Investing CSR in Incubators – A Unique Model of Partnership

According to Samhita, "As of 2017, India has the third-largest incubator and accelerator ecosystem in the world. But few companies have sufficient information about this ecosystem to be able to invest in it. Samhita, and Villgro, supported by GIZ, are addressing this information asymmetry and facilitating partnerships between companies, incubators, and social enterprises (SEs). The traditional model of CSR involves selecting an NGO which is working in an area of your interest (livelihoods, education, environmental initiatives etc.) and funding them for a specific project. But, companies today are asking more challenging questions regarding the quality, sustainability, and maintenance of CSR projects. One way to find these answers is to partner with social enterprises or for-profit entities that use market-based approaches to solve social problems. Furthermore, this strategy is completely legal.  Under Section (vii) of the Companies Act, CSR funds can be used to support Government-approved Technology Business Incubators (TBIs) located within academic institutions. A subsequent clarification also specifies that any TBI can be supported using CSR funds.

Over the past year, Samhita, Villgro, and GIZ have identified opportunities and created forums for companies and incubators to interact resulting in 17 corporate-incubator partnerships. Their engagement forums held in New Delhi, Mumbai, and Bengaluru have seen participation by more than 40 companies. 

One example is how Samhita facilitated the relationship between Ambuja Cement and Envirofit. This case study presents a perfect example of how two organizations partnered and grew mutually by exercising the opportunities of the platform that CSR offers. Ambuja, on one hand, with its CSR agenda of better healthcare and environmental outcomes for communities and Envirofit with its mission of promoting the culture of smokeless cooking stoves to alleviate environmental, health, and economical problems, found resonance with one another. The partnership effectively leveraged the competencies of both the partners to create sustainable and long term social impact."