2015 Yunus Social Business Impact Report
Transcription
2015 Yunus Social Business Impact Report
Social Businesses That Solve Human Problems YUNUS SOCIAL BUSINESS - 2015 IMPACT REPORT “A social business is a company 100% dedicated to solving a social problem in a financially self-sustainable way.” TABLE OF CONTENTS Foreword About Us Our Global Impact Country Performance Entrepreneur Services Financing Portfolio Overview Social Business Spotlights Special Projects Our Team Lesson’s Learned Our Partners Supporting YSB 2 4 6 8 10 12 14 16 22 24 26 28 30 IMPRINT Published by © Yunus Social Business GmbH and gGmbH, March 2016 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. ACKNOWLEDGEMENTS Over the years, I have created many businesses. I learned from my experience with microfinance the power social business has to solve human problems, and that this is universally applicable to all sectors. So 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, designed 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 along the way. 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 (nutrition), Grameen Veolia (water), BASF Grameen (mosquito nets), Grameen Shakti (renewable energy), Grameen Intel (software solutions for agriculture/healthcare) Grameen GC Eye Care Hospital, to name a few. 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, via the innovative “Accelerate and Finance” concept. 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. 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) SASKIA BRUYSTEN Co-Founder and CEO 2015 has yet again been an exciting year for YSB. A big congratulations to the 34 social businesses we have now financed globally: They have managed to TRIPLE their impact in one year! These companies are now serving over 800.000 customers with essential products or services, incl. clean water, healthcare, nutritious food, etc. and have created over 3000 jobs. Next to our financing activities, our country teams have been busy identifying, selecting and supporting great entrepreneurs in 7 regions around the world. Since inception over 500 entrepreneurs have taken part in our world-class accelerator programs. Our impact may still seem small compared to the vast ocean of social problems out there, but we believe it sets a significant example. The refugee crisis once more has shown the importance of improving living conditions and income opportunities of people in emerging countries. YSB tackles the problem at its root by investing in local entrepreneurs that develop solutions for problems of poverty in their home countries. 2015 has been a very important year because the world has shone a light on the topics we deeply care about. Over 150 countries have come together in the United Nations to adopt the Sustainable Development Goals (SDGs) - a set of 17 ambitious goals that aim at ending poverty by 2030. 15 years are a very short time and stakes are high. We cannot only leave it all up to the traditional players like governments and NGOs. Every single one of us has to play a role in getting this important work done. We believe that social businesses can make a significant contribution in creating bottom up and financially sustainable solutions to some of these 17 daunting global problems. Impact Water e.g., is a Ugandan social business that sells UV-based water cleaning systems to schools and thereby addresses 4 SDGs at the same time: health, education, water and climate. This company has already provided clean drinking water to almost half a million students across Uganda and is just getting started. Nutrivida sells soups, drinks and cereal enriched with the necessary vitamins to combat malnutrition in Costa Rica. The products are also sold via a network of female micro-entrepreneurs from marginalized backgrounds. This social businesses addresses 3 SDGs for food, health and jobs. These are simple but game-changing solutions for problems where traditional markets and aid have sometimes fallen short. YSB has supported and financed these and many other similar companies at an early stage. All of this, would not have been possible without you, our partners.You have generously committed your expertise, time and your capital to make this a reality. A big thank you to all of you. We are now looking forward to our concrete task in 2016 of supporting over 100 impactful companies like Impact Water and Nutrivida and many more in the coming years. Join us in making a mutual contribution to ending poverty by 2030. YUNUS SOCIAL BUSINESS - 2015 IMPACT REPORT 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 teams for additional photo’s. Design: Fré Sonneveld. PROF. MUHAMMAD YUNUS Co-founder and Chairman 3 FOR MORE INFORMATION ON WHAT WE DO VISIT WWW.YUNUSSB.COM ABOUT US Yunus Social Business - Global Initiatives (YSB) grows entrepreneurs in emerging economies to solve social problems in a business way. The social businesses we support create significant social impact in the areas like agriculture, healthcare, energy and environment. We are active in 7 regions, where local country teams source, coach and mentor entrepreneurs through tailored accelerator programs. YSB subsequently finances the most promising social businesses