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How Do Social Business Models get funded?

.By government (ie privatization) or foundation. This ought to be perfect case for demanding same taxation treatment as charities

 Gov Cases: Naandi (see below); hiow BRAC scaled oral rehydration knowhow across rural Bangladesh

Foundation Cases; Nike Foundation contribution to Grameen Nurse; apparent logic of Hilary Clinton speech on USAID 2010 

 

 

By hugely resourced organisations whose reputation, innovation, or regional strategy is boosted

.By replication after relatively small initial funds

each perspnal loan of about $1000 funds secondary school Grameen Shikkha scholar with fund rolling on to another scholar unless need to return loan

Had been model of funding 10000 rural telecentres -typical cost $5000 returned after 3 months to start next one -a concept of Grameen Solutions  

By SB stockmarket  funds.By family of entrepreneurs or tech product that has segmented usesBy university or learning institute which gains from being an r&d epicentreAs "legacy" of one of world's wealthiest - Carlos Slim currently wor;d's richest man is sponsor of Grameen Carlos Slim microcredit Mexico

my favourte new-to-me case was naandi- love the way that it is privatization the way my dad intended- basically naandi has a water solution frachise ; it then goes off to local goverenment and says you need to give us land and resources to get the franchise up and running for this community after which it is sustained by postive cashfkow- when emanuel faber asked hom many are you aiming to build in next 2? years - the response was 2000!

 

this is a pretty good write up -do say if you find a better one, chris http://www.businessmodels.tv/

http://www.jeannechen.com/tag/naandi-foundation/

Woman Getting Water from Naandi Plant

Yesterday was World Water day and my recent visits to the field made me pause and think about the tremendous strides that have been made in parts of India to bring clean water to every village. Just last week, the Villgro fellows were in Hyderabad, visiting the rural water plants of Naandi and Byrraju Foundations. Both organizations have similar operations of establishing water filtration plants in rural villages, which provide clean water for consumption at a price of ~Rs. 2 per day for each family (assuming a consumption of 12L).

How it works:

1. Villages demonstrate that they want and can support a water plant by collecting a portion of the funds to contribute to the building costs, which also creates a sense of ownership

2. Naandi and Byrraju Foundations conduct due diligence on the village including a feasibility study and evaluation of need

3. Local panchayats (village heads) allocate land or a building for the installation of the water plant; Naandi and Byrraju work with the community to plan the building to make sure that the community’s needs are incorporated

4. Naandi and Byrraju raise the additional funds for the cost of building and installation of the water filtration system

5. Local people are trained and employed to be the plant supervisors and managers (Naandi’s model has 2 employees per plant vs. 4 employees per Byrraju plant)

6. One employee serves as a sales and awareness building representative, who encourages village households to use the facility

7. Each household pays an initial ~Rs.100 – 150 for a 12L or 20L water jug as a membership fee and then pays a monthly ~Rs. 60 for daily water usage; purchases are tracked with a membership card

8. Operational costs of employee salaries and filtration system maintenance are covered by the pay-per-use model

Best Practices

Visiting both facilities, there were also a few best practices which I think are worth sharing:

1. Instill practices to encourage usage of clean water – Naandi’s membership card has 30 slots for each day of the month. When households come to collect their water each day, the appropriate slot is marked off. Households pay Rs.60 for the monthly card of 30 days and cannot roll over any missed days. According to health studies, 12L is the amount that an average household needs to consume daily, so the objective here is to encourage households to consumer only clean water by forcing them to collect 12L per day or losing that option value.

Byrraju Water Plant

Byrraju Water Plant

2. Make it a water party - the water plant in Nellutla that we visited was a community center as much as it was a clean water source. The multiple taps and self-service model encouraged villagers to come in the mornings and evenings around the same time to commune as well as to collect their water. The plant was also located right by the village temple. The village also hosted parties around the water plant, since it was centrally located and was a natural gathering place.

