Nithya, a 25-year-old mother from a village in Tamil Nadu's Tiruchirapalli district, aspired to contribute financially to her family but faced limited opportunities. She found a solution through a masonry training program offered by a nearby Community Skills School. Along with three other women, she formed a partnership and secured their first major order for the local panchayat. Nithya now runs a successful construction enterprise.
Her story is part of the broader transformation occurring in Tamil Nadu under the state government's Vazhndhu Kattuvom (VKP) program. Supported by the World Bank's Tamil Nadu Rural Transformation Project, VKP aims to create jobs in rural areas by building skills and promoting entrepreneurship. Since its inception in 2019, the project has trained over 50,000 individuals across various trades, with women making up 65 percent of this number.
The initiative has led to the creation of around 28,700 new enterprises and provided employment for over 11,600 trainees. Women have taken on roles traditionally dominated by men, such as producing LED bulbs for local markets.
Skill development alone isn't enough; access to capital remains challenging for many women entrepreneurs. A study revealed that while women own about 20 percent of India's small enterprises, there is an unmet credit demand of $11.4 billion from these businesses.
Janaki from Sivagangai district expanded her hardware store thanks to VKP's Matching Grants Program. The program facilitated loans by offering grants as collateral and connected entrepreneurs with resources like One Stop Facility Centers for business planning support.
Since 2022, this program has enabled loans worth INR 267 crore ($31.9 million) for 8,400 women-led enterprises across Tamil Nadu.
Overall, VKP has supported over 100,000 enterprises and generated nearly 53,000 jobs statewide. Ms. S. Divadharshini emphasized that "by prioritizing women-led enterprises," they aim to ensure inclusive economic growth.
The project's success is prompting consideration for scaling it statewide using government resources. Other states like Bihar and Sikkim are exploring similar initiatives after observing Tamil Nadu's results.
"The project is not just about skill development or providing financial assistance," said Samik Sundar Das from the World Bank; it's about fostering long-term economic change."
Through these efforts, rural women are gaining tools to succeed and transforming their communities toward prosperity.
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Hear what these women entrepreneurs have to say: D Poovizhi launched an LED bulb business with support from VKP’s matching grant; Sulochana expanded her construction business employing more locals; Shanthi enhanced her tailoring skills; Revathi trained in welding through community schools; The Kodai Hill Crops Farmer Producer Company increased income via value-added farming initiatives.