social enterprise

Key learnings about women & enterprise from the Trust Women Conference 2016

By Miranda Barham, WAM Steering Committee
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Cherie Blair moderates Women Entrepreneurs panel at Trust Women Conference, December 2016

  1. “The established way is not necessarily the best. If you want a different outcome, you need to do things differently. You need to be defiant.”

These were wise words from Professor Muhammad Yunus who talked to us about his experience in setting up Grameen Bank. He wanted to set up a bank for the poor, that lent to women. His contemporaries thought it could not be done. Prof Yunus looked at what the banks did that lent to the rich and he decided to do the opposite. Instead of pursuing contemporary banking models, he removed the need for collateral and created a banking system based on mutual trust, accountability, participation and creativity. More than thirty years later, Grameen Bank’s success has defied all those who told him he would not succeed. Not only has he created a successful bank in his home country of Bangladesh, but he has set up projects in 58 countries, including the US when in 2008, he created Grameen America. It now has 19 branches with over 85,000 borrowers. All the borrowers are women and the repayment rate is 99.5%. As Prof Yunus says to all those naysayers, “Trust women.”

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Professor Muhammad Yunus makes the keynote speech on Day 2 of the Trust Women Conference

  1. Cherie Blair, human rights lawyer and founder of the Cherie Blair Foundation for Women told us that, “155 countries have a law that impedes women’s economic development.”

Mrs Blair quoted a World Bank report released in 2015 which analysed the legal restrictions to women’s employment in 173 countries. It found that 155 of these countries have at least one law impeding women’s economic opportunities and in 18 countries, husbands can legally prevent their wives from working.

The report goes on to say that lower legal gender equality is associated with fewer girls attending secondary school relative to boys, fewer women working or running businesses, and a wider gender wage gap.

  1. Women lead only 5% of global companies but in the UK, women lead 40% of social enterprises.

While women lead very few companies on a global basis, they are much more highly represented in the UK when it comes to leading social enterprises.

Servane Mouazan, Founder of Ogunte, a firm that offers coaching and services to women in social enterprises and their business support providers, felt that this is because traditionally women’s enterprise has been promoted in areas where women have been serving for some time, as members of the voluntary sector, as unpaid carers, or in roles where women have been ‘relegated’ for centuries – such as the domestic sphere and education. As women started to volunteer and professionalise, they have done so in areas where social enterprise businesses emerged, and hence are more likely to lead them than mainstream commercial businesses.

  1. Only 5% of venture funding goes to women.

Clearly this is a major hurdle for women entrepreneurs seeking funding for new ventures and is at odds with global intelligence network Thomson Reuters’ assertion that ‘companies run by women perform better’. If they perform better, it should be an obvious investment choice, which leads to the next point.

  1. There is a pervasive unconscious bias when it comes to women

The conclusion was that much greater awareness and education is needed to counteract what appears to be a pervasive unconscious bias towards women whether it is in gender stereotyping of the toys girls play with, attitudes at educational institutions or in the workplace.

Siobhan Reddy, co-founder and studio director of Media Molecule, told us that by age 12, women were already discouraged from pursuing a career in technology. Siobhan has made it a priority to seek and hire women in her high-tech business, which in the predominantly male sector of gaming, boasts 30 percent female staff and 26 different cultures. In pursuit of greater female empowerment, she has acted to address the unconscious bias in a whole range of ways from ensuring the inclusion of non-stereotyped female characters in games to discouraging her female colleagues from answering the phone, the door and making tea. No more ‘Polly put the kettle on’ here!

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SOCIAL ENTERPRISE AND MICROFINANCE – A POWERFUL PARTNERSHIP

by Miranda Barham, WAM UK Steering Committee

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WAM UK hosted a very interesting evening with special guest, President & CEO of FINCA, Rupert Scofield.  Rupert shared with us the journey he has been on since starting FINCA in 1984 to today’s challenges of finding social enterprises, running profitable microfinance institutions and running fundraising campaigns.

FINCA started on a quest to identify investible social enterprises to fund and partner and in doing so, discovered that they were already funding a number of these.   Examples of this include over 200 “charter schools” in Uganda, and a community health clinic in Lumbumbashi, Democratic Republic of the Congo.

