Very incomplete microfinance profile

Amutha in her sewing studio

I’m very embarrassed to admit this, particularly since I’m now a Kiva Fellow and documenting microfinance clients is an important part of my job, but I didn’t take any notes during our visit to a local entrepreneur in Kuala Lumpur so I’m just going off of my recollections here. On top of that, I had completely forgotten about this draft which I started four months ago(!) but I liked the pictures so much that I decided to go ahead and publish, serious faults aside. I promise it won’t happen again.

But to give you an overview, Amutha is a refugee from Sri Lanka who has put her considerable sewing skills to great use. If I recall correctly, she was given a sewing machine by her church and has since purchased a few more either outright or through microloans. In the six months since since she received her first machine, she trained additional staff to meet the growing demand for her services.

Amutha is in a tricky situation, though, since Malaysia isn’t a signatory to the 1951 Convention Relating to the Status of Refugees. What this means is that refugees in Malaysia are considered illegal immigrants, are subject to arrest and detention, and are unable to work legally. To get around this, work orders for Amutha and her staff are routed through an intermediary who gets a 20-30% cut. Even so, her business is profitable and growing quickly. It was clear from our visit that she’s an incredibly savvy entrepreneur who is committed to building skills and increasing opportunities for others in her community.

Amutha's Sewing Studio

Everyone was really excited to look serious and pose for the camera

One of the sewing machines

Amutha was a lovely host and we couldn't turn down the offer of teh tarik and tea biscuits

Post from Netpreneur Conference

Facebook pics of Ain Maisarah

We’re now into the third conference panel – luckily mine was first so I’ve been able to enjoy everyone else’s – and I wanted to link out to someone who really impressed me.

Ain Maisarah writes novels for young adults but her approach to building a community with her readers and her understanding of the importance of finding ways to make money set her apart from your typical author. In her presentation, she outlined her journey from blogging to creating her own community site to utilizing facebook and demonstrated the ways she provides value to her followers and leverages their engagement into purchasing books, special products, and merchandise.

One of the approaches I loved was how she set up a forum based around the school featured in her books. In addition to the merchandising opportunities of this fictional school, readers are able to congregate in a central space, share their writing and get feedback from their peers, and contribute plot points and themes for future Ain Maisarah books.

She also understands the value of being an active member of her community. It’s not about sitting back and letting her books sell themselves – she develops personal connections by spending hours replying to comments, starting discussions, encouraging young writers, and thinking up new products that will appeal to teenagers. She also offers incentives to buy her books online by including special content in those orders.

What can I say? I love when someone perky, fun, and committed to encouraging readers and writers throws around words like “monetize” and is obviously a smart and savvy business woman, too.

Social Enterprise Follow-Up

I love the Google Docs version of PowerPoint

Two weekends ago, I had the pleasure of participating in Urekaweekend (although, to be honest, I mostly lived vicariously through Dan and his project).

I spoke about a few social enterprises on the Friday night and I just wanted to put them in one place in case anyone is interested in doing more research on their own. My selection process involved thinking about programs that would be accessible and inspiring for people trying to go from idea to action in one weekend. I also wanted to make sure that there were some clear take-aways that participants could apply to their work. Here’s a run-down of who I mentioned plus related links:

Ashoka & Ashoka’s Changemakers: An obvious choice but incredibly relevant. While the Ashoka Fellows Program may be for established social entrepreneurs, I love that Changemakers competitions are accessible to entry-level entrepreneurs and anyone with an interest in innovative ways of addressing social issues.
Links: Ashoka & Changemakers

Dowser: I mentioned Dowser during the presentation since I had just read an interesting interview with Kyle Berner of Feelgoodz, a flip-flop company that takes its triple bottom line (concern about the social and environmental impact in addition to profits) very seriously.
Links: Dowser & Interview with Kyle Berner

Jezebel: Not a social enterprise by any stretch of the imagination but they recently posted about how most products that are labeled “green” aren’t really “green” but that’s what sells. Social enterprises go beyond green-washing or token CSR – the social mission is the core of their work.
Link: Jezebel post

Souktel: I love Souktel’s business model and the value their service provides to their customers. Job-seekers pay a modest SMS fee to search job ads or post their mini-CVs; employers pay higher fees to post jobs and search CVs. And the best part is that they pretty much cover their expenses through the fees. In thinking about Souktel’s model, I suggested Urekaweekend participants ask themselves, “What existing platforms can I use for my project? What low-cost resources are already at my disposal? Who is my target audience or consumer? Is there potential for the idea to be financially self-sustaining?”
Links: Souktel & their Changemakers entry

