By Mathangi
The resource challenges in Indian slums are inspiring innovative use of enterprise to solve everyday problems. Dharavi in Mumbai is often called ‘Asia’s largest slum’. But peel back the layer of overcrowding and poverty, and you can see the promising social enterprises that thrive here.
In Dharavi, for example, residents sort through the trash that Mumbai’s 21 million people discard and salvage plastic from everything imaginable including electronics and broken toys. This work is tedious and dangerous, but the daily wage ($3-$5) makes it comparable to those making a living making India’s much coveted sari fabric. Of late, innovative initiatives are sprouting in Indian slums that want to fill voids that the government and charities fail to address. One such initiative that provides resources, knowledge and space for these recyclers to learn how to make products and sell them is Dharavi Diary’s Recycling Design Workshop. Dharavi Diary is a slum innovation project that fuses entrepreneurship, innovation, storytelling, and creative technologies to harness the skills of Dharavi residents to help them rise out of poverty.
Safe drinking water is also a leading health challenge for many of India’s urban poor, and now small social enterprises are beginning to respond to the problem. A local company, Sarvajal has created a stand-alone water dispenser that uses off-grid solar energy and provides treated water 24 hours a day at a low cost. A government more responsive to its citizens needs would certainly help solve the growing disparity between rich and poor, but for now social entrepreneurs fill a void where a dismissive government and overwhelmed charities fall short.
If this perception of informal settlements inspires you, check out the links below for more information:
http://www.dharavidiary.com/#!about/c24qk
Side Image Taken by Fons Rademakers
[In]formal $ettlements 
Are these social entrepreneurs permitted by the government or do they operate somewhat rogue?
Social entrepreneurship in India is emerging primarily because of what the government has not been able to do. The government is very keen on promoting social entrepreneurship – not necessarily by funding it or enabling it. What they do, is not disable it! The government has not told these organisations not to do it unlike in some countries. Recently, the positive thing that’s happening in India is that there is this drive and commitment to take change upon yourself. You can read more on this emerging relationship between government of India and social entrepreneurs at http://knowledge.insead.edu/csr/social-entrepreneurship/social-entrepreneurship-emerging-in-india-1898?nopaging=1#iz28PCU5k06XSqMP.99
Thanks for the interesting question OldHeller!