2015 Yunus Social Business Impact Report

Social Businesses That Solve Human Problems
YUNUS SOCIAL BUSINESS - 2015 IMPACT REPORT
“A social business is a company 100%
dedicated to solving a social problem in
a financially self-sustainable way.”
TABLE OF CONTENTS
Foreword
About Us
Our Global Impact
Country Performance
Entrepreneur Services
Financing
Portfolio Overview
Social Business Spotlights
Special Projects
Our Team
Lesson’s Learned
Our Partners
Supporting YSB
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ACKNOWLEDGEMENTS
Over the years, I have created many businesses. I learned
from my experience with microfinance the power social business has to solve human problems, and that this is
universally applicable to all sectors. So whenever I wanted
to solve a human problem, I tried to think of how to use
a business approach to address it. These were new kinds
of companies, designed to help others rather than to make
money for ourselves. Whatever profit we made from the
companies, we reinvested to make them grow and solve even
more problems.
I started calling this type of company a social business.
The concept of social businesses has been the missing piece
in the framework of the business world. The present day
money-centric capitalism cannot continue. In light of the
financial and many other crises, we need to rethink the fundamentals of our economic system, a system that has failed
again and again to address basic problems of our world, such
as poverty, inequality, disease, unemployment, and environmental degradation amongst many others. In relation to the
size of the problems, traditional charitable work can only
ever play a small role to fix them. But social businesses can
be much bigger, because they recycle money many times and
keep growing, solving problems along the way.
Through my own experiences I have seen how social businesses are a good way to combine the efficiency of market-based competition with philanthropic goals. I have created many social businesses in Bangladesh, such as Grameen
Danone (nutrition), Grameen Veolia (water), BASF Grameen
(mosquito nets), Grameen Shakti (renewable energy),
Grameen Intel (software solutions for agriculture/healthcare)
Grameen GC Eye Care Hospital, to name a few. They have
proven their effectiveness in solving pressing problems and
have grown and become stronger.
The mission of Yunus Social Business Global Initiatives is to
spread this success to other parts of the world, via the innovative “Accelerate and Finance” concept. We are confident
that social businesses will become an attractive option for
more and more social business entrepreneurs, existing businesses, fund managers, foundations, bilateral and multi-lateral
development agencies, governments and philanthropic lenders.
YSB Co-Founders CEO Saskia Bruysten (l) and CFO Sophie Eisenmann (r)
With YSB Co-Founder and Chairman and Nobel Peace Prize Laureate Professor Muhammad Yunus (c)
SASKIA BRUYSTEN Co-Founder and CEO
2015 has yet again been an exciting year for YSB.
A big congratulations to the 34 social businesses we
have now financed globally: They have managed to
TRIPLE their impact in one year! These companies
are now serving over 800.000 customers with essential products or services, incl. clean water, healthcare,
nutritious food, etc. and have created over 3000 jobs.
Next to our financing activities, our country teams
have been busy identifying, selecting and supporting
great entrepreneurs in 7 regions around the world.
Since inception over 500 entrepreneurs have taken
part in our world-class accelerator programs.
Our impact may still seem small compared to the vast
ocean of social problems out there, but we believe
it sets a significant example. The refugee crisis once
more has shown the importance of improving living
conditions and income opportunities of people in
emerging countries. YSB tackles the problem at its
root by investing in local entrepreneurs that develop solutions for problems of poverty in their home
countries.
2015 has been a very important year because the
world has shone a light on the topics we deeply care
about. Over 150 countries have come together in the
United Nations to adopt the Sustainable Development Goals (SDGs) - a set of 17 ambitious goals that
aim at ending poverty by 2030.
15 years are a very short time and stakes are high. We
cannot only leave it all up to the traditional players
like governments and NGOs. Every single one of
us has to play a role in getting this important work
done. We believe that social businesses can make a
significant contribution in creating bottom up and
financially sustainable solutions to some of these 17
daunting global problems.
Impact Water e.g., is a Ugandan social business that
sells UV-based water cleaning systems to schools and
thereby addresses 4 SDGs at the same time: health,
education, water and climate. This company has
already provided clean drinking water to almost half
a million students across Uganda and is just getting
started.
Nutrivida sells soups, drinks and cereal enriched with
the necessary vitamins to combat malnutrition in
Costa Rica. The products are also sold via a network
of female micro-entrepreneurs from marginalized
backgrounds. This social businesses addresses 3 SDGs
for food, health and jobs.
These are simple but game-changing solutions for
problems where traditional markets and aid have
sometimes fallen short. YSB has supported and financed these and many other similar companies at an
early stage.
All of this, would not have been possible without you,
our partners.You have generously committed your
expertise, time and your capital to make this a reality.
A big thank you to all of you.
We are now looking forward to our concrete task in
2016 of supporting over 100 impactful companies
like Impact Water and Nutrivida and many more in
the coming years. Join us in making a mutual contribution to ending poverty by 2030.
YUNUS SOCIAL BUSINESS - 2015 IMPACT REPORT
All photos in this publication are
of YSB’s team, its social businesses and/or their beneficiaries.YSB
would like to express gratitude
to: Gabriel Leitão (in Albania,
Brazil, Tunisia, Uganda, Haiti and
Germany), Manuela Castaño and
Maria Fe Defilippi (in Colombia), Brand Haiti and Nouveau
Concepts (in Haiti) and our local
teams for additional photo’s.
Design: Fré Sonneveld.
