- Yunus Social Business
Transcription
- Yunus Social Business
Growing Businesses That Matter Yunus Social Business - Global Initiatives 2014 FOREWORD Welcome to Yunus Social Business Table of Contents Foreword 1 About Us At a Glance 2 The Story of YSB 4 Our Presence 6 Spotlights 8 Our Initiatives Entrepreneur Services 12 Financing14 Our Global Team16 Our Country Directors 18 YSB Country Overviews YSB Haiti 20 YSB India 22 YSB Colombia 24 YSB Albania 26 YSB Brazil 28 YSB Tunisia 30 YSB Uganda 32 Partnerships and Events 2014 34 Lessons Learned38 Support Us40 YSB Co-Founders CEO Saskia Bruysten (L) and CFO Sophie Eisenmann (R) with YSB Co-Founder and Chairman and Nobel Peace Prize Laureate Professor Muhammad Yunus (C) Dear YSB Family, imprint Published by: © Yunus Social Business GmbH and gGmbH, February 2015 You are welcome to copy this publication for internal use within your organisation. Otherwise, no part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, electrical, chemical, optical, photocopying, recording or otherwise, without prior written permission of the copyright owner. Thanks All photos in this publication are of YSB’s team, its social businesses and/or their beneficiaries.YSB would like to express gratitude to: Gabriel Leitão (in Albania, Brazil, Tunisia, Uganda, Haiti and Germany), Manuela Castaño and Maria Fe Defilippi (in Colombia), Brand Haiti and Nouveau Concepts (in Haiti) and our local country teams for additional photos in India and Germany. Design: Fré Sonneveld. Saskia Bruysten Co-Founder and CEO of Yunus Social Business Global Initiatives We are excited about the immense demand for the social business concept around the world. Since 2011, based on local requests, we have expanded into 7 countries including Haiti, India, Colombia, Albania, Brazil, Tunisia, and Uganda. Our results so far include 7 countries, 26 social businesses, 400+ entrepreneurs supported, 1000+ jobs created and sustained, $7.4 million deployed, and more than 200,000 customers served. 2014 has also been the year for us to look back, to reflect on the lessons learned and think critically about how we see ourselves in the future. We have learned that we need to imagine things to make them happen. If we don’t imagine, it will never happen. Which is why we want to help our entrepreneurs imagine bigger, better and greater. Our Entrepreneur Services program has been strengthened to better support, coach and mentor our entrepreneurs. We have also realized that we need to be more like our social businesses we finance, and introduce, test and prototype our own initiatives to strengthen our business model. In 2014 we launched our structured 3 month accelerator program in Albania, Tunisia and Brazil and we will now be rolling this out across 3 additional countries in 2015. We invite you to look through this report to learn more about our work in 2014 and we look forward to your continued feedback and support to help us grow social businesses that matter. YUNUS Social Business 1 ABOUT US What is Yunus Social Business AT A GLANCE Yunus Social Business Global Initiatives (YSB) is a social accelerator that incubates and finances local entrepreneurs to build solutions from the ground up. YSB is active in 7 countries where local country offices source, coach and mentor entrepreneurs; YSB subsequently finances the most promising social businesses while also providing post-investment support. *Please note that all figures in this report are as of December 31, 2014 and all monetary amounts are in US Dollars. 7 Countries 26 Social Businesses 400+ Entrepreneurs supported 1000+ jobs createD and/ or Sustained $7.4M deployed to social businesses 200,000+ customers SERVED 2 YUNUS Social Business 3 ABOUT US In His Words Prof. Muhammad Yunus “Social business is a powerful concept Nobel Peace Prize Laureate, Co-Founder and Chairman of Yunus Social Business - Global Initiatives at the intersection of the social and Over the years, I have created many businesses. Whenever I wanted to solve a human problem, I tried to think of how to use a business approach to address it. These were new kinds of companies, to help others rather than to make money for ourselves. Whatever profit we made from the companies, we reinvested to make them grow and solve even more problems. I started calling this type of company a social business. The concept of social businesses has been the missing piece in the framework of the business world. The present day money-centric capitalism cannot continue. In light of the financial and many other crises, we need to rethink the fundamentals of our economic system, a system that has failed again and again to address basic problems of our world, such as poverty, inequality, disease, unemployment, and environmental degradation amongst many others. In relation to the size of the problems, traditional charitable work can only ever play a small role to fix them. But social businesses can be much bigger, because they recycle money many times and keep growing, solving problems all along the way. business realms. The objective is to apply the professionalism and efficiency of the business world to solving the world’s most pressing social problems. And to do so in a self-sustaining way, providing A social business is a company 100% dedicated to solving a social problem in a financially self-sustainable way. for choice and personal responsibility for those who benefit from it.” Ulrich Villis – European Leader Social Impact Practice, The Boston Consulting Group. What is Yunus Social Business (YSB)? Building on the success of Bangladesh where social businesses have worked at scale, YSB was founded to replicate this model globally through local countries. YSB applies business approaches to the world of social development, bridging the gap between social businesses and philanthropic lenders and donors. YSB has an on-the-ground presence in 7 countries, where our local country teams run our two main initiatives: Entrepreneur services Through my own experiences I have seen how social businesses are a good way to combine the efficiency of market-based competition with philanthropic goals. I have created many social businesses in Bangladesh, such as Grameen Danone, Grameen Veolia, BASF Grameen, Grameen Shakti, Grameen Intel, Grameen Green Children Eye Care Hospital – over 40 in Bangladesh alone. They have proven their effectiveness in solving pressing problems and have grown and become stronger. The mission of Yunus Social Business Global Initiatives is to spread this success to other parts of the world. We are confident that social businesses will become an attractive option for more and more social business entrepreneurs, existing businesses, fund managers, foundations, bilateral and multi-lateral development agencies, governments and philanthropic lenders. The Story of Yunus Social Business 3 months structured accelerator program for selecting and training high-potential entrepreneurs. Financing as well as active portfolio management and support for the most promising social businesses. • • • • • Due diligence • Debt and equity • Soft loans and grace periods according to each business’ needs • Financial and social monitoring and reporting • 6-8 year ongoing support Business planning advice Mentoring support Market access Product and market testing • Access to local and international experts • Leadership trainings • Preparation for financing readiness “The Origins of YSB” Grameen Creative Lab (GCL) in Wiesbaden, Germany was set up in 2009 to spread the social business concept around the world. In 2011,YSB spun off from GCL to specifically focus on supporting and financing social businesses through local country teams. GCL continues to focus on spreading awareness of the social business concept through its annual Global Social Business Summit, Social Business Fora and partnerships with varying partners, including prominent universities around the world. Financing In providing these two core services,YSB grows businesses that matter. The YSB global and local teams are a diverse mix of experts, with experience in entrepreneurship, consulting, venture capital, business incubation, finance and international development. YSB further has a large pool of expert volunteer consultants that contribute to its global and local operations. YUNUS Social Business 5 OUR PRESENCE YSB offices and projects around the world 2010 Haiti The YSB Haiti office was opened with the support of our founding partner SAP. Currently, the team manages a portfolio of 9 social businesses. Germany 2013 Tunisia YSB Global Initiatives in Frankfurt coordinates all project countries across the globe, serves as a shared services provider to all countries and develops YSB’s overall strategy. The team drives process standardization, quality control, and knowledge exchange across all countries and makes the final financing decision. Global partnerships that benefit all countries are initiated through YSB Global Initiatives, as are global fundraising activities and investor relations. In partnership with the African Development Bank, Tunisia was the first in a series of African countries to replicate the social business concept. In 2014, it launched its first accelerator program, locally known as iBDA. 2014 Costa Rica The first corporate social business joint venture with a Costa Rican leading food company, Florida Ice and Farm Company, was launched in 2014, to produce food to combat malnutrition in children. 