2 2022

VOL. 12 NO. 2 2022 j EMERALD EMERGING MARKETS CASE STUDIES j PAGE 3

PAGE 4 j EMERALD EMERGING MARKETS CASE STUDIES j VOL. 12 NO. 2 2022

VOL. 12 NO. 2 2022 j EMERALD EMERGING MARKETS CASE STUDIES j PAGE 5

Revenue streams and finance

PAGE 6 j EMERALD EMERGING MARKETS CASE STUDIES j VOL. 12 NO. 2 2022

The value proposition

VOL. 12 NO. 2 2022 j EMERALD EMERGING MARKETS CASE STUDIES j PAGE 7

Training and entrepreneurship development

PAGE 8 j EMERALD EMERGING MARKETS CASE STUDIES j VOL. 12 NO. 2 2022

VOL. 12 NO. 2 2022 j EMERALD EMERGING MARKETS CASE STUDIES j PAGE 9

Sustaining lives and value creation

Human resource development

Figure 5 Organization hierarchy

PAGE 10 j EMERALD EMERGING MARKETS CASE STUDIES j VOL. 12 NO. 2 2022

Creativity and innovation

VOL. 12 NO. 2 2022 j EMERALD EMERGING MARKETS CASE STUDIES j PAGE 11

Figure 7 Success stories

PAGE 12 j EMERALD EMERGING MARKETS CASE STUDIES j VOL. 12 NO. 2 2022

Challenges posed by COVID-19 pandemic

The road ahead?

VOL. 12 NO. 2 2022 j EMERALD EMERGING MARKETS CASE STUDIES j PAGE 13

PAGE 14 j EMERALD EMERGING MARKETS CASE STUDIES j VOL. 12 NO. 2 2022

VOL. 12 NO. 2 2022 j EMERALD EMERGING MARKETS CASE STUDIES j PAGE 15

PAGE 16 j EMERALD EMERGING MARKETS CASE STUDIES j VOL. 12 NO. 2 2022

VOL. 12 NO. 2 2022 j EMERALD EMERGING MARKETS CASE STUDIES j PAGE 17

PAGE 18 j EMERALD EMERGING MARKETS CASE STUDIES j VOL. 12 NO. 2 2022

VOL. 12 NO. 2 2022 j EMERALD EMERGING MARKETS CASE STUDIES j PAGE 19

PAGE 20 j EMERALD EMERGING MARKETS CASE STUDIES j VOL. 12 NO. 2 2022

VOL. 12 NO. 2 2022 j EMERALD EMERGING MARKETS CASE STUDIES j PAGE 21

Position in the course

PAGE 22 j EMERALD EMERGING MARKETS CASE STUDIES j VOL. 12 NO. 2 2022

1 Business model canvas of Jute for Life 25 min

1. Business Model for Jute for Life

VOL. 12 NO. 2 2022 j EMERALD EMERGING MARKETS CASE STUDIES j PAGE 23

Cheng and Ludlow (2008) categorize three models of social enterprise:

PAGE 24 j EMERALD EMERGING MARKETS CASE STUDIES j VOL. 12 NO. 2 2022

Commercial: Commercial: Commercial:

VOL. 12 NO. 2 2022 j EMERALD EMERGING MARKETS CASE STUDIES j PAGE 25

Commercial: Commercial: Commercial: Commercial:

Table 4 Business model of jute for life

entrepreneurship or business is also an impediment. Her background was also non-

PAGE 26 j EMERALD EMERGING MARKETS CASE STUDIES j VOL. 12 NO. 2 2022

VOL. 12 NO. 2 2022 j EMERALD EMERGING MARKETS CASE STUDIES j PAGE 27

PAGE 28 j EMERALD EMERGING MARKETS CASE STUDIES j VOL. 12 NO. 2 2022

Figure 9 SWOT analysis of Jute for Life

VOL. 12 NO. 2 2022 j EMERALD EMERGING MARKETS CASE STUDIES j PAGE 29

The discussion may move as follows:

PAGE 30 j EMERALD EMERGING MARKETS CASE STUDIES j VOL. 12 NO. 2 2022

VOL. 12 NO. 2 2022 j EMERALD EMERGING MARKETS CASE STUDIES j PAGE 31

Figure 11 Board Plan

PAGE 32 j EMERALD EMERGING MARKETS CASE STUDIES j VOL. 12 NO. 2 2022

VOL. 12 NO. 2 2022 j EMERALD EMERGING MARKETS CASE STUDIES j PAGE 33

PAGE 34 j EMERALD EMERGING MARKETS CASE STUDIES j VOL. 12 NO. 2 2022

You might also like