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Saskia Bruysten - Social Business Kampala, Uganda

29 November 2012
by

Hamza Mounhi

on 4 October 2013

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Transcript of Saskia Bruysten - Social Business Kampala, Uganda

Agenda
7 billion people
What happened on 30 October, 2011?
People began to have their own ideas for how to solve the problems around them.
Who is Professor Yunus?
"I strongly believe that we can create a
poverty-free world
, if we want to.... In that kind of world, the only place you can see poverty is in the museum."

Muhammad Yunus
Oslo, Sep 2008

He founded Grameen Bank and a family of more than 40 social businesses...
What is Social Business?
Prof. Muhammad Yunus,
Nobel Peace Prize Laureate
Founder of Grameen Bank
Co-founder and Chairman Yunus Social Business

I am proposing to create another kind of business, based on
"selflessness"
that is in all of us. I am calling it
social business
.

Prof. Muhammad Yunus,
Nobel Peace Prize Laureate
Founder of Grameen Bank
Co-founder and Chairman Yunus Social Business

Social business combines the best of the business and NGO worlds
7 Principles of Social Business
Mission:
Building a world of Social Business

We help to create social businesses around the world with the goal of solving major social and environmental challenges in a financially self- sustainable way.
What we do:
Our Offices
Founders
Prof. Yunus
Chairman
Saskia Bruysten
Co-founder
CEO
Sophie Eisenmann
Co-founder
COO
Network of Partners
Social Businesses in practice:
Danone created a fund of
EUR 80 millions
designed to encourage initiatives in Social Business.

danone.communities so far supports
10 projects
for social impact worldwide.
The fund danone.communities
Albania
Germany
Haiti
National and International Organisations are supporting Social Business
Poverty is prevailing in many parts of the world
Governments are not able to solve all social problems...
Financial institutions are failing...
Trust in the business community?
People question the models of development...
Everyone has responsibility
to contribute...
1. Overcome poverty
2. Financial and economic sustainability
3. Repay investors; no dividends
4. Profit funds expansion and improvements
5. Environmentally conscious
6. Market wages; better working conditions
7. Do it with joy!

Frank Riboud and Prof. Yunus met in November 2005 and launched Grameen Danone in March 2006.
Almost
50%
of children under 5 in Bangladesh suffer from
malnutrition
.
John Hopkins University is completing a study to measure the
impact
of Shokti Doi; financed by GAIN
Preliminary findings show the yoghurt has a
positive impact on height and cognitive ability
90% traditional investments
10% social business investments
10 Projects
A Social Business has a
Social
or
Environmental mission
A Social Business is a
Business
A Social Business is financially
self-sustainable
Profits are reinvested
in that or another social business
Employees are paid
normal wages
and have
good working conditions
The European Union has launched the Social Business Initiative in 2011, which includes a €92 million financial instrument to improve funding for social businesses
Do it with joy!
Brazil
What is a Social Business?
Yunus Social Business
Examples of Social Businesses
The Situation in Eastern Africa
The Holistic Social Business Movement
It seeks to generate impact on youth entrepreneurship and youth employment in poor regions through job creation, skills training and helping them to become entrepreneurs
The HSBM in Africa is focused in particular on Youth Employment
9:00 : Introduction
Welcome
Speed dating
Agenda for the week
Introduction to Social Business
Yunus Social Business
The Situation in Africa
Overview of HSBM program
Contents
After a decade of sustained average annual economic growth of 5%, Tunisia’s economy entered into recession in 2011…
In 3 countries in particular youth unemployment is an important issue
Yet, the incidence of youth unemployment in sub-Saharan Africa is estimated to be over 20% and in North Africa 27%. Young people represent 60% of the total unemployed in Africa
Young people aged between 15 and 24 represent more than 20% of Africa’s total population and account for about 40% of the continent’s labor force…