PROF. MUHAMMAD YUNUS Co-founder and Chairman
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FOR MORE INFORMATION
ON WHAT WE DO VISIT
WWW.YUNUSSB.COM
ABOUT US
Yunus Social Business - Global Initiatives
(YSB) grows entrepreneurs in emerging
economies to solve social problems in a
business way. The social businesses we
support create significant social impact in
the areas like agriculture, healthcare, energy
and environment. We are active in 7 regions,
where local country teams source, coach
and mentor entrepreneurs through tailored
accelerator programs. YSB subsequently
finances the most promising social businesses
and also provides long-term support to
maximize impact.
We work with social businesses to help
them create long term social impact while
operating in a financially self-sustainable way.
Ulrich Villis – European Leader Social Impact
Practice, The Boston Consulting Group
YUNUS SOCIAL BUSINESS - 2015 IMPACT REPORT
“Social business is a powerful
concept at the intersection of
the social and business realms.
The objective is to apply the
professionalism and efficiency
of the business world to solving
the world’s most pressing social
problems. And to do so in a selfsustaining way, providing choice
and personal responsibility for
those who benefit from it”
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OUR GLOBAL IMPACT
Since its inception in 2011,Yunus Social Business has deployed over $8.6 million either as direct
funding or mobilised funds from partners and donors to finance 34 social businesses around the
world. Thus impacting over 800,000 lives in developing and emerging countries.
7
500+
800,000+
REGIONS
ENTREPRENEURS SUPPORTED
LIVES IMPACTED
SINCE 2011 WE HAVE DEPLOYED USD $ 8,6 MILLION*
IN SOCIAL BUSINESSES OPERATING IN THE FOLLOWING COUNTRIES
Balkans
USD $544,148
3000+
JOBS CREATED AND/
OR SUSTAINED
$8.6M
Tunisia
USD $147,584
34
DEPLOYED
TO SOCIAL BUSINESSES
Costa Rica
USD $1,211,232
SOCIAL BUSINESSES
FINANCED
Colombia
USD $1,626,443
34 SOCIAL BUSINESSES FINANCED SINCE OUR INCEPTION
4 Energy and Environment
4 Other: Social businesses addressing
needs of disadvantaged groups such as
women in vulnerable communities,
providing security, transportation or
other related services.
Brazil
India
USD $2,584,338
Uganda
USD $309,342
3000 + JOBS CREATED/SUSTAINED & 800.000 + CUSTOMERS SERVED
823K
4000
800.000
3000
600.000
2000
400.000
1000
0
200K
250K
200.000
870
1.278
3.405
2013
2014
2015
0
1 Education and Vocational Training
*All amounts are in USD $ and are an aggregate of all total amounts used to finance social businesses
across the different countries and regions where we operate.
Jobs Created
Lives Impacted
YUNUS SOCIAL BUSINESS - 2015 IMPACT REPORT
15 Agriculture and Livelihoods
10 Health and Sanitation
Haiti
USD $2,191,611
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AGGREGATED COUNTRY PERFORMANCE
HAITI 2010
UGANDA 2013
TUNISIA 2013
BALKANS 2012
The YSB Haiti office was opened with the
support of our founding partner SAP. Currently, the team manages a portfolio of 12 social
businesses.
In partnership with the African Development
Bank,YSB Uganda was started in November
2013 and already supported over 100 entrepreneurs. Three social business received financing
in 2015.
In partnership with the African Development
Bank, Tunisia was the first in a series of African
countries to replicate the social business concept. Since 2014,YSB Tunisia ran two accelerator cycles and currently manages a portfolio of
two social businesses.
YSB expanded from Albania into the Balkans
in 2015 – now supporting entrepreneurs in six
countries regionally. Five Albanian businesses
received funding so far, with a growing pipeline
in the region for 2016. Over 250 entrepreneurs
have been supported since inception.
Accelerator Programs
Accelerator Programs
Accelerator Programs
300
APPLICATIONS
12
SELECTED
304
APPLICATIONS
15
SELECTED
578
APPLICATIONS
Accelerator Programs
21
360
SELECTED
APPLICATIONS
36
SELECTED
Social Businesses Per Sector
Social Businesses Per Sector
Social Businesses Per Sector
Social Businesses Per Sector
Agriculture and Livelihoods
Education and Vocational Training
Energy and Environment
Health and Sanitation
Other
Agriculture and Livelihoods
Education and Vocational Training
Energy and Environment
Health and Sanitation
Other
Agriculture and Livelihoods
Education and Vocational Training
Energy and Environment
Health and Sanitation
Other
Agriculture and Livelihoods
Education and Vocational Training
Energy and Environment
Health and Sanitation
Other
Impact
Impact
Impact
Impact
762
LIFES IMPACTED
83.430
JOBS CREATED
1.217
JOBS CREATED
LIFES IMPACTED
402.000
9
LIFES IMPACTED
39
JOBS CREATED
64
LIFES IMPACTED
45
JOBS CREATED
COSTA RICA 2014
COLOMBIA 2011
BRAZIL 2013
INDIA 2011
The first corporate social business joint venture
with a Costa Rican leading food company,
Florida Ice and Farm Company, was launched
in 2014, to produce food to combat malnutrition in children.
YSB Colombia was created in 2011 originally as
Grameen Caldas and officially became YSB Colombia in 2013. It currently manages a portfolio
of 2 social businesses to date, including a joint
venture with potato giant McCain.
YSB India was launched in 2011 in Mumbai,
and 7 social businesses have received financing
to date.
