May 2011 soquent market research program

Program Initiation DocumentPreliminary Research & Market Analysis

May 2011

Table of Contents

I. Context

II. Our Vision

III. Work to Date

IV. Scope and Objectives of this ProgramIV. Scope and Objectives of this Program

V. Program Structure

VI. Delivery Approach

VII D il d W k PlVII. Detailed Work Plan

VIII. Proposed Governance

IX. Investment Case

X. Stakeholder Engagement Plan

Appendices:

• Detailed Delivery Approach

• Detailed Budget

• Risks Log

• Issues and Actions Log

• Curricula Vitae

I. Context

Our Start

b f d f f bl d l h l d l d d hA number of expert advisors from a range of private-, public- and civil-sector organizations have graciously and generously donated their timeand experience to inform our work to date. It is through their input that we have moved from a number of ideas to a coordinated programwith which to demonstrate that it is possible to reliably project the social outcomes associated with a given venture, and thus contribute tothe industry’s creation of a predictable, universally accepted SROI (social return on investment) metric. We have chosen to test thishypothesis by narrowing our scope to: a specific social goal – poverty alleviation, in a specific geography – Sub-Saharan Africa, utilizing aspecific investment class – early stage investments. We have chosen poverty alleviation in Sub-Saharan Africa and due to the life and deathseverity of the issue, and we have chosen early stage business activity due to it’s demonstrable capacity for making a lasting impact.

Background Documents

This project initiation document, builds upon earlier work in developmental entrepreneurship: 1) A conceptual design of a ventureaccelerator and joint equity investment fund; 2) Academic research covering the forecasting of early stage investments’ social outcomes; 3) At lkit f d l i t t t id tif d t iti f th th t i ll titi d i lltoolkit for developing country entrepreneurs to identify and screen opportunities for those that are commercially competitive and sociallybeneficial; 4) Secondary research on the opportunity for launching a new venture accelerator and fund in Africa; and 5) A summarization ofthe Soquent work and our direction. (See section III.)

Our Opportunity to Make a Difference

This earlier work has demonstrated that we are sitting at the conflux of three trends which together present a unique opportunity to make aThis earlier work has demonstrated that we are sitting at the conflux of three trends which together present a unique opportunity to make alasting impact in the alleviation of African poverty. First, there is a large wave of economic growth in Africa – across industry sectors, acrossinvestment classes, and which is especially pronounced in certain countries. Second, developmental entrepreneurship has come of age, andis now generally recognized as a vehicle by which we (riding the aforementioned wave) will impact poverty. Third, impact investing is growingas an accepted investment alternative, and increasingly presents an opportunity to fuel these poverty-alleviating, early-stage enterprises.

Purpose of This Document

Having completed a range of secondary research activities and analyses, we are now positioned to undertake required on-site, primaryresearch. This document describes, in detail, our next step – a program of research and planning to enable a subsequent feasibility study. Wehave gratefully received many expressions of interest and kind words of encouragement . We’d like to thank you for your continued support.

p. 1

II. Our Vision

Our Goal

To utilize business methods and tools to alleviate poverty and improve livelihoodsTo utilize business methods and tools to alleviate poverty and improve livelihoods.

Our Vision

We will be known through the success of our clients – a network of community-based businesses which we help achieve socially beneficial outcomes.

Our Local AcceleratorsOur Local Accelerators• Select socially beneficial and

commercially competitive clients• Foster relationship networks• Provide strategic advice and enable

capital investmentff

• Generate leading insight• Open avenues of investment capital• Build support mechanisms

Ad t f bli li h

From the Center

• Provide back office support capabilities

• Engage communities on the benefits of supporting small business

• Advocate for public policy changes

Our Clients• Through their

commercial success, they drive social change – alleviating povertyalleviating poverty, improving health and education standards, and benefiting the environment.

p. 2

III. Work to Date (1 of 2)

Feasibility Study Launch & GrowThrough your help we have completed...Over half of phase A, our preliminary research and analysis: Preliminary Research

A B C

y ythe Impact

Develop a conceptual model and a business plan

h

Test a portfolio of experiments to identify the optimal

f

Replicate the proven model for accelerated poverty alleviation

Over half of phase A, our preliminary research and analysis:• Conducted secondary research in global development,

development economics and enterprise development;• Formulated an approach to African poverty alleviation

through a not-for-profit accelerator and for-profit equityinvestment fund;

• Validated this approach with a multitude of industry

& Analysis

to increase the velocity of social outcomes through entrepreneurship

organization of delivery partners, geography and methodology

alleviation

Generate insight and advocate to drive further impact

• Validated this approach with a multitude of industrystakeholders – building valuable relationships in theprocess;

• Developed the first of three entrepreneur support toolkits– providing guidance in opportunity identification andassessment; andW t f bili ti d t t• Wrote a range of program mobilization documents toguide our forthcoming efforts to complete phase A.

2007 2009 2010 20112008

Understand Context

65% Complete

Set Vision

FinalizeModel

Conduct SupportingAcademic Research

Develop Entrepreneur Toolkit

Our next steps...• Communicate with our existing supporters

to secure necessary commitments of timeand funding;

Submitted for Consideration to:

Research Proposal Developmental Entrepreneurship in Sub-Saharan Africa: Identifying and Assessing Microenterprise Opportunities

Mobilize People and Capital

DRAFT

DRAFT

Start the Business Plan

• Economic downturn is set to reverse years of progress, and requires access to funding7

• Food crises are likely to re-emerge due to population

th d li t

Private Sector

Inter-governmental Organisations

National & Local Public Sector Civil Society

• CSR should move from philanthropy to the utilisation of core capabilities to serve higher purposes16

• Progressive players establish CSR at th i d f

• Local ownership of self-sustaining businesses is critical to poverty relief20

• Aid dependency distorts incentives, exacerbates

ti t

• Building sustainable livelihoods rectifies inequalities and provides access to choices13

• Private sector contributes to development,

i ll

• Tightening of aid budgets due to fiscal constraints10

• Entrepreneurial solutions offer a tool to build cross-border ties11

• African t t

Beneficiaries

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UN Millennium Development Goals6Development Stakeholders5

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and funding;• Recruit to fill the remaining role on the

team; and• Initiate the work to complete phase A,

which will ensure a robust business planand an effective feasibility study.

Pre-Funding Stage Seed Stage Growth Stage

• Turn a good idea into a defined vision

• Evaluate the opportunity

• Considerother

• Assemble the relationships required to launch the venture

• Establish operating systems and

• Make strategic investments

• Build a functional organization structure

• Install new team

Gro

wth

Sta

ge

Column Heading Description of Required InformationBusiness Concept Enter a short description of the idea. It should include what you intend to sell, and to whom.

Question Ref# Provide the number of the related question(s) that inspired the idea.

Related Trends / Related Question

What key trend has led you to believe that this is a good business idea? For example, it could be a change related to regulation, demographics, economics, politics, culture or technology. Please describe the related trend.

p. 3

Dale S. Fickett

16th June 2010

This document contains the preliminary research proposal for identifying developmental entrepreneurship opportunities that will generate both social and financial value. It includes a broad discussion of contextual factors associated with this research, and it proposes a methodology for developing a casual theory for predicting these social and financial returns a given entity would generate when addressing a given opportunity. Lastly, it delineates a range of benefits associated with the intended findings – foremost of which is enhancement of the alleviation of global poverty. Those living in embryonic markets, especially those in extreme poverty, will benefit from a powerful lever to improve standards of living, increase incomes and employment opportunities, and propagate a range of broader societal and developmental benefits. It is for these people – those in greatest need – that this work has the most value and why it is right that we undertake it.