and also provides long-term support to maximize impact. We work with social businesses to help them create long term social impact while operating in a financially self-sustainable way. Ulrich Villis – European Leader Social Impact Practice, The Boston Consulting Group YUNUS SOCIAL BUSINESS - 2015 IMPACT REPORT “Social business is a powerful concept at the intersection of the social and 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 selfsustaining way, providing choice and personal responsibility for those who benefit from it” 5 OUR GLOBAL IMPACT Since its inception in 2011,Yunus Social Business has deployed over $8.6 million either as direct funding or mobilised funds from partners and donors to finance 34 social businesses around the world. Thus impacting over 800,000 lives in developing and emerging countries. 7 500+ 800,000+ REGIONS ENTREPRENEURS SUPPORTED LIVES IMPACTED SINCE 2011 WE HAVE DEPLOYED USD $ 8,6 MILLION* IN SOCIAL BUSINESSES OPERATING IN THE FOLLOWING COUNTRIES Balkans USD $544,148 3000+ JOBS CREATED AND/ OR SUSTAINED $8.6M Tunisia USD $147,584 34 DEPLOYED TO SOCIAL BUSINESSES Costa Rica USD $1,211,232 SOCIAL BUSINESSES FINANCED Colombia USD $1,626,443 34 SOCIAL BUSINESSES FINANCED SINCE OUR INCEPTION 4 Energy and Environment 4 Other: Social businesses addressing needs of disadvantaged groups such as women in vulnerable communities, providing security, transportation or other related services. Brazil India USD $2,584,338 Uganda USD $309,342 3000 + JOBS CREATED/SUSTAINED & 800.000 + CUSTOMERS SERVED 823K 4000 800.000 3000 600.000 2000 400.000 1000 0 200K 250K 200.000 870 1.278 3.405 2013 2014 2015 0 1 Education and Vocational Training *All amounts are in USD $ and are an aggregate of all total amounts used to finance social businesses across the different countries and regions where we operate. Jobs Created Lives Impacted YUNUS SOCIAL BUSINESS - 2015 IMPACT REPORT 15 Agriculture and Livelihoods 10 Health and Sanitation Haiti USD $2,191,611 7 AGGREGATED COUNTRY PERFORMANCE HAITI 2010 UGANDA 2013 TUNISIA 2013 BALKANS 2012 The YSB Haiti office was opened with the support of our founding partner SAP. Currently, the team manages a portfolio of 12 social businesses. In partnership with the African Development Bank,YSB Uganda was started in November 2013 and already supported over 100 entrepreneurs. Three social business received financing in 2015. In partnership with the African Development Bank, Tunisia was the first in a series of African countries to replicate the social business concept. Since 2014,YSB Tunisia ran two accelerator cycles and currently manages a portfolio of two social businesses. YSB expanded from Albania into the Balkans in 2015 – now supporting entrepreneurs in six countries regionally. Five Albanian businesses received funding so far, with a growing pipeline in the region for 2016. Over 250 entrepreneurs have been supported since inception. Accelerator Programs Accelerator Programs Accelerator Programs 300 APPLICATIONS 12 SELECTED 304 APPLICATIONS 15 SELECTED 578 APPLICATIONS Accelerator Programs 21 360 SELECTED APPLICATIONS 36 SELECTED Social Businesses Per Sector Social Businesses Per Sector Social Businesses Per Sector Social Businesses Per Sector Agriculture and Livelihoods Education and Vocational Training Energy and Environment Health and Sanitation Other Agriculture and Livelihoods Education and Vocational Training Energy and Environment Health and Sanitation Other Agriculture and Livelihoods Education and Vocational Training Energy and Environment Health and Sanitation Other Agriculture and Livelihoods Education and Vocational Training Energy and Environment Health and Sanitation Other Impact Impact Impact Impact 762 LIFES IMPACTED 83.430 JOBS CREATED 1.217 JOBS CREATED LIFES IMPACTED 402.000 9 LIFES IMPACTED 39 JOBS CREATED 64 LIFES IMPACTED 45 JOBS CREATED COSTA RICA 2014 COLOMBIA 2011 BRAZIL 2013 INDIA 2011 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. YSB Colombia was created in 2011 originally as Grameen Caldas and officially became YSB Colombia in 2013. It currently manages a portfolio of 2 social businesses to date, including a joint venture with potato giant McCain. YSB India was launched in 2011 in Mumbai, and 7 social businesses have received financing to date. Social Businesses Per Sector Social Businesses Per Sector In March 2013,YSB Brazil was launched to spread the social business concept.Yunus Negocios Sociais Brasil, as it is locally known, already ran 4 accelerator cycles since inception and launched a social business university network in 2015. After working on the pipeline, funding activties are expected to start in 2016. Agriculture and Livelihoods Education and Vocational Training Energy and Environment Health and Sanitation Other Agriculture and Livelihoods Education and Vocational Training Energy and Environment Health and Sanitation Other Impact Impact JOBS CREATED LIFES IMPACTED 14.866 251 APPLICATIONS 26 SELECTED Agriculture and Livelihoods Education and Vocational Training Energy and Environment Health and Sanitation Other Impact 636 JOBS CREATED LIFES IMPACTED 27.877 122 JOBS CREATED LIFES IMPACTED 264.758 YUNUS SOCIAL BUSINESS - 2015 IMPACT REPORT 428 Accelerator Programs Social Businesses Per Sector 9 ENTREPRENEUR SERVICES YSB invests in people, in their dreams and 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 who 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. Once we have identified high-potential social businesses, we provide them with a broad set of non-financial services to scale their impact. STATE-OF-THE-ART CURRICULUM 1-ON-1 COACHING Customized 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. 