GoodCompany Ventures, a team of social finance investors and start-up experts, today announced the launch of a business incubator targeting entrepreneurs with innovative solutions to unmet social needs. The program will provide facilities, mentoring and access to a network of capital sources to qualified entrepreneurs whose business models offer investors an attractive mix of financial return and social impact. The program will culminate in a venture fair where companies will pitch their ideas to investors.
The down economy is driving more MBAs down socially responsible businesstracks, according to the story “What Now for MBAs?” on BNET.com. Top-tier schools like Duke and Yale have responded by creating programs to prepare social entrepreneurs. The story lays out the best feeder schools for social entrepreneur positions, the most lucrative jobs and the major MBA recruiters.
You can see the story here: http://www.bnet.com/2436-13070_23-267286.html
Gretchen sends us this story about some work that students and a professor from Cornell University are doing with a small entrepreneur in Botswana who is trying to market natural food products to improve rural livelihoods:
Entrepreneur and self-described “ideas man” Frank Taylor moved from Cape Town, South Africa to Botswana seeking a challenge, trading game skins and leading archaeology, ethnology and botany exhibitions for a museum in South Africa. “I was living on the smell of an oil rag,” Taylor said. “A jack of all trades, master of none.”
43 years later, Taylor still lives in Botswana and recently started a natural food products company called WildFoods that he says is the only company in southern Africa to produce dried snacks made from native foods that are grown in the wild including nuts, fruits and melons on a commercial scale.
With a staff of 11 that has no formal training in marketing or management and no financing but plenty of passion and business acumen, Taylor aims to market these products to the country’s burgeoning tourism industry to improve the livelihoods of rural communities in Botswana.
For the next week, three students and an applied economics and management professor from Cornell University will be working with Taylor on developing marketing strategies to increase distribution of the company’s products among tourists in Botswana. Cornell’s Emerging Markets program has been organizing such trips for students who are interested in hands on business development experience in Africa for the past few years.
By the end of the trip, the students will have developed a situation analysis and strategic review of the company; a profile that the company can use to market itself to potential buyers; and recommendations about potential marketing strategies and ways to streamline inventory control, costing and bookkeeping. In the coming months, the students will also write a case study about the business to submit for publication.
WildFoods, which was established in 2007, produces jam and snacks made from an indigenous fruit called marula, chocolate covered marula nut clusters, and dried wild cucumber and melon slices, made from fruits that have yet to be extensively exploited commercially and otherwise often go to rot or are eaten by animals.
The products are currently distributed in some supermarkets and craft stores and on two airlines in Botswana and South Africa. Taylor would like to focus on increasing distribution in the tourism industry and has seen interest from lodges in game reserves in Botswana and South Africa.
Taylor buys the raw materials from local rural people, principally women. “We can really have a big economic impact on these small subsistence farmers,” Taylor said. “The more products we can offer, the more people we can employ, the greater economic impact we can have.”
Taylor said he purchases all the fruit a community has harvested even if it is more than he needs. “We cannot refuse to buy because we see what happens when we do that,” Taylor said. “People make all sorts of promises and then never follow through. That’s the worst thing you can do.”
WildFoods is currently in dialogue with a local community development organization that wants to improve local livelihoods through the harvesting of natural products but lacks the technical expertise and facilities to process products, which is where Taylor’s business comes in.
Taylor said the company’s main challenges include a lack of financing and a lack of technical expertise to improve and expand its range of products. Although WildFoods has yet to make a profit, Taylor said he would like to eventually be able to have all workers share in the profits and to be able to set a maximum deferential between the lowest paid and the highest paid workers. “I want to see the workers getting a better deal,” he said.
One of WildFoods’ products, Marula Stix, recently won the 2008 Africa Natural Product Award from PhytoTrade Africa, Africa’s only trade association dedicated to the development of a sustainable natural products industry. The award is given to a business in southern Africa that is committed to ethical and sustainable products that use natural ingredients.
“Frank Taylor has long been a driving force behind the commercialization of natural products in southern Africa,” PhytoTrade’s CEO said in a press release. “He has led by example through his commitment to environmental sustainability and community development.”
Taylor arrived in Botswana 43 years ago with what would be the equivalent of US$25 today in his pocket. He initially worked for a trading company and later started a tanning and taxidermy operation in northern Botswana. In 1975, he moved to Gabane, about 10 kilometers outside the capital city of Gaborone, and started Pelegano Village Industries, a non-governmental community development organizations that he still directs. He also established Veld Products Research, an organization that researches and develops uses for non-timber forest products to benefit local communities.
It’s extreme greed. You misled people into getting involved. It’s irresponsible capitalism.
The article then highlights the most interesting part:
The most interesting part of the event was when Yunus talked to Michael Bishop, who’s co-written an entire book called “Philanthrocapitalism” based on the idea that the profit motive is a really good thing when it comes to philanthropy. He kept on trying to get Yunus to agree to this thesis, and Yunus steadfastly resisted.
VisionSpring, an Acumen Fund portfolio company, uses a wholesale distribution and franchising model to administer vision tests and sell low-cost reading glasses to India’s poor who are suffering from reduced vision. They do this by recruiting local Vision Entrepreneurs who are trained to operate a mini franchise, and travel from village to village to conduct check eyesight and sell glasses. One pair, with case and cleaning cloth, costs from $2 to $4.
Check out their new blog at Business in a Bag.
Global Social Venture Finals are today. Check out www.socialvc.net for details.
Here’s the page if you want to see the teams in the finals
Bio Power Technology- Prasetiya Mulya Business School, Indonesia
BioVolt- MIT Sloan School of Management
Build Your Own Village- Gordon Institute of Business Science, South Africa
Defen Safety Syringe- National Chengchi University, Taiwan
Fair Planet Brasil- ESSEC Business School, France
Greenlight Organic- University of California, Davis
Husk Power Systems- Darden Graduate School of Business, University of Virginia
Market for Change- Haas School of Business, University of California, Berkeley
MicroEnergy Credit Corporation- Columbia Business School
Wine with a Passion- Kellogg School of Management, Northwestern University
NY Times writes a detailed article about Compartamos, the successful microfinance bank in Mexico:
Carlos Danel and Carlos Labarthe turned a nonprofit that lent money to Mexico’s poor into one of the country’s most profitable banks.
But not all of their colleagues in the world of microlending — so named for the tiny loans it grants — are heaping praise on the co-executives of Compartamos. Some are vilifying them as “pawnbrokers” and “money lenders.”
They are the center of a fractious debate: how far should microfinance go toward becoming big business?
Today, the once-struggling venture has morphed into a primarily for-profit enterprise. And the striking transformation of In2Books is emblematic of a larger trend: charities are changing their spots and making use of some of capitalism’s virtues.
The process is being pushed forward by a new breed of social entrepreneurs who are administering increasing doses of bottom-line thinking to traditional philanthropy in order to make charity more effective.
Weekend reading from Business Week on Muhammad Yunus’ new book:
Nobel Peace Prize winner Muhammad Yunus, who pioneered the concept of microcredit—providing the poorest of the poor with tiny loans to start their own moneymaking ventures—is promoting a new idea these days. He calls it “social business,” and in his just-released book, Creating a World Without Poverty, he contends that it promises to relegate destitution across the globe to where it belongs: inside a museum.
Link to Businessweek.
Nicholas Kristof pens this inspiring article about social entrepreneurs from Davos, Switzerland.