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Social Entrepreneurship

This category includes articles about social entrepreneurs, typically about businesses with a for-profit model with a social mission embedded into the fabric of the business.

2,000 Women Rising From Poverty Celebrate The Social Venture That Helped

February 21, 2017 – The women mostly wearing beautiful, brightly colored traditional gowns were seated quietly beneath white event tents festooned in bright colors surrounding a small plaza that would serve as a stage. An empty tent on a platform was waiting for the VIP guests, including the executives of All Across Africa, the company the women credit with changing their lives.

All Across Africa sources handicrafts from here in Rwanda and also from Uganda and Burundi. The women weave baskets. This model would not distinguish All Across Africa from dozens or perhaps hundreds of other social enterprises that buy handicrafts from marginalized communities in emerging markets, but the story doesn’t end there.

CEO Greg Stone and COO Alicia Wallace have developed an impressive customer base for their products, including Pro Flowers and Costco. Their portfolio of buyers includes hundreds of independent retailers, allowing them to buy in volumes that are unusual.

All Across Africa’s secret sauce is creating contemporary designs that are appealing to Americans that the weavers in Rwanda can produce, rather than simply taking what the women were making and trying to sell it in the U.S.

When the company landed Costco in 2009, they had to grow their phalanx of weavers who supply their products from 60 women to over 1,000 in about 90 days. It has continued to grow ever since. Today, about 2,000 of the women were invited from this part of Rwanda to participate in the celebration. At least half showed up.

The weavers, primarily women but including a few men, held their annual celebration of the year spent working themselves out of poverty. The event is part annual meeting and includes some ceremony, but is primarily a party to celebrate their shared success.

Greg Stone, CEO, All Across Africa

Greg Stone, CEO, All Across Africa

At last year’s event, the weavers presented Greg with a spear and shield as symbols of his battle with their poverty. They recognized that they needed each other to make the climb from the lowest economic rungs to a lifestyle that would include adequate food, shelter and clothing—and dignity. In his remarks, Greg recommitted himself and the company to the fight.

All Across Africa exists to fulfill that mission. Selling baskets is simply the vehicle the company uses to achieve that objective. Organized originally as a nonprofit, the company now uses a hybrid model with a for-profit and a nonprofit entity. The for-profit business, All Across Africa, sources and sells baskets and other handicrafts. Opportunity Across Africa, the nonprofit, provides training.

The company participated in the Global Social Benefit Institute program at the Miller Center for Social Entrepreneurship at Santa Clara University in 2016. I wrote about the program here.

One of the weavers displays special baskets for Alicia Walker, COO

One of the weavers displays special baskets for Alicia Walker, COO

The company has helped the women form and manage co-ops. Technically, the company doesn’t buy products from the weavers; it buys from the co-ops. The co-ops are all independent. They can choose to sell products to other companies and there are several competing for the women’s handicrafts. But, the women say they earn twice as much selling to All Across Africa and so devote the majority of their time to its orders.

The income they make is life changing, they say. Typically, before joining the ranks of the All Across Africa weavers, they ate only two meals a day, including a bowl of porridge for breakfast that would have to last a full day of working outside on their farms. Now, they eat three meals a day, pay others to work on their farms and use their profits to acquire more land and animals. The women take pride in being fat, though few would qualify for that label in the U.S. None of the women appeared skinny or undernourished.

The income increases their status in the community and at home. The women not only earn greater respect from their neighbors but also from their husbands. They admitted that their husbands were dismissive of their work before All Across Africa but no longer. Many women earn more than their husbands and are now true partners in their marriages.

The income is also growing the local economy in unanticipated ways. In addition to using their new wealth to hire farm hands, they also buy sisal, the natural thread they use for weaving the baskets, rather than tediously harvest it themselves as they once did. Each week, the women gather for order days on Monday and Tuesday. A cottage industry of food purveyors has popped up so the woman don’t have to cook or bring lunch.

One of the weavers shows off some freshly harvested sisal.

One of the weavers shows off some freshly harvested sisal.

At today’s event, in a lengthy pageant-like sketch, the women portrayed the complete cycle of change that All Across Africa brings to their lives. They covered everything from how they were recruited and how skeptical they were about changing their lives by weaving to how to run a co-op, to avoid bad financial decisions—like spending their money on banana beer—and how to save for the future. The presentation ended with the women dancing and proudly holding up their bank books.

Irene Mujawayezu, one of the co-op leaders

Irene Mujawayezu, one of the co-op leaders

A local politician was invited to speak. His message, reminding the women to be thrifty and to buy health insurance was at least redundant and perhaps insulting. One of the women leaders, Irene Mujawayezu (her last name means servant of Jesus, one of the staff explained), took the microphone to explain in response that in her co-op, all of the women have their health insurance paid and to otherwise make clear that these women didn’t need a man to tell them how to spend their money.

Alicia Wallace, COO, All Across Africa

Alicia Wallace, COO, All Across Africa

In her remarks today, Alicia invoked a local blessing, “I wish you many cows and much success.” That was also redundant. The women do have many cows and plenty of success.

This week, I’m traveling in Africa as a guest of Santa Clara University’s Miller Center for Social Entrepreneurship’s Executive Director Thane Kreiner and namesakes Karen and Jeff Miller. Read all my reports.