IMG_4609 3. Increase transparency and accountability of the NGO – at the Nellutla water plant, there was a prominent plaque on the building displaying the donors who contributed to the building. But what was more remarkable was the display of the responsible parties and their contact information. The manager of Naandi’s water project was clearly listed along with his mobile number. Any time that the villagers had a problem with the plant, they knew who to call.

It may sound simple, but it is truly impressive what Naandi and Byrraju have done in just the last few years. Naandi aims to be in 400 villages by the end of the year, which at an estimated 2,000 people per village could potentially impact 800K people! Both Naandi and Byrraju currently operate in Andhra Pradesh, which has one of the country’s greatest needs for clean water. The lessons learned there will certainly need to be brought to other states in India – there are still millions of people waiting for access to clean water.

.
Best for reforming old mass media –change BBCBest for reforming old separatist professions –opposite of wall street*Best for collaboration nations  -opposite of usa 1984-2008

*Global Corporate Partnering & SB investor funded

(SB2.1)
*Best for privitisation –SB place leadership SB2 –opposite of greece

Which social and business model do your communities & next generation want to live with?

SBworld.tv –dc pic here
*Best for universities and higher ed
*Best for peoples www knowledge sharing summitsBest for schools and microentrpreneurial youth from 5th grade up
*Best for foundation/charity SB2*Bangladesh SB to 2004 microbanks owned by poorest Best for netizens who care about millennium goals*Best for youth & tech to create jobs

washington dc 301 881 1655 for transparency sake - these are models our family association isabellawm.com have given (often very small) loans to lonndoncreativelabs.com ; grameen shikkha ; barefootpower (exiting 2010 very happy but we are getting out of energy as there are areas we are more expert at); the-hub.net ; we are the home of norman macrae's microeconomics and entrepreneur system models on intrapreneurship, 10 times exponential opportunity & threat of the first networking generation depending what dsign of globalsiation is chosen -micro up is sustainable, macro down crashes; the peoples privatization models where ownership is put in proxy of those in most desperate need as we slim down gov to the 25% it used to spend before world war 2; we are also hosting 2 by one thousand bookclubs around bangladesh and Dr Yunus social business models and yunus10000 dvd -discussions http://futurecapitalism.ning.com http://globalgrameen.ning.com

Wednesday, May 5, 2010

1 Q&A with HEC social business track alumni


Q1 One of the principles of social business is that investors get back their investment but not any dividend; would that not lead to decrease in the real value on the amount invested by the investors, as inflation is particularly high in most developing and poor economies; should the return then not be inflation adjusted?


A1.1 definitely not inflation adjusted nor in the hard currency amount - the loan should repay what the local currency amount was

otherwise the poor take all the compound risk; and as had happened in crooked african countries , governments have known that they re putting the country in ever greater hock; its basic exponentials maths ; there is no earthly point in studying social business models without modelling future exponentials as  sofia's stream of upcoming publications will show

I believe yunus book is clear on that
=====================================

the one variable I am interested in seeing various models of is the equity - provided owners are bmned from influencing the entrepreneurial leaders purpose, its actually in everyone's interest on some occasions to let the investors have some or all of the equity 

I have noted that on occasions yunus is deliberately ambiguous; he cant seriously expect a sb stockmarket without equity; and indeed the famous danone sb funds are ones that investors trade in the equity 

chris
12:30 pm edt 

Saturday, March 20, 2010

it seems timely to see if the hub wants to be  multihemisphere cataloguer of social business or not; I  am working with tom rippin http://www.onpurpose.uk.com/what-we-do on  the same ; alI I am asking is a classifying among the whole pool of projects who are SB or want to be
Perhaps hub, unltd, creativelabs and tom  rippin have so few are that they are competing that they could be almost wholly collaborating; the issue is always can people bear to exponentially collaborate beyond the next quarter; and such forebearance is helped if a mandela or a yunus blesses the collaboration
3:11 pm edt 

2010.05.01 | 2010.03.01

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