New and sustainable approaches are needed ….
Traditional approaches have failed to eradicate youth unemployment
… but the country’s share of unemployed youth among the total unemployed is at 83%
Economic growth in Uganda is expected to range from 7% to 7.5% through 2015…
… of which 60 % is youth
Togo is rich in resources, namely phosphate and cotton ...
… but 33% of the population is unemployed
Following the revolution, youth unemployment in Tunisia rose to an alarming 30%…
2011 also saw the revolution of January 14th in Tunisia and its repercussion throughout the Arab world
The implementation of the HSBM Program is a priority of the Bank’s assistance to the regional member countries and is backed by the Bank’s coming Long Term Strategy and draft Human Capital Development Strategy
The Department of Human Development launched 19 month program to develop a Holistic Social Business Movement in Africa (HSBM), with Yunus Social Business
For that reason the AfDB is taking a lead role in promoting Social Business in Africa
… and other needs we identify
Creating livelihoods in rural areas (agricultural and non-agricultural)
Preserving the environment and promoting clean energy
Empowering women
It will also focus on
Ibi Bateke cultivates over 2000 HA of cassava and acacia for production of durable wood charcoal, and the sale of production of carbon, in Congo
Danone and Credit Agricole have invested in the Laiterie du Berger, a Senegalese SB, which impacts over 7 000 people
The Tunisian Center for Social Entrepreneurship is a nascent SB incubator
Kopeme is a SB in Togo selling solar lights and building houses in rural areas
The SAP Shea Nut project reaches 5000 producers in Ghana
Bridge International is an SE that has scaled a model of school in a box
Jamii Social Business Center incubates SBs in Tanzanian villages
Saphon Energy developed a new type of wind turbine toprovide clean energy to remote areas in Tunisia and beyond
Nadet el Mahrousa incubates social enterprises in Egypt
Social Business can help address some of these problems, but has not yet prevailed in Africa
Phase 2 : implementation
Incubation

Set up of
local incubators
to provide business
development services
to social
businesses
Awareness

Creating awareness
and interest through
National
Conferences and
communication
Fund

Set up of an
investment fund
that invests
in social businesses
Training

Training
stakeholders on the
social business concept
and its relevance to
African economic
development
Phase 1 : building the base
The Movement is structured in 2 phases
2012
2016
2015
Window
Replication
2014
2013
Pilot
International Window/Facility
Contingent upon pilot project success, the African Development Bank may create a window facility in the future to enable the flow of funds from international donors and organizations into social businesses across Africa
Replication Across the Continent
Successful completion of the pilot projects will serve as a proof of concept for replicating the HSBM across other African countries to tackle entrenched problems such as poverty, youth unemployment and income inequality
The program aims to be replicated across the continent
Bank
Training
Steering Committee
Steering Committee
Steering Committee
Uganda
Togo
Tunisia
First SB invested in
First SB invested in
SB Fund set up
SB Fund set up
National Conference
6/2013
National Conference
5/2013
Nat. Conf.
3/2013
The Holistic Social Business Movement pilot program runs until mid 2014
Young people aged between 15 and 24 represent more than 20% of Africa’s total population and account for about 40% of the continent’s labor force…

New and sustainable approaches are needed ….
GDP Growth , 2001-2011
…but challenges remain…

East African economies are growing….
Preserving the environment and promoting clean energy
It will also focus on
2012
International Window/Facility

Replication Across the Continent

The program aims to be replicated across the continent
Successful completion of the pilot projects will serve as a proof of concept for replicating the HSBM across other African countries to tackle problems such as poverty, youth unemployment and income inequality

2016
2015
2014
2013
Pilot
Replication
Window
Contingent upon pilot project success, the African Development Bank may create a window facility in the future to enable the flow of funds from international donors and organizations into social businesses across Africa

Phase 2 : implementation
Creating awareness
and interest through
National Conferences and communication

Set up of an investment fund
that invests in social businesses

Training stakeholders on the social business concept and its relevance to African economic
development

