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Ingenuity Honey Collector Tea Blends Ducks Trickle up Program Fishing honey TRICKLE UP INGENUITY collector tea blends ducks PROGRAM weighing fishing retail items fruit vendor baker handmade blacksmith coin banks watch repair maker of motor prosthetic mechanic soap selling shoes quilt making shop electrical beauty parlor pickle making repair cumin and anise seed farming sweet stall buffaloes egg shop installing village electrical photographer making mats wire cereal banks for rice cosmetics or millet piggery nut seller leather tanning and cows cane furniture sewing 2005 ANNUAL candle maker masala seller sari selling REPORT OUR MISSION The mission of Trickle Up is to help the low- est income people worldwide take the first steps up out of poverty, by providing con- ditional seed capital, business training and relevant support services essential to the launch or expansion of a microenterprise. This proven social and economic empower- ment model is implemented in partnership with local agencies. OUR VALUES We believe in people and their capacity to make a difference. We empower the world’s poorest people to develop their potential and strengthen their communities. We pursue this goal in a way that encourages innova- tion and leadership, maximizes resources, and promotes communication and coopera- tion among all Trickle Up constituencies. is the theme for the 2005 Trickle Up annual INGENUITY report. There are many qualities that come to mind when we think about our entrepreneurs, local partners, staff and the very story of Trickle Up itself: optimism, perseverance, confidence, boldness, trust. We chose to celebrate ingenuity – the combination of inventiveness, resourcefulness and imagination that is an important strand of our DNA. Take a close look at the cover of this report and you’ll see ingenuity at work in the array of businesses that our entrepreneurs operate. And, as you read through this annual report, you’ll find ingenuity on every page. 2005 ACHIEVEMENTS ORNATI y by MOLL by oto MARTA VASQUEZ OLIVERA IN OCOTAL, NICARAGUA / Ph / NICARAGUA IN OCOTAL, OLIVERA VASQUEZ MARTA 8,673 17,232 27,577 businesses started in 20 countries entrepreneurs benefited people supported by the businesses One year business reports received in 2005 showed that 95% of the businesses supported by Trickle Up were continuing and 80% had expanded. TRICKLE UP’S EFFICIENCY TRICKLE UP’S BUSINESS IMPACT Key benefits reported by entrepreneurs: Of every $1 Trickle Up ¢ indicated that the Trickle Up business was spends 87 cents goes 80 % their main source of income to programs and ser- 87 vices. Administration 63% learned how to run a business and fundraising account for only 13 cents. 62% can provide better food for their family 13¢ % feel better about the future For the fourth year in a row, board members cov- 60 ered all overhead and fundraising costs during % can afford better medical care the fiscal year, allowing all other contributions 46 to go directly to supporting our programs. 43% have more money 43% send more children to school Trickle Up again received high marks by charity 43% have better clothing watchdog groups and publications for its effectiveness and efficiency. 26% have improved their housing The Steps of the Trickle Up Process 2 3 eport R nnual 2005 A rogram THE TRICKLE UP PROGRAM P P U With support from our donors Trickle le k Up provides training and seed capital ric T to the Coordinating Partner Agency, to 1disburse to qualifying entrepreneurs. COORDINATING PARTNER AGENCY The Coordinating Partner Agency identifies potential entrepreneurs using Trickle Up’s Poverty Assess- ment Tool to target2 the poorest. THE BUSINESS PLAN The Coordinating Partner Agency provides basic business training to the entrepreneurs using Trickle Up materials, and helps them complete 3the Trickle Up Business Plan. THE BUSINESS IS LAUNCHED The Coordinating Partner Agency disburses the first grant, usually $50 ($500 in the U.S.), and the business gets under way. Entrepreneurs are encouraged to reinvest or save at least 20% of their profit.4 THE BUSINESS REPORT After three months, or one business cycle, the entrepreneurs submit a Business Report to the Trickle Up Program. Upon approval, the entre- preneurs qualify for the remainder of the $100 grant ($7005 in the U.S.). THE FiRST YEAR Trickle Up provides ongoing techni- cal assistance to the Coordinating Partner Agency. The Agency provides business and additional support ser- vices to the entrepreneur. Monitoring 6by Trickle Up continues. THE BUSINESS AT ONE YEAR The Coordinating Partner Agency re- views the business after one year and files a progress report withT rickle Up. Trickle Up provides ongoing support to the business through7 the Agency. A Letter to the Friends of Trickle Up 4 5 eport R nnual 2005 A rogram P P U le k ric T “we are able to reach a larger number of the world’s poor and S make a difference in