#17africa

Despite Big Impact, This Nonprofit Faces Challenges

Potential Energy, a clean cookstove manufacturer based in Kampala, Uganda is facing challenges on several fronts. Despite having sold 45,000 high-efficiency cook stoves, the nonprofit venture is facing a host of troubles, including some existential threats.

Potential Energy sells the Berkeley-Darfur stove primarily to NGOs that give or sell them to refugees. The stove was developed with help from refugees in Darfur at Lawrence Berkeley National Labs. The wood-burning stove is a highly regarded “tier 4” stove that reduces wood consumption by more than 50 percent and reduces smoke and pollution even more.

The nonprofit notes on its website that the stoves have already impacted 270,000 people, mostly refugees.

But today, Potential Energy faces big challenges. It has paid to produce 5,000 stoves in India that sit there unassembled. According to CEO Jessica De Clerk, originally from Portland, Oregon, the company lacks the resources to bring the stoves to Uganda from India. Between shipping costs and duties, the cost to import them nearly matches the $10 per unit cost to build them in the first place.

Once they arrive, if they do, Potential Energy needs to assemble them and sell them–neither task will be free. While they have a number of small orders, the bulk of the stoves would not have an immediate home. Jessica says she hopes to sell the stoves for $20 each in bulk, meaning that Potential Energy will almost certainly lose money on bulk sales.

The challenges don’t end there. In an effort to broaden its product line and diversify its revenue sources, Potential Energy has begun selling several models of charcoal burning stoves to low-income people in urban Kampala. These stoves range from $6 to $50. The $50 stoves are sold on credit and come with contracts that require the customers to purchase more environmentally friendly charcoal briquettes.

These efforts don’t all sit well with donors, some of whom are focused on moving to the sale only of stoves that are deemed “tier 4” for both efficiency and emissions. Such stoves cost about $100 and require a fan to provide secondary air to enhance burning. Jessica, living and working in Kampala since she came here to support a project for a Portland Rotary Club, says the high prices make selling such stoves impossible. Without them, however, she faces a dearth of funding.

And there’s more. She took us to visit three customers who have purchased the $50 high-efficiency charcoal stoves.

Helen Okidi, Potential Energy customer

Helen Okidi, Potential Energy customer

Helen Okidi lives in a slum in Kampala about 15 minutes’ drive from the Potential Energy office. Helen is obviously proud of her stove and was thrilled to show it off to the international group of visitors from the Miller Center for Social Entrepreneurship at Santa Clara University. She wasn’t reluctant to bring out her old stove to show how much nicer the new one is.

Helen Okidi's two stoves

Helen Okidi’s two stoves

Notably, however, the new stove was clearly not being used regularly. The old stove was full of burning charcoal and she had clearly been cooking with it before we arrived. She had lit some charcoal in the new stove but admitted that she usually cooks with the old one, which consumes much more fuel and emits much more smoke.

Helen was getting virtually none of the benefits of the new stove because she continued to use the old one. She was also buying charcoal at the market rather than using and buying the briquettes that burn more efficiently and come from charcoal dust rather than from burning wood to create charcoal–using up 80 percent of the energy in the wood. So she was getting none of the financial, environmental or health benefits of her new stove.

CEO Jessica De Clerk with customer Betty Sabiti

CEO Jessica De Clerk with customer Betty Sabiti

That is not always the case. We visited both Betty Sabit and Elijah Kizza who have the same stove. Both are using theirs exclusively. Betty says she cooks two meals per day for two people and it works great. A 110-pound bag of the briquettes lasts her two months. Elijah shares the stoves with five roommates. They don’t cook as regularly, but also love the stove and the eco-friendly briquettes, which he says saves them money. Both Betty and Elijah seem to be getting all of the health, environmental and financial benefits of the stove.

CEO Jessica De Clerk with customer Elijah Kizza

CEO Jessica De Clerk with customer Elijah Kizza

Jeff Miller, the namesake for the Miller Center, offered Jessica some advice that she received well. He suggested she focus on the Berkeley-Darfur stove and jettison all of the other distractions so she can build that business to a volume where it can be self-sustaining for the organization.

Moving production to Uganda from India could significantly cut costs, eliminating most if not all importation costs, potentially cutting the landed cost of finished products almost in half.

Jessica is an impressive young CEO. She joined Potential Energy just one year ago precisely because she saw the value and the life-saving potential of the Berkeley-Darfur stove. In the year before joining Potential Energy, she developed a tier 4 stove for LivingGoods that can be produced for just $5. She is committed to the work, obviously bright and apparently hard-working, we left believing that she can find a path to greater sustainability and even more impact.

This week, I’m traveling in Africa as a guest of Santa Clara University’s Miller Center for Social Entrepreneurship’s Executive Director Thane Kreiner and namesakes Karen and Jeff Miller. Read all my reports.

#17africa

How This Collaboration Raised Over $1M For Charity

This post was originally produced for Forbes.

You can download an audio podcast here or subscribe via iTunes.

Collaboration is a word that gets thrown around a lot more than it actually happens. Pledgeling, a small social enterprise, proved the power of collaboration when it signed Evite as a customer and delivered over $1 million in donations in the first year.