Social Businesses Per Sector
Social Businesses Per Sector
In March 2013,YSB Brazil was launched to
spread the social business concept.Yunus Negocios Sociais Brasil, as it is locally known, already
ran 4 accelerator cycles since inception and
launched a social business university network
in 2015. After working on the pipeline, funding
activties are expected to start in 2016.
Agriculture and Livelihoods
Education and Vocational Training
Energy and Environment
Health and Sanitation
Other
Agriculture and Livelihoods
Education and Vocational Training
Energy and Environment
Health and Sanitation
Other
Impact
Impact
JOBS CREATED
LIFES IMPACTED
14.866
251
APPLICATIONS
26
SELECTED
Agriculture and Livelihoods
Education and Vocational Training
Energy and Environment
Health and Sanitation
Other
Impact
636
JOBS CREATED
LIFES IMPACTED
27.877
122
JOBS CREATED
LIFES IMPACTED
264.758
YUNUS SOCIAL BUSINESS - 2015 IMPACT REPORT
428
Accelerator Programs
Social Businesses Per Sector
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ENTREPRENEUR SERVICES
YSB invests in people, in their dreams and their abilities. A social business – like
any business – is shaped, fostered and strengthened by the team behind it, not
the other way around. We therefore work hard to identify the most promising
entrepreneurs who have a clear vision, a strong profile and a deeply rooted desire
to create an impact within their communities. As part of this process we engage
in extensive outreach in the countries we operate in, holding social business
workshops, conferences and events with local partners.
Once we have identified high-potential social businesses, we provide them with a
broad set of non-financial services to scale their impact.
STATE-OF-THE-ART
CURRICULUM
1-ON-1 COACHING
Customized state-of-the-art
curriculum delivered through
a structured accelerator program, including workshops
and presentations by leaders
and experts and product market testing according to the
lean business model approach.
Individually tailored 1-on-1
coaching for each entrepreneur from selected social
business consultants, experts
and local and international
mentors to strengthen strategic plan, business model and
financials.
“My mentor has been of tremendous help on various aspects.
He provided very useful strategic thinking and helped me
create a much clearer vision of my social business. Having
outside party experts is very important for entrepreneurs.”
Emiland – YSB Albania Entrepreneur
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ACCELERATOR
PROGRAMS
CONNECTION WITH
A COMMUNITY
INVESTMENT
READINESS
Facilitation of partnerships
with potential distributors
and customers, as found
through our strong network
Connections with a network
of entrepreneurs within the
Yunus Social Business and
the Grameen family
Preparation for pitches to
YSB’s Financing Committees
Negotiated packages with
reliable service providers, for
example in accounting, legal,
or promotion and marketing
Opportunities to share experiences and challenges with
like-minded entrepreneurs
Connections with other
potential investors
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La Pain O Quotidien, Haiti, Financed
2000+
APPLICATIONS
500+
ENTREPRENEURS
SUPPORTED
YUNUS SOCIAL BUSINESS - 2015 IMPACT REPORT
ACCESS TO MARKETS
AND PROVIDERS
FINANCING
YSB FINANCING PROCESS
Our in-country investment professionals support our social businesses to pitch to
the global Investment Committee.
INITIAL SCREEN AND PRELIMINARY DUE DILIGENCE
Before financing, each social business undergoes a detailed, fact-based 3-level due diligence process.
BUSINESS PLAN ASSESSMENT/ REVIEW AND DUE DILIGENCE
In an interactive process, the Investment Committee screens each proposed business,
starting with interviewing the entrepreneur. It then works together with country teams to
make recommendations to entrepreneurs to advance their business plan.
HOW IT WORKS
YSB Funds gGmbH (Germany) is organized as a non-profit, and pools
philanthropic capital from donors and philanthropic lenders to finance social
businesses which have been selected by the YSB country offices. Our selection
criteria include:
• a strong entrepreneur and team,
• depth and breadth of social impact
• replicability and scalability
• strength and maturity of the business model
Our loans are generally structured as long-term shareholder loans with a small
equity portion, leading to a minority stake of up to 25% in our portfolio
companies.The loans feature below-market-conditions and grace periods of up
to two years, to give the social businesses breathing room at the start. As the social
businesses pay back the capital,YSB re-finances other social businesses, and/or
returns it to philanthropic lenders in proportion to their share of the total capital
contributed, up to the nominal value of their initial investment.
FINANCING DECISION
The Investment Committee will take the final decision on financial support to the social
business cases following completion of the due diligence process. The decision is based on
evaluation of the entrepreneur and team, social impact, financing sustainability and risk
profile, replicability and scalability and maturity of each individual business.
“YSB voiced what I believed in.
I was hooked by this common set of values”
YSB Entrepreneur, Tunisia
NEGOTIATION OF TERMS AND CONTRACTING
YSB and the entrepreneur enter into pre-agreed binding contracts defining exact terms
and conditions of the financing package.
In agreement with the entrepreneur and their management team, a monthly, quarterly and
annual reporting schedule is set. This includes financial as well as social key performance
indicators (KPIs) most relevant to the specific social business.
We rely on output indicators as proxies for assessing the actual impact of the business.
Reporting also includes operational milestones, to allow close tracking of the social business.
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St George Valley Organic Farming, Albania, Financed
YUNUS SOCIAL BUSINESS - 2015 IMPACT REPORT
FINANCING
PORTFOLIO OVERVIEW
“An entrepreneur is someone
who jumps off a cliff and builds a
plane on the way down.”