Phase 1 : building the base

The Movement is structured in 2 phases
Training
Steering Committee
Steering Committee ?
Uganda
Tunisia
Pilot Investments ?
Pilot Investments
Setting up the Incubator Fund ?
Setting up the Incubator Fund
Training
& Nat. Conference
9/2013
National. Conference
7/2013
The Holistic Social Business program timeline
Steering Committee
Nat. Conf.
3/2013
For that reason, social businesses do not distort markets or create unfair competition. After the failure is addressed, other players may enter the field and compete with them
Social Businesses address market failures or create markets where none existed before
Grameen Bank
Grameen Bank serves a segment of customers who had historically been neglected by traditional banks and were unable to get credit
Grameen Shakti
Grameen Shakti created a market for solar lighting in areas where people lacked electricity
Social Businesses also has tangible benefits for NGOs and Foundations



Case Study: Starshea

Starshea has reached 5,000 shea producers, who benefit from higher income (objective of up to 30% hIgher income) due to better quality, higher prices, increased production volumes and higher demand for their product.

The program empowers the women to run and manage their own business entities while benefiting from increased bargaining power.

The agricultural marketing platform model can be scaled and may also serve as a blueprint for other products and countries
The Impact

The precursor of YSB, the Grameen Creative Lab, transformed the donation-based shea value chain project into an economically sustainable social business by working with SAP to create an agricultural marketing platform .

The project aims to improve shea producers’ share in the value chain by connecting the rural women who harvest and process shea directly to international markets.

The social business provides women’s groups with an innovative blend of technical and business training, microcredit, software solutions, and mobile phone technology
The Solution

Northern rural Ghana is the least developed part of the country, and women in particular have few opportunities to generate income.

For approximately 600,000 women, the collection and processing of shea nuts is one of the few options to make a living.

As in many other agricultural value chains, the women are the weakest part of the value chain. The value chain is very long, and the women lack negotiation power, market information and technical skills, resulting in very low margins for them. 
The Problem
The agricultural marketing platform will directly connect shea collectors and processors with local and international buyers, thus increasing their margins and income earned, and ultimately their well-being.
Agricultural
Marketing Platform

SOCIAL BUSINESS
Local and International Market
Shea
Women Collectors / Processors
Shea Value Chain
Social Business Solution
Women shea collectors / primary processors represent the weakest part of a long value chain with little or no value added by intermediaries
Trader
Trader
Trader
Local and International Market
Shea
Women Collectors / Processors
Shea Value Chain : Current Situation
The situation in Eastern Africa
Youth unemployment is a very important issue in Eastern Africa.

Traditional approaches have failed to solve all of Eastern Africa’s issues...new and sustainable approaches are needed ….


Holistic Social Business Movement in Africa
The Department of Human Development launched 19 month program to develop a Holistic Social Business Movement in Africa (HSBM), with Yunus Social Business

The implementation of the HSBM Program is a priority of the Bank’s assistance to the regional member countries and is backed by the Bank’s 10 years strategy and draft Human Capital Development Strategy

Empowering women

HSBM focuses on Youth unemployment
The agricultural marketing platform will directly connect shea collectors and processors with local and international buyers, thus increasing their margins and income earned, and ultimately their well-being.

Agricultural
Marketing Platform

SOCIAL BUSINESS

Local and International Market

Shea
Women Collectors / Processors

Shea value chain
For that reason, social businesses do not distort markets or create unfair competition. After the failure is addressed, other players may enter the field and compete with them

Grameen Bank
Grameen Bank serves a segment of customers that was historically neglected by traditional banks and unable to get credit

The microfinance industry now has about 10,000 MFIs serving over 200 million people


Grameen Shakti
Social Business presents many advantages for NGOs and foundations as well
Colombia
Milk Cooperative supporting over 600 farmers and selling fresh milk to the local communities
Grameen Shakti created a market for solar lighting in areas where people lacked electricity