Pledgeling is a mobile-centric donation processing company with fifteen employees. CEO James Citron says the company hopes to double the staff within 18 months.

He rattles off early milestones:

  • Powered over 30,000 fundraising campaigns
  • Raised $3 million in donations for 4,000 nonprofits
  • Had 10,000 nonprofits join their network
  • Sold 40 customers who license their software
  • Process “hundreds of thousands” of dollars of donations monthly

Pledgeling is not yet profitable but has 90 percent gross margins, giving it the potential to reach profitability as it scales.

Evite, the collaboration partner, provides digital party invitations. Lots of them. CEO Victor Cho says the company has sent over 2 billion event invitations. The company now sends about 20,000 invitations every hour and has over 100 million annual users. It is a subsidiary of Liberty Ventures Group (NASDAQ: LVNTA, LVNTB). Evite, Cho says, generates most of its revenue from advertising.

Jennifer Young, Global Director of Social Impact Programs, at Pearson, led the implementation of Pledgeling tools at Pearson. She explains why Pearson moved forward with the Pledgeling implementation. “Now more than ever, people are looking online for opportunities to contribute to good causes. That’s a major reason why as part of our campaign at Pearson to raise awareness and inspire action around the global illiteracy crisis, we have elevated online fundraising as our major call to action.”

Shifting demographics as well as technology influence consumer demand, Young says. “We know that Millennials, in particular, are more likely to promote causes across social media and so by integrating Pledgeling’s digital platform into our campaign, we have made it easy for younger advocates – no matter how small their giving potential – to join our movement and contribute in a concrete way.”

Evite was eager to collaborate with Pledgeling, Cho says. “Our users were asking for this functionality.”

Victor Cho, courtesy of Evite

Citron agrees, noting that consumers are more aware of brands’ social impact. “Consumers today increasingly expect brands to align with their purpose and use their business to make a positive impact on the world. Customers will switch to a competitor based on brand values – just look at the #deleteuber movement, which catapulted Lyft into a top 5 app within 48 hours because consumers make choices by their values.”

“In fact, 90% of consumers will choose a brand that gives back over one that doesn’t,” Citron adds.

Cho describes the how the collaboration works for the customer. “With Evite Donations Powered by Pledgeling, we are first and foremost making the process of giving easier–just a couple clicks. Also, importantly, we are offering this service in a way that does not charge a transaction fee.”

The Evite Donations allow Evite users to add a donation option to invites, Cho says. “Whether it is a child who wants to raise money for a charity instead of getting another pile of birthday gifts or a couple who would rather have friends support a favorite cause than bringing hostess gifts or wine, it’s in people’s nature to give. We are just making it simpler for them to do so as seamless part of the event process, and in a way that maximizes their gift.”

Young, who has followed the Pledgeling-Evite collaboration says, “I was really excited when I first learned of the Pledgeling and Evite partnership because of the potential it has to advance the reach of charitable giving through the simple act of connecting people to good causes through the major milestones in our lives – whether it’s a birthday, a wedding or an anniversary.”

Cho says the response to the new feature has been overwhelmingly positive but it hasn’t been without challenges. “Some hosts don’t want their guests to feel pressured or somehow expected to donate,” he says. “Some guests are still compelled to give physical gifts instead of donations.”

“At this point in time, we aren’t yet at a place as a society where giving a donation is widely accepted etiquette in lieu of gifts,” Cho notes.

Citron says that the Evite collaboration is a great example of the success their having, but notes that no single solution will work for customers of all sizes. “we are developing a variety of turnkey tools to roll out soon for smaller, mid-market businesses to make it easier to achieve their goals in ways that are different from our larger, enterprise business customers.”

Pearson’s Young believes the key to the Pledgeling’s success will be to leverage the growth of purpose-driven companies, helping them to frictionlessly connect their customers with causes they care about.

Cho is excited about where the Pledgeling-Evite collaboration will go in time. “We are helping people do good when they get together and the response from our users has been incredible. We’ve had a great start to this partnership and we expect to grow the amount of charitable donations raised exponentially in the coming years. Even the smallest donations can add up to make a tremendous positive impact on the world. It’s very exciting!”

Citron also has grand expectations. “Our vision for the future is that every business will fulfill its purpose through an authentic giving strategy that helps them grow, builds loyalty from their customers and employees, and makes a positive impact on the world.”

On Thursday, February 9, 2017 at noon Eastern, Citron and Cho will join me here for a live discussion about the collaboration’s success and its implications for the future. Tune in here (at the top of this article) then to watch the interview live. Post questions in the comments below or tweet questions before the interview to @devindthorpe.

Never miss another interview! Join Devin here!

Devin is a journalist, author and corporate social responsibility speaker who calls himself a champion of social good. With a goal to help solve some of the world’s biggest problems by 2045, he focuses on telling the stories of those who are leading the way! Learn more at DevinThorpe.com!

Can One Person Change The World? This One Did!

Margaret Mead famously said, “Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it’s the only thing that ever has.” Personally, I would argue that a small group is typically organized and led by one person. Here in Uganda, I found the one.