2011 Colombia 2012 Albania 2011 India YSB Colombia was created in 2011 originally as Grameen Caldas and officially became YSB Colombia in 2013. It currently manages a portfolio of 3 social businesses to date, including a joint venture with potato giant McCain. YSB Albania began operations in April 2012 with the support of the Albanian National Government, and in 2014, it expanded its outreach to Kosovo.YSB Albania has financed 5 social businesses to date, and ran its first intense accelerator program in 2014. YSB India was launched in 2011 in Mumbai, and 7 social businesses have received financing to date. 2013 Brazil In March 2013,YSB Brazil was launched to spread the social business concept throughout Brazil; Rio was officially declared a ‘Social Business City.’ Yunus Negocios Sociais Brasil, as it is locally known, ran three cycles of accelerator programs in São Paulo and Rio in 2014. 6 2013 Uganda In partnership with the African Development Bank,YSB Uganda was started in November 2013, and the first social businesses were supported in 2014. YUNUS Social Business 7 SPOTLIGHTS Our Social Business Stories Campo Vivo, Colombia Higher and more stable income for farmers Campo Vivo was launched as a joint venture social business with potato giant McCain to intervene in the agricultural value chain by developing competencies in small-scale farmers, strengthening the social tissue and promoting competitive productive activities in vulnerable rural communities. It provides high quality technical assistance and ensures entrepreneurial capacity building to farmers and thus, increases family income, improves productivity levels and working conditions, and engages both men and women. On May of 2014, Campo Vivo began its operations in Une, Cundinamarca with a pilot group of 21 families working in 40 ha of land. The second group will start its activities on February 2015 within the same area. Potato is the initial crop and it shall be alternated periodically with rotation crops. During its initial phase, which will last 3 years, Campo Vivo will run 3 pilots with 225 families of producers in different areas of the country. As such, in three years, Campo Vivo will directly impact 675 producers and their families or an estimated 2,400 individuals. DIGO, Haiti Increased sanitation through microentrepreneurship Digo is a distribution social business, working in partnership with “Les Industries Digo;” the only major manufacturer of domestic cleaning products in Haiti. Digo Distribution works with micro-entrepreneurs to help them to sell these products to end customers, and at the end of 2014 had built up a network of 100 points of sale, providing increased incomes to over 100 micro-entrepreneurs. At 30% of the price of traditional cleaning products, Digo helps Haitian families fight water-borne diseases, such as diarrhea and cholera. Digo supports these micro-entrepreneurs with branding and marketing, and supplies the product on credit. Rather than selling in pre-packaged containers, Digo allows customers to bring their own plastic containers to sales points, and fill these up with as much or as little as they need. This reduces the cost to the customer. This innovative solution is also reducing plastic waste in Haiti. Digo’s founder Jonas Guillaume was recently named “Entrepreneur of the Year” in a nationwide competition. 8 YUNUS Social Business 9 SPOTLIGHTS Bive, Colombia Affordable and increased healthcare for low-income families Our Social Business Stories Denial of services and medications, long waiting times, and difficult administrative procedures are huge obstacles for access to healthcare for the poor in Colombia. This translates into a higher occurrence of preventable disease, delayed diagnosis, increased spending on high complexity treatments and lower quality of life. Bive has created a network of 62 health care providers that offers discounts and immediate care with a focus on the poorest of the poor. A Bive membership plan not only provides general access to care, but also discounts of up to 68% on the price of private providers and a guaranteed medical appointment within 7 days. Since its operations from November 2012, it currently has 10,000 patients in Caldas region, 90% of whom are people of low and middle income. Over 950 services have been rendered through the Bive network, and its sales revenue from 2014 is over $65,000. In 2015, Bive will expand to two more Colombian provinces, located in the Coffee Region; aiming to reach over 20,000 users and generating revenue ofaround $150,000. Bive will implement the Program Healthy Smiles Colombia this year, to impact the dental care of 1,100 children between the ages of 5 and 12 from low socio-economic levels in Manizales, Colombia. Kreyòl Essence, HAITI SENIORS HOuse, albania Fighting deforestation while ensuring higher income Dignified healthcare for the elderly Kreyòl Essence is an eco-luxury beauty brand, creating products made from Haitian black castor oil. They are working with farmers who grow castor plants and in particular women who are making castor oil from the seeds, buying them above market prices and ensuring sustainable incomes for those in the castor oil value chain. In addition, Kreyòl Essence is fighting deforestation in Haiti, aiming to grow over 40,000 plants in the next 3 years. Seniors House is an elderly home-care social business that offers high quality daycare and residential services to promote independence, dignity and quality of life for the elderly in Albania. Kreyòl Essence is exceeding sales targets, and has recently partnered with Miss Haiti who will act as an ambassador for the brand in Haiti and abroad. 10 Being the first social business with high international standards of service, it has received attention from major Albanian media and was featured on several shows. After 10 months of operations, Seniors House has 16 clients receiving the service of residential care; 2 clients who come only for daily service, and a full list of interested clients for the months to come. YUNUS Social Business 11 ENTREPRENEUR SERVICES Our Initiatives “My mentor has been of tremendous help on various aspects. He provided very useful strategic thinking and helped me create a much clearer vision of my social business. Having outside party experts is very important for entrepreneurs.” “An entrepreneur is someone who jumps off a cliff Emiland – YSB Albania Entrepreneur and builds a plan on the way down.” Reid Hoffman – founder of LinkedIn ENTREPRENEUR SERVICES 6 Accelerator Programs 400+ Entrepreneurs Supported YSB invests in people, in their dreams and in their abilities. A social business – like any business – is shaped, fostered and strengthened by the team behind it, not the other way around. We therefore work hard to identify the most promising entrepreneurs that have a clear vision, a strong profile and a deeply rooted desire to create an impact within their communities. As part of this process we engage in extensive outreach in the countries we operate in, holding social business workshops, conferences and events with local partners. 1-on-1 coaching • Individually tailored 1-on-1 coaching for each entrepreneur from selected social business consultants, experts and local and international mentors to strengthen strategic plan, business model and financials Once we have identified them, we provide the following services to our entrepreneurs: State-of-the-art Curriculum 15,000+ Direct Reach Through Campaigns 12 • Customized 3 month state-of-the-art curriculum delivered through a structured accelerator program, including workshops and presentations by leaders and experts and product market testing according to the lean business model approach Connection with a community • Connections with a network of entrepreneurs within the Yunus Social Business and the Grameen family • Opportunities to share experiences and challenges with like-minded entrepreneurs Access to Markets and Providers • Facilitation of partnerships with potential distributors and customers, as found through our strong network • Negotiated packages with reliable service providers, for example in accounting, legal, or promotion and marketing Investment Readiness • Preparation for pitches to YSB’s Financing Committees • Connections with other potential investors YUNUS Social Business 13 FINANCING YSB Financing Process Our Initiatives Accelerator Programs Our Accelerator Programs prepare our social businesses to make pitches to our Financing Team. Initial Screen and Preliminary Due Diligence Before financing of a social business, each one undergoes a detailed, fact-based 3-level due diligence process. “A charity dollar has only one life, a social business dollar can be invested over and over again.” Business Plan Assessment/ Review and Due Diligence Prof. Muhammad Yunus – Nobel Peace Prize Laureate, Chairman of YSB In an iterative process, the Review Committee screens each proposed business. It then works together with country teams to make recommendations to entrepreneurs to advance their business plan. Portfolio Overview Since its inception in late 2011,YSB has deployed to 26 social businesses; thereof directly financing and committing over $2.6M. In addition, $4.9M has been mobilized by YSB from co-investors. More than 1000 jobs have been created and/or sustained so far and over 200,000 customers have received essential products and services. Financing Decision Business cases that are deemed finance-ready are presented to the Finance Committee, an independent committee from the Review Committee, that makes final financing decisions. This decision is based on evaluation of the entrepreneur and team, social impact, financing sustainability and risk profile, replicability and scalability and maturity. Our local country teams generally determine impact areas, shaped by entrepreneurs’ solutions to their local region’s most pressing problems. Taken as an aggregate up to 2014, YSB’s strongest area of total financing has been in Health (57%), followed by Employment in the Agricultural sector (15%) and Gender and Marginalized Groups (14%). Negotiation of Terms and Contracting YSB and the entrepreneur enter into pre-agreed binding contracts defining exact terms and conditions of the financing package. In agreement with the entrepreneur and their management team, a monthly, quarterly and annual reporting schedule is set. This includes financial as well as social Key Performance Indicators (KPIs) most relevant to the specific social business. We rely on output indicators as proxies for assessing the actual impact of the business. Reporting also includes operational milestones, to allow close tracking of the progress of the social business How It Works $7.4M* “I congratulate YSB: unlike other financing Most of YSB’s social businesses are early-stage ventures, with the majority of loans disbursed in 2013 and 2014. Eight companies have reached the end of the grace period so far. Two have fully repaid their loans and six are on track with their payments. In total, YSB has received more than $135,000 in repayments in 2014. *YSB provides financing to social businesses in local currency, USD and EUR. All amounts in this report are valued in USD at the spot rate at the time of printing of this report. institutions, they took the necessary time FINANCING Portfolio Management and Mitigating Risks It is our core philosophy to work closely with the social business post-financing in order to enable sustainable growth. Regular reporting enables us to closely monitor the advancement of the business along previously determined milestones and intervene wherever needed. Typical support includes advice on strategic and operational readiness, support on accounting and process standardization, as well as legal issues, personnel recruitment, governance issues as well as general hands-on advice in challenging situations 14 26 Social and effort to help us gather all elements Financing Criteria: YSB Funds gGmbH (Germany) is organized as a non-profit, and pools philanthropic capital from donors and philanthropic lenders to finance social businesses that have been selected and prepared by the YSB country offices. Our loans are generally structured as long-term shareholder loans with a small equity portion, leading to a minority stake in our portfolio companies, of up to 25%. The loans feature below-market-conditions and grace periods of up to two years, to give the social businesses breathing room at the start. As the social businesses pay back the capital, YSB re-finances other social businesses, and/or returns it to philanthropic lenders in proportion to their share of the total capital contributed, up to the nominal value of their initial investment. Businesses needed for the success Entrepreneur and team, of our social business social impact, financing and orient us in the sustainability and risk 200,000+ created and/or right direction.” profile, replicability and Impacted sustained YSB Haiti Entrepreneur scalibility, maturity Customers 1000+ Jobs YUNUS Social Business 15 OUR TEAM Prof. Muhammad Yunus Our Global Team Co-founder and Chairman Professor Muhammad Yunus co-founded YSB Global Initiatives, and currently serves as the Chairman of the Board for YSB Global Initiatives. He is additionally the founder of Grameen Bank. Today, Grameen Bank has over 8.4 million members—97 per cent of who are female—and has lent over US$12.5 billion since its inception. In 2006, the Norwegian Nobel Committee jointly awarded the Nobel Prize in Peace to Professor Yunus and Grameen Bank “for their efforts to create economic and social development from below.” Since 2006 Professor Yunus has focused on spreading and implementing the concept of social business. Professor Yunus currently chairs the Yunus Centre, a one-stop resource centre for all Grameen social business-related activities in Bangladesh and around the world. He has written three books about micro-lending and Social Business: “Banker to the Poor” (2003), “A World Without Poverty: Social Business and the Future of Capitalism” (2008) and “Building Social Business” (2010). Among Professor Yunus’ many awards and honors he has received two of the highest US Civilian awards (Presidential Medal of Freedom and the Congressional Gold Medal). Thereby, he is one of only seven people in history that have received these awards, along with recipients Martin Luther King Jr., Mother Teresa or Nelson Mandela. In 2009, Forbes named Professor Yunus one of its “10 Most Influential Business Gurus.” Saskia Bruysten Co-Founder & CEO YSB Management Team A leader in the social business movement, Saskia co-founded YSB together with Nobel Peace Prize Laureate Prof. Muhammad Yunus and Sophie Eisenmann, and is in charge of general strategy and outreach at YSB. Saskia has been featured on the Wired Smart List 2013, contributed widely to the Huffington Post, Forbes, and co-authored a report with the Boston Consulting Group on the experiences of building large scale social business joint ventures in Bangladesh. Saskia was appointed to the EU Commission’s expert group on social business and has assisted Prof. Yunus on Ban Ki-Moon’s UN MDG Advocacy Group as well as Sir Richard Branson’s B-team. Saskia is the youngest Generation CEO member and a Young Leader of the Atlantik Brücke. She has lectured at several universities and speaks regularly at high profile events. Prior to YSB, Saskia was the Co-CEO of the Grameen Creative Lab and a management consultant at the Boston Consulting Group. She holds an MBA from the European Business School in Germany and an MSc in International Relations from the London School of Economics and Political Sciences. Sophie Eisenmann Co-Founder & CFO YSB Management Team As CFO and head of YSB’s activities in Haiti since inception, Sophie is responsible for the global finances of YSB as well as the strategic direction setting and concrete impact generation through the social businesses on the ground, especially in Haiti. Prior to YSB, Sophie was a Director at the Grameen Creative Lab, responsible for large social business country initiatives that GCL initiated, including Haiti, Albania and Colombia. Previously, Sophie worked as a strategy consultant for Siemens Management Consulting in Munich as well as financial analyst for GE Capital in London, Amsterdam and Munich. She has lectured at universities in Milano, in Bogota and in Tirana on the topic of social business. She holds an MBA from European Business School, Oestrich-Winkel Germany and an MBA in International Business from INSEAD. She is a board member of Campo Vivo, a JV with McCain, ensuring sustainable incomes for farmers, as well as founding member of Step-up, a network that helps disadvantaged young people in Germany to pursue their academic studies. The YSB Global Management team is supported in Partnerships by the University of Cambridge graduate Teddy Sun; she was formerly an investment banking analyst at London’s RBC Capital Markets. An Operations Manager further provides administrative support. Sarah Karim has been supporting the team in developing YSB’s strategy and improving our communications efforts. She holds an MBA and has several years of experience as a strategy consultant, as well as previous experience working at Acumen. Finally, several volunteer social business consultants provide strategic direction and advice, with prior experience at BCG, varying nonprofits and corporations, as well as at start-up ventures. Karen Hitschke Sylvain Ferriere Karen has extensive expertise and experience in fund structuring, investment processes and fundraising. Prior to YSB, she was the Chief Financial Officer at Affectis AG and an advisor to B-to-V (Business Angel Network) in Switzerland. Karen has also served as an investment manager at Apax Partners and as a consultant at McKinsey & Co. Sylvain heads up and shapes YSB’s activities in Africa. Prior to YSB, Sylvain worked as a consultant in Argentina for Endeavor, a NGO dedicated to identifying and supporting high-impact entrepreneurs and then as a general manager for the fashion design business of an Endeavor entrepreneur. He has also served as a consultant for the Boston Consulting Group in Paris. Karen holds an MBA from INSEAD, Fontainebleau, and a M.Sc. in Biology from the University of Constance. Sylvain holds a M.Sc. in Mathematics from Imperial College in London and a M.Sc. in Management from HEC in Paris.” Fares Mabrouk Daniel Nowack Fares leads YSB’s global acceleration programs, after initially serving as YSB Tunisia’s Country Director. Prior to joining YSB, he founded the Arab Policy Institute, a Tunis-based think tank. Fares also previously founded and ran a number of SMEs based in North Africa, focused on mobile banking, oil logistics, and journalism. Daniel is responsible for heading YSB’s activities in Albania and Kosovo. Prior to YSB, Daniel was CFO for a German incubator for mobile and online startups, where he was responsible for signing financing rounds, reporting structures and legal setups of multiple organizations. Director Funds & Investments YSB Management Team Global Accelerator Head Fares is a visiting professor at Sciences-Po in Paris, where he teaches statistics and data analysis. In 2010, he was selected as a Yale World Fellow. Fares obtained a Master’s degree in Public Administration from Harvard University’s Kennedy School and has a degree in Economic and Statistics from the National School of Statistics and Economic Administration in Paris. Program Director Africa YSB Management Team Program Director Albania Daniel’s early professional experience includes five years in Corporate Finance for Europe and Emerging Markets at Merck & Co. Inc. and another five years in online