By: Leigh Mante and Saba Ahmed
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By: Leigh Mante and Saba Ahmed Rationale: In order to support the development and enhancement of SEWA's enterprise support system (ESS), a study was conducted to gather additional documentation and analyses of existing social enterprise incubators and accelerators across South Asian countries outside of India. This study builds upon SEWA’s Enterprise Support System Report and delves into key components of efficient and sustainable social enterprise support services. Objectives: ● To understand the various landscapes of social enterprises in South Asia ● To understand methods of support and evaluation by ESSs of social enterprises towards their respective communities Methodology: The Enterprise Support Systems evaluated were selected based on (1) its direct work with social enterprises, (2) its work with “bottom of pyramid” and/or predominantly female communities, and (3) clear evidence of positive social impact. For each selected ESS, information on program details, cost/revenue models, operation strategies, team structure, as well as context on the program country’s political economy, if applicable, was gathered. Data and information was gathered from organizational material available online such as annual reports, impact and evaluation statements, website information as well as secondary literature reports. Name of ESS Location Incubator/ Income Mission Accelerator Bracket BRAC Social Bangladesh Accelerator Lower BRAC is a non-governmental organization dedicated Enterprises Middle to eradicating poverty through social and financial Income empowerment of the poor. BRAC uses a community-based model to develop and scale enterprise programs and reinvests the revenue from these programs towards development resources and activities. Currently BRAC operates 16 social enterprises in Bangladesh and reinvests 50% of surplus revenue towards BRAC development activities. Entrepreneur Multiple Incubator Low to Entrepreneurs du Monde works with communities in s du Monde: Lower-Midd developing areas and provides resources for them to (Pratiques - le Income pursue their own economic initiatives. EDM focuses Microfinance on promoting social microfinance, social & Energy entrepreneurship, and the creation of very small Platform) businesses. In regards to social entrepreneurship, EDM functions as an incubator for social and 1 environmental innovation by cultivating a local network of social enterprises led by local entrepreneurs. Sarhad Rural Pakistan Accelerator Lower-Midd Established in 1989, Sarhad Rural Support Support le Income Programme (SRSP) is a non-government and Program: non-profit organization operating in Khyber Value Chain Pakhtunkhwa that aims to promote sustainable and livelihoods and reduce poverty. SRSP’s Value Chain Economic Development (VCD) program strengthens rural Development enterprises, business relationships, and strives to improve market structures. UNDP:Micro Nepal Incubator/Ac Lower The UNDP established a four phase -Enterprise celerator Income Micro-Enterprise Development Program (MEDEP) Development from 1998 to 2018 in Nepal to enhance income Program generating opportunities for the rural poor and (MEDEP) socially-excluded ethnic communities. The multi-sectoral and integrated program has not only assisted the country in alleviating poverty through livelihood creation, but it has also strengthened the government’s role in sustainably supporting micro-enterprise development. Political Economy Landscape Analysis: Bangladesh The realm of social entrepreneurship in Bangladesh is heavily regulated by innovative approaches and hand-holding by non-governmental organizations. Current NGOs that are involved in social enterprise activities are governed by laws that regulate companies. There are currently no government policies directly regulating social enterprise activities in Bangladesh. However, there are policies relevant to the general structure and function of social enterprises such as the 7th Five Year National Plan for 2015-2020 which acknowledges access to finance, small and medium sized enterprise (SME) development as well as the Bangladesh Securities and Exchange Commission (Alternative Investment) Rules (2015) which addresses private equity funds, venture capital funds and impact funds. Impact funds are especially important for social enterprises in that they invest in the equity of organizations engaged in activities aimed at creating a positive social or environmental impact. Both of these policies do not explicitly acknowledge social enterprises, but they are inextricably linked.1 Pakistan 1 https://www.britishcouncil.org/sites/default/files/bc-report-ch2-bangladesh-digital_0.pdf 2 There are currently no policies in place that explicitly mention or support the formation of social enterprises. There is, however, a Center for Social Entrepreneurship in the Planning Commission of Pakistan. Developed in 2015, this is the country’s first entity surrounding social entrepreneurship that works to promote innovation and enterprise development.2 Nepal In recent development plans, the government has taken on the responsibility to promote employment opportunities by sharing knowledge and skills and developing national human resources to compete with national and international labor markets. The Thirteenth Plan was created by the government to “make people feel directly changed in quality of life by reducing income poverty and human poverty.” Current policies in place addressing micro-enterprise include the Industrial Policy of 2010 which emphasizes ME development and the Micro-Enterprise Development Policy (2008) which promotes micro-entrepreneurship by mandating the cultivation of an enabling environment for ME creation and growth. Although the country has recently undergone a violent 10 year conflict and a long political transition, government-led development initiatives are still focused on alleviating poverty. BRAC Social Enterprises http://www.brac.net/sites/default/files/Overview-BRAC-enterprises-and-investments.pdf BRAC was selected due to its well-established community-based approach, innovative techniques, ability to effectively synergize programs, and provision of holistic support to their beneficiaries. BRAC has successfully grown and scaled 16 social enterprises, having created opportunities for 138 million people across different sectors. Background BRAC established its first social enterprise, Aarong, in 1978 to support existing initiatives to engage women in productive income generating work. BRAC’s social enterprise sectors have evolved to include health, retail, livestock & fisheries, agriculture & food, green enterprises, and printing & packaging. Vision The objective of BRAC’s social enterprise model is to alleviate poverty through social and economic empowerment. Mission BRAC’s social enterprise program aims to address the challenges of sustainable livelihood generation and market access that inhibit economic growth and social empowerment for women in rural areas. BRAC assists microentrepreneurs, farmers, and producers by establishing vital linkages across value chains and reinvesting enterprise income into 2 https://www.britishcouncil.org/sites/default/files/bc-report-ch5-pakistan-digital_0.pdf 3 development programs. Their surplus-generating model allows for “scalability, greater outreach, and maximum impact.” Geography BRAC prioritizes its outreach and enterprise support work to the poor and women in rural areas. However, BRAC also targets enterprise support to urban areas, having outlined new strategies to address urban poverty. These guidelines include piloting integrated programs in 4-5 slums, maintaining tenurial security at the center of its interventions, avoiding the creation of identical services provided by other NGOs, conducting a baseline survey to personalize each program to its respective slum environment, collaborating with the government to provide basic services, partnering with the media to strengthen slum dwellers’ awareness of basic rights, and laying out the conditions and systems that define the urban space. Engagement in Community BRAC’s first enterprise Aarong has developed to become a national retail outlet, currently assisting more than 65,000 rural artisans in marketing and selling their products to the urban market. The linkage and retail process begins with a design team conceptualizing the design strategy for the season and then sends this material to the rural artisans for production. Aarong supports the development of artisans’ skills through training programs and ensures that products are bought at a fair price. BRAC collaborates with the Ayesha Abed Foundation to provide free skill-building opportunities, transportation of goods, quality control, storage, management, finance, and marketing assistance as well as access to a daycare center for working mothers and retirement benefits. Extra revenues gathered from Aarong go towards microfinance and primary education initiatives. For example, employees in rural communities obtain additional support from BRAC such as micro-credit services; agricultural inputs (seeds, poultry, livestock); free education for children; healthcare check-ups and optometry appointments; free health education; free tuberculosis treatment; and legal awareness. Operation Strategies BRAC’s success can be attributed to three operational strategies. Firstly, BRAC’s three prong Investment, Enterprise, and Development program model allows them to harness and develop synergies between its programs. Next, BRAC aims to minimize