To be fair, I have been in Uganda three days and I could say this about any number of the remarkable social entrepreneurs I’ve met, but Joseph Nkandu embodies that more than most. Philanthropist Jeff Miller, the namesake of the Miller Center for Social Entrepreneurship, noted in his remarks at a brief ceremony at the National Union of Coffee Agribusinesses and Farm Enterprises, always abbreviated NUCAFE, that most people lack the ambition to dream of doing what Joseph has done: remake a national industry.

Jeff Miller addresses a group of employees and member of NUCAFE

Jeff Miller addresses a group of employees and member of NUCAFE

Joseph participated in the 2016 cohort of the Miller Center’s Global Social Benefit Institute. I covered that for Forbes here.

Over the past 20 years, Joseph has been working to implement his vision of the “farmer ownership model” for growing coffee in Uganda. Perhaps because coffee grows easily in Uganda and millions of people grow a little bit of coffee, the power in the coffee industry has been in the hands of the buyers and their agents.

Joseph observed that farmers in Uganda did not effectively own their coffee. As evidence, he pointed out that when he asked coffee farmers about the price of coffee, they never seemed to know. When he asked the same farmers, who frequently kept a few chickens, about the price of chicken, they always knew. Put another way, small-holder farmers in Uganda have traditionally been price takers.

This provided the basis for organizing farmers into cooperatives to create more balance in the industry so that farmers could negotiate from a position of strength. Today, 198 cooperatives representing 1 million small farmers are members of NUCAFE. Together they produce about $500 million of raw coffee.

More recently, Joseph has been working to create more vertical integration so that the farmers can capture more of the value. Ground, roasted coffee sells for about ten times the price of coffee off the tree. The equipment required to remove the coffee bean from the berry is ubiquitous in Uganda, but beans in that condition aren’t ready to be ground and roasted, substantial cleaning, grading, drying and processing is required to get it ready to be roasted and ground.

NUCAFE has recently constructed and begun operating only the third coffee processing plant in all of Uganda. Joseph believes that it is the only one in the world that is farmer owned. Now, member farmers can pay a tiny fee to have their beans processed, allowing them to increase their revenue 2.5 fold.

Inside the new NUCAFE processing facility

Inside the new NUCAFE processing facility

NUCAFE also built roasting and grinding capacity at the plant and has begun selling coffee under the brand Omukago, a Lugandan word referring to deep, close friendship akin to family, traditionally expressed with a drop of blood on a coffee bean. Although volumes are relatively modest today, the nearly tenfold difference price allows participating farmers to meaningfully increase their profits even if only a portion of their production.

Joseph grew up on a small coffee farm and then attended university to learn how to optimize coffee farming. He realized after completing school that the system was rigged against the farmers and that the industry would have to be restructured to protect the interests of the farmers.

Joseph Nkandu listens to Jeff Miller

Joseph Nkandu listens to Jeff Miller

His father had 16 children–and two wives–stretching the resources of a small coffee grower. His father was also a primary school teacher and understood the need to make sacrifices to ensure that his children had the opportunity to attend school. That investment is now paying dividends for the millions of people who are now benefiting from his son’s work.

Joseph’s next challenge: grow coffee production in Uganda. NUCAFE has targeted a six-fold increase in national coffee production over the next three years. A government-supported effort to plant millions of coffee plants around the country makes this conceivable. If I learned anything from my visit with Joseph, it would be this: never doubt that one person can change the world.

This week, I’m traveling in Africa as a guest of Santa Clara University’s Miller Center for Social Entrepreneurship’s Executive Director Thane Kreiner and namesakes Karen and Jeff Miller. Read all my reports.

#17africa

 

Scaling Rapidly, This Social Entrepreneur Provides Clean Water To Many In 3 Countries

CEO Galen Welsch launched Jibu with his father to provide affordable access to clean water to people in three countries where culinary water–where available–isn’t safe to drink. Already operating in Kenya, Rwanda and Uganda, customers already number in the hundreds of thousands.

While the most prosperous folks in these three countries have long purchased bottled water to drink, Galen believed that he could not only make a profit selling water to less affluent people in three African countries, he also saw the potential to accelerate growth by giving more economic opportunities to people.

Jibu

Jibu

Jibu operates with a franchise model, unlike almost any other. With just about five percent down, Jibu will finance a franchise for a would-be entrepreneur. The total cost of a franchise is about $25,000, but franchisees put down only $1,000 to $1,500 to acquire a store and pay the rest back via volume-based assessments.

Jibu recovers the balance in about three years in Uganda and Kenya but notes that economics in Rwanda allow the company to recover the balance in the first year.

Ron Mugisha is a franchisee in Kampala, Uganda. He says he is happy with the deal. He reports that he is earning more now as a franchisee than he was before. He is excited to earn even more, both by increasing revenue at his current store and by adding new stores.

Franchisee, Ron Mugisha

Franchisee, Ron Mugisha

Ron has already opened a few “micro-franchises.” While Ron, like all of the 20 or so franchisees, operates an actual water filtration system that produces up to 20,000 liters per day, the micro-franchisees are employees of a franchisee and are typically hoping to learn the ropes so they can open their own franchise store. A few micro-franchisees, including one of Ron’s, are simply agents content to represent the company in a small, strategic location where bottled water is stocked but not produced.