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. “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.” Emiland – YSB Albania Entrepreneur 10 ACCELERATOR PROGRAMS CONNECTION WITH A COMMUNITY INVESTMENT READINESS Facilitation of partnerships with potential distributors and customers, as found through our strong network Connections with a network of entrepreneurs within the Yunus Social Business and the Grameen family Preparation for pitches to YSB’s Financing Committees Negotiated packages with reliable service providers, for example in accounting, legal, or promotion and marketing Opportunities to share experiences and challenges with like-minded entrepreneurs Connections with other potential investors 12 11 La Pain O Quotidien, Haiti, Financed 2000+ APPLICATIONS 500+ ENTREPRENEURS SUPPORTED YUNUS SOCIAL BUSINESS - 2015 IMPACT REPORT ACCESS TO MARKETS AND PROVIDERS FINANCING YSB FINANCING PROCESS Our in-country investment professionals support our social businesses to pitch to the global Investment Committee. INITIAL SCREEN AND PRELIMINARY DUE DILIGENCE Before financing, each social business undergoes a detailed, fact-based 3-level due diligence process. BUSINESS PLAN ASSESSMENT/ REVIEW AND DUE DILIGENCE In an interactive process, the Investment Committee screens each proposed business, starting with interviewing the entrepreneur. It then works together with country teams to make recommendations to entrepreneurs to advance their business plan. HOW IT WORKS YSB Funds gGmbH (Germany) is organized as a non-profit, and pools philanthropic capital from donors and philanthropic lenders to finance social businesses which have been selected by the YSB country offices. Our selection criteria include: • a strong entrepreneur and team, • depth and breadth of social impact • replicability and scalability • strength and maturity of the business model Our loans are generally structured as long-term shareholder loans with a small equity portion, leading to a minority stake of up to 25% in our portfolio companies.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. FINANCING DECISION The Investment Committee will take the final decision on financial support to the social business cases following completion of the due diligence process. The decision is based on evaluation of the entrepreneur and team, social impact, financing sustainability and risk profile, replicability and scalability and maturity of each individual business. “YSB voiced what I believed in. I was hooked by this common set of values” YSB Entrepreneur, Tunisia 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 social business. 14 13 St George Valley Organic Farming, Albania, Financed YUNUS SOCIAL BUSINESS - 2015 IMPACT REPORT FINANCING PORTFOLIO OVERVIEW “An entrepreneur is someone who jumps off a cliff and builds a plane on the way down.” Since its inception in late 2011,YSB has deployed $8.6 million to 34 social businesses. More than 3,000 jobs have been created or sustained so far and over 800,000 clients have been served with vital services like safe drinking water, access to health care or affordable and clean energy. Although impact is generated across the whole portfolio, some “winners” stand out by successfully scaling their business and impact model and thereby driving the social impact performance of the portfolio. Reid Hoffman – founder of LinkedIn For 2016 and beyond, we expect an acceleration of YSB’s financing activities, driven by two developments: on the one hand, an increasing number of YSB’s portfolio companies are reaching an expansion stage requiring follow-on financing, hence bringing up the average funds deployed per social business. On the other hand, more recently established YSB countries, such as Uganda or Tunisia, have after intensive initial ground work developed a strong pipeline that will result in more social business financings in 2016 and beyond. The majority of businesses which we have financed are concentrated in the agriculture and health sector, reflecting the typical challenges that people face in those developing and emerging markets YSB is active in: agriculture is by far the largest income generating sector, with often up to 50% of the population earning their livelihoods from farming activities, however, earning barely enough to sustain their families. Healthcare services, even basic ones, are often unavailable or underdeveloped, especially in rural areas, and hardly affordable for the poorer segment of the population. IMPACT MEASUREMENT Social businesses are build with the sole purpose to create an impact by solving a social problem. Impact measurement is thus essential to our work. With YSB’s portfolio becoming more mature and more social businesses