Sustainable Health Enterprises (SHE): SHE uses design, local materials, and local buy-in to increase access to sanitary pads for girls and women. This is a noble enterprise in and of itself but SHE’s business model has multiple positive impacts at each stage of production and distribution. In one product, SHE recycles banana leaf fiber, creates jobs in sanitary pad production and distribution, introduces a product that will enable women to go to school or work even when they are menstruating, enhances sanitation, and reduces stigma, among other things. I asked Urekaweekenders to think about the ways their products can be more sustainable environmentally and financially and how they might take something that has negative value – for example, discarded banana leaves – and turn it into something with positive value. In other words, what are innovative ways to keep your expenses low while maximizing profit?
Link: Sustainable Health Enterprises

A to Z Textile Mills: A to Z Textile Mills is addressing the negative impact of malaria through the production and distribution of specially-treated bednets. There’s a lot of information available about them on Acumen Fund’s website but they’re a solid example of how innovation can come from enhancing existing products or systems. As I told Urekaweekenders, think about how you can build on other people’s ideas by creating something more effective, less expensive, or more targeted.
Links: A to Z Textile Mills on AcumenFund.org plus slideshow

MicroDrip: One of the most effective aspects of MicroDrip’s model is that you don’t have to buy their entire micro-drip irrigation system at once. You can buy what you can afford now, use it on a small section of your land, and see the results for yourself. For Urekaweekenders, is there a way that you can demonstrate impact and efficacy for your new product or service? And are you setting an affordable price-point for your intended consumer?
Link: MicroDrip

BEN Namibia: Bicycling Empowerment Network Namibia (BEN Namibia) won a recent Changemakers competition with their program for training and equipping women to run community-based bicycle workshops. To give you a little background, they started out distributing bicycles but soon realized that people lacked training on basic repairs and maintenance. So they developed a new bike distribution model that involves delivering 350 second-hand bicycles, tools, spare parts, paint, roofing materials, and workbenches to grassroots organizations that then run a community-based bicycle shop. I asked Urekaweekenders to think about the distribution model for their ideas. How are you going to get your product to your consumer? Is there sufficient infrastructure on the ground to support it? If not, what can you do to help build the network and systems necessary for your product to thrive?
Links: BEN Bikes & Changemakers entry

Amul: I was only recently introduced to Amul so I’m not an expert in their work but they are a very successful Indian dairy company. Their three-tier cooperative structure encourages many positive social impacts, including job creation, rural development, and poverty alleviation, and their company has increased the accessibility of affordable and nutritious products. At the same, their place at the cornerstone of India’s “White Revolution” (India is now one of the top milk producers in the world) has demonstrated the importance of taking a commercial/business approach to development.
Links: Amul & Amul on Wikipedia (don’t judge!)

EcoMovement: EcoMovement is a New Hampshire-based company that picks up food waste at a lower cost than trash pick-up, turns the waste into compost, and then sells it to local landscapers. This is another excellent example of taking something with negative value and turning it into multiple things with positive value: compost you can sell, less waste at restaurants, and lower costs for businesses that use the service. Some additional things I asked the Urekaweekenders to think about: if the idea you’re working on has an element of behavior change, for example, encouraging people to recycle, what are ways that you can make recycling easier, cheaper, more convenient, and even more fun than just using the trash can? What are the typical barriers to addressing recycling behavior and how might you need to shift cultural norms in favor of the use of your product or service?
Links: NPR story & SeacoastOnline story

Twitter: While not a social enterprise, twitter is a valuable aggregator and a great way to learn more about the fields that interest you from a variety of perspectives. Do your research, read up on the competition, and stay up-to-date on the latest trends and developments. Once you have a lay of the land, think about what you do best. Where is your competitive advantage? And how is what you’re developing making the most of your unique experiences and abilities? As I say ad nauseam, “You don’t have to reinvent the wheel!” If someone does it better than you, outsource or use their platform.
Links: Twitter (with social enterprise hashtag)

Good luck and happy social enterprising!

Steal my idea

This is why we need more recycling in Malaysia (and everywhere)

Well, after the entrepreneurial euphoria of Urekaweekend, I’m facing the reality that Dan and I effectively have one month left in Malaysia – hardly enough time to get my social enterprise off the ground. But that’s okay. I want someone to steal the idea and find a way to make it work.

Dan, on the other hand, is already hard at work on refining his prototype for storing and converting DC electricity. He wants to revamp (or maybe revolutionize) the current system to dramatically improve the efficiency of the energy grid. There’s also some cool stuff about developing more energy efficient infrastructure while designing new consumer products that recapture energy loss. And there’s a social impact component. I’ll let him explain it in his blog which he promises to set up tomorrow.

In the meantime, some pictures lifted from Urekaweekend. Thanks again to Kal, Hakim, Ellyne, and everyone else who worked so hard over the weekend. Really enjoyed participating and judging!