The franchisee’s operations aren’t quite as challenging as you might expect, operating a small-scale bottling plant. The water filtration system, developed by a partner in Colorado, is maintained by corporate; the franchisees just need to bottle water and sell it. In fact, to simplify the franchise structure, the company maintains ownership of the equipment, even after the franchisee has paid off the initial financing.

The Jibu strategy is to serve the middle 70 percent of the market, essentially ceding the relatively small market of affluent customers to legacy bottled-water providers and competing instead for the largest part of the market, those who are typically boiling their water. Because boiling isn’t free and isn’t completely effective–you can’t remove some contaminants by boiling–most people in the three countries served can afford Jibu bottled water.

Jeff Miller and Galen Welsch

Jeff Miller and Galen Welsch

The poorest people, those who can’t afford to pay for water at almost any price, comprise about 20 percent of the population. Jibu doesn’t ignore them entirely, instead, Galen has helped to create “water clubs” for people who are referred to a franchisee. After some modest screening, these customers are given an opportunity to buy filtered water at 90 percent off the list price. While these customers are not profitable, it provides a model for helping rather than ignforing the poorest people in the markets Jibu serves.

Jibu has already raised over $5 million and is working on another round of financing to allow the company to keep growing quickly. Santa Clara University’s Miller Center for Social Entrepreneurship estimates that the number of customers reached by Jibu over the past 30 months has grown by more than tenfold to about 250,000. Galen represented Jibu at the Center’s Global Social Benefit Institute accelerator program in 2014.

The total population of the three countries Jibu serves approaches 100 million people, providing ample opportunity for growth.

The company’s social and environmental goals–and progress toward achieving them–has allowed the company to raise millions in the form of grants. The company hopes to quickly scale to 1,000 franchises, employing 8,000 people, including 5,000 women and youth (for whom the unemployment rate is stratospheric). By encouraging customers not to boil water, Jibu hopes to prevent the emission of 300 tons of CO2.

This looks like one to watch.

This week, I’m traveling in Africa as a guest of Santa Clara University’s Miller Center for Social Entrepreneurship’s Executive Director Thane Kreiner and namesakes Karen and Jeff Miller. Read all my reports.

#17africa

Inspired By His Sister, This Man Seeks Maximum Impact From Sanitary Pads

Richard Bbaale was upset that his younger sister could not attend school during her monthly period so he decided to do something about it. After pondering the situation through completing his MBA at Uganda Martyrs University, he launched Bana, a nonprofit social venture to make and sell affordable pads to keep girls in school.

Richard wasn’t content to sell affordable pads to keep girls in school, however. He wanted to use the pads to empower women in every way possible.

Richard Bbaale, outside Bana plant

Richard Bbaale, outside Bana plant

Starting with highly absorbent banana tree fibers, he conceived of an environmentally friendly pad that would be completely biodegradable, especially in Uganda’s ubiquitous pit toilets. Traditionally, the banana tree trunks are simply discarded.

He also wanted to create a distribution channel that would empower women so he’s created an Avon-like sales force of “Champions” who sell the pads to their friends and neighbors. The five-year-old s company is changing the lives of these women in dramatic ways.

All this was not enough for Richard. He recognized that women could help him with the supply of banana tree fibers. He hires groups of women in villages to harvest the banana tree trunks, break them down and pound them to release the fibers. They then dry them in the sun and sell them to Bana. Most women work part time for about $15 per month, but some work nearly full time and earn about $45.

Richard says he’s about to provide the women with equipment that will do much of the hard work of preparing the fiber, allowing them to more than double their production—and their potential incomes. This could allow women who have traditionally earned less than $1 per day to earn $3 or $5 per day.

Most of the employees in the production facility are also women. He’s making every effort to see the production and distribution of the pads change the world for as many women as possible.

To that end, Richard has established a community health clinic that provides a variety of basic health care functions, including labor and delivery, HIV and STD screening, and immunizations. The clinic also provides health education, helping women to understand their reproductive options.

Richard is excited. He is prepared to scale up the production substantially with an infusion of capital. One donor has committed about $750,000 subject to finding another to match that. The capital would principally be used to “industrialize” the production processes in the plant.

Richard introduced us to three of the women who provide Bana with banana fibers.

Maria Nantubwe is a young-looking grandmother who is a painful reminder of the childhood mortality statistics in Uganda, having lost two of her three children. Today, she makes two kinds of soap to sell to her neighbors and occasionally weaves baskets to sell as well. She also works in the garden, growing food for her family. He devotes about six hours per day pounding banana tree stalks into fibers for Bana. She says, “It is hard work but you get used to it.” She says she likes the work because she gets paid immediately when she delivers a 70-kilo bag of fiber and can produce three per month.

Maria Nantubwe prepares banana fiber

Maria Nantubwe prepares banana fiber

Richard  also introduced us to three of the more successful “champions.”

Grace Nalubowa is a 21-year-old mother of one daughter who has been selling Banapads since she was 16 years old. She learned enough about retail sales that she has opened a small retail shop on her family’s property and says she now generates a profit approaching $100 per month.

Grace Nalubowa with daughter

Grace Nalubowa with daughter

Fausta Cibe is a mother of six who sports dyed bright red hair. She too sells other products along with the pads. She sells cosmetics along with the pads to her young women customers. She sells some of the pads to women who resell them, agents who help her increase her volume. Asked how the business changes her life, she says with a cheeky grin, “I feed [my family] well and I look beautiful, as you can see.”