Dale Fickett

Opportunity Assessment 2010

Dale Fickett

Co-founder, Profit2

[email protected]

+353 87 998 2616 (Ireland) +1 856 481 0322 (United States)

SoquentCreating Insight:Poverty Alleviation Through Entrepreneurship in Sub-Saharan Africa

Spring 2011

SoquentFinancial Returns. Social Consequences.

growth and climate change impacts8

• Inclusive private sector solutions must be fostered within a supportive public policy context9

their core, and from inception17

• NGOs must improve to collaborate on global issues18

• Emerging markets provide vast pools of resources, talent and consumers19

corruption, creates debt burdens and weakens indigenous businesses21

• New positive images of Africa must be used to counter negative stereotypes22

especially indigenous small business 14

• Social investors use VC methodology and patient capital to spur development outcomes15

governments must be accountable for leading the solutions to eradicate poverty12

Embrace a social purpose, and set a meaningful goal from inception

Harness patient, competitive capital to scale the businesses

Maximise and report the benefit for whole communities

Create businesses whose offerings address a pressing need

Eradicate poverty by building sustainable livelihoods

Pos

itS

take

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As a global society, in 2000, we agreed to help the least fortunate by setting 8 international development goals to be achieved by 2015Progress has been threatened by the challenges of

food crises, the increasing rate of climate change impacts, and the results of the current economic downturn – resulting in capital flow reductions, fewer trade prospects and lower domestic growthSuccesses – reductions in extreme poverty,

enrollment in primary education, infant and maternal mortalityRequiring increased efforts – employment,

availability of food, sanitation, urban slums, and natural resource conservation

Dynamic and complex relationships are affected by a balance of geo-political, socio-cultural, demographic, and economic factors that vary by nation and regionA broader range of global macro-trends impacts

these domestic balances

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Multi-national Corporates

Small-to-Mid-Sized Businesses Micro-Businesses

Figure 1: Stages of New Venture Creation and Funding

• Consider other opportunities worth pursuing

• Create the strategy to address the right opportunity

• Create action plans• Secure the debt

and/or equity funding required to launch

• Attract future team members

systems and processes

• Adjust offerings to customer feedback

• Demonstrate ability to secure returns

• Develop growth strategy and investment cases

• Build relationships with prospective team members

Install new team members

• Improve control systems

• Establish incentives, budgets and work standards

• Establish the strategic review process

• Demonstrate growth in financial and social returns

Purp

ose

Related Question demographics, economics, politics, culture or technology. Please describe the related trend.

Key Data What information, and specifically numbers, do you have to justify the trend described? Why would it indicate that your good/service will be purchased?

Obstacles & Barriers

What challenges will you face in addressing this opportunity? For example, you may require a specific supplier to provide you a key input.

Current Position Do you, or anyone you know, have key skills or knowledge that can be used in addressing this opportunity?

Competition Who are you likely to compete against? If there is no one locally, who provides this good/service in a neighboring country? Who provides a similar good/service in your country/region?

Sources Where have you solicited your information, such as key data or the related competition?

Type Is this opportunity likely to provide an existing product/service to your area (new market), or is it likely to offer an existing product/service with a new business model that disrupts existing competitors (model-transforming)?

Timing Is this opportunity likely to require an immediate launch, or is a delayed response appropriate?

Existing Capabilities

List any skills, knowledge or qualities you, or your team, possess that will assist you in launching this venture.

Social Return Rank If this company were in existence, how much impact would it have for the poor? (Would it’s products or services benefit the poor? Would it provide sources of employment or income for the poor? Would local suppliers benefit?) The greater the impact the higher the number assigned to the opportunity.

Financial Return Rank

If this company were in existence, how confident are you that you would meet the financial objective you've set? Would a large number of people or businesses purchase its goods/services? Would it require a small investment to introduce and support the product/serve? Could the business be maintained with few costly materials, technology, land or expertise? Would this provide a viable product/service in neighboring countries? (The more confident you are in answering 'yes' to each of these questions, the higher the opportunity's rank.)

Environmental Sustainability Rank

If this company were in existence, would it be good for the environment? (Would this company destroy, or create, vegetation? Would it disrupt local wildlife? To what extent would it utilize oil, gas or coal-based energy?)

Action Required

Ref. # Critical Question Responses 1.1 Existing Business Idea 1.1.1. Please provide your best description of the business you would

like to establish? It should be no more that 200 words.

1.1.2. What will you sell? 1.1.3. To whom will you sell it? 1.1.4. How will it be different from similar products/services currently

available?

1.1.5. How will it address a local need within your community? 1.1.6. Do you have specific skills, experience or knowledge that can be

utilized in establishing this business?

1.1.7 How might you ensure that you retain your competitive differentiation? What might prevent others from duplicating your concept?

1.1.8. What are your top 5 objectives to achieve over the next 6 months? (Please make each objective specific, able to be measured, and realistic to be achieved within this time period.)

1) 2) 3) 4) 5)

1.1.9. Financial return objective. You should intend on creating a business that will double you income over the next 2 years. How much profit must your venture create for you? (Note: This will entice you to not only replace your existing income with a creation for which you are passionate, but it should also compensate you for the risk you will undertake. If

Please let us know if you’d like to receive any of the past outputs pictured here.

III. Work to Date (2 of 2)

African Poverty and Entrepreneurship as a Solution

According to the World Bank’s World Development Indicators 2010 over 1 3 billion people live on less than $1 25 per day In Sub SaharanAccording to the World Bank s World Development Indicators 2010, over 1.3 billion people live on less than $1.25 per day. In Sub-SaharanAfrica, 50% of the population lives in this state of grinding poverty, and they generally suffer low health and education standards. There isnow a significant body of academic and practitioner-supported research demonstrating the impact of entrepreneurship in increasingincomes. Proponents include the OECD, the United Nations, the U.S. State Department, and the World Bank; and it is now widely acceptedthat the support of entrepreneurship in poverty-stricken communities provides viable routes to improvements in other social outcomes.Aside from positive impact in their communities, our entrepreneurs must be commercially viable; and Sub-Saharan Africa has proven a robusti t t li t i hi h tt ti t bl t t titi tinvestment climate in which attractive ventures are able to generate competitive returns:

• The IFC has reported 2000 - March 2010 annualized earnings of 21.73% return on its Africa private equity portfolio; and

• The 10 year annualized returns on the African composite index were 13.8%, as compared to the MSCI Emerging Markets at 7.3%.*

Aleck Chikomba and Patrick Tsvetu,Social Entrepreneurs, Harare, Zimbabwe

“We are currently working to assess a range of social entrepreneurship opportunities inZimbabwe. We have been investigating opportunities to launch a male medical clinic, a trainingcentre for business skills, a co-operative mining company for indigenous people, and a centre toassist youth with business and life skills. We are most interested in helping our people find waysof creating income and breaking the cycle of poverty. One of the greatest challenges that weface is fundraising and we are hoping to find new and innovative ways to generate income Dale

Alongside Aleck and Patrick, we have...1 Developed the Opportunity Identification and Assessment Toolkit;

face is fundraising, and we are hoping to find new and innovative ways to generate income. Dalewas originally in touch with us in October 2010, and has since helped us pursue these businessopportunities. We are certain this help will improve our ability to fight the poverty in ourcommunity.”

p. 4*Source: Bloomberg and the Emerging Markets Private Equity Association

1. Developed the Opportunity Identification and Assessment Toolkit;2. Begun working through the process of logging their revenue-generating opportunities; and3. Learned the importance of simplifying our communications, breaking down processes into small steps, and the importance of working

primarily with entrepreneurs who have pre-existing revenue.

IV. Scope & Objectives of This Program

Phase A in now approximately two-thirds complete, and the remaining work is anecessary precursor to phase B. We will now conduct market research on:

Feasibility Study Launch & Growthe Impact

Preliminary Research& Analysis

A B C

• The demand for entrepreneurial and small business support services andfinancing; and

• The landscape of the supply for these services, the supply of debt financing andthe supply of equity investment.

This work will result in a stand-alone piece of industry research, and will bevaluable as an input into our business planning.

Develop a conceptual model and a business plan to increase the velocity of social outcomes through entrepreneurship

Test a portfolio of experiments to identify the optimal organization of delivery partners, geography and methodology

Replicate the proven model for accelerated poverty alleviation

Generate insight to drive further impact

p p g

Our ScopeThe scope of our work to forecast the social impact of business activity has beennarrowed in three ways:• We have chosen the social goal of poverty alleviation;• We have narrowed our geographic focus to Sub-Saharan Africa, because within

hi h ll i i i f lif d d h d

Our ObjectivesAt the end of phase A , we will have completed:1. A peer-reviewed research report covering the

demand for and supply of entrepreneurial support

35% Remaining

this geography, poverty alleviation is a matter of life and death; and• We have clarified our focus on developmental entrepreneurship and small

business growth, as the area of business activity, due to its demonstrablesuccess as a substantive lever for poverty alleviation.