reaching the end of their grace period, repayments have increased from 2014 to 2015. Currently, YSB relies on the output indicators of our portfolio companies as proxies for assessing the actual positive impact of our businesses. In alignment with IRIS metrics as outlined by Global Impacting Investing Network (GIIN), we require all our portfolio companies to report their monthly, quarterly and annual Key Performance Indicators (KPIs) that have been identified as being relevant, as well as their business-development milestones and an overall business assessment. These KPIs are set together with the entrepreneurs during the investment process. PORTFOLIO MANAGEMENT AND MITIGATING RISKS We know that running a successful business is not only about getting the start right, it’s about staying on the ball in the long run. Therefore, we work closely with social businesses we have financed in order to enable sustainable growth and maximize their impact. While this support is generally provided on an as-needed basis, regular interaction with the entrepreneurs coupled with monthly reporting enables us to closely monitor the advancement of the business along previously determined milestones. 15 Pé de Feijão, YSB Brazil, Accelerated YUNUS SOCIAL BUSINESS - 2015 IMPACT REPORT Examples of collaboration with the entrepreneurs include advice on strategic questions and challenges, identification of organizational needs, recruitment of senior personnel, and targeted introduction to YSB’s global and local network of industry and functional experts and business partners, depending on the individual needs of the social business. In addition, our growing portfolio enables us to create synergies between portfolio companies as well as to foster mutual learning and experience sharing amongst social businesses with similar business models or activities. In the future, we will also increase our efficiency in collecting relevant data and monitoring our progress through an SAP-based solution that provides web-based reporting opportunities for entrepreneurs in all countries. This will further strengthen our monitoring processes. IMPACT WATER, UGANDA Providing safe and affordable drinking water to schools In Uganda, over 440 children still die every week due to waterborne diseases. A much higher number falls sick from contaminated water which results in lower school attendance. The social business sells, installs and maintains environmentally-friendly UV-based water purification systems to schools on low cost, multi-year credit terms. This helps schools to avoid burning firewood for boiling water and therefore offsets CO2 emissions while reducing medical costs for the families. Impact Water already serves over one thousand schools in Uganda and provides clean drinking water to more than 400,000 children. Reducing plastic waste pollution in Haiti Haiplast’s mission is to find a solution for Haiti’s massive waste problem, by reducing and recycling plastic waste, while at the same time providing better working conditions for Haiti’s informal waste collectors. Plastic waste has disastrous effects on the environment in Haiti. The informal solid waste workers, one of the lowest social groups, oftenoperate without the necessary protection and therefore face tremendous health risks. Improving the livelihoods of local farmers living in the poorest socioeconomic communities in Colombia. Campo Vivo is a Joint Venture between McCain Foods and Yunus Social Business with a purpose to improve the livelihoods of local farmers and their families living in low socioeconomic communities in rural Colombia. Approximately 31% of Colombia’s population live in rural areas. Furthermore, poverty rates are estimated at 63%. The poorest communities rely on farming as a source of income generation. However, farmers face on-going challenges: small and low-yield lands, restricted access to capital, limited access to new farming technologies and technical assistance, and no bargaining power to sell of their crops. Campo Vivo works with groups of farmers to improve their quality of life, as well as the lives of those working in the entire production chain. It strengthens the local farmer’s competencies and ensures farm produce are sold at a competitive rate and thereby allows for higher incomes for farmers and the wellbeing of their families. Campo Vivo started its operations in Une, Cundinamarca on May 2014. The first pilot was executed with 20 agriculture workers in a 40-hectare farm, starting with potato plantations – which will be periodically alternated with rotation crops before producing any other crop. Currently in its initial phase, Campo Vivo is expected to execute three plots in different communities across Colombia over a three-year period ending in May 2017. Each pilot will include development of three units, each unit employing a total of 75 agriculture workers and cultivating an equivalent area of 1.5 hectares per person. YUNUS SOCIAL BUSINESS - 2015 IMPACT REPORT Haiplast works through such informal waste workers in collecting, recycling and processing plastic waste which then can be sold on the international market, while at the same time offering training and education programs. In 