their lives” ansari Wendy Gordon Rockefeller S ar k I in Besisa h ar , N , epal / Ph / oto by J by anet Heise y The year 2005 was the start of Trickle Up’s second quarter century, and it was a year of transition for us as we continue our mission of helping people take the first steps out of extreme poverty by starting or expanding their own microenterprises. Trickle Up is poised for an exciting period of revitalization and growth. This year we made rapid progress in completing reflects her knowledge of economic development the recommendations of the strategic plan that and global poverty. Trickle Up has built an excep- Trickle Up’s board of directors adopted in 2004. tionally able and dedicated staff, strengthened Our work is now focused in 14 countries around our programs and established strong relationships the world. This enables us to concentrate our with local partner agencies and other international resources in the areas of greatest need, deepen organizations. our relationships with our local partner agen- In 2005 we continued to strengthen the Trick- cies and develop innovative ways to help Trickle le Up board by adding seven new directors who Up entrepreneurs build effective and resilient bring us sophisticated understanding of interna- microenterprises. tional affairs, valuable management experience This year Trickle Up funding helped start or and important professional and social relation- expand 8,673 businesses. In addition to seed ships that will help us widen Trickle Up’s network capital grants, we have expanded our efforts to of supporters. provide effective training, business development With a stronger board, we are redoubling our services and savings programs to our entrepre- efforts to expand and diversify our sources of neurs. We expect to complete the recommen- income. Through these gifts to Trickle Up, large dations of the strategic plan by the end of fiscal and small, we are able to reach a larger number year 2006, a year ahead of schedule. of the world’s poor and make a difference in their Trickle Up appointed a new Executive Direc- lives. As you read this annual report, I hope you tor this year. William M. Abrams joined us in Octo- take pride in the work that you are enabling, the ber 2005, after a career as a journalist and media livelihoods that you are helping to build and the executive for The Wall Street Journal, AbC News families to which you are giving hope. On behalf and The New york Times. he has a lifetime of pro of the people we serve, all of us at Trickle Up send bono experience with nonprofits dedicated to our thanks. homelessness, the arts and religion. The board selected bill because he is an energetic leader, imaginative strategic thinker and a tireless fundraiser. We are building upon the strong foundation established by Richenda Van Leeuwen during nearly five years as Executive Director. The Wendy Gordon Rockefeller strategic plan that we are now implementing board Chair Entrepreneur from Essakane, Mali / Photo BY Judith Larivière p U rickle rickle T is one of the qualities that define the world of world the define that qualities the of one is eview R ear in in ear Y Ingenuity k ric T P U le 2005 A 2005 rogram P nnual eport R 7 6 The very idea behind Trickle Up – helping people take our seed capital grants, training and support. Our local the first steps out of poverty by providing the resourc- partner agencies exemplify ingenuity in the ways they es and confidence they need to start or expand their help train and support our entrepreneurs. Likewise, Trickle Up’s staff continuously discovers new ways to own businesses – meets the definition of “ingenuity” apply our program to benefit people in 14 countries as “inventive and clever design and construction.” around the world. you can see ingenuity – the ability to meet challenges We see ingenuity in every one of the 8,673 businesses and solve problems – at work when you meet Trickle that Trickle Up helped start or expand in fiscal year 2005. Up entrepreneurs around the world. Just to survive on here are some of the highlights of Trickle Up’s year: $1 a day or less with inadequate education, housing, food and health care requires a rugged resourceful- AFRICA ness. As Muhammad yunus, the founder of Grameen Trickle Up’s largest program in Africa is in northern bank and a pioneer in microenterprise, observed in his Mali, where we collaborate with 13 partner agencies autobiography Banker to the Poor: “All human beings in the Tombouctou and Gao regions to support have an innate skill. I call it the survival skill. The fact entrepreneurial activities, including crafts, farming, that the poor are alive is clear proof of their ability. They animal husbandry and local trading. In 2005, Trickle do not need us to teach them how to survive; they al- Up disbursed grants to 2,600 entrepreneurs in Mali, ready know how to do this.” more than 90% of them women.
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