We have also further narrowed the scope of this market research, on the demandside to include only:

demand for, and supply of, entrepreneurial supportservices and financing in Sub-Saharan Africa.

2. The business plan for conducting the feasibilitystudy (phase B), including:

• A description of our market opportunity;• Our strategy to address the opportunity; and• Our plans to implement the strategyside, to include only:

• Small businesses with the expectation of employing at least 20 people withinfive years (as per methodology for identifying high growth entrepreneursemployed by the Global Entrepreneurship Monitor team);

• Small businesses with a demonstrable revenue stream;• Small businesses operating within the following sectors: agribusiness, mobile

telephony, electronic payments and off-grid energy production; andh d f h f h

• Our plans to implement the strategy.3. The project mobilization documents to enable the

initiation of the feasibility study.

• Community outreach required to foster entrepreneurship for those not yet inbusiness.

The scope of our study on the supply-side, will include relevant providers ofsupport services and funding. We expect that these providers will include:incubators, civil- and public-sector business development services (BDS) programs,venture capitalists, and financial institutions. p. 5

V. Program Structure

The over-arching objective of phase A, is to gather all of the information required to make key decisions in the design of our prototype accelerator/fund models - which will be tested in Phase B. From these objectives, we have developed the following issue tree to explain the structure of this program of work (Explanation: ‘Conduct Market Research’ includes three

Our Objectives

Country Analysis

Industry Profiles

f l h

Investment Risk Analysis

SME Opportunity Assessment

Africa’s Development

Context

Economic and other Macro

Factors

African Entrepreneurship &

Innovation

d dConduct

Market Context

Demand for

following issue tree to explain the structure of this program of work. (Explanation: Conduct Market Research , includes threecomponents – ‘Market Context’, ‘Demand for Services’ and ‘Supply of Services.’ ‘Market Context’ includes seven components – ‘Africa’s Development Context’, ‘Economic and other Macro Factors’, etc.)

Services Required

Customer Profiles & Demographics

Purchase Decision & Satisfaction Factors

Price Elasticity

Market & Industry Assessment

SegmentationValue Chain

Analysis

Five Forces Analysis

Provider Profiles & Descriptions of Service

Offerings

Provider Analysis

SegmentationAttitude and Usage

Trends

Strategy Canvas

Areas of Replication from Developed Markets

Areas for and Determinants of Local

d i

Sustainability of Market Niche

Entity Risk Factors

Industry Economics

Industry Risk Factors

Market Research

Demand for Services

Supply of Services

Opportunity Descriptiontu

dy

Canvas from Developed MarketsAdaptation

Market NicheEconomics Factors

Vision, Purpose & Values

Long-term Objectives

Proposed Model

Customer Value Proposition

Market Positioning

Market Entry Strategy

Sources of Niche Sustainability

Required Capabilities (as a whole)

Delivery Partner Profiles

Operating Model Options to be Tested

KPI DefinitionsOperating Model Selection Criteria

Governance Organizational Change

ManagementExecutive

DevelopmentPrinciples for

InstitutionalizingKnowledge

Management

Description

Business Strategy

Capabilities Strategy

Organizational

Partner Selection Criteria

Formulate Business

Plan

the

Feas

ibili

ty S

t

Modelg

DesignManagement

PrinciplesDevelopment

PrinciplesInstitutionalizing

InnovationManagement

Principles

Marketing Strategy

Finance Strategy

Operations Strategy

Tax and Legal Considerations

Human Resources Strategy

IT Strategy

Phase B Scope & Objectives

Financial Benefits

Non-financial Benefits

Program Budget

Program Governance

StrategyFunctional-level

Plans

Investment CaseWrite the Phase B

Enab

le t

Administration Considerations

Risks & Assumptions

Critical Success Factors

p. 6

Program Structure Program Approach Detailed Gantt Chart Team Profile & Schedule

Stakeholder Engagement Plan

Program Risk Log Issues and Actions List Status Report Templates Communications Plan

Program Plan

Program Control Tools

Phase B Initiation

Documents

VI. Delivery Approach

Utilizing the structure, described above, we intend to employ the following approach to gather, synthesize and document all information relevant to designing and building the accelerator/fund models to be tested in phase B. Further detail is provided in the appendices.g g g / p p pp

In Progress Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

Mobil-

Program Management & Communications

Design

Activities

Timeline

izationDesign

Implementation

Focus Group Reviews

Analysis & Documentation

Publication

Documentation & Distribution

Mobilization

1 2 3 4 5Milestones

Critical Outcomes

7 86

• Investment case, program work plan, and program control tools

• Phase A funding secured

• On site interviews conducted• Responses recorded and

categorized

• Notes taken from focus group sessions, outputs recorded and circulated to participants

• Revenue models and financial analyses completed

• Final business plan completed

1 3 5 7

g• Phase A team recruited• Governance enacted• Focus group schedule agreed

g• Notes taken from secondary

sources• Select periodical for publication

p p• Business plan sections populated

as decisions are reached and circulated for critique

p pand circulated

• Short list created for delivery partners and sites

• Local interviewers selected• Interview scripts written

• Responses reviewed and summary statistics calculated

• Market research report finalized• Submit for peer review

• Phase B investment case, program plan, and program

2 4 86

p. 7

Interview scripts written• Database created for responses• Detailed secondary sources list

created and sources secured• Document templates completed

summary statistics calculated• Quantitative models• Secure partner analyses• Complete output document and

input slides for focus groups

Submit for peer review• Peer review completed• Copyright and other publication

requirements

program plan, and program control tools

• Funding raised• Governance enacted• Phase B team recruited

Legend Program-wide Market Research Business Planning Phase B Mobilization

VII. Detailed Work Plan

A gantt chart and a PERT chart have been created to describe and track the forthcoming tasks to achieve milestone A – Mobilization,milestone B – Design, and the Program Management and Communications tasks that will happen in parallel. This includes a plan of dailymilestone B Design, and the Program Management and Communications tasks that will happen in parallel. This includes a plan of dailyactivity by the proposed three person team, as well as the periodic input of our panels and partners. As per project and programmanagement methodology, we will track progress utilizing this tool as well as the other tools highlighted in appendices.

p. 8

VIII. Proposed Governance (1 of 2)

Academic & Research Advisory PanelEntrepreneurial Finance PanelEntrepreneur Advisory Panel

M. Louis Brennan, Trinity College Dublin*Raj Alturu, Draper Fisher Jurvetson*Antony Bugg-Levine, Rockefeller Foundation* y gGregory Dees, Duke UniversityEster Duflo, MITKaranta Kalley, IHS Global Insight*Donna Kelley, Babson College*Asim Khwaja, Harvard UniversityJames Klingler, Villanova University*T d L d U i it f Mi hi

j pRobert Annibale, CitigroupArjuna Costa, Omidyar Network*Tony Elumelu, United Bank of AfricaJames Mwgani, Equity BankHarold Rosen / Rafi Menachem, Grassroots

Business Fund*L Sh hi i / M M i C lPERS*

y ggAleck Chikomba, African Entrepreneur*James Kiiru, Commercial Attaché, Kenya*Leora Klapper, World Bank Group*Steven Koltai, U.S. Department of StateAbigail Noble, Schwab Foundation and WEF*Tom Shaw, Catholic Relief Services*P t i k T t Af i E t * Ted London, University of Michigan

Ian Macmillan, University of Pennsylvania*Leon Shahinian / Mary Morris, CalPERS*Sahba Sobani, UN Development Program*Flory Wilson, GIIRS*

Patrick Tsvetu, African Entrepreneur*Phil Wickham, Kauffman Foundation

Program DirectorDale Fickett, Soquent*

• Social EntrepreneurFocus Groups Delivery Partners• Social Entrepreneur

• Enterprise Development Researcher• Strategy Consultant• Program Manager

Carlos Gonzalez, KPMGTodd Peterson, Edwards Angell Palmer & DodgeMichael Raykher, University of Maryland Law*Walter Slocombe, Calpin & DrysdaleTBD, Local Market Research Partners

Operational Planning

Strategic Planning

Marketing Planning

Entrepreneurial Investment Expert Research Analyst

Derek Ferguson, Soquent*• Project Manager in Developing Country

Contexts

To Be Determined• Social Entrepreneur• Venture Capitalist

g g

Recruiting to fill this

Contexts• Academic credentials in Development

Economics and International Business

• Venture Capitalist• International Finance and Development

Economics Graduate Researcher

See Curricula Vitae in Appendices. *Note: Indicates members of our governance structure that have already expressed interest in supporting our work.

position

p. 9

VIII. Proposed Governance (2 of 2)

Academic & Research Advisory PanelEntrepreneurial Finance PanelEntrepreneur Advisory Panel

• Periodic review of documentation• Referrals to third parties• Engagement in the focus group to challenge

the proposed venture accelerator model

Commitment of 4 hours over a 1 year timeframe in independent review and/or

• Periodic review of documentation• Referrals to third parties• Engagement in the focus group to challenge

the proposed investment fund model

Commitment of 4 hours over a 1 year timeframe in independent review and

• Periodic review of research outputs• Provide feedback• Engage within focus groups (optional)

Commitment of 7.5 to 10 hours over a 1 year timeframe in independent review and

Focus Groups Delivery Partners

Program Director• Holds overall responsibility for organizational impact

i t i l th t b fit

timeframe in independent review and/or discussion with the team, and participation in a one day focus group.

timeframe in independent review and discussion with the team, and participation in a one day focus group.

timeframe in independent review and discussion with the team. Optional participation in focus group sessions.