Since its inception in late 2011,YSB has deployed $8.6 million to 34 social businesses. More than 3,000 jobs have been created or sustained so far and over 800,000
clients have been served with vital services like safe drinking water, access to health
care or affordable and clean energy. Although impact is generated across the whole
portfolio, some “winners” stand out by successfully scaling their business and impact
model and thereby driving the social impact performance of the portfolio.
Reid Hoffman – founder of LinkedIn
For 2016 and beyond, we expect an acceleration of YSB’s financing activities,
driven by two developments: on the one hand, an increasing number of YSB’s
portfolio companies are reaching an expansion stage requiring follow-on financing,
hence bringing up the average funds deployed per social business. On the other
hand, more recently established YSB countries, such as Uganda or Tunisia, have after
intensive initial ground work developed a strong pipeline that will result in more
social business financings in 2016 and beyond.
The majority of businesses which we have financed are concentrated in the agriculture and health sector, reflecting the typical challenges that people face in those
developing and emerging markets YSB is active in: agriculture is by far the largest
income generating sector, with often up to 50% of the population earning their
livelihoods from farming activities, however, earning barely enough to sustain their
families. Healthcare services, even basic ones, are often unavailable or underdeveloped, especially in rural areas, and hardly affordable for the poorer segment of the
population.
IMPACT MEASUREMENT
Social businesses are build with the sole purpose
to create an impact by solving a social problem.
Impact measurement is thus essential to our
work.
With YSB’s portfolio becoming more mature and more social businesses reaching
the end of their grace period, repayments have increased from 2014 to 2015.
Currently, YSB relies on the output indicators of
our portfolio companies as proxies for assessing the actual positive impact of our businesses.
In alignment with IRIS metrics as outlined by
Global Impacting Investing Network (GIIN),
we require all our portfolio companies to report
their monthly, quarterly and annual Key Performance Indicators (KPIs) that have been identified
as being relevant, as well as their business-development milestones and an overall business
assessment. These KPIs are set together with the
entrepreneurs during the investment process.
PORTFOLIO MANAGEMENT AND MITIGATING RISKS
We know that running a successful business is not only about getting the start right,
it’s about staying on the ball in the long run. Therefore, we work closely with social
businesses we have financed in order to enable sustainable growth and maximize
their impact. While this support is generally provided on an as-needed basis, regular
interaction with the entrepreneurs coupled with monthly reporting enables us
to closely monitor the advancement of the business along previously determined
milestones.
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Pé de Feijão, YSB Brazil, Accelerated
YUNUS SOCIAL BUSINESS - 2015 IMPACT REPORT
Examples of collaboration with the entrepreneurs include advice on strategic questions and challenges, identification of organizational needs, recruitment of senior
personnel, and targeted introduction to YSB’s global and local network of industry
and functional experts and business partners, depending on the individual needs of
the social business. In addition, our growing portfolio enables us to create synergies
between portfolio companies as well as to foster mutual learning and experience
sharing amongst social businesses with similar business models or activities.
In the future, we will also increase our efficiency
in collecting relevant data and monitoring our
progress through an SAP-based solution that
provides web-based reporting opportunities for
entrepreneurs in all countries. This will further
strengthen our monitoring processes.
IMPACT WATER, UGANDA
Providing safe and affordable drinking water
to schools
In Uganda, over 440 children still die
every week due to waterborne diseases.
A much higher number falls sick from
contaminated water which results in
lower school attendance. The social
business sells, installs and maintains
environmentally-friendly UV-based
water purification systems to schools on
low cost, multi-year credit terms. This
helps schools to avoid burning firewood
for boiling water and therefore offsets
CO2 emissions while reducing medical
costs for the families.
Impact Water already serves over one
thousand schools in Uganda and
provides clean drinking water to more
than 400,000 children.
Reducing plastic waste pollution in Haiti
Haiplast’s mission is to find a solution
for Haiti’s massive waste problem, by
reducing and recycling plastic waste,
while at the same time providing
better working conditions for Haiti’s
informal waste collectors. Plastic
waste has disastrous effects on the
environment in Haiti. The informal
solid waste workers, one of the lowest
social groups, oftenoperate without
the necessary protection and therefore
face tremendous health risks.
Improving the livelihoods of local farmers living in the poorest socioeconomic communities in Colombia.
Campo Vivo is a Joint Venture between McCain Foods and Yunus Social Business with a purpose to
improve the livelihoods of local farmers and their families living in low socioeconomic communities
in rural Colombia.
Approximately 31% of Colombia’s population live in rural areas. Furthermore, poverty rates are estimated at 63%. The poorest communities rely on farming as a source of income generation. However,
farmers face on-going challenges: small and low-yield lands, restricted access to capital, limited access
to new farming technologies and technical assistance, and no bargaining power to sell of their crops.
Campo Vivo works with groups of farmers to improve their quality of life, as well as the lives of those
working in the entire production chain. It strengthens the local farmer’s competencies and ensures
farm produce are sold at a competitive rate and thereby allows for higher incomes for farmers and the
wellbeing of their families.
Campo Vivo started its operations in Une, Cundinamarca on May 2014. The first pilot was executed
with 20 agriculture workers in a 40-hectare farm, starting with potato plantations – which will be
periodically alternated with rotation crops before producing any other crop.
