Introduction to TechnoServe June 2010
Introduction to TechnoServeJune 2010
What We Do
TechnoServe is a leader in a movement that empowers people in the developing world to build businesses that break the cycle of poverty.
Who We Are
A U.S.-based, nonprofit economic development organization.
Philosophy: Private enterprise can drive economic growth and positive social change; a hand up is better than a handout.
History: Founded in 1968 by businessman Ed Bullard, who pioneered the private-enterprise approach to solving poverty.
Staff: Talented business advisors, many of them former management consultants or industry experts.
Partners: Leverage the expertise of strategic corporate, non-profit and government partners.
Funding Sources: U.S. and foreign government agencies, multi-lateral organizations, corporations, foundations and individuals.
Active Programs
HondurasIndia
KenyaMozambique
NicaraguaPeru
RwandaSouth AfricaSwazilandTanzaniaUganda
VenezuelaZambia
BeninBoliviaBrazil
Burkina FasoChile
ColombiaCôte d'Ivoire
EcuadorEl Salvador
EthiopiaGhana
GuatemalaHaiti
Where We Work
Past Work (extensive)
Democratic Republic of Congo
Guinea-BissauMadagascar
MaliSudan
BelizeCosta RicaDominicaPanamaPoland
Norwalk, CT OfficeWashington, DC Office
London, UK Office
Emerging Programs
GuineaMalawiMexicoNigeria
Zimbabwe
The Basis for Our Work
The problem: About 40 percent of the world’s population lives in poverty, mostly in rural areas of the developing world.
The solution: Boost private enterprise that helps poor people in developing countries, especially in rural areas.• Targeted economic growth drives development and creates
opportunities for poor people to improve their lives.
• Small- and medium-sized enterprises (SMEs) are a critical engine of growth, creating jobs as well as markets for products and services.
• Sound business strategies and practices help entrepreneurs createcompetitive SMEs.
How Helping Businesses Reduces Poverty
TechnoServe assists businesses in developing countries
These businesses earn revenues
They pay wages to employeesThey buy products from small-
scale producers*
These income sources lift families out of poverty
*In many cases, we also work directly with the small-scale producers.
The Results in 2009
TechnoServe assisted 2,140 businesses in more than a dozen industries
These businesses earned $189 million in revenues and $27 million in profits
They paid $20 million in wages to 53,900 employees
They bought $62 million worth of products from
218,100 small-scale producers
Nearly 1.4 million men, women and children people benefited from these income sources (based on 5 people per family)
In addition, our entrepreneurship development programs trained more than 5,400 people in nine countries.
Our Approach – Building Businesses and Industries
The core elements of our approach:
Identify a high-potential industry that can support
scaleable, replicable businesses that benefit the rural poor, and the point(s)
along the value chain where interventions can be most
effective
Find someone with business aptitude and the drive and determination necessary to
succeed
Provide the necessary technical and business
development support to help the business reach its full
potential
Promote regulations and policies that improve the business climate
Improve the business model based on experience and use it to launch or expand more
businesses within the industry
Improve the business environment
Analyze the business
opportunity
Identify the entrepreneur
Refine and scale up to expand
impact
Develop the business
Our Approach – Entrepreneurship Development
Business plan competitions (BPCs): Help fledgling entrepreneurs turn good ideas into workable businesses. Identify and encourage promising entrepreneurs, giving them business skills and seed money, and offering a forum for investors to find deserving projects.
Entrepreneurship classes and camps: Teach the “ABCs” of business to youth and adults (especially women), helping them develop viable business plans. Also train and certify teachers to conduct such training.
Local economic development (LED): Help entrepreneurial people build businesses within specific geographic regions – for example, in mining communities or poverty nodes
We also run entrepreneurship development programs that promote a culture of entrepreneurship:
Our Services
Developing EntrepreneursEntrepreneurship training
Business plan competitions
Building Businesses
Business needs and feasibility assessment
Business planning
Market linkages
Capital raising
Managerial and employee training
Management consulting
Technical advice
Intensive operational support
Farmer organization and support
World-class business mentor linkages
Building IndustriesMarket and industry research
Industry strategic planning
Supply chain organization
Industry association formation and support
Policy analysis
Advocacy support and training
Improving the BusinessEnvironment
Capital access
Leadership development
Developing local business service providers
Sectors in Which We Have Distinctive Expertise
Agriculture & agribusiness
• Notably Artemisia, cashew, coffee, cocoa, cotton, dairy, horticulture, livestock and feed, and tea
Alternative energy
Tourism
Strategic Partnerships
Impact
Core Indicators: Track our clients’ business performance and how that translates into direct benefits for the rural poor (in terms of jobs, wages and markets for small-scale producers).