marketing, including leading his own online marketing agency for SMEs in Germany. He also has served as Project Manager for Grameen Creative Lab. Daniel holds a Diploma from the University of Cooperative Studies Stuttgart and a Bachelor from Glamorgan Business School, Wales. YUNUS Social Business 17 OUR TEAM Country Directors Shkelzen Marku Country Director Albania Shkelzen heads YSB’s activities in Albania. Prior to YSB, Shkelzen was Executive Director of the Mountain Area Development Agency (MADA). He also worked as General Director of Agriculture and Rural Development Policies in the Ministry of Agriculture in Albania. He is a co-founder and president of the Partnership for Development Foundation, and a visiting professor at the Economics and Agribusiness faculty of the Agriculture University of Tirana and the Economics faculty of the European University of Tirana. Shkelzen holds a PhD in Rural Economic Development Policies (AUT, Albania), a MSc in Management of Rural Development Policies (CIHEAM-IAM, Montpellier, France), and an Agriculture Engineering Diploma (CNEARC, Montpellier, France). Aarti Wig Country Director India Aarti has developed and led the India operations of the YSB movement since its inception, first as Country Director of the Grameen Creative Lab and now as part of Yunus Social Business. She helped create the YSB Fund Mumbai and currently manages it. Aarti has also advised several Indian universities, corporations and non-profits on creating social businesses. Previously, Aarti worked as an investment banker at JP Morgan in Mumbai. Clémentine Lalande Country Director Haiti (a.i.) Before serving as interim director in 2014, Clémentine led investment management activities and business plan advisory services in Haiti, developing social business joint ventures with corporate clients. Prior to YSB, Clémentine was a Project Leader at the Boston Consulting Group in the Paris office, working with both private and non-profit clients, in more than 8 countries including in Europe and in the Middle-East. She also worked for the CEO of Action Contre la Faim, a French NGO fighting malnutrition, helping them on organization &a development projects at Headquarters in Paris, and leading projects on the ground in Ethiopia and Chad. Clémentine studied Industrial Engineering at the Ecole Centrale in Paris, and Wirtschaftsingenieurwesen at the Technische Universität in Berlin. Aarti holds a Master’s degree in Finance from the London School of Economics. Leila Charfi Country Director Tunisia Rogério Oliveira Country Director Brazil Leila joined YSB after working for 6 years in the Telecom industry in Canada and France, before moving back to Tunisia in 2007, where she managed the first private incubator, the Microsoft Innovation Center. In 2012, Leila moved to Microsoft Africa and developed partnerships with African incubators and technology hubs, and managed programs to promote entrepreneurship at the continent level. Rogério co-founded and heads up operations of YSB Brazil. He has 12 years of experience in leading teams in the areas of product development, business units implementation and enterprise start-ups within companies such as Warner Bros, Johnson&Johnson, Nestlé, UOL and BRMALLS. Rogério is also the founder of Movimento Buena Onda - an accelerator for social businesses focused on creating happiness, social or environmental impact. Leila Charfi has a Computer Engineering degree from Tunisia and a Master’s degree in Telecommunications from Canada. Rogério holds an MBA from HEC Montreal and teaches ‘Happiness as a Business Strategy’ at Perestroika, a Brazilian innovation school. Eriab Kiiza Andrea Perez Castro Country Director Colombia Country Director Uganda Andrea is responsible for heading YSB’s activities in Colombia. Prior to YSB, Andrea served as Assistant to the Executive Directors for Central America and Belize at the Inter-American Development Bank. She is also co-founder and external relations coordinator at Mentoring International. Prior, she was project manager and industrial engineer at Tindal. Prior to joining YSB, Eriab worked as Coordinator of Uganda Country Capacity Building Program, as Director of Enterprise Development at Enterprise Uganda Foundation Limited, and as Investment Office at Uganda Investment Authority. He implemented various business development projects funded by international agencies in Eastern and Southern Africa, and executed financial inclusion interventions targeting small businesses, women and youth in Uganda. Eriab is an “International Entrepreneurship Expert” accredited by the United Nations Conference on Trade and Development. Andrea holds an Industrial and Systems Engineering Bachelor’s of Science from Virginia Polytechnic Institute State University and an MBA from Georgetown University. Eriab holds a Master’s and Bachelor’s degrees in Economics and an ACCA Diploma in Financial Management. 18 YUNUS Social Business 19 YSB HAITI $1.4M Overview Deployed to 9 Social Businesses Pain O Quotidien produces fortified bread while distributing its products through a network of female micro-entrepreneurs. “Social business is a particularly powerful tool in Haiti, because it is an exit strategy to the dependency created by decades of traditional aid. YSB invests in the Haitian entrepreneurs who believe in positive and lasting change in their country.” Clémentine Lalande – Country Director Cumulative $100K+ monthly Bakery CBPM provides employment opportunities while its proceeds financially support a local school. revenues impacted customers PER MONTH The local team YSB Haiti has a portfolio of 9 social businesses in Haiti, which have received almost $1.4 million in financing from YSB, and a further $800,000 has been mobilized from YSB’s co-financers. YSB Haiti’s Country Director Clémentine Lalande has served as Head of Investments for YSB Haiti, and before that as a Project Leader at Boston Consulting Group and as Project Manager for the CEO of Action Contre la Faim, a French NGO fighting malnutrition. Philippe Lagrenade, Djimitri Celestin, Jhonson Vilson, Ann-Sophie Ovile (all from Haiti), Zoe Tyndall (from the UK), Dorian de Broqueville (from Belgium), as well as Hassan Hajam (from Tunisia) work on incubation efforts within YSB Haiti as Social Business Consultants. Rebecca Augustin provides administrative support. SESA supports the cultivation of edible jatropha trees to process fruits into biofuel and reduce Haiti’s energy and animal feed import dependence. “I want to express deepest gratitude for all that YSB 10,000+ Social Business Portfolio is doing toward helping our social business to succeed. The support they have been providing to my social business has been huge.” YSB Haiti Entrepreneur Poulailler de Nicolas (ESN) rears local chickens and creates local employment. HAJICA rears local chickens in a country that relies heavily on chicken imports. COPRABEP rears local chickens on an island with very limited economic activity. The following social businesses were financed in 2014: • Digo Distribution, which allows micro-entrepreneurs to sell locally made cleaning products, increasing their incomes. Customers purchase these by refilling their own plastic containers, dramatically reducing the price to the end consumer, and eliminating a lot of plastic waste in Haiti. Most importantly, access to these cleaning products is vital to prevention of diseases such as cholera. • KreyÒl Essence, which works with castor oil farmers and producers, buying at above market prices to create beauty products that are sold in the USA. In doing so, it works with local farmers who grow local castor plants, and ensures sustainable income for all along the value chain while fighting deforestation. Entrepreneur Services YSB Haiti has extensively supported and coached its social businesses in their strategic or operational challenges, and in doing so, has helped them prepare for financing readiness. This includes negotiation with strategic buyers and suppliers, support in registration of legal procedures, shared working space for start-up phase, facilitation with additional financial partners and support in a turnaround plan. YSB Haiti’s Port-Au-Prince office continues to receive business plans from all over Haiti. In 2014, a special focus was put into working with Haitian entrepreneurs on the following: • Implementing the Haiti Forest Initiative - an initiative to develop agro-forestry social businesses, creating good jobs and planting trees. • Developing social businesses in two other distinct parts of Haiti: in the North and in Cavaillon, a peri-urban city in the South of Haiti. YSB Haiti will be welcoming its new Country Director and Haitian-American Philippe Saint Cyr in January 2015, who has previously served as the Executive Director of AMCHAM Haiti, as Managing Partner at varying corporations and as an investment and market analyst. Philippe holds an MBA from Fordham University in New York, USA. YSB haiti would like to thank its following local and global partners YSB Hait would like to thank all its partners for their continued support in 2014, including its major partners Hope for Haiti/Fondasyon Kuehner (HFH) and The Dalio Foundation, SAP, Deutsche Bank, Haiti Partners, Flora Family Foundation, PADF, Artists for Haiti and Haiti Broilers. YUNUS Social Business 21 YSB INDIA $600,000+ in financing Overview Sakhi Retail empowers rural wom- en as sales agents of socially relevant products. While YSBFM has invested into a small pilot, Sakhi Retail reaches over 600,000 people in Maharashtra and Bihar through over 850 female micro-entrepreneurs. “India’s unique combination of an aspirational entrepreneurial population with eKutir Wash catalyzes the building of house- hold