Focus Groups Delivery Partners– ensuring entrepreneurial successes that benefit communities

• Drives program activity to achieve agreed objectives• Manages panellist relationships so they may add

value and realize intrinsic rewards • Engages stakeholders to promulgate the value and

impact of our work, and to secure needed resources

• Review the outputs of the market research• Participate within the given focus group and

critique the proposed model or strategy• Review the final business plan

• Review the Soquent overview document and meet with the team to discuss the program

• Review the final business plan• Provide pro bono advice on entity formation

and tax planning considerations

Entrepreneurial Investment Expert Research Analyst

impact of our work, and to secure needed resources

Commitment to participate within the 1 day event, including required travel.

Commitment to provide an estimated 4-8 hours of pro bono services.

• Deliver all assigned research and analysis tasks (e.g. modelling, synthesis, strategy dev.)• Direct all elements of financial control for the

See Curricula Vitae in Appendices.

modelling, synthesis, strategy dev.)• Manage the creation and delivery of all stakeholder

communications• Manage entrepreneurial team relationships• Organize team efforts utilizing the program

management methodologies

organization and program budget• Drive research and business planning outputs• Develop the general partnership model for raising

and investing early stage capital• Engage the industry as an expert in Social VC

p. 10

IX. Investment Case (1 of 3)

Enterprise Benefits

This program is our next step towards creating this network of development entrepreneurs, venture accelerators, and equity investmentp g p g p p q ycapabilities. Our organization will drive two benefits areas:

1) The social benefits, or the difference between the outcomes our entrepreneurial teams have generated and an estimate of those theywould have produced had we never engaged them. (Note: We expect to begin quantifying this incremental social impact, or our SROI,through the feasibility study in Phase B utilizing the IRIS methodology. Furthermore, we expect to subsequently conduct the researchrequired to forecast this metric per venture.)

2) Th fi i l b fit th l ti t t l t t h h ld t d f th ti it f th it i t t f d (N t2) The financial benefits, or the cumulative total returns to shareholders generated from the activity of the equity investment fund. (Note:Other valuation techniques may also be employed to measure total portfolio returns – e.g. grading-based valuation).

Total Enterprise =

1. Incremental Social Benefits

+

2. Cumulative Portfolio Total Returns to Shareholders

Σn

b a ;

Where a = estimated social benefit had we not engaged; b = total social Σ

n

t ;

Where t = the total return to shareholders, in dollar terms, for a given venture

EnterpriseBenefits

= +“Social Benefit” is used to describe the outcome our entrepreneurs will drive, including new:• Income increases for indigenous entrepreneurs and Spread =

Return on Invested Capital

(ROIC)

EBIT (1 – t)D + E

Σb – a ;

i = 0benefit achieved; and n = total number of supported ventures.

Σ t ;

i = 0holding; and n = total number of ventures in which investments were made.

This program is the next step towards g p

their employees;• Increases in productivity for their customers;• Revenue for their value chain partners;• Improvements in health, education, and other social

outcomes related to better standards-of living; • Benefits related to carbon-efficiency and

Total Return to Shareholders / Economic Value

Added

p(ROIC –WACC) Weighted

Average Cost of Capital

(WACC)

Organic Growth(CAGR)

(1 – t) KDD + KEED + E

(Vn + Accumulated Draw)V

ˆ(1/n)-1

realizing our entre-preneurs’ social impact, and the financial Benefits related to carbon efficiency and

environmental improvement;• Knowledge spill-over and other IP; and• Social and cultural capital – which ease the way for

subsequent entrepreneurs.

Growth Rate

(CAGR)

Growth through Mergers &

Acquisitions

V1

Vpost + Accumulated DividendsVpre

-1

returns of our investments in them.

p. 11


Benefits of This Program – Creating a Social Impact Self-funding Engine

The chart below illustrates the social impact and the financial returns resulting from the research of phase A, and from the subsequent feasibilityp g p q ystudy in phase B. At this early stage, these are only indicative, but are useful in making some conclusions about the model we are developing:

1. Phase A costs are required to enable subsequent feasibility study work;

2. Phase B is expected to result in the establishment of four venture accelerators, and an equity investment fund of approximately $5M;

3. These accelerators will become cash-flow neutral after year 5, and help address some of the risks and issues of traditional VC in SSA; and

4. We must strive for a balance between: (a) maximizing the portion of equity investment returns which are donated back into the non-profit

Illustrative

for the establishment of subsequent accelerators, and (b) minimizing that portion to drive commercially competitive returns to investors.

This model is based upon several assumptions, including:• Four accelerators, each with a capacity of 12 clients, are

established in years 2 and 3;Th d t f th l t i th

Dol

lars

Phase A Research Costs

Phase B Feasibility Study Costs

• The revenues and costs of the accelerators mirror thosein the infoDev model*;

• Fifty percent of the ventures become equity investment-ready, and require an average of $200,000; and

• Those investments earn 22% ROIC, as quoted by the IFC,and require a five year term to harvest through strategicacquisition.

Not-for-profit Activity

U.S

. D

y

Accelerators’ OperatingCash Flow

q

For Profit ActivityEquity InvestmentFunds’ EstimatedReturn

*Source: infoDev (2009). A Model for Sustainable and Replicable : ICT Incubators in Sub-Saharan Africa.

p. 12


Costs of the ProgramPhases A and B, required to realize the benefits described above, are estimated at $10M over three years. The costs of phase A, are summarized, q , y p ,in the table below:

Cost Category Budget

Salaries I would like to discuss the personalcompensation level you see as appropriateProgram Director

Other Team MembersTo be Discussed

$245,000

BenefitsProgram DirectorOther Team Members

To be Discussed$101,045

compensation level you see as appropriate,given the responsibilities of the positionand current industry salary levels.

Travel Expenses – Three Months in the field $65,600

Local Market Research Delivery Partners $14,400

Facilities $15,900

Office Supplies, Connectivity and Support Services $5,100

Critical Success Factors• Maintaining a primary focus on poverty alleviation outcomes, the entrepreneurs who will help achieve these goals, and measuring their impact

Contingency $76,500

Total (not including Dale’s compensation) $523,545

g p y p y , p p g , g p• Ensuring the completion of quality deliverables on time, and on budget;• Building meaningful relationships within our team, with our entrepreneurs, and with out advisors and stakeholders; and• Developing the model that maximizes our ability to help our entrepreneurs create economic value and social impact – hitting the balance

between returning capital to shareholders, and using it to fund future accelerator expansion.

p. 13

X. Stakeholder Engagement Plan

We have grouped our stakeholders in five broad categories, as shown in the diagram on the left. There are hundreds of organizations, andthousands of individuals which fall within this framework We are developing a spreadsheet to track our communications with the 100+

Name Company Type Sub-Type Email Phone NumberRequested

Engagement Engagement to

DateNext Steps

Raj AlturuDraper Fisher Jurvetson Private Sector Venture Capital Firm Panell ist

Expression of Interest

Provide Pgm Initiation Doc

Robert AnnibaleCitigroup Private Sector Global Bank Panell ist Limited


Chris BentleyGood Company Ventures Civil Society Operating Non Profit

Operational Planning Focus Group

Commitment to Participate


Louis BrennanExpression of Provide Pgm

thousands of individuals, which fall within this framework. We are developing a spreadsheet to track our communications with the 100+stakeholders with whom we have opened dialogues, and those we have prioritize for engagement over the coming year.