Dan and his team were sponsored by Carrefour! Free bike!

Cool pic thanks to Urekaweekend

Tools

More fun with the free bike

The bike/prototype in its new home

Speaking Gig

If you're in KL, come to my speech about social enterprise, social media, and funding opportunities with Ashoka.

Just wanted to share a post on entrepreneurs.my about my speaking gig this weekend. Interestingly, I had already included a slide about them in my presentation since they seemed like a great hub for entrepreneurs in Malaysia and I liked their site. Small world!

Mini Update

Stock photo of Dan working hard in Malaysia

Since Dan is working hard on a complicated budget for a grant application due later today (seems like less fun than yesterday’s video editing), I thought I’d write a quick update. I’m preparing a speech on social enterprise and spent the day researching the field in Malaysia. I came across a few orgs that stood out to me and I thought I’d share them here.

Wild Asia
Wild Asia advocates for responsible tourism and agriculture through a hybrid business structure: they make money from consulting and partnerships but funnel the money back into their programs. They also use awards to highlight the work of eco-tourism and community leaders.

elevyn
elevyn is an online platform that connects artisans to buyers of handmade crafts all over the world. Operating on fair trade principles, artisans and their organizations receive between 50-75% of the selling price of each item.

Warisan Global
Warisan Global is a for-profit consultancy that develops and implements Corporate Social Responsibility and community programs with private sector and governmental organizations. They are also a hub for entrepreneurship training, workshops, conferences, and competitions.

KL Downtown Night Market
KL Downtown Night Market is a successful market that provides free rent to former drug addicts and offers start-up loans for buying goods. Additionally, if someone relapses and goes to rehab, they are able to return to their business. Profits from the market are funneled back into rehab and outreach programs.

eHomemakers
The organization my husband and I are volunteering with this fall, eHomemakers provides online networking and support for more than 17,000 women and develops projects and related technologies that enable low-income women to support themselves financially while learning micro-enterprise skills.

Entrepreneurs.my
Even though it’s not exactly a social enterprise, Entrepreneurs.my seems like a great resource for entrepreneurs in the region.

~

If you know of any other social enterprises in Malaysia, please let me know. I’ll even mention you in my speech!

Catch-All

Random picture for a random post

Not “catching up” but “catching all”. I’ve been sitting on a handful of links that I’ve been meaning to post about for a while. In no particular order, here goes:

My interview with Benita Miller, founder of Brooklyn Young Mothers’ Collective, on the Changemakers blog.

Article in The New York Times about creating a community of gay entrepreneurs.

American Society for Microbiology press release: “Sari cloth a simple sustainable protector from cholera”. (via Jezebel)

Article in The Economist about micro-savings in addition to micro-lending.

I have a couple more links on alcohol use in the developing world but I’m trying to get the mental energy together to actually comment on them. Give me another day or two and I’ll see what I can do.

Architects of Poverty

Dan and I stayed on a mining complex outside of Rustenburg when we were in South Africa. This is a picture of the playground.

I was just listening to an Economist podcast with Moeletsi Mbeki about his recent book Architects of Poverty: Why Africa’s Capitalism needs Changing. In the book (which I read in South Africa last year) and in the interview, Mbeki criticizes Black Economic Empowerment (BEE) for doing nothing more than maintaining the apartheid-era status quo of a small, rich elite while millions of impoverished blacks continue to be utterly lacking in opportunities and resources. The only difference that Mbeki can see is that now some of the elite are black, too.

He also addresses the need for a new African capitalism that is founded in entrepreneurship instead of the extraction industry and makes a strong case for why over-dependence on this industry, in addition to the usual concerns about a lack of diversification, is crippling South Africa’s economic growth.

I wish I had the book in front of me so I could refresh my memory of this section, but the gist was that the ANC leadership could have done more to force a restructuring of the industry when they took over. Instead, BEE essentially amounted to a pay-off that kept the mining companies happy at the expense of meaningful economic change for regular South Africans. Additionally, South Africa’s entitlement schemes (funded in large part by government revenue from the extraction industry) have the effect of both disincentivizing entrepreneurship and creating resentment of those who do receive the benefits.

If you can find the book, you should read it for yourself and not rely on an iffy summary of something I read six months ago. It raised a number of interesting points but I remember feeling that it lacked solid suggestions for how to address the myriad problems that Mbeki discusses. As I was reading Architects of Poverty, I kept thinking back to Paul Collier’s The Bottom Billion: Why the Poorest Countries are Failing and What Can Be Done About It. Collier’s exploration of the challenges faced by resource-rich countries is extremely pertinent to South Africa and I strongly recommend it as a more in-depth companion read.