Rupert explained, “I stumbled upon a charter school on the outskirts of Masaka, Uganda when I went to see some clients who had purchased solar lanterns from Brite Life.   “Do you want to see our school?”  one of the clients asked me.   “You have a school?”   It seemed unlikely; this was a remote community many miles from the nearest paved road.   They took me to meet a former teacher who had left the public school system and, with a series of Finca loans, built seven classrooms and hired other teachers to teach grades K through 6.”

By having the school right in the community, the students avoided the perilous 5 kilometer walk to the nearest public school where they could be preyed upon by pedophiles.   Finca was also financing the other side of the transaction, making loans for school fees to the parents of the children.

In Lumbumbashi, two physicians had left the public healthcare system and, with a series of Finca loans, build a small clinic and a 10-bed hospital.  They were treating the people of the community for the four most common illnesses in rural Africa and charging $2.50 per consultation.  If the patients were destitute, they provided treatment for free.

FINCA is passionate about social enterprise.  Rupert believes that the current trend of social enterprises moving into the vacuums left by a faltering, underfunded public sector services will continue, and eventually social enterprises, small, medium and large, will be the main vector for meeting the basic needs of people living at the bottom of the pyramid.   He explained that an added bonus will be that these social enterprises will collectively employ millions of currently un/underemployed young people, which is a huge and growing time bomb which, if not addressed, will destabilise all developing societies.

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For those of you inspired to take up the social enterprise challenge, Rupert has some words of wisdom, “Find a disadvantaged/oppressed constituency, live amongst them, walk in their shoes until you feel their pain and figure out a way to be useful.”  He recommends working or volunteering for an organisation that works in this space and then with experience gained, striking out on your own.   He says that’s when the real adventure begins.

“If your idea is powerful enough, it will withstand the many mistakes you will make.   Remember that nothing works the first time, so be stubborn and persistent.   Stand up to the skeptics and keep plugging away.   You will find, also, that your passion for your mission will attract fellow travelers.   You also have to pick your head up every now and then and see who is imitating you and possibly doing it better than you are.   The life cycle of new technologies is getting shorter and shorter.   Picking the winners is going to make the difference between success and failure.” And After five decades in the space, Rupert should know.

If you would like to support FINCA’s latest campaign to raise £1 million in support of women taking their first teps in business, please donate here so that FINCA can help them generate the extra income they need to buy food, pay for healthcare, and put their children back into school.

In the last few months, faced with rising levels of conflict and migration, women have been forced to find new sources of income to support themselves and their children. With your help, FINCA can make a difference.

Investing in Social Enterprise to Fight Poverty

FINCA

By Rupert Scofield, President and CEO of FINCA International 

Rupert Scofield will be speaking at a dinner hosted by Women Advancing Microfinance UK on Tuesday 10th May in London. He will talk to us about the work FINCA does and the impact it’s having, in particular in the social enterprise and innovation space. Tickets to the event are available here

Ahead of the event, we asked Rupert to give us some thoughts about what it is that makes FINCA different, how they have evolved their approach and support for those they work with and their unique approach to fostering social enterprises.

 Tell us about the clients FINCA reaches and what it is about your offering that allows you to reach clients other microfinance organisations don’t.

FINCA’s segment is not “the poorest of the poor”, which are now reached by specialised “Ultra Poor” or “Graduation” programmes which provide subsidies not loans, although some of our most successful clients have come from that segment.    Most of our clients live on $2 to $4 per day when they take their first FINCA loan and then progressively move up the ladder.

The vast majority have an existing business when they join FINCA, but not all.  In Africa, for example, we encourage our village banks to take on one or two younger women who want to start a business but need mentoring and support from the group in order to succeed.

While many other MFIs work in this segment, FINCA is unique in that we have done this now for three decades and on four continents, learning to adapt our methodology to many different cultures.   We still deliver the majority of our loans through “village banks”, and although that methodology has been adapted over time, it remains largely the same, depending on local knowledge and a group rather than physical guarantee.   When you visit a village bank, you can see that it is a strong, community-based support group where the members help each other weather the adversities that come with living at the base of the economic pyramid.