Inter-governmental Organisations

Private Sectorouis rennan

Trinity College, Dublin Civi l Society Academic Panell ist Interest Initiation Doc

Antony Bugg-LevineRockefeller Foundation Civil Society Foundation Panell ist



Gib BullochAccenture Private Sector Consulting Firm

Strategy Focus Group

Previous Support


Aleck ChikombaChild Hope Centre Local Partners Entrepreneur Panell ist



Arjuna CostaOmidyar Network Civil Society Foundation Panell ist



Gregory DeesDuke University Civi l Society Academic Panell ist None

Make Introduction

Esther DufloMIT Poverty Action Lab Civil Society Academic Panell ist None

Make Introduction

Tony ElumeluUnited Bank for Africa Private Sector African Bank Panell ist None

Make Introduction (via S Shah)

Organisations

Local Partners

Corporate SocialResponsibilityLeaders

Emerging MarketProgramme Owners

Microenterprise and Market Development ProgrammeDirectors

Mi fi United Bank for Africa Private Sector African Bank Panell ist None (via S. Shah)

Karanta KalleyIHS Global Insight Private Sector Consuting Firm Panell ist



Donna KelleyBabson College and Global Entrepreneurship Monitor Civi l Society Academic Panell ist



Asim KhwaiaHarvard University Civi l Society Academic Panell ist None

Make Introduction

James KiiruCommercial Attaché, Kenya Public Sector Recipient Country Panell ist



Leora KlapperWorld Bank Group Inter-Gov Org World Bank Panell ist



James KlinglerVillanova University Civi l Society Academic Panell ist



Steven KoltaiU.S. Department of State Public Sector Donor Country Panell ist None

Make Introduction

Mik K b kStrategy Focus Provide Pgm

Sustainablei lih d

DevelopedCountryODA Agencies

Microfinance Institutions & Other Social Entrepreneurs

CustomersShareholdersCreditors

Suppliers

BDS ProvidersEmployees

Entrepreneurs

Mike KubzanskyMonitor Inclusive Markets Private Sector Consuting Firm

gyGroup Limited

gInitiation Doc

Ted LondonUniversity of Michigan Civil Society Academic Panell ist None

Make Introduction

Ian MacmillanThe Wharton School Civi l Society Academic Panell ist



James MwganiEquity Bank Private Sector African Bank Panell ist None

Make Introduction (via J. Ki iru)

Abigail NobleSchwab Foundation and World Economic Forum Civil Society Foundation Panell ist



Harold RosenGrassroots Business Fund Civil Society Operating Non Profit Panell ist



Leon ShahinianCalPERS Public Sector Investment Fund Panell ist



Tom ShawCommitment to Provide Pgm

National & LocalPublic Sector

Civil Society

LivelihoodsAdvocatesDeveloping Country

Finance Ministries

g

Tom ShawCatholic Relief Services Civi l Society Operating Non Profit Panell ist Participate Initiation Doc

Sahba SobaniUnited Nations Development Program Inter-Gov Org United Nations Panell ist



Andrew SternDalberg Private Sector Consulting Firm

Strategy Focus Group



Patrick TsvetuChild Hope Centre Local Partners Entrepreneur Panell ist



Phil WickhamKauffman Foundation Civil Society Foundation Panell ist None

Make Introduction

Flory WilsonGlobal Impact Investing Rating System Civil Society Operating Non Profit Panell ist



p. 14

Appendices

Detailed Delivery Approach (1/9)

• In estment case program ork1

In Progress Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12Timeline

• Investment case, program work plan, and program control tools

• Phase A funding secured• Phase A team recruited• Governance enacted• Focus group schedule agreed

Mobil-ization


Design

Implementation

Focus Group Reviews


Publication


Mobilization

Activities

Objectives • Gather all relevant information needed to secure the resources required to complete phase A, including: people, knowledge and funding.

• Develop the relationships required to secure those resources.• Compel stakeholders to strengthen their existing expressions of interest with solid commitments of their time and funding.

Mobilization

1 2 3 4 5Milestones

7 86

p g g p g

Participants • Research Team• Prospective Governance Team Members:

• Prospective Academic and Research Advisory Panellists• Prospective Entrepreneur Advisory Panellists• Prospective Entrepreneurial Finance Panellists• Prospective Delivery PartnersProspective Delivery Partners

Inputs • Documentation to date: Conceptual Design, Developmental Entrepreneurship in Sub-Saharan Africa: Identifying and Assessing Microenterprise Opportunities, Entrepreneur Support Toolkit, Draft Business Plan (including required secondary research), and Soquent –Poverty Alleviation through Entrepreneurship in Sub-Saharan Africa

• Existing stakeholder relationships

Key Activities • All Prospective Panellists and Partners (1 hr.) – Meet to discuss this document, and our requests for time and fundingy p ( ) , q g• Research Team

• Structure this program initiation document, and underpinning documents, to convey all relevant information• Secure required introductions and referrals to address relationship gaps• Distribute required documentation and engage in dialogue to secure commitments• Set dates and venues for the focus group reviews of the research outputs

p. 15


• Local inter ie ers selected2


• Local interviewers selected• Interview scripts written• Database created for responses• Detailed secondary sources list

created and sources secured• Document templates completed

Mobil-ization


Design

Implementation

Focus Group Reviews


Publication


Mobilization

Activities

Objectives • Complete all preparations required to ensure credible primary data is collected in a cost-effective manner, from relevant interviewees, in a way that enables robust analysis thereafter, and meets the objective of accurately describing the market.

• Gather the pieces of secondary research which remain outstanding.

i i h

Mobilization

1 2 3 4 5Milestones

7 86

Participants • Research Team• Local Interviewer Delivery Partners• Academic & Research Advisory Panel

Inputs • Program Initiation Document, Risk Log, Issues and Actions Log, Budget, and Work Plan• The assembled research team.• The required panel participants.• Recommendations from stakeholders regarding relevant secondary research sources.

Key Activities • Academic & Research Advisory Panel Participants (1 - 2 hrs.) – Provide referrals to prospective local research partners and critique interview scripts

• Prospective Local Research Partners – respond to RFIs, engage in selection process, collaborate on script writing• Research Team

• Determine national short-list for the research scopep• Submit RFIs to prospective local research partners, interview, and then select• Write interview scripts, secure critiques, make revisions and finalize• Create the database to log all responses, and create online upload procedure to mitigate in-the-field information loss• Secure copies of all secondary research documents still outstanding• Create document templates for the market research outputs for discussion, the business plan, and the market research publication

p. 16


3


• On site interviews conducted• Responses recorded and

categorized• Notes taken from secondary

sources• Select periodical for publication

3

Mobil-ization


Design

Implementation

Focus Group Reviews


Publication


Mobilization

Activities

Objectives • Gather all required interview responses to complete the business planning and the market research publication – interview responses from African entrepreneurs, their actual and prospective support service providers, and providers of growth financing.

• Begin to build a relationship with the appropriate management or economics publication in which we will publish the results of our findings.

Mobilization

1 2 3 4 5Milestones

7 86

g

Participants • Research Team• Local Market Research Partners• Academic & Research Advisory Panel

Inputs • Design documentation detailing research priorities• Interview scripts and scheduleInterview scripts and schedule• Travel and logistics itinerary• Database for interview response capture• Secondary research sources

Key Activities • Academic & Research Advisory Panel (0.5 - 1 hr.) – Review mid-point update on data collection progress• Local Market Research Partners – conduct interviews alongside the research team members• Research Team• Research Team

• Conduct interviews, record responses and populate database• Design analytics to provide summary statistics, and provide mid-point update to panellists• Review secondary research sources and complete note-taking• Contact periodicals, speak with representatives and agree the periodical for publication

p. 17


D


• Responses reviewed and summary statistics calculated

• Quantitative models• Secure partner analyses• Complete output document and

input slides for focus groups

D

Mobil-ization


Design

Implementation

Focus Group Reviews


Publication


Mobilization

Activities

Objectives • Summarize all information panel participants will review, including: the market context, a description of the demand for entrepreneurial support services and financing, and the supply thereof.

