The Grassroots Business Fund (GBF), a global impact investing organization, is proud to announce a $1 million investment in Jaipur Rugs, one of the largest manufacturers of hand-knotted carpets in India.
Jaipur Rugs uses a decentralized rug production system, centered on a network of 7,000 low-income home-based weavers and an additional 3,000 wool spinners. Looms are placed both in individual homes and in community based production centers, where artisans are provided with training, materials and designs. Click here to learn more about the artisans who work with Jaipur Rugs.
Businesses like Jaipur Rugs, which have operations in emerging markets, can transform their economies and the standard of living for people in their communities. In India for example, small and medium enterprises (SMEs) are vital to the Indian economy: employing 60 million people and creating 1.3 million jobs every year.
However, oftentimes these businesses lack the resources or expertise to achieve success, scale and reach sustainability.
The Grassroots Business Fund (GBF), working through a unique nonprofit/for-profit hybrid model, is able to partner with these businesses to provide them with both the long-term investment capital and the business advisory services they need to overcome the challenges on the road to profitability and sustainability.
Through a long-term partnership with Jaipur Rugs, GBF will also be providing additional areas of support through its business advisory services, including marketing, governance, financial planning and social and environmental compliance. These services are provided by international and local service providers as well as GBF’s own professional staff.
Jaipur Rugs has been recognized internationally, including through C.K. Prahalad’s famous book Fortune at the Base of the Pyramid. To learn more about the case study, visit The William Davidson Institute’s website, or GlobaLens.
Click here to learn more about the Grassroots Business Fund or visit the website: www.gbfund.org.
4 Responses
This is very inspiring Michael – I just started Evolvemint, a business incorporating fashion and development concepts together using a similar model but on a smaller scale for now. I will be going to Bangladesh to highlight the stories of women that I am partnering with and will also begin to track measurable indicators.
Inspiring
This is actually a inclusive business model for developing world to sustain
Great to see the work GBF and others are doing to support organisations like Jaipur Rugs. I am involved in promoting ‘quality material- Benarasi silk’ made in Dhaka, Bangladesh as a world class material and for usage in the global fashion & design sector. This will allow for innovation of the material better understanding of the skills involved in producing the material and thus becoming more sustainable whilst promoting quality local goods to a world market.
Paraa, is a UK & Bangladesh based company involved in working with the local Bihari community who produce this material. An ‘open-call for designers’ is now in progress for the next event being organised by Paraa for February 2013. More information about the event can be found on: paraa.org.uk