toilets in rural Orissa through a unique micro-entrepreneur turnkey service provider model. Through YSBFM, eKutir plans to create 40 toilet entrepreneurs per year. massive social problems makes it a fertile ground for social businesses.” Aarti Wig – Country Director Social Business Portfolio The local team YSB India’s social businesses are financed by the Yunus Social Business Fund Mumbai (YSBFM). Since 2011, 7 social businesses have received financing of more than $600,000, addressing a range of social issues in India focusing mainly on health, sanitation and micro-entrepreneurship. Yunus Social Business India’s Co-Founder and Country Director Aarti Wig has worked as an investment banker at JP Morgan, and consulted several Indian universities, corporates and non-profits on creating social businesses. The Yunus Social Business Fund Mumbai (YSBFM) is overseen by Mr S.K. Shelgikar, Founder and Chairman of YSBFM and B.N. Kulkarni, Grameen Director. Mr Shelgikar has over 25 years of experience as Chief Financial Officer of a leading Indian consumer goods company. He is also a philanthropist and angel investor, having seeded leading social sector organisations like Micro Housing Finance Corporation. Dr. Kulkarni has over 30 years of experience in the development sector, including with NABARD and as head of Microcredit Initiative of Grameen in India, responsible for Grameen Bank replications across India. In 2014,YSB India financed the following social business: • 7 social SPARC founded by Nobel Peace Prize nominated Dr. Jokhin Arputam, has worked with YSBFM to build community toilets in urban Mumbai slums. ALC India provides handholding support to primary producers in rural India, helping them to get a higher price for their produce by eliminating supply chain inefficiency and improving their productivity. ALC India is currently working with 15 such producer companies and is in the process of promoting another 22. It reaches 65,000 producer households currently and hopes to reach 300,000 producers in the next 5 years. To date, 4 companies have reached the end of their grace period and are on track with their repayments.YSBFM has further received complete repayments from 2 additional social businesses. businesses 2 Social Businesses Fully Repaid Loans Entrepreneur Services In addition to its work with the YSBFM,YSB India remains committed to advocating social business as a powerful tool to address India’s problems. In this regard, YSB India regularly speaks at various events throughout the year, targeted at different social business stakeholders in order to advocate for social business entrepreneurs. In addition,YSB India ideated an innovative pay for results instrument; this has been shortlisted for an Economic Inclusion Ecosystem Grant Fund launched by Ashoka, GIZ and EBay Foundation. Milaap/ Guardian provides microloans to build water connections and toilets in rural Tamil Nadu. Sankara Eye Care Hospital YSBFM would like to thank its following local and global partners • IIM Calcutta for its partnership on the Tata Social Enterprise Competition • Tata Institute of Social Sciences for their partnership on the social enterprise competition, Manthan • Various leading Indian universities that serve as sourcing partners of social businesses that come out of their social entrepreneurship cells and competitions and which YSBF subsequently funds provides eye care services through cross-subsidizations to those in need. From its inception of Coimbatore with 1 hospital doing 30,000 surgeries, it currently has 9 hospitals performing 150,000 surgeries.YSB contributed 14% of the financing round of this specific social business. YUNUS Social Business 23 YSB COLOMBIA Overview successful launch of JV with McCain “Over the past few years, Colombia has positioned itself as a Campo Vivo provides high quality technical social innovation hub for Latin America, encouraging private assistance and ensures entrepreneurial capacity building to farmers and thus, increases family income, improves productivity levels and working conditions, and engages both men and women. and public initiatives against poverty, pressing social issues and inequality. YSB Colombia is contributing to drive this movement.” Andrea Pérez Castro – Country Director 10,500+ impacted customers 22 Entrepreneurs Bive facilitates and improves access to high-quality, immediate and affordable healthcare for middle and low income families through a network of providers that offer discounts and immediate care. supported Social Business Portfolio The local team Since 2011,YSB Colombia has provided financing of more than $230,000 for its social businesses and mobilized an additional $1.7M from its co-financers. In 2014, YSB Colombia provided financing to: • Campo Vivo, which was created as a joint venture between McCain and YSB, aims at transforming the lives of small-scale Colombian farmers through the strengthening of their productive activities Andrea Pérez Castro,YSB Colombia Country Director, has prior experience at IADB and is an experienced project manager and operational excellence specialist. Sophie Chauliac, Director of Partnership and Project Manager of Campo Vivo, has experience as social entrepreneur, program manager and consultant; focused on international development and poverty reduction. Andrés Trujillo serves as Director of Social Impact. Ingrid von Schiller, Cristina Obregón and Julio Gutierrez, Social Business Consultants, provide social business support for partnerships and entrepreneurs. Entrepreneur Services YSB Colombia continues to provide advisory services on business modeling, partnership management, fundraising and access to markets to the local entrepreneurs it works with. YSB COLOMBIA would like to thank its following global and local partners • The National Agency for Extreme Poverty Alleviation (ANSPE), through its Center for Social Innovation, for promoting social business training and implementation with low-income communities • Ecopetrol for being the first investor into the YSB Colombia’s Fund • LGT VP for co-financing social businesses in Colombia to further develop and consolidate their models • McCain for partnering with YSB on a joint venture to address some of the most pressing social issues in Colombia • Publicaciones Semana for its strategic partnership to create awareness and promote social business in Colombia • The National Service of Learning (SENA) for its strategic partnership to provide technical and entrepreneurial training to social entrepreneurs in the pilot stage of their businesses • University of Chicago’s Booth Business School for its consultation on the design of our investment fund to satisfy the investment needs of the Accelerator Program in Colombia 1,650+ people reached through media YUNUS Social Business 25 YSB ALBANIA 2500+ Reached through Campaigns Overview 600+ participants during Social Business Week 250+ “We bring a new ideal of entrepreneurship to Albania and the Balkans that Applications aims at solving the region’s problems through inspiring new social businesses. Submitted to We believe that truly meaningful entrepreneurship can only flourish in an Accelerator environment of idea sharing and collaboration. We believe that building trust in Programs others and confidence in oneself are the keys to creating such an environment.” Shkelzen Marku – Country Director “I am glad that we are talking about the same business topics and tools which are being used in the US, Germany, and everywhere else. We are at the same pace as entrepreneurs in other countries.” Suela - “Eagle’s House” rural tourism project Social Business Portfolio The local team YSB Albania has financed 5 social businesses since 2012, directly financing more than $595,000, while mobilizing almost $60,000 from its co-investors. In 2014, it supported the launch of two new social businesses: • Food Made in Albania is a food processing company, which re-establishes the quality-appeal of local agricultural products by processing high-quality products after sourcing fruits from farmers. • Saint George Valley Organic Farming is an organic farm that produces sustainably grown organic herbs for local and international traders and processors of essential oils. To ensure quality of input, the farm will own a seedling nursery, rent plots from farmers while providing local employment. YSB Albania Country Director Shkelzen Marku, has led key agricultural projects in Albania for over 20 years, served in the government as a director and advisor and worked with the World Bank, UNDP and IFAD. Melanie Perisse is YSB Albania’s Head of Investments; prior to YSB, she was with Boston Consulting Group and the World Food Program in Africa. Social business consultants Ermira Repaj and Leonard Dalipi complement the team with strong finance, startup and academic backgrounds. Entrepreneur Services Seniors House provides dignified healthcare for the elderly. E-Jona promotes the integration within society of disabled youth. YSB Albania would like to thank its following global and local partners • The Swedish Postcode Lottery for providing support for acceleration and incubation services • AgFund for enabling us to provide seed financing to new social businesses in Albania • The United Nations Development Program in Albania for supporting our efforts in fostering youth entrepreneurship in Albania • The Austrian Development Agency for its support in running the 2014-15 Accelerator Cycle, with the focus on establishing an ecosystem around business incubation in Albania in the long-term • The Ministry of Social Welfare and Youth in Albania for promotion and access to critical networks • PUM Netherlands Senior Experts for provision of expertise in a vast range of