Fausta Cibe, a successful "Champion"

Fausta Cibe, a successful “Champion”

Sylvia Naluyage has been selling for Bana since the company was launched in 2012 and was involved even before that. We visited with her outside of her big new home, about twice the size of the small home where she used to live across the street with her ten children. She practiced her pitch for us, explaining how she always involves a wife’s husband in the sales pitch. She takes credit for the initial sales but notes that the product itself if responsible for resales. Like Fausta, she has built a small network of women from other neighborhoods who act as agents for her.

Sylvia Naluyage, former home left, new home right

Sylvia Naluyage, former home left, new home right

This week, I’m traveling in Africa as a guest of Santa Clara University’s Miller Center for Social Entrepreneurship’s Executive Director Thane Kreiner and namesakes Karen and Jeff Miller. Read all my reports.

#17africa

Impact Measurement Poses Challenge For Social Entrepreneurs And Impact Investors Alike

One of the greatest challenges for social entrepreneurs is how to measure and report impact. For help, I asked Thane Kreiner, PhD, executive director of the Miller Center for Social Entrepreneurship at Santa Clara University, a leading expert on social impact.

This week, as a guest of the University, I will be traveling with Thane to Uganda, Rwanda and Kenya, visiting some of the social entrepreneurs who have completed the Center’s Global Social Benefit Institute social entrepreneurship accelerator program.

Thane Kreiner, courtesy of Santa Clara University

Thane Kreiner, courtesy of Santa Clara University

Here are the questions I put to Thane and his responses.

Impact investors are becoming increasingly sophisticated about measuring impact. What impact measures should social entrepreneurs be prepared to deliver from day 1?

It depends on the sector, impact model, and temporal relation between outputs of the social enterprise and impact. In some sectors, impact is much easier to measure than in others because the impact or outcomes are directly or independently caused by outputs. Conversely, when the time between output and impact is long (e.g., years or decades), impact measurement may not be possible at all, much less in a day. Impact measurement can be costly, particularly when many factors in addition to the output of the social enterprise contribute to the impact or when there is temporal separation between output and impact.

What impact standards should social entrepreneurs use to frame their impact reports?

Social entrepreneurs in almost all sectors should report the number of lives impacted; in doing so, they should explain the theory of change (or logical framework) and provide qualitative examples of what each life impacted means in humanistic terms. Number of jobs or livelihoods created is also an impact reporting standard. Most other impact measures vary by sector or other factors related to the specific form of the impact. For social enterprises serving the poor, economic impact, whether increased income, decreased expenses, or reduction of productivity is a useful measure.

While measuring impact should have the effect of improving impact, how does a social entrepreneur avoid burdening the effort with bureaucracy that stifles impact or thwarts economic success?

Clear communication among stakeholders is essential when defining the impact model, impact metrics, and impact measurement and evaluation process. Impact investors who demand impact measurement should be prepared to fund it. Social entrepreneurs should be realistic about what can be measured quantitatively (“not everything that counts can be counted” – attributed to Albert Einstein, perhaps erroneously) and what cannot. They should also be cautious about attribution error, as many people and communities served by one social enterprise are served by other means.

More about the Miller Center for Social Entrepreneurship:

Twitter: @MillerSocent

Founded in 1997, Miller Center for Social Entrepreneurship is one of three Centers of Distinction at Santa Clara University. The centers embody the University’s mission to unite students and faculty with Silicon Valley leaders to address significant public issues. Miller Center accelerates global, innovation-based entrepreneurship in service to humanity.

Thane’s bio:

Twitter: @ThaneKreiner

Thane Kreiner, PhD, is Executive Director of the Miller Center for Social Entrepreneurship at Santa Clara University. Thane was previously Founder, President, and CEO of PhyloTech, Inc. (now Second Genome), which conducts comprehensive microbial community analysis for human health applications. He was Founder, President, and CEO of Presage Biosciences, Inc., a Seattle-based company dedicated to bringing better cancer drugs to market. Thane was the start-up President and CEO for iZumi Bio, Inc. (now iPierian), a regenerative medicine venture based on the break-through iPSc (induced pluripotent stem cell) technology. Prior to his efforts as a “parallel entrepreneur”, Thane spent 14 years in various senior leadership roles at Affymetrix, Inc., which pioneered the DNA chip industry. Thane currently serves on the Board of Directors for the BioBricks Foundation and as a Board member for Didimi, Inc.. Thane earned his MBA from the Stanford Graduate School of Business; his Ph.D. in Neurosciences from Stanford University School of Medicine; and his B.S. in Chemistry from the University of Texas, Austin.

This week, I’m traveling in Africa as a guest of Santa Clara University’s Miller Center for Social Entrepreneurship’s Executive Director Thane Kreiner and namesakes Karen and Jeff Miller. Read all my reports.

Devin is a journalist, author and corporate social responsibility speaker who calls himself a champion of social good. With a goal to help solve some of the world’s biggest problems by 2045, he focuses on telling the stories of those who are leading the way! Learn more at DevinThorpe.com

#17africa

Why This Founder Thinks She Can Make A Good Educational Kid’s Game

This post was originally produced for Forbes.

