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APMAS AS A SOCIAL ENTERPRISE – FACTORS CONTRIBUTED FOR SUCCESS AND ROAD BLOCKS

Submitted by Srinadh Anne (24032)

ORGANISATION TRAINEESHIP SEGMENT PRM 2003-05

Submitted to Mr. C. S Reddy CEO

APMAS JULY, 2004

Faculty Guide Prof. K.V. Raju INSTITUTE OF RURAL MANAGEMENT, ANAND

EXECUTIVE SUMMARY

Title Organization Reporting Officer Faculty Guide Student’s Name

: APMAS as a social enterprise – factors that contributed to success and road blocks : APMAS : C.S Reddy : K. V Raju : Srinadh Anne (24032)

Objectives: Many significant changes in the operating environment of APMAS are being taking place, which have impacted the strategy of APMAS. Process documentation of the organization is taken up to cover major milestones or road blocs which contributed for the success or failure of the organization. Scope: The study was confined to the Head Quarter and field visits to areas under two regional offices. Methodology: Review of APMAS literature, formal interviews with the staff, and structured discussion mode interviews with key stakeholders including the board of directors. Sources of data: Documents of APMAS and interactions with the staff, clients, Board of Directors, International NGOs, donors and few SHG functionaries. Findings: With the active support from Government APMAS was established as a state level technical support institution, for strengthening the women SHG movement though capacity building of the SHGs promoted by government, NGOs. APMAS started functioning from 1 July 2001 and DFID through CARE is funding APMAS. It works on ‘fee for service’ basis. Credibility at the initial stages was low. Board played major role in survival organization. Committed staff and visionary CEO struggled hard to establish the credibility. APMAS synergized the credibility it generated among the clients for better causes such as bringing the NGO, Govt. promoters under a same platform through ‘Convergence’ programmes. The role has constantly evolved as facilitator from doer, as envisaged. Of late it started foraying into livelihood enhancement under the capacity building activity. Conclusions: It was nurtured and ably supported by the visionary Board of Directors for during initial six months after the inception as the credibility for APMAS as on organization was low and the organization even enjoys these services of the board. Government as a principle SHPI (Self Help Promoting Institutions) helped the organization to grow further. Staff commitment and competency are the main contributors for the organization success along with other factors such as visionary board, proactive government, assured funding and the unique work of capacity building etc. The hurdles for its progress are lack of competent staff in the job market, inability to work in close with the banks, govt. policies, lack of role clarity among most of the clients especially the roles of mentoring and handholding, image of being a costlier to hire for the services, lack of second line leadership, meeting diverse needs of clients and thin client base etc. Recommendations: As the good work goes and still there is lot it has to achieve to realize its vision and outputs as per log frame. Being a state level technical facilitator ambiguity of its role among its clients is increasingly becoming the reality. It is progressing on right track but government policies and lack of sufficient number of competent staff in the job market may pose serious threats. It should act in these areas with utmost care.

ACKNOWLEDGEMENT I am grateful to the Institute of Rural Management Anand (IRMA) for providing such an excellent opportunity to undertake this study and also to my faculty guide Prof. K.V Raju provided me the constant support and guidance whole through the study I express my gratitude to Mr. Chandra Sekhar Reddy, CEO of APMAS, who happened to be my reporting officer for encouraging and supporting by providing valuable inputs on time to time. I am thankful to the few board members especially the Chairman Mr. P. Kotaiah and few other important functionaries of Government of Andhra Pradesh for their co-operation in providing me the appropriate information, despite busy in their daily schedule. .

Srinadh Anne (24032)

ABBREVIATIONS & ACRONYMS APARD APMAS APRLP APUSP APWF AQAA AQEA ASP AVP BoD CARE CASHE CBNA CBO CC CDF CDFI CEO CESS CGAP CIF CRI DFID DPIP DPM DRDA DRP DWCRA EO EoP FAQ FCRA FI FWWB GoAP GRADES GRAM IB LAN MACS M-CRIL MF MFI MIS MoU MVTC NABARD NGO NIRD PRIA QA QE SAP SERP

Andhra Pradesh Academy of Rural Development Mahila Abhivruddhi Society, Andhra Pradesh Andhra Pradesh Rural Livelihoods Project Andhra Pradesh Urban Services for the Poor Andhra Pradesh Womens’ Fund Affiliate Quality Assessment Agencies Accredited Quality Enhancement Agencies Ankuram Sangamam Poram Associate Vice President Board of Directors Cooperative for Relief and Assistance Every where Credit and savings for Household Enterprise Capacity Building Needs Analysis Community Based Organization Community coordinator Cooperative Development Foundation Community Development Finance Institutions Chief Executive Officer Centre for Economics and Social Sciences Consultative Group to Assist the Poorest Community Investment Fund Critical Rating Index Department for International Development District Poverty Initiatives Project District Project Manager District Rural Development Agency District Resource Person Development of Women and Children in Rural Areas Extension Officer End of the Plan Frequently asked Questions Foreign Currency Regulatory Authority Financial Institution Friends of Womens World Bank Government of Andhra Pradesh Governance ad Strategy, Resources, Asset quality and usage, Development and Impact, Efficiency and Profitability, Systems and operating processes Grambhyudaya Mandali Institution Building Local Area Network Mutually Aided cooperative Society Micro Credit Ratings &Guarantees India Limited Micro Finance Micro Finance Institution Management Information System Memorandum of Understanding Mandal Velugu Training Center National Bank for Agriculture and Rural Development Non Government Organization National Institute for Rural Development Participatory Research in Asia Quality Assessment Quality Enhancement Standard Accounting Package Society for Elimination of Rural Poverty

SFMC SHPI SIDBI SKS SLBC SMFI ToT UNDP VO WE & SE YIP

SIDBI Foundation for Micro Credit Self Help Promoting Institution Small Industries Development Bank of India Swayam Krushi Sangham State Level Bankers Committee Self Managed Financial Institutions Training of Trainers United Nations Development Project Village Organization Women Empowerment and Self Employment Young India Project