sectors and areas for YSBA social businesses • Deutsche Bank Experts for mentoring services to the YSBA accelerator program • Many other local partners for sharing knowledge and network with YSB Albania In 2014,YSB Albania ran 2 cycles of its structured accelerator program, providing extensive support to more than 35 entrepreneurs and potential entrepreneurs with experienced hands-on mentorship, educational programming, visibility to investors and other resources. It further strengthened our entrepreneurs’ processes for market and customer validation, development and testing of the commercial viability of the idea, while providing them support for pitches to investors. YSB Albania continues to create awareness of social business in the Balkans region, including a training to entrepreneurs at the Innovation Center Kosovo. It also hosted Social Business Week in Tirana, offering a series of activities such as boot camps, workshops, a conference on the “Future of Social Business” and social business field trips. More than 600 participants from varying sectors and fields participated. Food Made in Albania creates access to markets and stable income for farmers and producers YUNUS Social Business 27 YSB BRAZIL Overview Solar Ear based out of São Paulo, has developed the first digital rechargeable hearing aid battery, which lasts for 2-3 years and can be used in 80% of hearing aids on the market today. It is solar powered and can be charged via the sun, household light, or a cell phone plug. Solar Ear also manufactures and sells the first digitally programmable and rechargeable hearing aids, which cost 10% of the market cost and meet WHO standards. All products are assembled by young employees who are deaf. Solar Ear has been supported by YSB Brazil through our accelerator program in 2014. Over 200 “Social Business is more than a new way of doing business or a new way of solving applications social problems. It is a new mindset powerful enough to change behaviors and old received school beliefs that we still have as a society. More than help growing business that matters, it is this new mindset that we want to promote in Brazil.” Rogério Oliveira – Country Director 3 Accelerator Program cycles Social Business Portfolio The local team YSB Brazil, locally registered as Yunus Negocios Sociais Brasil, was launched in March 2013 and is in the process of developing the first registered social business fund in Brazil.YSB Brazil remains committed to enabling local entrepreneurs to grow their social businesses while working heavily to spread the social business concept in Brazil, particularly as Rio was declared a ‘Social Business City’ in 2014. YSB Brazil’s Co-Founder and Country Director Rogério Oliveira has significant experience as an entrepreneur, mentoring other entrepreneurs and in leading teams within companies such as Warner Bros, Johnson & Johnson, Nestle, UOL and BRMALLS. Head of Investments and of the Acceleration Program, Julia Menezes Profeta was the founder of an Innovation E-magazine and has worked for companies such as Johnson&Johnson, Robert Bosch GmbH, Itau BBA, Rocket-Internet in Brazil and advised several start-ups to structure their businesses in the country. Head of Rio Social Business City Program, Taciana Abreu has prior experience as Planning Director in advertising agencies as McCann Erickson and extensive participation in social programs within slums in Rio de Janeiro. Educational and Institutional Relations Manager Ricardo Rodrigues Mastroti has several years of managerial experience at P&G, Aracruz Celulose, InterCement and Camargo Correa Group. Administrative and Financial manager, Francisco Vicente has strong experience in finance planning, accountability and controlling activities in different areas at Johnson & Johnson in Brazil. Entrepreneur Services A Social Business Lab is a one-day immersion workshop to empower entrepreneurs on how to design social business solutions. By using creative tools entrepreneurs generate prototypes of their enterprises aimed to solve the social problems they wish to overcome. Moreover, the SB Lab Tour intends to empower and inspire social entrepreneurs throughout Brazil with 12 workshops being planned to cover 12 Brazilian cities. In 2014,YSB Brazil launched 3 cycles of accelerator programs, including 2 in São Paulo and 1 in Rio. As part of the program,YSB Brazil offers its entrepreneurs an office during the program, 2 mentors from BCG per social business during the 3 months, sector expert mentors, access to the YSB Brazil network, and preparation to pitch for financing. A total of 22 social businesses have been accelerated through the process. YSB Brazil remains committed to spreading the social business concept, in order to enrich education in the region and shape citizens who are committed to social challenges and prepared to lead social business. To this end,YSB Brazil hosts several events throughout the year, including a Social Business Lab to empower entrepreneurs, as well as an international partnership program whereby international graduate and undergraduate students have the opportunity to learn directly from social business entrepreneurs. In 2014, YSB Brazil hosted over 25 events and directly reached over 5,400 people through its media campaigns. 22 Social YSB Brazil would like to thank its following local and global partners • BCG for mentorship of our social business entrepreneurs during our Accelerator Program • The Via Varejo Foundation for sponsorship of our Acceleration Program • KPMG for pro bono auditing services • Mattos FIlho for pro-bono legal advice • Petra for its administration of our legal fund Businesses accelerated YUNUS Social Business 29 YSB TUNISIA Overview 410 completed applications “In 2011, Tunisia was the first country that started the Arab Spring movement, a CIFEA is a beekeeping and honey production business revolution that led to a democratic republic with a major participation of civil society in Jendouba that aims to stimulate and develop the economic activity by creating a beekeeping centre providing trainings for youth, proposing honey collection services from local beekeepers and then selling honey and derivative products. After 5 years of activity, they expect to employ up to 22 people, and to have trained 160 beekeepers in the region. CIFEA has been supported through YSB Tunisia through our accelerator program in 2014. institutions. Revolutionary fervor has also opened the door for social innovation, thus paving the way for activities such as social business development.” Leila Charfi – Country Director 80,000+ social media shares for ‘Call for Accelerator Program’ applications 2,300+ entrepreneurs expressed interest YSB TUNiSIA The local team Upon invitation of its founding partner African Development Bank, in 2013, YSB created its Tunisia office to support the creation and development of social businesses, which it delivers through its two main activities of business acceleration and financing. A Tunisian social business fund has been developed to provide financing between $50,000 and $350,000 each to the most promising social businesses. YSB Tunisia’s Country Director Leila Charfi comes from the telecom industry and has prior experience in managing Tunisia’s first private incubator, the Microsoft Innovation Center. Head of Investment and Global Acceleration Camille Courtaud has extensive experience in strategy and operations through her previous work at Roland Berger Strategy Consultants. Social business consultant Pedro Telleria has expertise in financial services, strategy and organizational development through his work in both the social and private sectors. Entrepreneur Services in program In March 2014,YSB launched the call for application for the YSB accelerator, program called iBDA (Arabic name meaning “Start!”), which is the first accelerator in Tunisia. To learn more 11 projects were selected to participate, out of the 410 completed applications received from the 24 governorates. These social businesses had a wide geographical spread and covered various activity sectors such as agriculture, recycling, handicraft, tourism and citizen services. about YSB Tunisia’s Social Business Portfolio accelerator, visit Upon completion of its accelerator program, the local YSB team has been working with the 3 most promising social businesses in order to finalize all legal and business requirements in order to provide financing. The first investments are expected at the beginning of 2015. The local YSB team has also supported 6 of the accelerated projects in their business development, access to finance and access to market strategies. www.ibda.tn Fares Mabrouk, currently Global Accelerator Head and the previous YSB Tunisia Country Director, is based out of Tunisia and continues to provide the team strategic guidance and support. YSB TUNISIA would like to thank its following global and local partners • Mazars for its key contribution during the course of the Accelerator Program in providing financial and accounting expertise to entrepreneurs through delivery of a course and individual consulting sessions • Yale World Fellows Program for sharing best practices regarding the selection process of the Accelerator Program • JWT for its web graphic charter and Arabic concept customization YUNUS Social Business 31 YSB UGANDA Overview “Permit me to congratulate YSB Uganda Country Office upon successfully organising the Designing for Impact training. We look forward to attending many more courses organised by YSB, like this one.” Cassim Gibusawu - Social Entrepreneur “We give Ugandans the necessary tools and finance to become successful social business entrepreneurs.” Eriab Kiiza - Country Director More than 100+ YSB uganda The local team entrepreneurs YSB Uganda began its operations in 2013 as a pilot program with the African Development Bank devoted to promoting and creating an environment within which social businesses can thrive in Uganda. In 2014, it was officially registered as Yunus Social Business Foundation Uganda Ltd. YSB Uganda’s Country Director, Eriab Kiiza, has over 20 years’ experience in facilitating and mentoring private businesses through Uganda Investment Authority and Enterprise Uganda. He also helped set up SME mentoring programs in several African countries. Social Business Consultant, Siraje Bazibu, has worked as Grants Officer in grant management institutions for SMEs and Civil Society Organizations, and has experience in Business Advisory Services and support for MSMEs. supported Green Bio Energy (GBE) offers low-in- come Ugandan families access to cheaper, safer and more environmentally friendly energy solutions such as energy efficient cook stoves, environmentally friendly charcoal briquettes, and solar lamps. Improved cook stoves and biomass briquettes will help to reduce gas emissions, prevent deforestation, preserve the environment, and alleviate poverty through community empowerment and awareness building. In 2015, GBE aims to achieve household savings of over $1M, 67,000 tons of CO2 offset and over 500 micro-entrepreneurs trained and engaged in sales. It will also educate the broader community of the benefits of using clean cook stoves and briquettes. Entrepreneur Services YSB Uganda, in partnership with its extensive sourcing partners, continues to source and work with entrepreneurs to develop their social businesses. In 2014, we provided support to more than 100 entrepreneurs and 1 social business was approved for an initial financing amount. YSB Uganda further provides training to develop skills of local entrepreneurs, and in 2014, partnered with African Management Initiative (AMI) to deliver a training on ‘Designing Social Business for Impact.’ “It has been an absolute pleasure working with YSB Uganda – [they] have been so responsive, organized and motivated to ensure a great experience for YSB Uganda would like to thank its following local and global partners • Private Sector Foundation Uganda (PSFU), Makerere University Business School-Entreprenurship Centre, Interna tional Labour Organisation- Youth Entreprenuership Facility (ILO-YEF) , Angels Hub and HIVE CO Lab that serve as sourcing partners of potential social businesses • Impact Carbon, Heifer International Uganda, Centenary Bank, Microfinance Support Center and OXFAM for their collaboration in incubation and financing of social businesses in varying industries including agriculture, dairy and milk processing and renewable energy • B-Space for their invitation to YSB Uganda present and provide input at the Inclusive Business Forum • Uganda Community Libraries Association for its support as YSB Uganda facilitates the development of community libraries using a social business model • Grameen Research Inc., for its support through a grant from the Bill and Melinda Gates Foundation, which aims at strengthening and creation of community libraries in Uganda using the social business model participants. We have really appreciated this!” Rebecca Harrison - Executive Director African Management Initiative YSB Uganda officially registered as Yunus Social Business Foundation Uganda Ltd YUNUS Social Business 33 PARTNERS & EVENTS “Our collaboration with Yunus Social Business is emblematic of our new model Partnerships and Events 2014 for development - a model that harnesses partnership and innovation to advance sustainable solutions to some of the toughest challenges we face.” Rajiv Shah – USAID Administrator Corporate partnerships The Boston Consulting Group: Setting benchmarks for corporate engagement in social business BCG has been a long-term partner and has been supporting us with pro-bono cases, mentorship and volunteer consultants in the past. In 2014, BCG helped YSB re-think how to measure impact and evaluate internal metrics of success. The company has also kindly provided mentors to social businesses in our accelerator programs. Freshfields Bruckhaus Deringer: Developing legal models for social business The corporate law firm kindly provided extensive pro-bono legal support and helped us bridge the divide between charitable legislation and the social business sector. This partnership has led to legal structures that are ground-breaking for the future best practice of social business investing. SAP: Implementing state-of-the-art systems for impact measurement and portfolio management Intrigued by the idea of scaling and optimizing investment processes for social business, our long-term partner in Haiti, SAP, provided a tech donation to implement an SAP solution for fund management and measuring and evaluation. USAID: Partnering for best practices to incubate social businesses USAID and YSB have formed a Global Development Alliance committed to incubating and financing social businesses worldwide. USAID believes in the importance of YSB’s approach and hopes to learn from best practices. Haiti has been the first YSB country to sign the partnership with USAID, and Uganda and Albania are also in the process of forming the partnership. African Development Bank: Incubating social businesses in Africa In partnership with the African Development Bank,YSB is developing a social business movement in Africa. Social business has become part of AfDB’s 10-year strategic plan across the African continent. Our initiatives in Tunisia and Uganda serve as pilots for further countries to follow. Rockefeller Foundation: Creating innovating financial tools for social business financing The Mazars Group has kindly offered its services to YSB to conduct an independent audit as well as provide taxation advise to YSB and its social businesses. The Rockefeller Foundation is supporting YSB in identifying and developing innovative “results-based financing” solutions to leverage philanthropic and governmental capital to mobilize commercial capital for social businesses to address social and environmental challenges in a financially sustainable way. Via Varejo: Sponsorship of acceleration programs in Brazil United Postcode Lotteries: developing sustainable solutions to social challenges The Via Varejo Foundation has kindly sponsored our acceleration programs in Brazil and continues to provide support to YSB Brazil through mentorship and participation in our local demo days. The Swedish and Dutch Postcode Lottery Foundation have partnered with YSB over a 3 year period to support our efforts in accelerating and financing social businesses around the world. TOMS: Reseach of social business concept within its model KIVA: Opening small-scale financing opportunities of social business for anyone Yunus Social Business India and Sattva are delighted to have partnered with TOMS in 2014 to research potential ideas for innovating within the TOMS One for One model. The organizations worked with local communities in India to research social business concepts as part of TOMS giving and local manufacturing programs. TOMS and YSB India have conducted a joint project on the Indian shoe production and distribution market to look at additional pathways to create jobs beyond TOMS local manufacturing while continuing to serve populations in need. In India, TOMS distributes shoes to children in need through its network of Giving Partners to support health, education and sanitation programs. YSB partnered with the crowd-funding platform KIVA.org to enable individuals around the world to lend to social businesses with microloans as small as 25 USD, with our social businesses receiving some of the largest loans ever financed through KIVA. Mazars: Auditing services and pro-bono taxation advisory for social business 34 Partnership Highlights The Robert Bosch Stiftung The Robert Bosch Stiftung is supporting our accelerator program in Tunisia with the goal to prepare, select and coach the most promising social business entrepreneurs. YUNUS Social Business 35 PARTNERS & EVENTS Partnerships and Events 2014 Initiating Exceptional Social Business Projects Haiti Forest Initiative: Innovative approaches towards reforestation in Haiti In Haiti,YSB has joined hands with Sir Richard Branson,Virgin Unite and the Clinton Foundation to set up the Haiti Forest Initiative. In developing a social business ecosystem, the initiative has two main objectives: 1) Increase tree cover and regenerate the environmental benefits of trees; 2) Improve livelihoods of smallholder farmers who are the key to breaking the deforestation cycle, and igniting a reforestation dynamic. “The private sector has an important role to play. As a primary driver of innovation, investment and job creation, Social Business It will be an innovative bottom-up approach to reforestation, setting up a chain of interlinked social businesses that aim to create markets in agroforestry products, such as fruits, nuts, and oils. The social businesses not only cultivate, but also engage in processing, thereby ensuring that economic value is created and retained in the Haitian economy. is well placed to help accelerate progress towards the Millennium Development Goals by the agreed deadline of 2015.” Ban Ki Moon – UN Secretary General JV with Florida Ice and Farm Company: Fighting malnutrition in Costa Rica We launched our first corporate social business joint venture with Costa Rican leading food company, Florida Ice and Farm Company. The joint venture produces and sells enriched cereals, soups, and drinks to combat malnutrition, particularly targeting children under the age of five in Costa Rica. JV with McCain: Transforming the