You can download an audio podcast here or subscribe via iTunes.

Lindsey Tropf, CEO and founder of Immersed Games, is working with her team to create a massively multiplayer online role-playing game that is as entertaining as World of Warcraft and as educational as school.

Their core product is Tyto Online, is expected to launch soon. One module of the game, Tyto Ecology, is available for sale and has generated $140,000 of revenue to date. This module is a single-player game that has sold 18,000 units.

The Immersed Games team includes 13 full-time staff members plus others working from a “local labor grant.” The startup isn’t yet profitable, but does generate 70 percent gross margins on sales today and expects to ramp that up with volume.

Tropft isn’t just playing around; she’s serious about education. In fact, she’s a doctoral candidate in the School Psychology at the University of Florida.

She says, “We aren’t just creating a video game, we’re creating a learning and inspiration platform. As we grow our content, the long-term vision means that students from eight years old and up can explore a game world with access to learning almost anything they want. They might stumble across some physics quests that spark a passion for the subject.”

She hopes to create something of a bridge from the game to the real world. “Then we suggest an activity on our Learning Dashboard that helps them apply that in the real world and realize that all these skills they’ve been learning actually generalize. This is why I think of us as having the potential to be a learning and inspiration platform for a generation of gamers.”

Tropf sites some interesting statistics. She says, “Young children spend 78% of their screen time doing educational content, but as they get older, that drops drastically. Children eight to 10 only spend 27% of their time in content that parents consider at least somewhat educational.”

She says the reason is pretty simple. Older kids say educational games aren’t fun.

“We’re creating a game that teaches but also plays like a real game– because it is! Tyto Online is an MMORPG, a massively multiplayer online role-playing game, which is a game like World of Warcraft,” she says. “Instead of killing boars and collecting hides for quests, you’re doing things like looking for evidence about if something is an invasive species that you can then transplant out and save the local ecosystem.”

Lindsey Tropf, courtesy of Immersed Games

She notes the design of the game is different from most educational content in two ways. “First, we’re social! As an online game, we can enable unique and emergent types of gameplay that wouldn’t be possible in a single game. For example, we’re planning on teaching entrepreneurship and enabling players to sell to other players in the game, purchase kiosks and advertising, etc. in a real marketplace in the game with live people.”

“Second,” she says, “we’re unified. We’re putting all our content into one single game so that we can retain a player for a long period of time and lead to many learning opportunities (and recurring revenue for a sustainable business model).”

Immersed Games participated in Intel’s Education Accelerator, a four-month, in-residence program for EdTech start-ups that is run jointly by Intel Education and Intel Capital. The selective program draws promising candidates from a “large worldwide” applicant pool, according to Elizabeth Broers, Director, Public Sector Thought Leadership & Intel Education Accelerator.

Broers says, “By applying the foundational concepts of engaging gameplay with 21st-century learning skills, Immersed Games have created worlds where kids can dive in and start creating. The team at Immersed Games created a platform where the learners are treated as gamers but learning as if they were in the classroom.”

She adds, “The learners are creating biomes, learning the concepts of ecology in a fun, game-like environment. Additionally, Immersed Games is also incorporating Next Generation Science Standards and creative problem solving into all their products.”

Tropf says that funding has been one of the greatest challenges so far. Game development happens before the revenue starts, she points out. “In order to build just our first module of content, we had to build the entire networking infrastructure, most of the main game systems, and an entire toolset for content development.”

Today, she worries more about what’s coming. “I’m most concerned about optimizing our tools and workflow so we can create content as quickly as possible to make sure we have a large set of learning opportunities in the game world. And of course making sure those experiences generate a really engaging gameplay experience.”

She also worries about user acquisition. “Our first game sold pretty well on Steam, but that’s mainly ‘core’ gamers — 18-35-year-old men, and isn’t the right fit for Tyto Online, so we’re pursuing testing new channels and messaging with parents and kids themselves.”

There are limitations to how far the game can go in approaching the learning environment in school. Tropf explains, that in the game, players may be challenged to figure out why some jackrabbits are getting sick and propose a solution. “An excellent teacher can make this completely open-ended where students can present an unlimited amount of solutions and work through it, while in the game setting, we do have to pre-design this and code it in, so we naturally have a more limited amount of solutions.”

Tropf acknowledges another limitation is that the game can’t put students into the real world. “There’s the risk that students may not generalize their learning and realize they can apply these outside of the game world if they only learn in a game. We’re working to address this with our web-based Learning Dashboard.”

“Our long-term goal is to think of this as an inspiration platform. Students can play for years as they learn across many areas of content, being exposed to new subjects and digging deep into complex systems for their favorites, like mastering building ecosystems,” Tropf says.

Broers is optimistic about the company’s prospects. “Immersed Games has a huge opportunity in front of them and we look forward to watching them grow and expand Tyto Online into additional STEAM areas. As with any start-up, it’s all about how quickly they can execute but they have a talented group with a clear mission and the momentum is with them.”

On Thursday, February 2, 2017 at 1:00 Eastern, Tropf will join me here for a live discussion about the startup’s game development and strategies for distribution. Tune in here (at the top of this article) then to watch the interview live. Post questions in the comments below or tweet questions before the interview to @devindthorpe.

Never miss another interview! Join Devin here!

