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Enterprise solutions to poverty
Poor as actors Sustainable businesses Sustainable business support infrastructure
Integra Programs: - Slovakia 1993- Croatia 1995- Russia 1999- Ukraine 1999- Romania 2000- Bulgaria 2001- Serbia 2002- Kenya 2004- Sudan 2005
Integra VentureProgram Countries
Country/
strategy
Social Enterprise
MED Livelihoods Fair Trade UpStream
Slovakia
Romania
Bulgaria
Russia
Serbia
Ukraine
Croatia
Kenya
Sudan
Scale
staff 68
Program offices
Resourcing offices
12 in 8 countries
US, UK, Canada
2006 portfolio $2.14 million
2006 revenues $1.37 million
2006 net income $170 884
Hybrid Support Structure
Integra Foundation (not for profit)- training - business plan development- consulting - social auditing
Integra Co-op (for profit)- due diligence- loans - guarantees - equity - portfolio management
Small enterprises with a Community benefit
Purpose
Strategic partnership agreement
ExternalInvestors
European Leadership TeamFour members
part time
Integra Russia staff
Integra Russiamanagement
Integra RussiaBoard
NGOFoundation
Coop
Integra ownedbusinesses
Integra Slovakia staff
Integra Slovakiamanagement
Integra SlovakiaBoard
NGOAssociation
LLC
Integra ownedbusinesses
Integra Romania staff
Integra Romaniamanagment
Integra RomaniaBoard
Integra Serbia staff
Integra Serbiamanagement
Integra SerbiaBoard
NGOAssociation
Coop
Integra ownedbusinesses
Integra Bulgaria staff
Integra Bulgariamanagment
Integra BulgariaBoard
IVUSAStaff and volunteers
IVUSAPresident
Integra Venture USABoard
General Secretary
Integra Councilmeets twice annuallyExecutive Directors
International advisors
Integra Venture Governance
Strategic Programs
Social Enterprise Microenterprise Development for at-risk
populations Livelihood programs for youth at risk Fair Trade market access for
disadvantaged producers
Social Enterprise Program: Process
Feasibility Study Business Plan Development, CSR strategy
Initial business
idea
Project Management & Monitoring
(management participation)
Scale-up or Exit
Ongoing leadership development
Investment package
development (Equity and debt)
Social Enterprise program: Purpose
To bring material, social and spiritual renewal to individuals and communities, by– promoting justice, truth and integrity in business– promoting social inclusion through employment for the
vulnerable and excluded – promoting sustainable development through policies
that protect the environment.– generating resources for poverty alleviation programs
Social Enterprise program: Island of Integrity Profile
An ‘Island of Integrity’ social enterprise is a commercial enterprise that has a social transformation purpose designed into the business plan, the operations model, and the investor expectations.
Social Enterprise program: Strategy
Social venture capital approach, engagement through investment, consulting and vision alignment interventions
Small number of intense involvements, seeking long-term partnerships
Focus on innovative, “first to market” companies Direct equity investment (both minority and majority stake),
supplemented by debt Active involvement in the strategic leadership of companies Thorough due diligence and feasibility studies Identify and invest in scaleable models Impact assessment that monitors financial, ethical, social and
environmental impacts Exit strategies, normally management buy-out.
Social Enterprise CasesCompany Location Value proposition Size Poverty impact Pure Health Ltd Nairobi Affordable health food
for slum dwellers 76 employees - Jobs for slum
dwellers - reduced health costs for the poor
River Jur Fishery Coop
Rural South Sudan
Shared resources and market access
45 members -increased food security - asset growth
Oil Partner Ltd. Bratislava No appointment, quick oil change and car service
22 employees -preferential jobs for recovering drug addicts - designated charity womenÕs MED
Ten Senses Ltd.
Slovakia, Bulgaria, Serbia, Russia
Fair trade market access for disadvantaged producers
230 suppliers - increased revenue stability for excluded producers
Kasigau Ranch Ltd.
Kenya Eco-tourism, unique vacation
25 employees, 430 community shareholders
- increased local revenue - reduced poaching
Rabbitex Ltd Slovakia, Serbia
Supply chain solutions for rabbit producers - food, know-how, export
45 small farmers in supply chain
revenue stability through improved methods and market access
Our Mission and Values
Oil Partner’s mission is fourfold:
1. To serve clients and their cars with convenient, transparent and highly
customer-oriented car maintenance services.
2. To help our employees grow and develop both as professionals and as persons,
enabling them to reach their full potential.
3. To serve the community by providing jobs for disadvantaged young people,
practicing responsible environmental management and to generate resources
for poverty alleviation in Eastern Europe.
4. To practice good stewardship of the resources entrusted to us by our investors
and provide a sound return on their investment.
Summary of Pilot Project Successes and Results in Slovakia
- Racianska store in Bratislava operational since 2001- AVION / IKEA store in Bratislava opened May, 2007 - NITRA store under development - 7.000 customers served per year in one store - Financial support $15,000 provided towards Integra MED program - 6 jobs created for young boys from Tomky rehabilitation center for drug
addicts
- Financial results (2006): • Annual Sales on Racianska store: $ 840.000 • Return on Assets: 23 %• Return on Shareholders Equity: 57 %
“The way how the employees are focused on the work they do and how their communication with clients is on the highest level, is so rare to see in the Central-European context. It was very pleasant to experience that the employees even have joy and fun when performing their tasks…”
Quote from Hospodarsky dennik, leading business newspaper
“The way how the employees are focused on the work they do and how their communication with clients is on the highest level, is so rare to see in the Central-European context. It was very pleasant to experience that the employees even have joy and fun when performing their tasks…”
Quote from Hospodarsky dennik, leading business newspaper
Microenterprise Development for at-risk populations Women at risk: divorcees, single mothers,
widows, refugees, under-skilled, sole wage earner in disfunctional family, ethnic minority
Focus on start-up enterprises in areas of high unemployment
Partner with local government, EU
Community building = developing social capital Building trust, community engagement through community groups,
mentoring, networking opportunities and counselling.
Vulnerable clients and
families
Vulnerable clients and
families
Micro Enterprise Development processMicro Enterprise Development process
Empowered clients,
sustainable small
companies, new jobs created.
Empowered clients,
sustainable small
companies, new jobs created.
HR Development-BDS-IT skills-Communication skills-Coaching-Thematic training
Financial Services-debt. equity-Other financial services-Public programs
Market Access Services-Brand-Consulting-Retail-Wholesale-Business linkages
Outcomes MED
Small enterprises 790
Microloans 1407
Jobs created 2847
Women 66%
Unemployed at start 51%
Cumulative investments $2.5 million
Repayment 92%
Livelihood programs for youth at risk Integrating orphans into society - Bulgaria
– School help– Job experience– Life skills– Halfway house
Youth apprenticeship - Serbia – Job experience
Children’s Garden - Nairobi– Vocational training for street children
Ten Senses Ltd.
Companies in Slovakia and Bulgaria. retail, wholesale, internet
– www.tensenses.com
Pilot projects in Russia, Serbia and Kenya
Strategic Partnerships
Integral Alliance www.integralalliance.org
INAISE www.inaise.org
FEBEA www.febea.org
Shell Foundation www.shellfoundation.org
Citigroup Transformational Business Network
www.tbnetwork.org
Towards Financial Sustainability – traditional grant income decreasing – access to European Union funds increasing – growing importance of international development projects – increased revenue from own business activity
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
2004 2005 2007
(USD
)
Portfolio and BusinessRevenues
Local DevelopmentContracts (EU funds)
International DevelopmentContracts
Grants and Donations
Other income
(IntegraSlovakia)