living conditions of farmers in rural areas Through its Corporate Social Responsibility commitment, McCain approached Prof. Yunus to start a social business to improve living conditions of poor farmers worldwide. From among 8 countries, Colombia was selected for a pilot model approach. In 2014, Campo Vivo Negocio Social S.A.S. was launched as a corporate social business joint venture between McCain and YSB, combining their respective know-how in agronomy and social business incubation. Campo Vivo intervenes the agricultural value chain by developing competencies in small-scale farmers, strengthening the social tissue and promoting competitive productive activities in vulnerable rural communities. It provides high quality technical assistance and ensures entrepreneurial capacity building to farmers and thus, increases family income, improves productivity levels and working conditions, and engages both men and women. It also strengthens the community by fostering associations among farmers to cultivate collectively, while providing individual family support. Grameen Research Inc.: Building sustainable community libraries YSB is implementing a project for which funding is provided by Grameen Research, Inc., who received a grant from the Bill & Melinda Gates Foundation, which aims at developing new and existing community libraries in Uganda using the social business model. Doing so will strengthen the libraries’ ability to serve local communities by lowering the libraries’ dependence on grants and outside funding. The community libraries will be open to all the members of the community, and will develop revenue generating activities that will allow it to sustain its costs. Successful models will serve as blueprints for further replication in Uganda and elsewhere. 36 Creating Awareness In 2013,YSB was involved in numerous events around the world to educate and inform entrepreneurs, development organizations, foundations, policy makers and global leaders about the potential of social business for international development. These events spanned from local workshops to a number of high-level functions with renowned representatives, with tangible results for local communities and partners. A few highlights include: Pitch and Demo Days, YSB Local Countries In almost every country, we regularly organize “Pitch Days” at the end of our Accelerator Programs. In a dynamic format, entrepreneurs get to pitch their business cases to an exclusive group of investors, experts and mentors. It helps them to connect to potential funders and partners. It also marks the end of the program and their official “graduation”. The day is the culmination of their several months’ worth of work to develop, test and verify their business cases. It is also a day where we invite our partners to visit our country offices and get first-hand insights on the work we are doing on the ground. World Economic Forum, Davos, Switzerland Like every year,YSB attended the World Economic Forum to develop partnerships and share our work with thought leaders. Haiti Forest Initiative launch, New York, USA YSB attended a series of events including the Clinton Global Initiative, UN General Assembly, Climate Week and others in New York City in late September. Further, in the presence of Richard Branson and the German Minister for Economic Cooperation,YSB also announced a partnership with The Clinton Foundation and Virgin Unite to launch the Haiti Forest Initiative, an initiative to create an ecosystem of social business and reforestation efforts in Haiti. The fundraising event attracted many new philanthropic lenders and donors who pledged to participate in this exciting initiative. YUNUS Social Business 37 LESSONS LEARNED Reflections from Our Work lessons learned in 2014 Social business and YSB have grown in significance but also in maturity. The concept of social business, as learned from successful experiences and lessons from Bangladesh, has proven to provide long-term sustainable solutions to development. At the same time, our work in 7 countries in the past few years has also afforded us some distinct opportunities for reflections to help us serve our entrepreneurs better. In 2014, we specifically have learned the following: Our entrepreneurs are our greatest assets We operate on the ground in a highly dynamic environment where surely believed facts can be invalidated overnight. If the unexpected strikes, if assumptions do not hold true, if the very basis of a business plan is invalidated, the strongest asset that can turn a venture around is the flexibility and strength of the entrepreneur and their team. The most important selection criterion for investment thus remains the entrepreneur and the team. In 2014, we have further renewed our commitment to focus on our entrepreneurs as our customers, and have strengthened our Entrepreneur Services to complement our Financing activities. Sequencing allows for flexibility In an ever-changing environment that our entrepreneurs work in, we have learned that being adaptive is key to serving our entrepreneurs. Instead of financing purely green-field businesses in one go, we are developing financing tools allowing for smaller, more flexible financing tools for early stage businesses, to be disbursed in installments. This allows our entrepreneurs to get their feet wet as soon as possible, while limiting the risks to our philanthropic funders. Cohort matters Working together on ideas provides tremendous inspiration. Entrepreneurs deeply appreciate the possibility of exchanging opinions and diverse ideas on their social business cases with their peers. Building upon this learning,YSB tested and launched 6 accelerator programs in 2014 and plans on launching at least one such program in 2015 in almost all of the countries it operates in. Nothing is tougher than reality Instead of focusing on extensive and in-depth planning and market research, testing for market and customer validation provides the greatest value to the success of the social businesses. Product testing has now become an important part of the curriculum of our accelerator programs. Social businesses thrive when there is access to expertise Complementary knowledge and sector expertise provide a wealth of knowledge to our entrepreneurs. We at YSB are thus making an ever increasing concerted effort to facilitate introductions to mentors and sector experts who can provide focused and greater support to our entrepreneurs. Our network is a valuable resource that we need to leverage better As a start-up social business ourselves, our initial years have been focused on our own operations and processes to serve our entrepreneurs. We want to be better about catering to our stakeholders and involving our extensive and immensely supportive network, as we believe that they can provide valuable insights to help us strengthen our social businesses. 38 YUNUS Social Business 39 SUPPORT US Help Us Create Social Impact You can make an impact by supporting YSB In supporting YSB, you can help grow visionary social businesses that tackle major problems in developing and emerging countries around the world. Your support will help to screen, select, accelerate and finance high-potential social business entrepreneurs that create scalable impact in areas such as agriculture, education, environment, health & sanitation as well as local economic development. … with your expertise Become a mentor for our social businesses or as a volunteer social business consultant for YSB. … financially Become a philanthropic lender to our social businesses or make a donation to support our accelerator programs. … by becoming a part of YSB’s global network Your Financial Support and Our Unique Model While a traditional investor invests for financial gain, a philanthropic lender provides a loan to benefit society. A philanthropic lender’s goal is to maximize social return on his or her loan and is thus motivated to support the most effective social businesses. We gladly accept donations to finance our social businesses and our incubation work, yet, we do not ourselves donate to the social businesses that we work with. We run our operations with the discipline of an investment fund, and we expect our social businesses to operate as market-based private-sector companies. We believe that our financing model maximizes the long-term impact of philanthropic capital in the following ways: • Financing through lending rather than donations leads to the efficient and revolving use of capital: each dollar is recycled multiple times, creating more impact each time; • Social businesses are financially self-sustainable, so they continue to generate impact even after the initial loan is repaid; • Requiring social business solutions to be at least break-even ensures that they are more easily scalable and replicable. For philanthropic lenders or donors, our model has specific advantages: • Lending or giving to YSB ensures a more efficient and accountable use of capital as compared to traditional philanthropy. • The YSB structure ensures that philanthropic lenders can diversify across countries and sectors. • Traditional donors receive tax credits for their donations. Learn more about YSB and our social businesses by joining one of our networking events around the world or visit our country offices. Donors Philanthropic Lenders Yunus Social Business - Global Funds (charitable) Learn more by visiting www.yunussb.com/you YSB Local Country Get in Touch! Bastian Mueller YSB Partnerships [email protected] + 49 (0) 69 905590 30 www.yunussb.com Social Businesses YUNUS Social Business 41 www.YunusSB.com Yunus Social Business Niddastraße 63 60329 Frankfurt am Main Phone: +49 69 905590 30 Email: [email protected]