Currently in its initial phase, Campo Vivo is expected to execute three plots in different communities
across Colombia over a three-year period ending in May 2017. Each pilot will include development
of three units, each unit employing a total of 75 agriculture workers and cultivating an equivalent area
of 1.5 hectares per person.
YUNUS SOCIAL BUSINESS - 2015 IMPACT REPORT
Haiplast works through such informal
waste workers in collecting, recycling
and processing plastic waste which
then can be sold on the international
market, while at the same time
offering training and education
programs. In 2014 alone, Haiplast
has collected and recycled around 3
Million pounds of plastic waste.
CAMPO VIVO, COLOMBIA
SOCIAL BUSNIESS SPOTLIGHTS
HAIPLAST RECYCLING, HAITI
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UDRUZENE, BOSNIA
Training and income sources for marginalized
women through handicraft
Udruzene produces high quality
handicraft for international clients with
the help of women in rural areas of
Bosnia. Udruzene’s mission is to help
women who have suffered from war,
violence and social marginalization
in the past, using knitting as a way to
confront war traumas and reintegrate
women into society, through economic
and psychosocial empowerment. The
social business also provides good and
flexible income to the women.
GREEN BIO ENERGY, UGANDA
Access to affordable and environmentally
friendly energy solutions for Ugandan
families
Green Bio Energy produces and
distributes clean energy solutions to
low income families in Uganda. Their
product range includes energy
efficient cook stoves and
environmentally friendly briquettes,
made from recycled bio material.
Compared to traditional charcoal
briquettes, their solution reduces
indoor air pollution and CO2 emission
while tackling deforestation for
charcoal production.
Udruzene currently has 200 knitters
from around Bosnia and Herzegovina.
TO FIND OUT MORE ABOUT OUR SOCIAL BUSINESSES AROUND THE W ORLD
CIFEA BEE FARM, TUNISIA
BIVE, COLOMBIA
Affordable and increased healthcare for
low-income families
The Jendouba region of Tunisia has a
population of approximately 400,000
with an estimated 20% unemployment
rate. For small-scale beekeepers without
proper training in beekeeping, achieving high levels of hive productivity
that will provide a sufficient income
is a challenge. Beekeepers are quitting
their small-scale bee farms in search for
jobs in cities that provide a more stable
income.
Denial of services and medications,
long waiting times, and difficult administrative procedures are huge obstacles
for access to healthcare for the poor in
Colombia. This translates into a higher
occurrence of preventable diseases,
delayed diagnosis, increased spending
on high complexity treatments and
lower quality of life. Bive has created a
network of 120 health care providers
that offers discounts and immediate
care with a focus on the poorest of the
poor. A Bive membership plan not only
provides general access to care, but also
discounts of up to 68% on the price
of private providers and a guaranteed
medical appointment within 7 days.
Based on its strong experience of
managing 300 hives of its own, CIFEA
in a next step aims to provide essential
beekeeping training and potential access
to markets to local small-scale beekeepers in Jendouba. It plans to collect,
distribute, and commercialize organic
certified honey, and eventually other
hive products, to wholesalers in local
and international markets.
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VISIT WWW.YUNUSSB.COM/SO CIAL-BUSINESSES
Since its operations from November
2012, it currently has over 20,000
members in Caldas region.
YUNUS SOCIAL BUSINESS - 2015 IMPACT REPORT
CIFEA launched a beekeeping centre to tackle
unemployment
NUTRIVIDA, COSTA RICA
ARYODI BEE KEEPING, UGANDA
Nutrivida is addressing the issue of malnutrition in low income families in Costa Rica
Addressing unemployment and income generation in war-torn Northern Uganda
Nutrivida is a social business joint
venture between Florida Ice and Farm
Company and Yunus Social Business,
offering nutritious food products at
affordable prices to the base of the
pyramid. Malnutrition is a common
problem in Central America and can
cause long term health problems for
infants and children. Nutrivida has
developed a range of products such as
soups, drinks, and cereals, which are
enriched with vitamins and minerals.
Aryodi runs an integrated bee keeping
resource centre with training facilities in Northern Uganda, where the
civil war displaced over 1,5 M people,
leaving the region with high youth
unemployment and few income
opportunities.
Since its start of operations in January
2014, Nutrivida has already served over
2 million meals.
Aryodi is training their bee farmers
in environmentally friendly bee
farming, which is also more profitable.
The social business already works with
2,400 out-growers and buys its honey
products for a fixed price, which then
is marketed through a joint brand.
Aryodi sells the honey nationally and
also increasingly on the international
market.
TO FIND OUT MORE ABOUT OUR SOCIAL BUSINESSES AROUND THE W ORLD
SENIORS HOUSE, ALBANIA
Dignified healthcare for the elderly
Seniors House is an elderly home-care
social business that offers high quality
daycare and residential services to
improve quality of life for the elderly in
Albania. Being the first social business
with high international standards of
service, it has received attention from
major Albanian media. Seniors House
already has 28 clients and a full list of
interested clients for the months to
come.
Digo is a distribution social business,
working in partnership with “Les Industries Digo”; the only major manufacturer of domestic cleaning products
in Haiti. Digo Distribution works with
micro-entrepreneurs to help them to
sell these products to end customers. At
30% of the price of traditional cleaning
products, Digo helps Haitian families
fight water-borne diseases. Digo supports these micro-entrepreneurs with
branding and marketing, and supplies
the product on credit.
Rather than selling in pre-packaged
containers, Digo allows customers to
bring their own plastic containers to
sales points. This reduces the cost to
the customer. At the end of 2015 Digo
had built up a network of over 350
points of sale, up from 100 in 2014,
now reaching over 50.000 customers.
