Xpressions, the annual fest of Xavier Institute of Management, Bhubaneswar (XIMB) formally kicked off with Conclave 2008. Conclave is basically a panel discussion in which eminent business leaders and intellectuals from across the myriad domains of Indian business community participate every year here.

The topic for this year's conclave was 'Social Entrepreneurship and Venture Capitalism - Independent or Interdependent'. The speakers included S Ramesh, India Head (Grameen Foundation), P Vasudevan, Founder (Equitas), and S Mahapatra, Founder-Secretary (Bakul Foundation) while Prof. Rajiv Roy, Faculty Member (XIMB), moderated the discussion.

"Micro-Finance Institutions (MFIs) have a huge potential to grow provided the social entrepreneurs meet the expectations of Venture Capitalists (VC) while achieving the desired social objective. Though these kinds of collaborations are relatively new, much depends on keeping the interests of the VCs in mind who bring in much required capital and valuable expertise," said S Ramesh while emphasising the total interdependence of social entreprenuership and venture capitalism.

The existing norm here in India is to use one's own capital for starting any new commercial enterprise while avoiding the involvement of outside capital, such kinds of practices must end and at the same time VCs must be pressed into the ventures on a more frequent basis, he added.

PN Vasudevan stressed that VCs are getting the desired returns from social enterprises. Focusing on Equitas achievements he said, "It targets women in urban areas and addresses their credit needs. It has led to empowerment of the poor, group bonding and also a lot of other social benefits accrue from this association. Apart from achieving the social target we have been able to deliver profits for the VCs."

Change can come in even if Investment does not come in

MFIs have been instrumental in providing credit for self- entrepreneurial ventures of the poor. Traditionally, moneylenders had been playing the role of credit providers at exorbitant rates of interest. But now the whole scenario has changed owing to the successful ventures between VCs and social entrepreneurs, he added.

S Mohapatra, however, aired an altogether different view and said: "Change can come in even if VCs don’t come." Stressing on the independence of social enterprises he strongly advocated that VCs can be substituted with voluntarism. Dependence on VCs may prove to be a costly affair in case VCs decide to pull out. In that case enterprises have to shut down their organization due to non-availability of funds or even donations.

"Instead a social enterprise can run successfully if people participate by contributing their efforts towards the growth of their organization. In case a few members decide to opt out it won't make much of difference while running the concern," he added.

The conclave closed with Prof. Rajiv Roy stressing on the interdependence of venture capitalism and social entrepreneurship which can hopefully bring in huge changes in social sector.