2014 alone, Haiplast has collected and recycled around 3 Million pounds of plastic waste. CAMPO VIVO, COLOMBIA SOCIAL BUSNIESS SPOTLIGHTS HAIPLAST RECYCLING, HAITI 17 UDRUZENE, BOSNIA Training and income sources for marginalized women through handicraft Udruzene produces high quality handicraft for international clients with the help of women in rural areas of Bosnia. Udruzene’s mission is to help women who have suffered from war, violence and social marginalization in the past, using knitting as a way to confront war traumas and reintegrate women into society, through economic and psychosocial empowerment. The social business also provides good and flexible income to the women. GREEN BIO ENERGY, UGANDA Access to affordable and environmentally friendly energy solutions for Ugandan families Green Bio Energy produces and distributes clean energy solutions to low income families in Uganda. Their product range includes energy efficient cook stoves and environmentally friendly briquettes, made from recycled bio material. Compared to traditional charcoal briquettes, their solution reduces indoor air pollution and CO2 emission while tackling deforestation for charcoal production. Udruzene currently has 200 knitters from around Bosnia and Herzegovina. TO FIND OUT MORE ABOUT OUR SOCIAL BUSINESSES AROUND THE W ORLD CIFEA BEE FARM, TUNISIA BIVE, COLOMBIA Affordable and increased healthcare for low-income families The Jendouba region of Tunisia has a population of approximately 400,000 with an estimated 20% unemployment rate. For small-scale beekeepers without proper training in beekeeping, achieving high levels of hive productivity that will provide a sufficient income is a challenge. Beekeepers are quitting their small-scale bee farms in search for jobs in cities that provide a more stable income. 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 diseases, delayed diagnosis, increased spending on high complexity treatments and lower quality of life. Bive has created a network of 120 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. Based on its strong experience of managing 300 hives of its own, CIFEA in a next step aims to provide essential beekeeping training and potential access to markets to local small-scale beekeepers in Jendouba. It plans to collect, distribute, and commercialize organic certified honey, and eventually other hive products, to wholesalers in local and international markets. 19 VISIT WWW.YUNUSSB.COM/SO CIAL-BUSINESSES Since its operations from November 2012, it currently has over 20,000 members in Caldas region. YUNUS SOCIAL BUSINESS - 2015 IMPACT REPORT CIFEA launched a beekeeping centre to tackle unemployment NUTRIVIDA, COSTA RICA ARYODI BEE KEEPING, UGANDA Nutrivida is addressing the issue of malnutrition in low income families in Costa Rica Addressing unemployment and income generation in war-torn Northern Uganda Nutrivida is a social business joint venture between Florida Ice and Farm Company and Yunus Social Business, offering nutritious food products at affordable prices to the base of the pyramid. Malnutrition is a common problem in Central America and can cause long term health problems for infants and children. Nutrivida has developed a range of products such as soups, drinks, and cereals, which are enriched with vitamins and minerals. Aryodi runs an integrated bee keeping resource centre with training facilities in Northern Uganda, where the civil war displaced over 1,5 M people, leaving the region with high youth unemployment and few income opportunities. Since its start of operations in January 2014, Nutrivida has already served over 2 million meals. Aryodi is training their bee farmers in environmentally friendly bee farming, which is also more profitable. The social business already works with 2,400 out-growers and buys its honey products for a fixed price, which then is marketed through a joint brand. Aryodi sells the honey nationally and also increasingly on the international market. TO FIND OUT MORE ABOUT OUR SOCIAL BUSINESSES AROUND THE W ORLD SENIORS HOUSE, ALBANIA Dignified healthcare for the elderly Seniors House is an elderly home-care social business that offers high quality daycare and residential services to improve quality of life for the elderly in Albania. Being the first social business with high international standards of service, it has received attention from major Albanian media. Seniors House already has 28 clients and a full list of interested clients for the months to come. 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. At 30% of the price of traditional cleaning products, Digo helps Haitian families fight water-borne diseases. 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. This reduces the cost to the customer. At the end of 2015 Digo had built up a network of over 350 points of sale, up from 100 in 2014, now reaching over 50.000 customers. 