I received a notice today that the MicroFranchise Toolkit, published out of BYU's Center for Economic Self-Reliance, is available again for purchase after selling out of the initial printing. I do not receive any kickbacks for promoting it but I did think the announcement was post-worthy because of the apparent level of demand for this product.
Have any of my readers used this toolkit? Any reviews or insights?
A special congratulations to VisionSpring, one of the most cited organizations on this blog (Intro, TeamwithPSI, IntheNews, OnChangemakers, NameChange, NewBlog, ), for being one of the recently announced winners of the Skoll Award for Social Entrepreneurship. Skoll is also to be congratulated for their willingness to give large unrestricted grants to those they have properly vetted, which I think is critical for growth.
Ashoka's Changemakers recently launched a competition looking for "sustainable change in rural development and agriculture" sponsored by the Gates Foundation. They are asking for nominations and ongoing comments from the Changemakers community.
I nominated the folks at Open Air Cinema from my last post; there is such great potential for them to inspire, educate, and shape rural communities through the power of film and media, particularly if they are simply providing the technology and empowering local filmmakers to create the content.
I look forward to future nominations and the full spectrum of innovations, here are two of my favorites:
Over the course of this blog I have highlighted multiple models focused on agriculture. I tend to become excited about agricultural innovations because I believe enhancing agricultural productivity is one of the most highly leveraged points of investment when tackling rural poverty and the myriad of negative outcomes that stem from that poverty. I am not alone in that evaluation: research continues to support those claims as do the entrepreneurial experiences of organizations such as IDE and Kickstart. I think the Gates Foundation also found that it could not fulfill its global health goals without investing substantially in agriculture and rural development.
Which brings us to this latest announcement of a partnership between Gates and Ashoka. Now that it is public I can likewise publicly share my enthusiasm for this opportunity and what it could mean for the sector. $15 million does not put this partnership in the top tier of grants made by the Gates Foundation by any means but I think the knowledge and models that can come out of this partnership could dramatically drive the spread of innovation across the entire Gates portfolio. Ashoka's expertise in grassroot, early-stage identification as well as pattern and trend identification across their network will be powerful tools for Gates who then has the resources to really bring those innovations to the rest of the world. It will be an interesting experience for both organizations.
When it comes to franchising I'm anxious to see if it surfaces in the early rounds of identification by Ashoka. Traditionally franchising has not been associated with agriculture and farming but that could mean innovation is right around the corner.
This is another story from VisionSpring. I realize I just made a reference to them in my last post but they are simply the most active participant online in this space and they provide a level of transparency that I cannot access from other initiatives. I hope to continue to provide variety in the examples but in the end we're looking for principles--
VisionSpring has been piloting with BRAC in Bangeldesh and are now about to "spring" into a full implementation of their program but they are struggling with meeting the inventory demands of BRAC, particularly in terms of getting product into the country from their factory in China.
This is a very common problem, I was just on a call with an organization that ships high-nourishment food packets across borders and getting through customs is one of their biggest challenges. I see the Grameen-Danone model of mini-plants as an innovation that will help to overcome these challenges in the short term and I think the model should be attempted by more but not all products can be streamlined into mini-manufacturing. The challenge of low prices and high volume for the bottom of the pyramid may ultimately be best served by large plants with great distribution systems.
Are mini-plants the engineering innovation needed for bottom of the pyramid products?
Florence Cassassuce was a CNN Hero finalist and a World Bank Development Marketplace winner and according to an entry from a Changemakers competition last year, her next step is to turn her UV water purification bucket into a micro-franchise business based on the VisionSpring's model.
Want to adopt a high impact social entrepreneur? Ashoka recently published a list of Fellows from their latest crop which include a few that are involved in franchising or have innovations that could be applicable to the training and financing of microfranchises. Ashoka typically provides a living stipend to the entrepreneur to allow them the flexibility to pursue their innovation full-time. You can support a whole stipend or give to a common fund. The average stipend amounts are calculated by regional cost of living estimates. For inquiries or to get started, contact supportfellows@ashoka.org. To see Ashoka Fellows in action watch this video diary from a recent trip to Argentina.
Alice Freitas | Brazil, Connecting Informal Artisans with Conscious Consumers
Alice has created a direct sales catalog to help informal artisans overcome the challenges of large-scale distribution. An estimated 50% of all Brazilian workers-many of them women-are currently involved in the informal economy, and consequently lack access both to valuable market information regarding prices and consumer interests, and to the financial resources and bank credit required to start a business. Alice matches artisans’ groups with men and women trained as direct sales agents, providing them with thorough training and an intimate understanding of the producers’ personal histories and social impact. Capitalizing on the growth of conscious consumerism, she thus enables consumers to exercise informed decision-making, and provides them with a direct communication channel to the women behind the products. Having launched the first catalog in 2007, Alice is now developing a franchise model in order to scale her approach throughout Brazil and beyond.