• Create input slides for the focus group sessions to facilitate discussion

i i h

Mobilization

1 2 3 4 5Milestones

7 86

Participants • Research Team• Academic & Research Advisory Panel, Entrepreneur Advisory Panel, Entrepreneurial Finance Panel, and Focus Group Members

Inputs • Responses from the interviews• Notes from all secondary research sources• Country and industry risk profiles (K. Kalley)

Key Activities • Panellists and Focus Group Participants (1 hr ) Review output document and provide critique regarding any information gapsKey Activities • Panellists and Focus Group Participants (1 hr.) – Review output document and provide critique regarding any information gaps• Research Team

• Create outline of the output document to capture all elements of the program structure for the market research• Conduct required modelling and analysis on information acquired• Write the output document and create slides to be used in the focus group sessions• Write the opportunity description section of the business plan• Detailed activity planning for milestones E, F, G and H; as well as remaining program management and communication activitiesy p g , , ; g p g g

p. 18


5


• Notes taken from focus group sessions, outputs recorded and circulated to participants

• Business plan sections populated as decisions are reached and circulated for critique

5

Mobil-ization


Design

Focus Group Reviews


Publication


Mobilization

Activities

Implementation

Objectives • Review the findings of the market research and the preliminary conclusions reached regarding strategic direction.• Enhance the quality of the business planning decisions through a series of targeted focus groups

Participants • Research Team

Mobilization

1 2 4 5Milestones

7 863

• Entrepreneur Advisory Panel• Entrepreneurial Finance Panel• Other Focus Group Participants• Delivery Partners (Legal and Accounting)

Inputs • Market research output document and opportunity description• Slides for focus group sessionsg p

Key Activities • Entrepreneurial Advisory Panel (1 day + travel) – Overview of research findings and critique first-cut venture accelerator model• Entrepreneur Finance Panel (1 day + travel) – Overview of research findings and critique of first-cut equity investment fund model• Strategy Focus Group (1 day + travel) – Strategic decisions resulting from market research and model decisions• Operations Planning Focus Group (1 day+ travel) – Discussion on venture accelerator and equity fund at operational level• Marketing Focus Group (1 day+ travel) – Discussion on Soquent marketing, communications, fundraising and advocacy planning• Legal and Accounting Delivery Partners (0.5 day + travel) – Entity formation reviewLegal and Accounting Delivery Partners (0.5 day + travel) Entity formation review• Research Team:

• Facilitate focus group discussions• Log decisions reached and circulate an output document to each focus group• Populate business plan sections – business strategy, capabilities strategy, organizational strategy, and functional-level planning

p. 19



6

Mobil-ization


Design

Implementation

Focus Group Reviews


Publication


Mobilization

Activities • Market research report finalized• Submit for peer review• Peer review completed• Copyright and other publication

requirements

6

Implementation

Objectives • Communicate findings of the market research activities, including recommendations regarding areas for future research.• Ensure quality output is achieved with a leading journal or other publication to achieve readership amongst recognized experts in the

field.

i i h

Mobilization

1 2 C 4 5Milestones

7 863

Participants • Research Team• Academic & Research Advisory Panel

Inputs • Market Research output document for internal circulation• Decisions log and focus group output documents• Draft business plan sections completed to date

K A ti iti A d i Ad i P l (2 3 h ) R i d ft fi di f bli ti d i i t f i tKey Activities • Academic Advisory Panel (2 – 3 hrs.) – Review draft findings for publication, and raise points for improvement• Research Team

• Write publication draft• Circulate and review with academic advisors• Revise and submit to selected publication• Complete copyright requirements

p. 20



7

Mobil-ization


Design

Implementation

Focus Group Reviews


Publication


Mobilization

Activities • Revenue models and financial analyses completed

• Final business plan completed and circulated

• Short list created for delivery partners and sites

7

Implementation

Objectives • Write and circulate the business plan.


Inputs • Market Research output document for internal circulation

Mobilization

1 2 C 4 5Milestones

7 863

Inputs Market Research output document for internal circulation• Decisions log and focus group output documents• Draft business plan sections completed to date

Key Activities • Research Team• Validate business plan structure• Write business plan sections, including:

• Opportunity description• Opportunity description• Business strategy• Organizational strategy• Capabilities strategy• Functional-level plans – operations, finance, marketing, and administrative

• Circulate to all panel members, focus group participants, and delivery partners• Conduct meetings regarding Phase B requirementsg g g q

p. 21



8

Mobil-ization


Design

Implementation

Focus Group Reviews


Publication


Mobilization

Activities • Phase B investment case, program plan, and program control tools

• Funding raised• Governance enacted• Phase B team recruited

8

Implementation

Objectives • Document and communicate our intent regarding Phase B – the Feasibility Study of the envisaged accelerator / fund model. • Secure commitments for continued participation, recommendations for improvements, and garner Phase B commitments.


Mobilization

1 2 C 4 5Milestones

7 863

• Academic & Research Advisory Panel• Entrepreneur Advisory Panel• Entrepreneurial Finance Panel• Other focus group members• Delivery Partners

Inputs • Market research output document and overview slidesp p• Draft business plan written to date• Program Management tools

Key Activities • All Panellists and Partners (2 hrs.) – Review the business plan and mobilization documentation, and meet with the team in consideration of commitments for Phase B

• Research Team• Write the Phase B Mobilization Documentation• Write the Phase B Mobilization Documentation• Circulate that documentation alongside focus group outcomes• Provide work-in-progress business plan and research publication, as requested• Secure phase B commitments

p. 22



Mobil-ization


Design

Implementation

Focus Group Reviews


Publication


Mobilization

Activities

Implementation

Objectives • Direct program effort to achieve objectives, managing scope, quality, effort, risk and time considerations.


Inputs • Program Initiation Document

Mobilization

1 2 C 4 5Milestones

7 863

Inputs • Program Initiation Document• Detailed Work Plan• Investment Case• Risks Log• Issues and Actions Log• Status Reports

K A ti iti R h TKey Activities • Research Team • Review and update the stakeholder engagement plan• Review and update the risks log• Review and update issues and actions list• Update the detailed work plan to reflect progress made• Update budget, as needed• Write status reports to summarize progresste status epo ts to su a e p og ess

p. 23

Detailed Budget

Cost Item Assumptions Original BudgetExpected Spend to Date

Actual Spend to Date

Revised Assumption Revised Forecast Variance

Salaries Program Director To be Discussed

Entrepreneurial Investment Expert

Require a seasoned VC with 5-10 years experience managing a portfolio of $2.5M - $10M, and experience in related academic research. Salary.com data for a VC II, at median is $285k and a HBS grad into VC median is $125k - $140k. We will recruit someone from an related research program that has sufficient VC experience. 185,000

Research Analyst Requires an entry level market research analyst, for Philadelphia at 75% is $60,000. 60,000 Benefits Estimate Program Director To be Discussed

Entrepreneurial Investment Expert

Based on Bureau of Labor Statistics (Mar 2011) private sector benefits expenese on average are 29.2% of totalcompensation. Includes: Social Security, Medicare, Unemployment Insurance, Life-Health-Disability Insurance, and Retirement Contributions. 76,299 Based on Bureau of Labor Statistics (Mar 2011) private sector benefits expenese on average are 29 2% of

Research Analyst

Based on Bureau of Labor Statistics (Mar 2011) private sector benefits expenese on average are 29.2% of totalcompensation. Includes: Social Security, Medicare, Unemployment Insurance, Life-Health-Disability Insurance, and Retirement Contributions. 24,746

Travel - Three Months on Site Vaccinations Range from $50 to $1000 for travel preparation (see www.costhelper.com). Estimate $500 per person 2000

VisasVisas - four people in seven countries at $50 per country; vaccinations range from $50 to $1000 for travel preparation (see www.costhelper.com) 1400

Securiity Assume $60,000 wage level, over three months overseas 15000

FlightsFour adults prospective itinerary is JFK -> Capetown, So. Africa on 8/1, and Lagos to JFK on 10/31 - based on South African Airways websearch 15000

Ground Transportation

Domestic Travel Allowance - Will require travel for 1st leg - Capetown, Windhoek,Harare; 2nd leg - Dar es Salaam, Kigali, Nairobi; 3rd leg - Accra and Lagos - Based on $500 as average domestic flight cost, for 4 adults for 4 internal trips 14000