You developed an initiative called FINCA Plus back in 2012. Can you explain a little about what you hoped to achieve?

We saw an opportunity to become a “holistic” MFI, one that would also provide non-financial services of value to our clients, things that would make them more resistant to the contra temps that threatened to knock them off the ladder out of poverty.   We sought instead to develop interventions in new sectors like healthcare, water & sanitation, education, energy, and agriculture.   While organisations like BRAC had been doing this for decades, we decided to take a different approach.   Rather than becoming experts in these sectors, we would find partners whose products and services would be of high value to our clients, and figure out how to finance and deliver them.

We discovered that there were literally hundreds of social enterprises doing amazing work, and who were eager to partner with FINCA and take advantage of our well-known brand.

Furthermore, there are “incubators” working with social entrepreneurs and helping them to develop their concepts to the point where they are “investible” and scalable.   This led to our decision to create the Social Enterprise Collider, a facility that will invest in early stage social enterprises deemed promising but too risky for institutional investors or even most Venture Capitalists.   At the same time, we created Brite Life, a distribution company that markets solar energy products, fuel efficient cook stoves, water filters and other products which bring a powerful value proposition to our clients, providing benefits in the health, education, and energy areas.

To hear more from Rupert about FINCA’s unique approach to social enterprise initiatives, please join us for the dinner discussion on Tuesday 10th May 2016. Tickets for the event are available here.

Rupert

Rupert Scofield, FINCA International President and Co-Chief Executive Officer, also serves as President and CEO of FINCA Microfinance Holdings, LLC, a first-of-its-kind, socially-responsible investment partnership for microfinance, formulated to strike the right balance between attracting capital needed for expansion and protecting the integrity of FINCA’s charitable mission.

Mr. Scofield co-founded FINCA in 1984 with John Hatch, and has served as its President and CEO since 1994. A practitioner at heart, he is actively involved in the management of FINCA’s operations, and is also a frequent keynote speaker. As author of The Social Entrepreneur’s Handbook: How to Start, Build and Run a Business that Improves the World, Mr. Scofield seeks to inspire the next generation of microfinance leaders and social entrepreneurs.

Prior to FINCA, Mr. Scofield served as the CEO of Rural Development Services, a consulting firm, and country program director of the AFL-CIO’s Labor Program in El Salvador. He earned two Masters of Arts degrees in agricultural economics and public administration from the University of Wisconsin, as well as a Bachelor of Arts from Brown University, and served in the Peace Corps in Guatemala.

Read more about FINCA here.

7 Things I Learnt at the Global Social Business Summit 2015, Berlin

By Sophia Velissaratou, co-founder WAM UK

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Source: Global Social Business Summit 

Social business is a relatively new concept introduced by Nobel Peace Prize winner, Professor Muhammad Yunus, which he describes in detail in Building Social Business. Simply put, Yunus describes two types of social businesses:

Type I: a non-loss, non-dividend company devoted to solving a social problem (concerning education, health, environment, access to technology etc) and owned by investors who re-invest all profits in expanding and improving the business.

Type II: a profit making company, owned by poor people, either directly or through a trust that is dedicated to a pre-defined social cause.

Professor Yunus distinguishes Social Business from other concepts such as Corporate Social Responsibility (CSR), social enterprise and entrepreneurship; seeing CSR as charity (CSR) and social entrepreneurship as profitable outfit for investors. Since its first inception the Social Business movement had gained momentum amongst many, ranging from businesses to NGOs to academia.