Lilian Masebenza | South Africa. Fostering Income Generation for Women
Lillian incorporates income-generation and entrepreneurial development into traditional village collective models, called stokvels, capitalizing on their inherent popularity among disadvantaged women and youth in South Africa. First formed by black South Africans -mostly women- in response to financial restrictions upheld during apartheid, the stokvels have historically been used merely as a way to motivate each other to save for specific short-term needs, such as weddings, funerals, and holidays. Lillian has transformed these widely accepted savings collectives into an effective business model, using the existing networks to conduct business trainings and skills development courses. By using indigenous models as a basis for business development, Lillian provides business training, skills-development, and mentorship to groups that previously focused on saving for special occasions, fostering a new sense of entrepreneurship among the country’s most disadvantaged communities.
Vivienne Schultz | South Africa, Empowering Entrepreneurs
Vivienne’s company, Biz Africa 1399, uses a three-part approach to economically empower marginalized entrepreneurs. First Biz Africa 1399 identifies potential entrepreneurs and encourages them to develop their ideas. Then, these individuals participate in E-Hub, a nurturing, resource-rich environment that provides work space and administrative services. E-Hubs are supported by business partners who become incubators for aspiring entrepreneurs. Additionally, these relationships help create new markets and tackle the challenges faced by entrepreneurs. Vivienne realizes that she is working with a continent-wide problem and in order to tackle it she must create business networks for struggling entrepreneurs throughout Africa. In order to support her expansion plan, Vivienne has partnered with academic institutions and a continent-wide company. She is currently writing a book about how to use experiential, or hands-on learning, to foster economic
development.
Ouattara Souleymane | Burkina Faso, Creating a Culture of Apprenticeship and Craftmanship
Souleymane Ouattara is transforming the way artisans and skilled laborers are trained and, in doing so, is opening employment options to many young people in Burkina Faso. Through his Association of Tailors, Weavers, and Associates, Souleymane has enlisted trainers in a variety of fields who together create workshops and hold training sessions for young people interested in
their professions. Everyone involved in the trainings also receives management training to ensure they understand production costs and processes, develop their marketing and creative capacities, and have the proper tools to see their businesses grow. Today the system Souleymane has set up is not only effective, but also is expanding as even the government looks at ways of using elements of his engaging training model.
Tamzin Ratcliffe | South Africa, Building Africa’s First Social Stock Exchange
Tamzin has developed the Global Social Investment Exchange (GSIX), a web-based tool that links citizen sector organizations (CSOs) with donors by mimicking traditional stock exchanges. After successfully launching the Southern African Social Investment Exchange (SASIX) in 2006, which raised $800,000 for CSOs in Southern Africa, Tamzin is now preparing to create a global marketplace using GSIX. GSIX will publish a Quarterly Prospectus for investors to choose CSOs, and then investors can buy shares in GSIX through participating brokers. Funds will be transferred to beneficiary organizations through a transparent and accountable process, and investors will have the ability to track their investments and view their impact online. Similar to financial stock exchanges, GSIX will use specific, time-bound investment and by pushing CSOs to be accountable for investments, GSIX will push the social sector to develop ways to measure social impact and, thus the return on social investments.
Primarily due to SoCap08, which was apparently bursting at the seams, and Blog Action Day on Poverty, there have been a series of posts around the web referring to franchising or microfranchising at the bottom of the pyramid. Here are some of the highlights:
A working paper shared by David Lehr of the Acumen Fund. This is the first major publication I have seen from someone outside of Brigham Young University, an exciting step if it means that research is moving out of academia into the private sector.
Jocelyn Wyatt shared her overall impressions which I think represents a good summary of the current pulse on the donor market and shows how well positioned microfranchises are to raise capital.
Gonzalo Pena gave a hat tip to the concept of microfranchising in his Top 10 list of ways to fight poverty and we were later able to have a good conversation together.
The MicroFinance Journal blog had a recent post about a microfranchise in the Philippines, Hapinoy, which represents another example of converting businesses in the informal sector into branded franchisees.
Al Hammond the creator behind WRI's bottom of the pyramid initiatives, including the well-known voice in the blogosphere - NextBillion.net, is using the term franchising openly in regards to the pharmacy network he is now building as a senior entrepreneur-in-residence at Ashoka.
