Incubating & Scaling Business Solutions to Poverty Issues VSLA: An Effective Means of Promoting Social Enterprise.

Incubating & Scaling Business Solutions to Poverty Issues

VSLA: An Effective Means of VSLA: An Effective Means of Promoting Social Enterprise Promoting Social Enterprise

What is a VSLA? What is a VSLA?

The Village Saving and Loan Association is a groups of 20-30 self-selected participants who make regular savings contributions by purchasing shares to a loan fund from which any of the members can borrow and pay back with interest

The growth of the fund permits group members to acquire assets which build economic stability at the household level

Why VSLA?Why VSLA?

Groups are low-cost, simple to manage and can be seen as a first step for people to reach a more formal and wider array of financial services.

VSLAs can dramatically raise the self-respect of individual members and help to build up social capital within communities, particularly among women who represent approximately 70 percent of member

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What is Social Enterprise? What is Social Enterprise? What is Social Enterprise? What is Social Enterprise?

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Social Enterprise

Ventures that advance their primary social

mission using business models and approaches

Social Enterprise

Ventures that advance their primary social

mission using business models and approaches

Market-based programming

Development projects achieving social impact via engagement of the poor as resilient and

creative entrepreneurs as well as value-demanding

consumers

Market-based programming

Development projects achieving social impact via engagement of the poor as resilient and

creative entrepreneurs as well as value-demanding

consumers

Why Social Enterprise?Why Social Enterprise?Why Social Enterprise?Why Social Enterprise?

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• Harness market-based mechanisms for program impact,

sustainability & scalability;

• Explore new models of operation and of financing,

especially in countries with diminishing aid assistance and

increasing private sector presence;

• Adopt a more entrepreneurial approach: encourage

innovation, replication & scale; incubate real game-

changers.

Establish collaborative linkages for

mature VSLAs with formal

financial services and Market

engagement.

Advocate reducing barriers

to financial access. Identify financial sector

policies and procedures that

meaningfully increase women

and youth’s access to formal

financial services.

WOMEN’S EMPOWERMENTWOMEN’S EMPOWERMENT

Scale up Village

Savings and Loan

Associations effectively

and efficiently through

Implementation Partners Organization

s (IPO).

Social Enterprise Explore new models of

operation and of financing,

especially in countries with diminishing aid assistance and

increasing private sector presence;

CARE HAITI VSLA & Eco Dev Strategic PlanCARE HAITI VSLA & Eco Dev Strategic Plan

Summary Statistics for VSLA Groups in HaitiSummary Statistics for VSLA Groups in Haiti

385 VSLAs formed with 10,878 members of whom 77% are women

Savings mobilized equals 462,886 USD

Outstanding loan portfolio totals 437,150 USD

Portfolio at risk is 0.4%

Loan utilization rate is 73%

Data from MIS, September 2013

CARE Enterprises’ mandateCARE Enterprises’ mandate

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1. To support the incubation of enterprise-based solutions to poverty issues, their evolution to self-sustainable entities, their growth and long-term success;

2. To attract social investments from foundations, corporations and investment funds in the form of equity or debt investments to fuel the growth of CARE’s enterprises.

How does CARE develop social enterprises How does CARE develop social enterprises in Haiti? in Haiti?

• Since 2009, CARE Haiti has successfully formed and supported 385 Village Savings and Loans Associations (VSLAs) made up of 10, 878 participants. Our plan is to expand this experience to 10,000 VSLAs creating a network of 300,000 micro-entrepreneurs across the country.

• Through CARE’s VSLA approach, the village groups quickly increase the level of their investment capital and form stronger micro-entrepreneurs. The network of these micro-entrepreneurs constitutes a strong platform for a large range of social enterprises. CARE Haiti incubates a portfolio of social enterprises and set up a social investment fund to support the growth and quality of these social enterprises

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Pathway for evolutionPathway for evolution

Phase IIIPhase III Phase IVPhase IVPhase IIPhase IIPhase IPhase I

Assessment & roadmap

Assessment & roadmap

Business proposal design

Business proposal design

TransitionTransition Spin-offSpin-off Social EnterpriseSocial EnterpriseProject / IdeaProject / Idea

Phase VPhase V

• Spin-off the entity;• Bring in co-

investors;• Manage venture

ensuring long term results.

Funding mechanism

Key phases

Grants Venture capital

• Mainstream social enterprises as part of project design;

• Work at an early stage with potential partners & investors.

Key activities

• Assess potential ventures;

• Develop a roadmap for evolution;

• Engage donors;• Provide technical

assistance.

CARE backed Social Enterprises in HaitiCARE backed Social Enterprises in Haiti

1. Micama Soley: In partnership with Micama Soley, CARE works to strengthen the capacity of existing VSLA members to access financial services and engage in profitable new enterprises, particularly in the area of solar power.

2. LIV : CARE donates seed capital in the form of books to the SMCs who then sell and reinvest profits back into the school / Sustainable school.

3. Cocoa: The Haitian cocoa market presents an example of an emerging opportunity for social enterprise.

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Together we are

powerful

Diaspora

I have a voice to influence the Haitian and US Governments

I have skills to offer my country and the organizations working in Haiti.

I have financial resources to contribute to lasting social change through social

investment.

People in Haiti

Haitians have ideas about what they want for their country.

Haitians have entrepreneurial spirit.

Haitians know the potential and challenges in their

communities.

CARE and Partners

CARE works through community driven

development to implement programs addressing poverty

and social injustice.

CARE builds social enterprise and manages social investment funds.

CARE organizes personal investment into scalable long-

term programs with shared learning.

Partnership / Investments

CARE partnership ModelCARE partnership Model

For more information please, please contact:

 1. Innocent RUTIKANGA| Financial Inclusion & Social Enterprise

Coordinator : [email protected]

2. Gilda Charles | VSLA & Women’s Empowerment Manager: [email protected]

3. Mc Arthur Elisma | Linkages & Enterprise Development Manager : [email protected]