Devin is a journalist, author and corporate social responsibility speaker who calls himself a champion of social good. With a goal to help solve some of the world’s biggest problems by 2045, he focuses on telling the stories of those who are leading the way! Learn more at DevinThorpe.com!

Artificial Intelligence Is Now Ready For Social Entrepreneurs

This post was originally produced for Forbes.

You can download an audio podcast here or subscribe via iTunes.

The University of Southern California has recently created the Center on Artificial Intelligence for Social Solutions or CAISS, specifically to develop uses of artificial intelligence–AI–for use cases of interest to social entrepreneurs.

The Center is a collaboration between the USC Viterbi School of Engineering and the USC Suzanne Dworak-Peck School of Social Work. Eric Rice, an Associate Professor from the School of Social Work, has been tapped to lead CAISS.

The potential for AI to be an effective tool for entrepreneurs with no background in technology is confirmed by Rice himself. When asked about his LinkedIn profile URL, he acknowledged not only that he doesn’t have one, but also said, “I’m a bit of a Luddite.

Eric Rice, courtesy of USC

The Center has gathered commitments of $3 million for its launch. The two partner schools put up much of that money with additional funding from private partners. CAISS has an annual operating budget of $500,000 and has only one full-time staff person. The Center itself is a 501(c)(3) nonprofit.

Leading the new Center is as close to entrepreneurship as Rice admits getting, though as an academic he is entirely focused on social good.

Rice explains that the Center is looking at two particular sets of social problems. The first set is the “Grand Challenges for Social Work” established by American Academy of Social Work and Social Welfare. These twelve challenges are focused on social issues facing the United State. The other set is the Sustainable Development Goals or SDGs established by the United Nations in 2015 as goals for poverty reduction by 2030, primarily focused on the developing world.

One of the first projects the Center has undertaken is developing an AI tool to identify peer leaders among Los Angeles County’s homeless youth. By better identifying peer leaders, they can spread information about AIDS infection and prevention more rapidly. Their initial study showed success in increasing the number of youth who were getting tested for HIV.

Alison Hurst, the founder and executive director of a Safe Place for Youth, admits she hasn’t given much thought to how AI can be used to serve the homeless youth her organization is charged with helping. “I just know that we need to use all the tools in the bag to understand the interventions needed as our social problems keep growing,” she says.

The Center is one of the first places that AI engineers and social scientists have come together. Rice points out that “AI lets you model the messiness of the real world so you can probabilistically figure out how to proceed.”

Eric Rice, courtesy of USC

One of the partners in the youth project is called My Friend’s Place, which is led by Executive Director Heather Carmichael, LCSW. She notes the potential for both financial and social benefits from implementing AI tools. “My Friend’s Place is doing amazing work with 1,500 youth experiencing homelessness every year,” she says.

“With limited resources and the breadth and complexity of the young people’s needs, it is our obligation to pursue knowledge, support and interventions that will reach the greatest number of youth,” she continues. “Imagine, if AI can help us identify 1 of the 100 youth we serve daily as a potential peer leader, we can expedite an invitation to health education and peer leadership programming, and ultimately ‘produce’ peer leaders socially positioned for the greatest impact!”

Rice observes that one of the biggest challenges the Center faces is getting the engineers and the social scientists speaking the same language. “Their way of thinking is very mathematical. Our way of thinking isn’t,” he says. “We had problems because we weren’t speaking the same language.”

That challenge also is the key to AI’s promise, Rice says. ” They ask each other questions they’ve never heard before .” This creates opportunities for answers they’ve never given before.

Not all social problems appear to lend themselves to AI applications, Rice acknowledges. Mental illness is an example he sees where AI interventions may be a long way off.

He insists, however, that AI has great potential for solving social problems and points at the success with the youth program. AI helps social scientists see unlikely outcomes, in contrast to traditional statistical models that help us see how the average person sees average problems.

Barbara Grosz, Higgins Professor of Natural Sciences in Harvard’s Paulson School of Engineering and Applied Sciences, also collaborates on the youth project in LA County. She is optimistic about the collaboration’s promise to help solve social problems.

“AI has the potential to support significantly, and in diverse ways, the work of people who are addressing social problems,” Grosz says. “For it to succeed in doing so, though, requires the combined efforts of those with expertise in AI and people whose expertise in the social sciences and policy give them a deep understanding of these social problems, their roots, and the key characteristics of approaches that are likely to work.”

She also highlighted the contributions of Rice’s co-founder, Milind Tambe. She adds, “It needs sufficient support to enable their work.”

While the collaborations have yet to create consumer products, it is clear that the Center’s work could now begin to complement efforts of social entrepreneurs with sufficient backing from impact investors to develop new tools for addressing social problems.

On Thursday, February 2, 2017 at 4:00 Eastern, Rice will join me here for a live discussion about using AI for solving social problems. Tune in here (at the top of this article) then to watch the interview live. Post questions in the comments below or tweet questions before the interview to @devindthorpe.

Never miss another interview! Join Devin here!

Devin is a journalist, author and corporate social responsibility speaker who calls himself a champion of social good. With a goal to help solve some of the world’s biggest problems by 2045, he focuses on telling the stories of those who are leading the way! Learn more at DevinThorpe.com!

 

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