Now, over 1.4 million homes in Bangladesh have solar power

Over 20 companies have now entered this market in Bangladesh


Social Business creates local employment that sustain economic activities
With Social Business, NGOs are
less dependent on donations
With Social Business, NGOs can have
a better understanding of people's needs
and therefore adjust their offer accordingly
Social business which changed the value chain of Shea Nuts market reinforcing over 5000 producers and providing technical and managerial training to women
Access to electricity is very limited: only 3% to 5% of the total population havec access to the grid. 2% of households in rural areas
National Conference on Social Business in Uganda
Holistic Social Business Movement
A pilot program in Togo, Tunisia and Uganda

Let us now clarify some misconceptions around the concept of Social Business

New and sustainable approaches are needed ….
Traditional approaches have failed to eradicate youth unemployment

A “normal“ business looks at business from the perspective
of the benefits to the owner



A social business looks at business from the perspective
of the benefits to all of society


Whether a business is social also depends on whose perspective you look from
For that reason, social businesses do not distort markets or create unfair competition. After the failure is addressed, other players may enter the field and compete with them
Social Businesses address market failures or create markets where none existed before
Grameen Bank
Grameen Bank serves a segment of customers that was historically neglected by traditional banks and unable to get credit

The microfinance industry now has about 10,000 MFIs serving over 200 million people
Grameen Shakti
Grameen Shakti created a market for solar lighting in areas where people lacked electricity

Now, over 1.4 million homes in Bangladesh have solar power

Over 20 companies have now entered this market in Bangladesh
Maximize value for shareholders

Maximize social value

Sells products and services

Sells products and services to marginalized people

Employs people
Aims to employ marginalized people

Normal Business

Social Business
People argue that any business can be called a social because it creates jobs or provides products or services to the poor…
Intent of the founder
Legal setup
Not
for Profit
Normal Business
Responsible Business
Social
Business
Not for Profit
Profit
Social Motive
Private profit Motive
A Social Business has a Social mission and is profitable
Kampala, July 11th 2013
Thank you very much for your attention
Inclusive Business
Social Enterprise?
In order to reduce unemployment in Haiti, Être Aysien provides training to more than 950 entrepreneurs
The AfDB is taking a lead role in promoting Social Business in Africa
It seeks to generate impact on youth entrepreneurship and youth employment in poor regions through job creation, skills training and helping them to become entrepreneurs

Preserving the environment and promoting clean energy

Creating livelihoods in rural areas (agricultural and non-agricultural)

Training
Awareness
Incubation
Set up of local incubators to provide business
development to social businesses

Fund
Social Business addresses Maket failures and create new business oppportunities
Social Business presents many advantages for traditional companies
Cooperative
Social
Business
NGOs/Government
Traditional Business
Purpose
Income
sources
Social Benefit
Owner Benefit
Contributed income
(donations or taxes)

Revenue
Social Business Incubator Funds
We help to create and scale up social businesses in a country or region through an incubator (e.g. business plan help) and an investment fund

Incubator
SB opportunities
Search & Identify
Business Plans
Training
Network
Investment-ready
funds

Social businesses in country X

Social business incubator fund

Donors
Philantropic
investors
Phase 2 : implementation

…in Uganda only, 62% of the youth aged between 15-24 are unemployed

The agriculture sector employs more than 80% of the population. Yet, it accounts only for 24% of the GDP

Uganda will need an installed capacity of 2000 MW at the horizon of 2025 and today it has only 300 MW

Social Business can help address some of these problems, but has not yet prevailed in Africa
Hybrid not
For profit

Thanks to the efforts of the Universal Primary Education program, the enrollment rate in primary schools have increased to reach 113%

…yet, Uganda has also the highest rate of dropout in the region, reaching more than 70% at the primary school level
Togo
Training ?
Full transcript