Women Self-Employment Scheme (WOSEM)

Upon finding success with self-employment through micro-credit and having gained experience in the City Slum Welfare Scheme, CSG turned its eye towards bringing something similar to women already doing business in the Salem district, and later in what was then known as the South Arcot district (i.e., Cuddalore and its surrounding areas).

Early surveys done by CSG in city slums had shown that women often turned out to be the primary bread winners given that income from men did not reach the family in full.  These women supported themselves by dealing in small businesses such as the sale of vegetables, flowers, bakery goods, etc.  Furthermore, CSG surveys showed that it had been women who utilized any loans they had received for the purpose intended, and it was they who had a better track record for repayment. 

However, there were few government schemes available to help these women fund the start-up or improvement of their ventures.  Additionally, many nationalized banks were unwilling to extend them credit despite prompt repayment since these women required very small amounts of credit, which the banks felt would cost them both time and administrative expenses in excess of their investment.  As a result, the women were forced to turn to money lenders who provided funds at exorbitant rates of interest – anywhere from 36% to 300% depending on the area and the trade.  Success was difficult to come by under these circumstances since the women were left with little profit left to meet daily expenses after making interest payments.  It was at this juncture that CSG intervened with its Women Self-Employment Scheme or WOSEM.

Launched in 1982, WOSEM began its work in the Salem district with the initial short-term objective of pulling women in its project areas away from the clutches of loan sharks by planning and setting up an Institutional Credit Delivery & Guarantee System.  Later, with funding provided by the Ford Foundation, WOSEM also covered the South Arcot district.  Initially, CSG even joined hands with nationalized banks such as the State Bank of India in Salem, which offered loan assistance at a differential interest rate of 4% per annum.  However, for reasons mentioned above, this partnership was very slow in growing.  In the long-term, CSG’s objectives were to unite the women under their own co-operative umbrellas, and aid in their total development (health, education, access to basic necessities, etc.). 

Facing obstacles in obtaining small lines of credit (Rs. 75 to Rs. 300), CSG helped the women set up a revolving fund for each of the groups through which they could access such credit, and turn to banks for larger sums.  Members used these small sums to set up a new business or improve existing ones.  The women mostly dealt in the sale of vegetables, flowers, bakery items, firewood, betel nuts, bangles, breakfast/snacks, and were also cobblers and owners of petty shops.  CSG was also able to soon encourage these women to begin investing in small savings, thrift savings, time deposits, and recurring deposits under the name CSG’s Self-Employed Women’s Co-operative Thrift & Credit Society to further build up the groups’ funds (this is now functioning under the Society Act).  This scheme enabled the women to borrow money for non-productive matters (something that had been denied them by the banks) such as paying school tuition for their children, or getting monetary help if there had been a birth/death in the family. 

In line with the WOSEM’s objective to aid in the holistic development of its constituents, CSG set up women’s clubs or Maathar Sangams that met twice a month to discuss not only business-related issues, but also the needs and problems being faced by the members, as well as their aspirations.  These groups helped the women unite and develop a group consciousness, and provided them with a safe forum in which to they could find ways to help themselves and become self-reliant.  CSG provided them with non-formal education, and vocational training for various businesses such as mat weaving and social forestry at their request, and also helped them properly utilize their collective bargaining powers in obtaining public conveniences such as general sanitation, sewage, lighting and water. 

As with all of its programs, WOSEM was also initiated with the understanding that CSG would withdraw from the community once the members were ready to self-manage their organizations.  Members now run three organizations under the name Pengal Pannokku Iyakkam (Cuddalore), Pengal Pannokku Iyakkam (Salem), and Pattabiram Siruthozhil Puriyum Mahalir Sangam.  They have found great success, and have expanded their organizations three-fold.