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VISIT WWW.YUNUSSB.COM/SO CIAL-BUSINESSES
Access to sanitation and cleaning products for
low income families
YUNUS SOCIAL BUSINESS - 2015 IMPACT REPORT
The social business has painted a much
more positive picture of senior care in
Albania and inspired the government
to revise its guidelines on elderly care
in the country. Many other senior
houses are now entering the market
benefitting from the groundwork the
entrepreneur has done.
DIGO, HAITI
SPECIAL PROJECTS
INTRODUCING THE SOCIAL SUCCESS NOTE
EVPA EXPERT GROUP ON NON-FINANCIAL SERVICES
The Social Success Note (SSN) is an innovative
financing tool that YSB developed together with
the Rockefeller Foundation to address the financing gap for social businesses. Philanthropic
capital that is not seeking a financial return - like
the funding that YSB’s current donors and lenders
are generously providing - is an extremely scarce
resource. The SSN is a mechanism that leverages
a small amount of philanthropic capital to crowd
in typical return seeking capital, which is more
widely available, while ensuring the social business
can stay fully focused on its mission. This year the European Venture Philanthropy Association brought together leaders
in non-financial support for social entrepreneurs in an expert group. The group
developed a “Practical Guide to Adding Value through Non-Financial Support”
for venture philanthropists and impact investors that want to accompany the
capital they provide with support, training and mentoring. The expert group was
funded by Fondazione CRT, Acanthus, BMW Foundation and Omidyar Network.
Participants included organisations such as Acumen, Big Society Capital, ERSTE
Foundation, Ernst & Young, Impetus-PEF, LGT
The mechanism of the SSN relies on an agreement between 3 parties: an outcome payer (a
foundation, government or development agency),
an investor and a social business. The outcome
payer commits to pay an investor an investment
yield if (and only if) the social business achieves
specific pre-agreed social outcomes. The social
business, meanwhile, is responsible for repaying the investment principal from its operating
surplus.
By aligning investors’ incentives with the achievement of the business’ social objectives, the
mechanism of the SSN makes both investors and
investee share the same interests:
• Financial sustainability: in order for the investor to receive back the investment principal,
the business needs to achieve profitability,
thus at the same time ensuring long-term
sustainability of its social impact.
• Maximising social impact: the investor is
incentivized to direct the business towards
maximising measurable social impact that will
trigger the pay-out from the outcome payer.
In 2015,YSB became a member of ANDE, a global network of organizations that
propel entrepreneurship in emerging markets. ANDE members provide critical
financial, educational, and business support services to small and growing businesses
(SGBs) based on the conviction that SGBs will create jobs, stimulate long-term
economic growth, and produce environmental and social benefits. Ultimately,
ANDE believes that SGBs can help lift countries out of poverty. ANDE is part of
the Aspen Institute, an educational and policy studies organization.
We are thrilled to partner
with YSB on developing
the Social Success Note - a
new opportunity to unlock
capital that will address
the world’s most critical
challenges. YSB and The
Rockefeller Foundation share
a commitment to helping
the poor and most vulnerable
and we believe there is
tremendouspotential in the
Social Success Note to
catalyze systemic change”
Dr. Judith Rodin,
President of The Rockefeller Foundation
GLOBAL ACCELERATOR LEARNING INITIATIVE (GALI)
As a member of the ANDE network,YSB became a contributor to the GALI,
an initiative that aims to understand early-stage acceleration and its effect on the
companies accelerated, especially for small and growing businesses in emerging
markets. GALI builds upon the work that was done by The Entrepreneurship
Database program at Emory University (EDp) which has collected information
on more than 3,500 enterprises and partnered with more than 60 accelerator
programs to date.
GLOBAL SOCIAL ENTREPRENEURSHIP NETWORK (GSEN)
YSB is an active member of the GSEN, bringing together leading incubators and
accelerators for social entrepreneurs across the world. In 2015,YSB contributed
to the GSEN learning week and the GSEN Annual Report with insights on our
global activities.
YUNUS SOCIAL BUSINESS - 2015 IMPACT REPORT
Yunus Social Business and The Rockefeller Foundation are working together to launch a pilot of
the SSN in 2016 with one of YSB’s social businesses. To learn more, visit www.yunussb.com/
social-success-note.
ASPEN NETWORK OF DEVELOPMENT ENTREPRENEURS (ANDE)
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COUNTRY LEADERSHIP
GLOBAL MANAGEMENT TEAM
ERIAB KIIZA
Country Director Uganda
Former Uganda Investment
Authority
SHKELZEN MARKU
DANIEL NOWACK
Country Director Balkans
Former Ministry of
Agriculture Albania;
Executive Director MADA
Program Director Balkans
Former Merck & Co. Inc;
CFO at mobile incubator
LEILA CHARFI
CAMILO SANTA
Country Director Tunisia
Former Microsoft Africa;
Manager of Tech Accelerator
Country Director Colombia
Former UNDP;
coordinator for World Bank
PHILIPPE SAINT CYR
CLEMENTINE LALANDE
Country Director Haiti
Former American Chamber
of Commerce in Haiti
Program Director Haiti
Former BCG Consultant
AARTI WIG
Country Director India
Former JP Morgan;
LSE Alumna
Nobel Peace Prize Laureate,
Co-Founder and Chairman
SOPHIE EISENMANN
SASKIA BRUYSTEN
Co-Founder and CFO
Former Siemens Consulting;
GE Capital; Insead Alumna
Co-Founder and CEO
Former BCG Consultant;
LSE Alumna
SYLVAIN FERRIERE
Program Director, Africa
Former BCG Consultant;
CEO of a fashion startup
KAREN HITSCHKE
Director of Funds
and Investments
Former McKinsey
Consultant; APAX Partners;
Insead Alumna
MEET MORE OF OUR IN-COUNTRY AND GLOBAL EXPERTS ON
YUNUSSB.COM/TEAM
YUNUS SOCIAL BUSINESS - 2015 IMPACT REPORT
ROGERIO OLIVEIRA
Country Director Brazil
Founder of Movimento
Buena Onda;
HEC Montreal Alumni
PROF.