On the 6th and 7th of November, I attended the 7th Global Social Business Summit in Berlin and as the co-founder of WAM UK, I would like to share a few things I learnt with the wider WAM community:

  1. The Social Business movement is here. To stay: During the summit I came to realise that there are many social business initiatives and they take many forms. Take for example Grameen Danone who set up a small unit in Bangladesh to produce nutrition fortified yoghurt for low income families. Or McCain industries who have a program helping Greek farmers in the Northern village, Notia. Not to mention numerous university programmes worldwide focussed on the research and promotion of social business, for example The Grameen Creative Lab and Yunus Social Business, both of which have ample information to share.
  1. It’s not about the star, it is about the purpose: This year’s summit was marked by Prof. Yunus’ absence. A minor health issue prevented him from travelling to Berlin to be there in person but he addressed the participants with a video message. Undoubtedly any event Yunus attends attracts notable crowds and WAM UK experienced that first hand when we organised an event with him back in 2011. Yunus is often lovingly described as a rock star in his own right within the sector, which despite its obvious benefits can also be a drawback, since his absence could have led to disappointment and deflation. However, that was definitely not the case. Organisers and participants alike worked, presented and interacted with incredible drive and on top of it all – we had fun!
  1. Some CEOs get it. Big multinationals like Danone, Veolia, McCain and others talk and think seriously from a business perspective on how to solve social problems. They are not just interested in ticking CSR boxes or having a good PR profile. They are showing commitment to this type of business. They understand that failure is part of the process and not all social business ideas will work but they allocate time, resource and energy just like any other business unit they are running. They showed us that they won’t stop until their social businesses become sustainable and poor or unprivileged people have profited from it.
  1. There is such a thing as ‘good’ business, it’s called social business: During my years in finance I was always wondering why profit and growth usually come at the expense of values such as partnership, compassion or empathy. Can you not have a serious business proposition by combining all these aspects? The summit made me realise that social business is a legitimate answer to this question. Yes, you can have a business which is both profitable and solves a social problem. Yes, you can generate profit and re-invest it in the business to create more jobs; ameliorate conditions for poor people – to change the world.
  1. Partnerships are a must: Listening to the panel discussion during the conference I was impressed to see the degree to which partnerships are important for the success of social business. Words like competition, confidentiality, possession were not part of the social business vocabulary. Instead words like transparency, exchange of ideas, collaboration, resilience, joy and facilitation are the language of social business. This was evident in focus groups where there was a genuine exchange of ideas. The workshop organisers were not interested in telling their stories but in hearing our ideas on how we would approach a social business idea differently or find a better solution than the ones they thought of.
  1. Youth is the future: Yunus’ decision to focus on youth and academia shows he is a visionary. Social business is a relatively new concept that taps on ideas such as non-dividend business, compassion and teamwork etc. These and similar ideas are not commonly found in the conventional business world, and that’s likely because today’s professionals were not educated to think otherwise. Educating people on the concept of social business from an early age is key. Because these young students will be tomorrow’s academics, investors and entrepreneurs who will strive for a better world. On top of that, youth are very creative and driven – and experience suggests they don’t give up easily. Moreover, today’s youth are raised amongst increasingly advanced technology, a leading force in social business.
  1. Location, location, organisation: Last but not least I would like to mention the organisation of the conference. First I was impressed by the venue: Hangar 7 at Tempelhof airport was for me the perfect location for such a conference. The set-up of the venue facilitated the smooth transition from the panel discussions to the meeting area where participants could meet, grab a coffee and roam around the various stands promoting social business. The organising team practiced what they preached: from the conference bags, the conference furniture, the catering, the products, everything had a social business story to tell. Every single moment you were surrounded by inspiring examples. Hans Reitz (Head of GSBS and Founder of the Grameen Creative Lab) and his team created a fantastic environment for participants and they deserve compliments all round.

In short, I can’t wait for next year’s summit.

Find pictures of the Summit on GSBS website newsroom , GCL Facebook page, and a new video on YouTube.

Empowering Women in Fragile States With Progressio

by Monika Jonusauskiene, WAM UK Steering Committee Member

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Hot off the heels of International Woman’s Day, on March 17th, WAM UK held a joint workshop with Progressio, a leading international development charity, on women empowerment in fragile post-conflict states, such as Zimbabwe, Somalia and Yemen. Progressio supports poor and marginalised people, especially women, to empower themselves in some of the world’s most challenging situations, with over 70 years of experience. If you missed the event, fear not – we have summarised the workshop in this blog.

Hosted by Baroness Ruth Lister of Burtersett, the senior leadership of Progressio showcased their most impactful work  to a  wide ranging audience, including WAM members, in the illustrious settings of the House of Lords in London. The event was designed to welcome active participation and suggestion for Progressio on its strategic focus and to highlight development solutions, reflective of the charity’s inclusive approach to development and knowledge sharing.

