For over 32 years, we have been supporting women-led cooperatives in the informal economy, witnessing women cooperators breaking traditional boundaries, taking ownership of their finances and decisions. They are collectively investing time in their cooperative and collective enterprises—to sustain themselves and to uplift their entire communities.
These structures, like cooperatives, have allowed women to dream for the first time. They take risks, make decisions, and work alongside other women with shared experiences, building strength through solidarity. This shared solidarity, as we’ve seen across trades, is crucial. It enables women to share challenges and co-create solutions, pulling them out of a dependent and impoverished spiral and toward a life of self-reliance and dignity.
As Late Smt. Elaben Bhatt, our beloved founder, said:
When the poor come together on the basis of their work and build organizations that decentralize production and distribution, promote asset formation and ownership, build people’s capacities, provide social security, and allow for active participation and a voice, they are dynamic and healthy and need our full support to grow.
Through the decades, we’ve learnt cooperatives are more than economic entities for women in the informal economy—they are lifelines. Yet, their survival depends on nurturing ecosystems that enable their growth. As a Women’s Enterprise Support System, SEWA Cooperative Federation has been committed to supporting women-led cooperatives in the informal economy through our various services and constant hand-holding support.
Key Lessons from supporting women-led cooperatives in the informal economy for 32 years
Following are a few key lessons and the way forward from our 32-year journey of supporting women-led cooperatives in the informal economy:
At the enterprise level, balancing the business objectives of the enterprise with the social objectives of the collective is crucial. In addition to focusing on business goals, setting up social goals and listening to the voices of members is important. To meet its social objectives, the enterprise must contribute to improving the education, health, and social security of the members and make them self-reliant.
Members must learn the values of solidarity and cooperation upon which collective enterprises are built. The experiences of SEWA and SEWA Cooperative Federation have laid the foundation for realizing that no business can succeed without these foundational principles being absorbed by the members, shareholders, and the board of directors of any collective enterprise.
Accelerators, such as enterprise support systems, are crucial in strengthening WCEs. They must work with collectives without preconceived notions, understanding the context, concerns, and needs of women members. The stability and growth of these enterprises require time, patience, perseverance, and initial investment.
The sectoral expertise of support systems like the Federation is crucial, depending on the nature of the enterprise and its products or services. The enterprise needs mentors who are experts in the field and who work intensively with the enterprise team.
Capacity-building at various levels of the enterprise is essential. In such a fast-changing world, capacities must be constantly upgraded. Retaining trained human resources can be a challenge. It is not easy to keep people in the system after all the training. Committed human resources and community resource persons are essential.
For these enterprises to reach scale and generate adequate profits for reinvestment in strengthening and scaling up, timely financial support and working capital are critical. However, banks are conservative in their lending as they perceive women as high-risk borrowers. Banks must deploy more banking correspondents to widen financial inclusion among informal women workers. Financial institutions must also streamline their processes and procedures. This will encourage worker enterprises to take loans and grow their businesses.
Partnerships play a crucial role in the journey toward scale and financial sustainability. These partnerships include inter-sectoral collaboration and inputs from technical support agencies, which offer technical knowledge and bring fresh ideas.
Mentorship from relevant institutions and peer-to-peer learning from successful collectives can guide leaders of women’s cooperatives. This helps them better understand market demand and positioning. We must support WCEs in reaching the last mile to ensure their products are properly positioned in the market.
We must converge programs and partnerships to create an ecosystem that supports WCEs. This task, aiming to include every woman in the economy, requires collective effort. No single agency can achieve this alone. We need to deploy resources effectively, avoid duplication, and create government policies that support WCEs. Federated structures like SEWA Cooperative Federation, in partnership with government systems, can strengthen financially sustainable grassroots enterprises.
Stepping into 2025
As we step into 2025—the international year of cooperatives—we are guided by critical questions that will shape our future efforts:
- How can we enable more women’s collective enterprises (WCEs) to remain competitive and financially sustainable in evolving market conditions?
- How can we foster innovation within cooperatives to create business opportunities while addressing local needs?
- How can we enhance digital skills and tools for leaders and members to grow their businesses, while ensuring inclusive and accessible technology?
- What support systems are essential to involve young women in the cooperative sector and encourage the growth of their collective enterprises?
- How do climate risks impact informal women workers’ cooperatives, and what strategies can help them build resilience?
Answering these questions requires collaborative efforts and robust partnerships. It will not only enhance their abilities to take their cooperatives ahead but also fulfil the twin objectives of full employment and self-reliance.
As we look ahead, the role of cooperatives remains vital in helping women in the informal economy overcome adversities and take charge of their collective futures.