MUHAMMAD YUNUS
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LESSONS LEARNED
FINDING THE BEST ENTREPRENEURS IS KEY – AND HARD
YSB entrepreneurs are the drivers of radical positive change in the countries we
operate in. Finding strong entrepreneurs with the right skills and mindset to scale
their social business is at the core of what we do. We have learned that both a
robust local sourcing strategy and a competitive selection process into our accelerator programs are critical to identifying great entrepreneurs. It is essential to
build a broad local network of diverse sourcing partners that help us find the best
entrepreneurs. We also need to systematically keep track of talented entrepreneurs
through relentless and on-going “hunting” strategies. To complement sourcing
initiatives and ultimately select the most promising entrepreneurs, we implemented
a competitive screening process that includes an online assessment, 1-on-1 interviews and field visits.
LINK ACCELERATION AND INVESTMENT
A detailed due diligence process is essential to select the best investments and
identify a company’s strengths and weaknesses. This takes time and time is precious
for our entrepreneurs. To allow faster and better investment decisions, we learned
that we need to better integrate due diligence elements into the accelerator
program. Due diligence data can already be collected during the selection process
and the interviews for the accelerator program. We also found it helpful to define
clear “deal-breaker” criteria in each stage of the investment process to assess more
quickly if a deal should move into the next phase.
TRAIN THE TRAINERS
We rely on external presenters, mentors and technical experts with local expertise
for specific legal or fiscal topics. External trainers and coaches are most efficient
when they understand YSB’s philosophy, our methodologies and most importantly
the specific needs of early stage social businesses. It is important to conduct the
on-boarding ahead of time and to make sure that there is a clear understanding of
their role and time commitment.
“I am a strong believer in the
positive socio-economic impacts of
social entrepreneurs and was very
excited when I was contacted by YSB
to mentor one of their candidates.
ONE SIZE DOES NOT FIT ALL
Entrepreneurs need a tailored approach, which can be identified through thorough
and iterative needs assessments. We have seen that local mentors and technical
experts who know the local market and can provide practical examples, are most
useful for our entrepreneurs when setting up their businesses.
As their venture grows, international mentors and functional experts can provide
valuable advice on more in-depth topics. Peer-to-peer learning and connecting
YSB entrepreneurs from different countries is especially useful to share industry
knowledge.
NOTHING BEATS REALITY
Product prototyping and testing is an integral part of the YSB accelerator program
curriculum. Instead of focusing on extensive and in-depth planning and market
research, testing for markets and customer validation or for social impact provides great value. This approach benefits our entrepreneurs and also informs YSB’s
financing decisions.
Leila Ben Gacem, Founder of Blue Fish,
Mentor at YSB
38
27
Pé de Feijão, YSB Brazil, Accelerated
YUNUS SOCIAL BUSINESS - 2015 IMPACT REPORT
In-fact it is always a great pleasure
to work with the YSB team and
contribute to social business growth
in Tunisia!”
GLOBAL PARTNERS
IN-COUNTRY PARTNERS
BOSTON CONSULTING GROUP Global Social Impact Partner
BCG has been supporting Professor Yunus and his social business network, including our organization, since 2012, providing consulting, mentorship, and volunteer
support. In 2015, BCG welcomed YSB and Prof.Yunus’ Social Business network as
their sixth global Social Impact partner. As corporations aspire to use their business
expertise to address the challenges faced by society, social businesses present a way
to harness the private sector’s best practices, skills, and knowledge, all of which are
needed to deliver greater value and increase operational efficiency. BCG is engaged
in facilitating discussions between Professor Yunus and multinational companies
around the world, helping explore opportunities to develop social businesses tailored to their value chains.
ROCKEFELLER FOUNDATION
The Rockerfeller Foundation worked with us to develop the Social Success Note,
an innovative financing tool that will be piloted in 2016.
USAID
USAID and YSB have formed a Global Development Alliance committed to
incubating and financing social businesses worldwide. Haiti has been the first YSB
country to sign the partnership with USAID, followed by Uganda and Albania.
Around the world, we rely on the expertise of our global and local
partnerss to build strong eco-systems for social businesses in the
countries we operate in. We would like to thank in particular the
following partners:
VIA VAREJO Sponsorship of accelerator programs in Brazil
The Via Varejo Foundation has kindly sponsored our accelerator
programs in Brazil in 2014 and continues to provide support to
YSB Brazil through mentorship and participation in demo days.
JOINT VENTURE WITH MCCAIN
Transforming the living conditions of farmers in rural areas in Colombia
Campo Vivo intervenes with the agricultural value chain by developing competencies in small-scale farmers, strengthening the social
tissue and promoting competitive productive activities in vulnerable
rural communities.