21 VISIT WWW.YUNUSSB.COM/SO CIAL-BUSINESSES Access to sanitation and cleaning products for low income families YUNUS SOCIAL BUSINESS - 2015 IMPACT REPORT The social business has painted a much more positive picture of senior care in Albania and inspired the government to revise its guidelines on elderly care in the country. Many other senior houses are now entering the market benefitting from the groundwork the entrepreneur has done. DIGO, HAITI SPECIAL PROJECTS INTRODUCING THE SOCIAL SUCCESS NOTE EVPA EXPERT GROUP ON NON-FINANCIAL SERVICES The Social Success Note (SSN) is an innovative financing tool that YSB developed together with the Rockefeller Foundation to address the financing gap for social businesses. Philanthropic capital that is not seeking a financial return - like the funding that YSB’s current donors and lenders are generously providing - is an extremely scarce resource. The SSN is a mechanism that leverages a small amount of philanthropic capital to crowd in typical return seeking capital, which is more widely available, while ensuring the social business can stay fully focused on its mission. This year the European Venture Philanthropy Association brought together leaders in non-financial support for social entrepreneurs in an expert group. The group developed a “Practical Guide to Adding Value through Non-Financial Support” for venture philanthropists and impact investors that want to accompany the capital they provide with support, training and mentoring. The expert group was funded by Fondazione CRT, Acanthus, BMW Foundation and Omidyar Network. Participants included organisations such as Acumen, Big Society Capital, ERSTE Foundation, Ernst & Young, Impetus-PEF, LGT The mechanism of the SSN relies on an agreement between 3 parties: an outcome payer (a foundation, government or development agency), an investor and a social business. The outcome payer commits to pay an investor an investment yield if (and only if) the social business achieves specific pre-agreed social outcomes. The social business, meanwhile, is responsible for repaying the investment principal from its operating surplus. By aligning investors’ incentives with the achievement of the business’ social objectives, the mechanism of the SSN makes both investors and investee share the same interests: • Financial sustainability: in order for the investor to receive back the investment principal, the business needs to achieve profitability, thus at the same time ensuring long-term sustainability of its social impact. • Maximising social impact: the investor is incentivized to direct the business towards maximising measurable social impact that will trigger the pay-out from the outcome payer. In 2015,YSB became a member of ANDE, a global network of organizations that propel entrepreneurship in emerging markets. ANDE members provide critical financial, educational, and business support services to small and growing businesses (SGBs) based on the conviction that SGBs will create jobs, stimulate long-term economic growth, and produce environmental and social benefits. Ultimately, ANDE believes that SGBs can help lift countries out of poverty. ANDE is part of the Aspen Institute, an educational and policy studies organization. We are thrilled to partner with YSB on developing the Social Success Note - a new opportunity to unlock capital that will address the world’s most critical challenges. YSB and The Rockefeller Foundation share a commitment to helping the poor and most vulnerable and we believe there is tremendouspotential in the Social Success Note to catalyze systemic change” Dr. Judith Rodin, President of The Rockefeller Foundation GLOBAL ACCELERATOR LEARNING INITIATIVE (GALI) As a member of the ANDE network,YSB became a contributor to the GALI, an initiative that aims to understand early-stage acceleration and its effect on the companies accelerated, especially for small and growing businesses in emerging markets. GALI builds upon the work that was done by The Entrepreneurship Database program at Emory University (EDp) which has collected information on more than 3,500 enterprises and partnered with more than 60 accelerator programs to date. GLOBAL SOCIAL ENTREPRENEURSHIP NETWORK (GSEN) YSB is an active member of the GSEN, bringing together leading incubators and accelerators for social entrepreneurs across the world. In 2015,YSB contributed to the GSEN learning week and the GSEN Annual Report with insights on our global activities. YUNUS SOCIAL BUSINESS - 2015 IMPACT REPORT Yunus Social Business and The Rockefeller Foundation are working together to launch a pilot of the SSN in 2016 with one of YSB’s social businesses. To learn more, visit www.yunussb.com/ social-success-note. ASPEN NETWORK OF DEVELOPMENT ENTREPRENEURS (ANDE) 23 COUNTRY LEADERSHIP GLOBAL MANAGEMENT TEAM ERIAB KIIZA Country Director Uganda Former Uganda Investment Authority SHKELZEN MARKU DANIEL NOWACK Country Director Balkans Former Ministry of Agriculture Albania; Executive Director MADA Program Director Balkans Former Merck & Co. Inc; CFO at mobile incubator LEILA CHARFI CAMILO SANTA Country Director Tunisia Former Microsoft Africa; Manager of Tech Accelerator Country Director Colombia Former UNDP; coordinator for World Bank PHILIPPE SAINT CYR CLEMENTINE LALANDE Country Director Haiti Former American Chamber of Commerce in Haiti Program Director Haiti Former BCG Consultant AARTI WIG Country Director India Former JP Morgan; LSE Alumna Nobel Peace Prize Laureate, Co-Founder and Chairman SOPHIE