Accommodation13 weeks x 7 days/week = 91 nights for two rooms. Average cost for a three star room in Africa is $80 - $120 per night. 18200

Research Partner Fees Interview Support / Translation Two market researchers each working 60 days at a rate of $120 per day 14400Facilities 1st Month - Summer 2011 Assuming minimal cost associated with campus meeting room 500 Months 2 - 4 Studying in the field 0 Months 5 - 12 Regus rates for required office space, meeting rooms. Estimate from Regus Corporate office $1300/mo. 10400 Focus Group Meeting Rooms Estimate of meeting room costs for the five focus group events in months 7 and 8, and catering expenses 5000Office Supplies & Printing

Incidental office supplies and printing Incidental office supplies and printing 500Office Internet, Telephone and Fax

Office outgoing international calls, and internet connections ($300/mo.) Team members pay their mobile phone bills as a personal expense. 3600

InsuranceDirectors and Officers Insurance policy for three person team based on online cost estimate provided at

Liability InsuranceDirectors and Officers Insurance policy for three person team, based on online cost estimate provided at www.npccny.org of $975. 1000

Legal, Accounting and Support Services Legal, Accounting and Consulting Services We will work with our delivery partners on a pro bono basis in year 1. 0Contingency

Ten percent budget contingency and continuity buffer. 76500523,545

p. 24

Risks Log

Preliminary Research & Market AnalysisRisk Log

Document Owner:

Status of action/s

1 The pipeline volume required to select the Identify revenue positive clients and

Consequence / Likelihood with

controls now in place (Grid Ref B)

ID NO. Risk Description Action DateDate RegisteredOpen/ Closed

Consequence/Likelihood before any

controls (Grid Ref A)

Comments (after review)

Risk Mitigants (Controls already in place to mitigate the

risk, if any)

Accountable Manager

Source / Identified by

Risk Management Strategy (Mitigating Actions to be completed)

Dale Fickett

Risk Category

1 The pipeline volume required to select the desired number of accelerator clients will exceed our resource capacity.

ES Global 20-Apr-11 Strategy 3B (none) 2AIdentify revenue-positive clients, and build the desired accelerator for those that pay rent.

Dale Fickett 01 May 2011 Open (none) G

2Quality of the inputs to the business planning is particularly weak and ill-formed

ES Global 20-Apr-11 Operations 3B (none) 1ABuild client initiation screening

procedures to measure input quality, and take remedial actions as needed

Dale Fickett 01-Jun-11 Open (none) G

3

Currency risk associate with investments made in host countries

ES Global 20-Apr-11 Finance 3A (none) 2A

Consider currency risk as a part of the country profiles for selection of host countries. Build currency controls into the risk management considerations of the equity investment solution.


4

Volume of the deal flow required to maintain the fund may be insufficient.

ES Global 20-Apr-11 Finance 3C (none) 3A

Calculate the tipping point where the volume justifies a stand alone fund. Build feasibility study model(s) in which we partner with an established fund. Build into the business plans the scenario in which we quickly achieve the tipping point, and with a slower achievement of the tipping point.


5Risk that the geographic area in which we

Design the study and feasibility study locations will be situated within g g p

launch the accelerator(s) will be not conducive to entrepreneurial activity.

ES Global 20-Apr-11 Strategy 2A (none) 1A geographic areas in which entrepreneurship is already flourishing.


6Risk that we are unable to secure the required skills to launch the accelerator AND the fund, as they are distinct from each other.

Omidyar Network

20-Apr-11Program

Management3C (none) 2B

Solicit the required CFO skills through a range of networking sources.

Dale Fickett 01-Jun-11 Open In Progress G

7

Complexity risk associated with reliance on multiple stakeholders and delivery partners

Villanova University Discussion

20-Apr-11Program

Management2B (none) 1A

Ensure that there are redundant relationships in the network to ensure that a failure in one can be addressed by an escalation of efforts with

Dale Fickett 01-Jun-11 Open In Progress G

another.8

Risk that entrepreneurs are not willing to change existing patters of behavior, or are not coachable.

Eric Kacou 20-Apr-11 Strategy 3A (none) 1A

Ensure that a part of the screening process includes an exporation of this behavior, to ensure that we have clients willing to change direction.

Dale Fickett 01-Jun-11 Open

The consequence is high if we were to have

entrepreneurs with an unwillingness to change.

G

p. 25

Issues and Actions Log

2-3 DF 19 Apr Read McKinsey reports on emerging market growth and African agriculture

DF Not Started

2 4 DF 19 Apr Read Monitor Paths to Prosperity and DF Not1-20 Charles 19-Apr Sherron Watkins of Enron (click here)- make

t t d d ib th tDF Not

St t d2-4 DF 19 Apr Read Monitor Paths to Prosperity and Application of Emerging Models in Africa.

DF Not Started

2-5 Raj Alturu 19 Apr Investigate D-Light lantern/mobile phone charger, and bio mass companies in SSA

DF Not Started

2-6 DF 19 Apr Investigate Investment Fund for Foundations DF Not Started

2-7 DF 19 Apr Investigate Venture Source DF Not Started

contact and describe the concept Started1-21 Pali & Louis

Brennan 19 Apr See if there is any movement on an intro to

Mary Robinson’s office. Consider a direct contact. Also consider avenues to Kofi Annan.

DF Not Started

1-22 Rafi Menachem 19 Apr Contact Cash Rengan at Harvard CID, and Elnor Ibrahim

DF Not Started

1-23 Rafi Menachem 19 Apr Contact Sarah Olson at SVT group. DF Not St t d

• Greg Dees• Ted London (Grassroots Business

Fund) • Jeniffer Gala -> Harvard CID (Asim

Khwaja, Bailey Klingler, and Calestus Juma) (Also mentioned by Sahba)

1-8 Joe D. 19 Apr Contact the GEP (potentially through Raj DF Not

No. Ref. Date Raised

DueDate

Action Owner Update Status

Objective – Communicate the Concept 1-1 Anthony Chang /

Bob McP 19 Apr Contact Phil Wickham DF In

Progress 1-2 DF 19 Apr Send short update email on lines of dialogue DF Not

Started2-8 DF 19 Apr Create a list of required secondary research

articles for Joe Dougherty and Pali Singh to help in securing

DF Not Started

2-9 Joe D. 19 Apr Research Zambian Mobile Transactions Limited

DF Not Started

2-10 Donna Kelley 19 Apr Read the Global Entrepreneurship Monitor DF Not Started

Started1-24 Rafi Menachem 19 Apr Contact David Brombright at Keystone (UK) DF Not

Stated 1-25 Arjuna Costa 19 Apr Contact One Acre Fund, AECF program of

AGRA and the Challenge Grants DF Not

Started 1-26 Arjuna Costa 19 Apr Investigate the Legathum African Awards for

Entrepreneurship (Al Chase also mentioned L th )

DF Not Started

Alturu), specifically Steven Koltai Started1-9 Joe D. 19 Apr Contact the USAID Economic Growth 4

Poverty Reduction program DF Not

Started 1-10 Robert Annibale 19 Apr Contact Bob Annibale at Citi Foundation, and

Citi Microfinance DF Not

Started 1-11 Joe D. 19 Apr Contact K2A and their LM3 model for

forecasting returns DF Not

Started

opened and those in progress. Send to all governance team members and request that they consider a small donation of time to review the forthcoming documentation covering the next research phase, and the commitments I am seeking.