ROBERT BOSCH STIFTUNG
JOINT VENTURE WITH FLORIDA ICE AND FARM COMPANY
In 2015 we jointly hosted the first Foundation Roundtable on Social Businesses, a
practical exchange on how foundations can support the social business eco-system
in developing and emerging economies. We are grateful for the funding support
Robert Bosch Stiftung has provided to YSB Tunisia.
Fighting malnutrition in Costa Rica
FRESHFIELDS BRUCKHAUS DERINGER Developing legal models for social business
In 2014 we launched our first corporate social business joint venture with Costa Rican leading food company, Florida Ice and Farm
Company.The joint venture produces and sells enriched cereals,
soups, and drinks to combat malnutrition, particularly targeting
children under the age of five in Costa Rica.
The corporate law firm continues to provide extensive pro-bono legal
support and helped us bridge the divide between charitable legislation and
the social business sector. This partnership has led to legal structures that are
ground-breaking for the future best practice of social business investing.
Innovative approaches towards reforestation in Haiti
KIVA Opening small-scale financing opportunities of social business for anyone
YSB partnered with the crowd-funding platform KIVA.org to enable individuals
around the world to lend to social businesses with microloans as small as 25 USD,
with our social businesses receiving some of the largest loans ever financed through
KIVA.
AFRICAN DEVELOPMENT BANK AFDB has supported us in Tunisia and Uganda
In partnership with the African Development Bank,YSB is developing
a social business movement in Tunisia and Uganda.
HAITI FOREST INITIATIVE
In Haiti, YSB joined hands with Richard Branson’s Vigin Unite,
the Leona M. and Harry B. Helmsley Charitable Trust and the
Clinton Foundation to set up the Haiti Forest Initiative.The Initiative’s innovative approach is based on two individual pillars: 1)
reforestation impact and 2) value creation deriving from products
of trees with farmers at the core of the model. It is a bottom-up
approach to reforestation, setting up a chain of interlinked social
businesses that aim to create markets in agroforestry products such
as fruits, nuts, and oils.
UGFS & BFPME
Yunus Social Business has collaborated with the J.P. Morgan Private Bank Philanthropy Centre. The Philanthropy Centre at J.P. Morgan offers clients the opportunity
to learn current best practices and trends in philanthropy through advice, thought
leadership, and collaborative opportunities.
YSB Tunisia partnered with a Tunisian Fund manager, UGFS,
and jointly created, in July 2015, the first Seed Fund dedicated to
financing Social Businesses in Tunisia. BFPME is kindly supporting
us in sourcing promising social businesses in Tunisia.
UNITED POSTCODE LOTTERIES Developing sustainable solutions to social challenges
The Swedish and Dutch Postcode Lottery Foundation have partnered with YSB
over a 3 year period to support our efforts in accelerating and financing social
businesses around the world.
We would like to thank our numerous individual partners
who have generously supported and inspired us in growing
game-changing social businesses.
YUNUS SOCIAL BUSINESS - 2015 IMPACT REPORT
JP MORGAN
29
HELP US CREATE SOCIAL IMPACT
SUPPORT SOCIAL BUSINESSES FINANCIALLY There are two options to provide capital to your personal social businesses portfolio:
a) Make a tax-deductible donation.
b) For larger amounts, become a philanthropic lender with the option to be repaid
over time as the social businesses repay their capital.
We believe that our model maximizes the long-term impact of your philanthropic
capital in the following ways:
• Customer-orientation, accountability, scalability and long-term impact through
market based approach of social businesses
• Capital can be recycled multiple times, creating more impact each time
• Financial supporters can choose the sector and geography they most care about Financial supporters are closely involved with the work we do:
• Semi-annual impact reports on your personal social business portfolio
• Field trips to see YSB entrepreneurs in action
• Personal invitations to conferences, events and workshops around the world DONORS
PHILANTHROPIC LENDERS
YUNUS SOCIAL BUSINESS - GLOBAL FUNDS (CHARITABLE)
YSB LOCAL COUNTRY
YOU CAN MAKE AN IMPACT
BY SUPPORTING YSB
In supporting YSB, you can help grow visionary social
businesses that tackle major problems in developing and
emerging countries around the world.Your support will
help to screen, select, accelerate and finance high-potential social business entrepreneurs that create scalable
impact in areas such as agriculture, education, environment, health & sanitation as well as local economic
development.
FINANCIALLY
Become a philanthropic lender to your personal
social business portfolio or make a tax deductible
donation.
WITH YOUR EXPERTISE
Become a mentor for our social businesses or as a
volunteer social business consultant for YSB.
BECOME A PART OF YSB’S GLOBAL NETWORK
Connect with our social business entrepreneurs on
YSB Partner Trips, visit one of our country offices
or meet us at one of the many networking events
around the world.
SOCIAL BUSINESSES
GET IN TOUCH!
Bank Details: Yunus Social Business Funds gGmbH
Bank: Gemeinschaftsbank eG
BIC: GENODEM1GLS
IBAN: DE22430609676018634500
LEARN MORE BY VISITING YUNUSSB.COM/GET-INVOLVED
YUNUS SOCIAL BUSINESS - 2015 IMPACT REPORT
MAKE A DONATION TO SUPPORT
SOCIAL BUSINESSES YUNUSSB.COM/DONATE
Bastian Mueller
YSB Partnerships
bastian.mueller@yunussb.com
+ 49 (0) 69 905590 30
www.yunussb.com
31
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