The event was the first of many to mark the 75th year of Progressio’s important work in some of the world’s most fragile and challenging areas. On the evening, Mark Lister, the CEO of Progressio, shared several impactful stories and case studies of women in Zimbabwe, Somalia and Yemen. Inspiring examples of women in vulnerable settings working with Progressio to influence local policy were told. He shared the example of a group of women who, against the odds, successfully organised themselves to lobby local municipalities to cover a well known hazard of dangerous well-holes. Lister’s account not only highlighted a practical solution to a community problem, it also showcased an example that, with the right support, even some of the most marginalised women’s’ voices can be heard, and bring about meaningful change.

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Presentation by Progressio, photo courtesy of WAM UK

As Progressio highlights, 50% of the world’s poor already live in fragile states and fragile states can make people poor – reinforcing a negative cycle. Moreover, women living in fragile states are some of the most disempowered and poorest of the poor and hence Progressio believes that supporting women in fragile states tackles poverty where it is most needed. Supporting women can help achieve deep-seated social change, transforming fragile states into stronger societies via active civil participation.

The event also discussed some of the key barriers to empowering women in fragile states drawing upon audience experience. WAM members and other members of the audience shared their perception of issues facing women empowerment, globally and at home. In small groups, attendees also discussed how they could individually use their experience and knowledge to help design and implement women empowerment solutions. Bernie Morgan of Progressio described her observation that women often refer to their family members when asked to give an example of a role-model and explained that Progressio was using that knowledge to build development solutions that draw upon the strength of women’s social and familial networks. On the night we also brainstormed various social enterprise ideas to help fundraising at Progressio.

On the night we covered a lot of ground in terms of pressing topics in women’s international development and also how attendees can help support Progressio’s efforts. We would like to take the opportunity to thank all the WAM Members that joined us for this hands-on workshop– it is your very enthusiasm and brain-power that made this event such a success! We invite those who couldn’t attend to learn more about Progressio’s ground breaking work via their website particularly on promoting women’s rights and participation in fragile states.

More about the people behind the event

Mark Lister is CEO of Progressio, having been appointed in 2012. He worked for the charity previously some 20 years ago as a fundraiser. His passion is grass roots international development and ensuring that the voices of the most marginalized are heard at the highest level.

Bernie Morgan is Progressio’s Business Development Manager. When she was CEO of the Community Development Finance Association she was involved in the early days of WAM. Her passion is working for a fairer society for all.

Baroness Ruth Lister is a supporter of Progressio. She was appointed to the Lords in 2011. She is Professor of Social Policy at Loughborough University specializing in poverty, social security and women’s citizenship.

Calling Volunteers.

 

by Fatima Iqbal, WAM UK Steering Committee

Are you looking for an exciting new volunteering opportunity? Look no further. East London is a stark contrast of looming skyscrapers and council estates. Although providing the headquarters for many leading global companies, the area also has a high level of youth unemployment.

Last month WAM UK hosted a panel discussion with the East London Business Alliance (ELBA) a network that seeks to connect businesses with the community in East London, offering more than 14,000 volunteer opportunities to support over 500 East London initiatives and organisations. Alison White, ELBA’s Programme Director explained how ELBA works with the community and business partners to create the right voluntary opportunities, which can be as varied as volunteering in sustainability, supporting employment programs to mentoring.

The panel boasted an inspiring line-up of women working in microfinance and social entrepreneurship, highlighting the volunteering opportunities that exist within their organisations.

Amongst the panellists was Lisa Taylor from the Newham Micro-enterprise project. Lisa described how her organisation helps to both develop small enterprises to support older and disabled people, as well as providing advice and grants of up to £2,000 to older and disabled entrepreneurs to help them start their own micro-enterprises.

Three of the project’s beneficiaries provided remarkable stories of how the project has supported them and given them an opportunity – whether it’s working in a community garden project, creating their own jewellery brand or organising a peer support group.