EISENMANN SASKIA BRUYSTEN Co-Founder and CFO Former Siemens Consulting; GE Capital; Insead Alumna Co-Founder and CEO Former BCG Consultant; LSE Alumna SYLVAIN FERRIERE Program Director, Africa Former BCG Consultant; CEO of a fashion startup KAREN HITSCHKE Director of Funds and Investments Former McKinsey Consultant; APAX Partners; Insead Alumna MEET MORE OF OUR IN-COUNTRY AND GLOBAL EXPERTS ON YUNUSSB.COM/TEAM YUNUS SOCIAL BUSINESS - 2015 IMPACT REPORT ROGERIO OLIVEIRA Country Director Brazil Founder of Movimento Buena Onda; HEC Montreal Alumni PROF. MUHAMMAD YUNUS 25 LESSONS LEARNED FINDING THE BEST ENTREPRENEURS IS KEY – AND HARD YSB entrepreneurs are the drivers of radical positive change in the countries we operate in. Finding strong entrepreneurs with the right skills and mindset to scale their social business is at the core of what we do. We have learned that both a robust local sourcing strategy and a competitive selection process into our accelerator programs are critical to identifying great entrepreneurs. It is essential to build a broad local network of diverse sourcing partners that help us find the best entrepreneurs. We also need to systematically keep track of talented entrepreneurs through relentless and on-going “hunting” strategies. To complement sourcing initiatives and ultimately select the most promising entrepreneurs, we implemented a competitive screening process that includes an online assessment, 1-on-1 interviews and field visits. LINK ACCELERATION AND INVESTMENT A detailed due diligence process is essential to select the best investments and identify a company’s strengths and weaknesses. This takes time and time is precious for our entrepreneurs. To allow faster and better investment decisions, we learned that we need to better integrate due diligence elements into the accelerator program. Due diligence data can already be collected during the selection process and the interviews for the accelerator program. We also found it helpful to define clear “deal-breaker” criteria in each stage of the investment process to assess more quickly if a deal should move into the next phase. TRAIN THE TRAINERS We rely on external presenters, mentors and technical experts with local expertise for specific legal or fiscal topics. External trainers and coaches are most efficient when they understand YSB’s philosophy, our methodologies and most importantly the specific needs of early stage social businesses. It is important to conduct the on-boarding ahead of time and to make sure that there is a clear understanding of their role and time commitment. “I am a strong believer in the positive socio-economic impacts of social entrepreneurs and was very excited when I was contacted by YSB to mentor one of their candidates. ONE SIZE DOES NOT FIT ALL Entrepreneurs need a tailored approach, which can be identified through thorough and iterative needs assessments. We have seen that local mentors and technical experts who know the local market and can provide practical examples, are most useful for our entrepreneurs when setting up their businesses. As their venture grows, international mentors and functional experts can provide valuable advice on more in-depth topics. Peer-to-peer learning and connecting YSB entrepreneurs from different countries is especially useful to share industry knowledge. NOTHING BEATS REALITY Product prototyping and testing is an integral part of the YSB accelerator program curriculum. Instead of focusing on extensive and in-depth planning and market research, testing for markets and customer validation or for social impact provides great value. This approach benefits our entrepreneurs and also informs YSB’s financing decisions. Leila Ben Gacem, Founder of Blue Fish, Mentor at YSB 38 27 Pé de Feijão, YSB Brazil, Accelerated YUNUS SOCIAL BUSINESS - 2015 IMPACT REPORT In-fact it is always a great pleasure to work with the YSB team and contribute to social business growth in Tunisia!” GLOBAL PARTNERS IN-COUNTRY PARTNERS BOSTON CONSULTING GROUP Global Social Impact Partner BCG has been supporting Professor Yunus and his social business network, including our organization, since 2012, providing consulting, mentorship, and volunteer support. In 2015, BCG welcomed YSB and Prof.Yunus’ Social Business network as their sixth global Social Impact partner. As corporations aspire to use their business expertise to address the challenges faced by society, social businesses present a way to harness the private sector’s best practices, skills, and knowledge, all of which are needed to deliver greater value and increase operational efficiency. BCG is engaged in facilitating discussions between Professor Yunus and multinational companies around the world, helping explore opportunities to develop social businesses tailored to their value chains. ROCKEFELLER FOUNDATION The Rockerfeller Foundation worked with us to develop the Social Success Note, an innovative financing tool that will be piloted in 2016. USAID USAID and YSB have formed a Global Development Alliance committed to incubating and financing social businesses worldwide. Haiti has been the first YSB country to sign the partnership with USAID, followed by Uganda and Albania. Around