Started

1-3 Mary Morris & L h H ll

19 Apr Identify the right contact in CalPERS Al i I M

DF In P

2-11 Donna Kelley 19 Apr Review the Goldman Sachs 10,000 businesses paper

DF Not Started

2-12 Donna Kelley 19 Apr Investigate the Political Stability Index (Economist Intelligence Unit http://www.economist.com/node/13349331) and potential updates to the existing country analysis

DF Not Started

Legathum)1-27 Arjuna Costa 19 Apr Equity Bank (Kenya) starting a foundation DF Not

Started 1-28 Sahba Sobani 19 Apr Contact Sendhil Mullainathan at Ideas42,

Elizabeth Jenkinson’s work with Senegalese entrepreneurs, keystone accountability, and work of Roy and Bertrand Sosa – MPOWER

d RISE

DF Not Started

1-12 Joe D. Charles 19 Apr Contact organizer for the Wharton African Business Forum / Black MBAs

DF Not Started

1-13 DF-4 19 Apr Contact the CSR representative in Accenture Dublin

DF Not Started

1-14 Joe D. 19 Apr Provide Joe Dougherty an update on where everything stands for the contacts he provided:

DF Not Started

Lashae Howell Alternative Investment Management Program. (current involvements with Ethos, 57 Stars and EM Alternative Investments)

Progress

1-4 DF 19 Apr Update LinkedIn profile DF Not Started

1-5 DF 19 Apr Create the model governance structure DF In Progress

1 6 DF 19 A R i h P i E i Af i d EMPEA DF N2-13 Leora Klapper 19 Apr Review and apply “Does Management Matter? Evidence from India” – a study from Accenture, the World Bank Group, Berkley and Stanford (access paper here)

DF Not Started

2-14 Leora Klapper 19 Apr Investigate Business Edge (http://www.businessedge-me.com/), specifically regarding ways to extend their

hi h i SSA h h k

DF Not Started

and RISE Objective – Secure Required Information 2-1 Rafi 19 Apr Download and review documents at

http://metricsworkshop09.groupsite.com DF Not

Started 2-2 Flory 19 Apr Investigate OPIC Director of International

Standards – Investment Policy to predict the social impact of investments and the

f it i d l ti f th

DF Not Started

• Cardno • ES Global • Banyan Global • DAI • UNDP • IFC • On the Frontier Group / Eric

1-6 DF 19 Apr Review the Private Equity Africa and EMPEA websites to understand the investors in African start-ups and potential donors

DF Not Started

1-7 DF 19 Apr Contact gaps in the governance structure to make introductions:

• Harold Rosen • Tony Elumelu

DF In Progress

geographic reach into SSA through our work

performance monitoring and evaluation of the portfolio

On the Frontier Group / Eric Kacou

•

• James Mwangi• Phil Wickham • Ester Duflo (Al Chase recommends

Poverty Action Lab at MIT as well) •

p. 26

Curricula Vitae – Dale Fickett

Soquent, Co-founder, March 2009 – presentInitiating a new venture to drive poverty alleviation in Sub-Saharan Africa through local entrepreneurship:

• Generated interest with over 100 stakeholders from the public-, private- and civil-sectors;• Completed a range of supporting research, including: Developmental Entrepreneurship in Sub-Saharan Africa:

Identifying and Assessing Microenterprise Opportunities; and• Completed opportunity assessment activities to assist Zimbabwean entrepreneurs stimulate economic

activity in Harare and surrounding rural areas.Accenture, Managing Consultant – Banking Strategy, June 2006 – March 2009

Served as a project innovator focused on developmental entrepreneurship:Served as a project innovator focused on developmental entrepreneurship:• Initiated and completed a business model for the creation of a new capability to provide consulting services

and social venture capital to developing country start-ups and governments; and• Achieved the endorsement of the Executive Director of Accenture Development Partnerships.

Directed a $75M UK and Ireland sales campaign in the banking sector, with end-to-end responsibility for marketing the teams’ capabilities, tracking the sales pipeline, developing the industry team, managing stakeholder relationships (including a strategic alliance), and overseeing other administrative activities:

As the program director and co-founder,Dale is responsible for the oversight of allSoquent activity. He assists entrepreneurs

h t th th i itip ( g g ) g

• Achieved annual growth over 120%, surpassing original targets for the 2007 fiscal year;• Won critical new business with 12 large European and global banks – supporting local client partners by

writing and presenting sales materials, serving as an expert in European payments regulation, building client relationships, and mobilising projects; and

• Selected as the Accenture representative to present at the International ePayments Intensive, and at the SWIFT global industry conference.

S i li d l di t t i t i th UK d I i h k t d t i T ti B ki

who strengthen their communities,generates leading research and insight,oversees the organization’s strategicdirection, drives measurable social impactoutcomes, and secures our positioning toachieve competitive financial returns onour investments. Dale is also responsible Specialized as a leading strategist in the UK and Irish markets, and as an expert in Transactions Banking.

Managed the delivery of a €4.5M IT Service Management improvement program within a leading Irish bank.Wharton Small Business Development Center, Instructor, June 2005 – June 2006

Mentored over 30 entrepreneurial teams to achieve compelling business plans, and to execute against their action plans – advising them on key implementation challenges.

D’Lectables, New Venture Founder and President, December 2003 – June 2006Held end-to-end responsibility for a start-up venture from concept initiation to business closure; raised $500,000

pfor engaging external stakeholders –raising awareness of Soquent’s activity,securing the resources required to growour impact, advocating forcomplementary public policy, andstrengthening the developmental

hHeld end to end responsibility for a start up venture from concept initiation to business closure; raised $500,000 in SBA-backed start-up loans and personal debt; and achieved year 1 sales of $350,000 across all channels.

MBA, Villanova University, August 2002 – December 2003B.S.B.A., LaSalle University

entrepreneurship community.

p. 27

Curricula Vitae – Derek Ferguson

Nicaragua Mobile Health Project Leader, Spring 2011Assisted in the planning and implementation of a project in Waslala, Nicaragua. Our goal was to improve health care through low-cost telecommunication in this remote region.

• Developed a sustainable business plan for the project and assisted in securing grant funding to implement the pilot stages of the project.

• Earned the Villanova Social Entrepreneurship Competition, First Place, Spring 2011 – receiving $150,000 in cash and in-kind support services.

Business without Borders (Net Impact Chapter), President, January 2009 – May 2011A i d i h i f d i i h i ll ibl d i bl b i

Profile Picture

Assisted in the creation of a student organization that promotes socially responsible and sustainable business on Villanova’s campus.

• Created service opportunities for business students domestically and internationally that incorporate creative business solutions to meet social needs.

• Brought socially responsible companies to campus, coordinated events for students, and served as a liaison between our organization and the faculty.

• Earned the Net Impact “Chapter of the Year” award for the 2009-10 academic year.

Derek is the team’s research analyst, andhas responsibility for the completion ofmarket research design, implementation Earned the Net Impact Chapter of the Year award for the 2009 10 academic year.

County of San Diego Department of Housing and Community Development, Summer 2010Mobilehome Occupant Assistant Program: recovered missing files, reviewed loan documents, drafted and sent loan monitoring correspondence.

• Assisted team members in processing applications within the neighborhood stabilization program. • Outlined three recent pieces of HUD legislation, and examined their effects on the county. • Performed a preliminary analysis on the department’s current stock of public housing and provided

g pand analysis tasks. He leverages hisbackground in international finance anddevelopment economics to drivemeaningful insight and to convey thosefindings within compellingcommunications to a range oft k h ld D k ill t ib t suggestions for the next steps in determining the long-term financial status of those housing units.

Chilean Economic Development, Valparaíso, Chile, Summer 2009Managed a project to increase productivity in medical care within rural Chile. Completed the project –assisting in the in the storage and transmission of electronic medical records.

• Relevant Course Work: Chilean Economic Development • Internship: Community Service Program Coordinator at La Pontificia Universidad Católica de Valparaíso

Bachelor of Science in Business Administration Villanova University May 2011

stakeholders. Derek will contributeheavily in the creation of our marketresearch and business plan, and willparticipate within the development ofstrategy for Soquent and for our clients.Bringing to bear an authentic compassion,he oversees client relationships, and will Bachelor of Science in Business Administration, Villanova University, May 2011

Economics and International Business major, with a Bachelor of Arts minor in Spanish and Peace & Justice.• Earned a cumulative GPA of 3.83 out of 4.0, earning the Beta Gamma Sigma distinction. • Relevant Course Work: Economics of an Underdeveloped Area, Social Entrepreneurship, Emerging

Economies, Policy Formulation, and Global Poverty and Justice.

he oversees client relationships, and willalso move towards taking ownership ofprogram management control activities.

p. 28

SoquentFinancial Returns. Social Consequences.

Soquent is a new organization dedicated to alleviating poverty throughsmall businesses growth. Soquent generates related market insight,provides support services for entrepreneurs, and facilitates the flow ofcapital to those ventures whose success will catalyze positive socialconsequences.

Copyright © 2011 Soquent. All rights reserved.

q

Any reproduction and/or redistribution of any text, paragraph or illustration in whole or in part, without written permission from the publisher, is strictly prohibited.

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