Asma Shah, founder of You Make It, who run an empowerment scheme, Ladies who L-EARN, helps young women into employment. Young women often lack the support, opportunity and role models to successfully pursue a career in their chosen fields but this six month project provides enterprise support, intense workshops and paid work placements to help them. Asma invited two young women to share how L-EARN helped them secure unique work placements that led to finding full time employment.

A key learning from the event was how a strong professional network can empower young women and women with disabilities. There are lots of interesting volunteer opportunities currently available with ELBA and You Make it, we’ve listed some below:

ELBA

  • Host career insight visits for Year 9 and 12 students
  • Website creation for a financial services charity
  • Lunch and Learn – lunchtime talks in Stratford

You Make It

  • New chair for the charity
  • Host a work placement for 2-4 weeks
  • Sponsor a fundraising event
  • Mentoring

If you are interested in any of these opportunities and for more information please email alison.white@elba-1.org.uk at ELBA and Asma@you-make-it.org at You Make It.

Our June Quarterly Newsletter

The WAM UK Quarterly

We send out a newsletter every quarter to our members sharing our latest news and insights. If you’d like to receive it but don’t already for some reason, get in touch and we’ll sign you up! Email us at wam.ukchaper@gmail.com

See our latest edition, published in June 2014 below.

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We can’t believe that already we’re halfway into the year. How did you celebrate March 8th International Women’s Day and Global Money Week?

Members of our steering committee attended the Skoll World Forum in Oxford – the leading global forum on social entrepreneurship showcasing the world’s most influential thinkers, leaders and strategic partners. We were reminded that there is much work left to do and on top of sharing some of the online content from this inspiring event here, we were spurred into action to bring you some great events for the rest of the year.

What’s new?
If you’re interested in financial inclusion domestically or internationally we have something for you this summer.

Microfinance for women in post-conflict societies
On June 5th, we’re hosting a dinner with Sonia Patterson, CEO – Five Talents USA and Rachel LindleyProgamme Manager– Five Talents UKSonia and Rachel will talk about the scope and the impact of their microenterprise development programmes targeting women in the post-conflict and fragile communities of BurundiSouth SudanNorthern Uganda and Myanmar

Want to volunteer in East London?
Bringing the focus back to our doorstep, we will be hosting a volunteer fair with the East London Business Alliance (ELBA). Suitable for everyone, there will be opportunities for different skills and levels of time commitment. Local businesses, charities and social enterprises will be showcasing their work and needs and you can pick and choose your involvement. No commitment necessary upon attending. We’ll be sending the invite soon, but get thinking about what you might want to volunteer to support charity and financial inclusion in the UK.

Yunus Scholarships available
Glasgow Caledonian University (GCU) announced four Chancellor Yunus Scholarships covering full programme fees in order to enable students from all backgrounds to study their MSc in Social Business and Microfinance programme. Programme and application details can be found here.

Data Savvy? Check out FINclusion
We have long been admirers of the Microfinance Information Exchange (MIX) – a comprehensive source of Microfinance related data directly reported by MFIs globally. So we were particularly delighted when we saw the MIX launch of FINclusion in May. It is the first data visualization and analysis platform that brings together the elements of financial services activities, markets, and products, including national and sub-national views. FINclusion is currently beta, but it helps streamlines the process of decision making for service providers and policy makers, and marks a significant step forward for the microfinance sector for data capture and analysis. We thought you might be interested in checking it out.

Make financial inclusion for women a UN goal?
An online petition has started to put financial inclusion for women onto the UN’s post 2015 development goals. We think this is a great opportunity to highlight a cause our network is passionate about. The World Bank Gender at Work report (2014) says that “on virtually every global measure, women are more economically excluded than men” and we think that prioritising women’s access to financial services will assure that investment and attention will be put towards correcting this imbalance and promoting a fairer financial system to unlock the power of women worldwide.

Our recommend reading

And that’s all from us for now!  If you’d like to give us some feedback or submit an interesting read for the next Quarterly  and our blog then email us at wam.ukchapter@gmail.com.

If you haven’t already, follow us on twitter @WAM_UK, like us on Facebook, join us on LinkedIn and spread the word by forwarding this email.

See you soon,
WAM UK Steering Committee