the world, we rely on the expertise of our global and local partnerss to build strong eco-systems for social businesses in the countries we operate in. We would like to thank in particular the following partners: VIA VAREJO Sponsorship of accelerator programs in Brazil The Via Varejo Foundation has kindly sponsored our accelerator programs in Brazil in 2014 and continues to provide support to YSB Brazil through mentorship and participation in demo days. JOINT VENTURE WITH MCCAIN Transforming the living conditions of farmers in rural areas in Colombia Campo Vivo intervenes with the agricultural value chain by developing competencies in small-scale farmers, strengthening the social tissue and promoting competitive productive activities in vulnerable rural communities. ROBERT BOSCH STIFTUNG JOINT VENTURE WITH FLORIDA ICE AND FARM COMPANY In 2015 we jointly hosted the first Foundation Roundtable on Social Businesses, a practical exchange on how foundations can support the social business eco-system in developing and emerging economies. We are grateful for the funding support Robert Bosch Stiftung has provided to YSB Tunisia. Fighting malnutrition in Costa Rica FRESHFIELDS BRUCKHAUS DERINGER Developing legal models for social business In 2014 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. The corporate law firm continues to provide 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. Innovative approaches towards reforestation in Haiti KIVA Opening small-scale financing opportunities of social business for anyone 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. AFRICAN DEVELOPMENT BANK AFDB has supported us in Tunisia and Uganda In partnership with the African Development Bank,YSB is developing a social business movement in Tunisia and Uganda. HAITI FOREST INITIATIVE In Haiti, YSB joined hands with Richard Branson’s Vigin Unite, the Leona M. and Harry B. Helmsley Charitable Trust and the Clinton Foundation to set up the Haiti Forest Initiative.The Initiative’s innovative approach is based on two individual pillars: 1) reforestation impact and 2) value creation deriving from products of trees with farmers at the core of the model. It is a 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. UGFS & BFPME Yunus Social Business has collaborated with the J.P. Morgan Private Bank Philanthropy Centre. The Philanthropy Centre at J.P. Morgan offers clients the opportunity to learn current best practices and trends in philanthropy through advice, thought leadership, and collaborative opportunities. YSB Tunisia partnered with a Tunisian Fund manager, UGFS, and jointly created, in July 2015, the first Seed Fund dedicated to financing Social Businesses in Tunisia. BFPME is kindly supporting us in sourcing promising social businesses in Tunisia. UNITED POSTCODE LOTTERIES Developing sustainable solutions to social challenges 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. We would like to thank our numerous individual partners who have generously supported and inspired us in growing game-changing social businesses. YUNUS SOCIAL BUSINESS - 2015 IMPACT REPORT JP MORGAN 29 HELP US CREATE SOCIAL IMPACT SUPPORT SOCIAL BUSINESSES FINANCIALLY There are two options to provide capital to your personal social businesses portfolio: a) Make a tax-deductible donation. b) For larger amounts, become a philanthropic lender with the option to be repaid over time as the social businesses repay their capital. We believe that our model maximizes the long-term impact of your philanthropic capital in the following ways: • Customer-orientation, accountability, scalability and long-term impact through market based approach of social businesses • Capital can be recycled multiple times, creating more impact each time • Financial supporters can choose the sector and geography they most care about Financial supporters are closely involved with the work we do: • Semi-annual impact reports on your personal social business portfolio • Field trips to see YSB entrepreneurs in action • Personal invitations to conferences, events and workshops around the world DONORS PHILANTHROPIC LENDERS YUNUS SOCIAL BUSINESS - GLOBAL FUNDS (CHARITABLE) YSB LOCAL COUNTRY 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. FINANCIALLY Become a philanthropic lender to your personal social business portfolio or make a tax deductible donation. WITH YOUR EXPERTISE Become a mentor for our social businesses or as a volunteer social business consultant for YSB. BECOME A PART OF YSB’S GLOBAL NETWORK Connect with our social business entrepreneurs on YSB Partner Trips, visit one of our country offices or meet us at one of the many networking events around the world. SOCIAL BUSINESSES GET IN TOUCH! Bank Details: Yunus Social Business Funds gGmbH Bank: Gemeinschaftsbank eG BIC: GENODEM1GLS IBAN: DE22430609676018634500 LEARN MORE BY VISITING YUNUSSB.COM/GET-INVOLVED YUNUS SOCIAL BUSINESS - 2015 IMPACT REPORT MAKE A DONATION TO SUPPORT SOCIAL BUSINESSES YUNUSSB.COM/DONATE Bastian Mueller YSB Partnerships [email protected] + 49 (0) 69 905590 30 www.yunussb.com 31 WWW.YUNUSSB.C OM | PHONE: +49 69 905590 30 | EMAIL: [email protected]
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