Return on TechnoServe Investment (ROTI): Reflects our cost-effectiveness, in terms of impact per dollar spent.
Social Impact: In-depth impact assessment studies. There are also important results we can’t measure, such as the self-assurance, pride and hope that come with success.
We track and evaluate our impact through:
Case Study: Rebuilding Mozambique’s Cashew Industry
Mozambique was a world leader in production and processing in the early 1970s, twenty years later the industry had collapsed.Undifferentiated FAQ raw nuts were all exported; other nations benefited from the value-added processing.
Context
Our solution
Work with local entrepreneurs to establish small processing plants near rural suppliers, help in capital raising, plant design, training.Use efficient labor-intensive technologies to extract premium nuts; build durable marketing structures and linkages. Help create and sustain new market linkages (forward and backward), build brand, and improve bargaining power.Help farmers improve productivity and quality of nuts and replant
Results
In 2008, 13 assisted plants purchased raw product from more than 102,150 producers, paying premiums of up to 15%.Processing plants have average export sales of nearly $600,000.More than 5,100 direct jobs created. Local entrepreneur-owned services company managing brand/quality and providing ongoing services.
Case Study: Driving shared value with Nespresso/Nestle and smallholder coffee farmers in Colombia
Associations of smallholder farming families located in a geographic area with an ideal climate for growing coffee that could enter into the Nespresso premium-grade “AAA” category and receive a premium.No established value chain; lack of farmer knowledge of how to take advantage of the opportunity.
Context
Our solution
Partnership between anchor buyer of premium grade “AAA” coffee (Nespresso)m committed smallholder farmers (1,260 families), and support institutions (the National Coffee Producer Association and Expocafe)Develop the value chain model; calculate the benefits for each playerDeliver technical, farm-level training to improve qualityDevelop practical traceability system and drive efficiencies along the value chainFacilitate an innovative partnership between farmer, buyer and sector support institutions
ResultsTrained 1,260 small-scale farmers, resulting in the sustainable integration of 1,740 farmers in the “AAA” value chainIncreased the volume of “AAA” quality coffee bought from small-scale farmers by 99 percentReduced payment time to farmers by 50 percentImplemented a “AAA” coffee traceability system
Accolades
Rated one of the top 5 NGOs for corporate partnerships by the Financial Times
Named one of the world’s “Outstanding Social Entrepreneurs” by the Schwab Foundation for Social Entrepreneurship
Rated one of “America’s 100 Best Charities” by Worth Magazine
Received the Presidential End Hunger Award from USAID
“TechnoServe’s partnership with our government is bringing concrete results in the fight against poverty: jobs, opportunities, and globally competitive industries.”
— Aiuba Cuereneia, Minister of Planning and Development, Mozambique
"I was greatly impressed by the variety of sectors that TechnoServe is involved with and the tremendous impact that TechnoServe’s work is having with regards to economic development and job creation."
— Titus Brenninkmeijer, Founder of Solgenix and Energy Access Foundation and
TechnoServe member since 1998
“Google is an entrepreneurial company, so we appreciate TechnoServe’s business focused approach to development…Together we are helping men and women turn their good business ideas into thriving enterprises.
— Rachel Payne, Google.org manager
TNS is currently working in 9 sectors across West and Southern Africa
*Includes youth entrepreneurship and other enterprise development/local economic development
Country Cotton Timber Feed + Livestock
Cocoa Cashew Oilseeds Hort. BPC YE and other ED/ LED*
Cote d’Ivoire
Ghana
Moza-mbique
South Africa
Swazi-land
And 11 in East Africa
*Includes youth entrepreneurship and other enterprise development/local economic development
Country Cotton Feed + Lives-tock
Bananas Cocoa Cashew Coffee Tea Hort. Dairy BPC YE and other ED/ LED*
Ethiopia
Kenya
Rwanda
Tanzania
Uganda
19
TNS is currently working in 15 areas across Latin America
*Includes youth entrepreneurship, business plan competition aftercare and supply chain development^Melon, peach, native fruits jocote, nance, pomelo^^Pea, green beans, plantain, tomato, onion, green pepper, chili pepper, eggplant, lettuce, cabbage,carrot, broccoli, beets, asparagus
Bol. Col. Chile Ecua. El Salv Guat. Haiti Hond. Nica. Peru Venez.
Aquiculture
Biofuels
Coffee
Dairy
Entrepreneurship*
Ethnic Products
Cocoa
Fruits^
Vegetables^^
Wood Products
Roots and Tubers
Soybean
Floriculture
Oil Palm
Recycling
Contact Information
TechnoServe headquarters:
1800 M Street, NW, Suite 1066, South TowerWashington, DC 20036Tel: +1 202 785 4515Fax: +1 202 785 4544
Email: [email protected]
For office locations around the world, check www.technoserve.org