The Saboo Foundation Model of Philanthropy: How a Self-Made Man Created Thousands More

Aviral Marwal, Gopal Naik, Dalhia Mani

Anand Saboo Foundation (ASF) is a philanthropic organization set up by an industrialist, Anand Saboo, with the aim of transforming poor people into entrepreneurs. Saboo focused on helping women living below the poverty line to become independent and sustainable small business owners. Saboo is himself a self-made entrepreneur, currently in his 70s, who set up Saboo Foundation in 1991. After experimenting with several different philanthropic models, he settled on the ‘Saboo Foundation Model’, which relies on multiple stakeholders, focuses on equipment rather than cash, and links participating women to a customer base and a supply chain. Initial results show that the 362 women who availed a loan during October 2018 to January 2019 had zero default rate. Participating women reported an average income of Rs. 7000 (93.3 USD) to Rs. 24,000 (320 USD) per month (three to four times higher than their previous earnings). Saboo Foundation’s approach is novel and shares more similarities with a venture capital investment model rather than a traditional lending model. Multiple philanthropic, government, semi-government, and non-profit organizations have worked in this space for decades, and the Anand Saboo Foundation, a relative newcomer in this space, so far, has enjoyed extraordinary success. This case study helps students understand the key facets that make a successful philanthropic model, with a focus on how to develop and support micro-entrepreneurs at the bottom of the pyramid.