Social Microfinance Social Entrepreneurship Creation of Very Small Businesses Testimonials

With next to nothing, change practically everything!

SOCIAL MICROFINANCE SOCIAL ENTREPRENEURSHIP CREATION OF VERY SMALL BUSINESSES TESTIMONIALS

Micro-entrepreneurs Highly committed Strong proud of their progress teams convictions

JACQUES AFETOR FRANCK RENAUDIN Project Manager Founder and General Manager Togo

DY LONH For 8 years I worked for two After graduating from EDHEC busi- Produces rice noodles « Microfinance Institutions where the « ness school, I worked for major beneficiaries’ interests were not the main French companies before deciding to Cambodia priority and I found this very frustrating. work in development aid. Today, I am proud to work for Entre- After having lived in Haiti and the Phil- Chamroeun* has granted me seven preneurs du Monde and provide vital ippines for 7 years, and having acquired « loans, ranging from 300,000 to interactive training. For example, to an in-depth knowledge of the local con- 2,000,000 riels (€57 to €380). The loans teach women to keep the family budget text and working methods, I founded enabled me to buy rice in larger quanti- and their business budget separate, I Entrepreneurs du Monde in order to ties (and therefore at wholesale prices) give each woman a card and ask her to promote and deploy a resolutely social and pay for the maintenance of my ma- write everything she thinks is a family approach to microfinance. I use all of chine. By buying more rice I was able to related expense on the left, and all my energy both in the field, to train and produce more and earn eight times more business related expenses on the right. motivate teams in this approach, and in money. The training I received in accoun- Then I ask her to sort the ‘business ex- France, to convince sponsors to support ting, sales and entrepreneurship has also penses’ by order of priority, and to do the charity’s actions.” helped me to develop my business. Now the same with the ‘family expenses’. my family has a better quality of life and I Each group then comes up with a list of have been able to make savings. I have expenses by order of priority and de- A hands-on also been able to install a toilet and a cides to defer the least important ex- Board waste water drainage system at home.” penses. The women are completely in- of Directors * Entrepreneurs du Monde’s partner microfinance involved and they learn from their shared stitution in Cambodia. experiences.”

The teams at Entrepreneurs du Monde work very hard in the field to help MFIs « (Microfinance Institutions) to develop and realise ambitious projects. As Treasurer, I have the opportunity to reflect back onto the team at work meetings and contribute to the choice of priorities, both in terms of the financial allocations for each programme and the raising of new funds from our sponsors. I have worked actively with the whole team on new financing methods such as Microfinance Solidaire*, which supports all of our programmes, or the Entrepre- neurs du Monde Foundation, which will begin its activities in 2013. The enthusiasm and motivation of the teams at Entrepreneurs du Monde are catching!” JEAN-PAUL BERNARDINI * Microfinance Solidaire SAS: a French company, similar to a limited company. Treasurer

2 | October 2013 | Presentation of Entrepreneurs du Monde OUR MISSION

Who? THE CREATION OF VERY SMALL BUSINESSES (VSB) to encourage arti- Since its creation in 1998 the French sans and basic-service providers to de- NGO, Entrepreneurs du Monde, has been velop very small businesses. working in Haiti, in Africa and in Asia. The organisation enables thousands of women and men living in extremely dif- ficult circumstances to improve their living conditions: it provides support for their own economic initiatives and helps them gain access to products offering significant health, economic and environmental benefits. It helps these people to be successful, which in turn enables them to make economic and social progress. How? Entrepreneurs du Monde prefers to What? work through local partners, or else via its own programmes. The support can Entrepreneurs du Monde meets entre- be: preneurs’ need for financial and socio- • technical support: it advises them economic services in 3 main areas. and provides them with the means to: - diversify their services, implement the SOCIAL MICROFINANCE which helps most suitable loans methodologies, NORA female market traders, dressmakers, - use appropriate management tools, hairdressers, farmers and other people - strengthen and measure their social Philippines working in the informal sector to de- performance. velop their businesses and improve their It also helps them to choose an appro- I had been a dressmaker for ten daily lives. priate legal structure, to improve their years when I applied to SEED* for governance and seek funding. « a loan of 6,000 pesos (€115) to help me buy materials and equipment. But, • financial support: it covers the operating loss of the programme or part- as I had only one sewing machine, I ner until it achieves financial sustainabil- sometimes had difficulty in meeting my ity, which takes on average 5-7 years. orders and in making uniforms, trousers, curtains, etc. - especially whenever the machine broke down! So I sought a second loan of 7,000 pesos (€135) to buy a second sewing machine and set up a small grocery SOCIAL ENTREPRENEURSHIP which shop as an additional business. encourages the distribution of products A third loan helped me develop the offering significant health, economic and environmental benefits: gas stoves and shop, and a fourth enabled me to add improved wood or charcoal cook stoves, a third business: preparing and serving solar-powered lamps, spirulina, and hous- With whose help? breakfasts. I currently earn twice as ing designed to suit the constraints and Entrepreneurs du Monde is financed by much as I did before, I save 75 pesos meet the needs of the local population. the French Development Agency and a day (€1.5) and I have been able to other public bodies as well as founda- have the roof of our shophouse re- tions, businesses and private individuals. paired. All donations are eligible for tax relief, if I still want to buy equipment for pre- donors pay tax in France. paring hotdogs and to have a fitting Entrepreneurs du Monde room put in to make the “dressmak- is endorsed by the “Comité de la Charte du ing” section of my workshop-grocery don en confiance”. shop more comfortable.” * Entrepreneurs du Monde’s partner microfinance institution in the Philippines.

Presentation of Entrepreneurs du Monde | October 2013 | 3 THREE AREAS OF FOCUS

KEYS FIGURES, 2012 SOCIAL MICROFINANCE The financial services are our means of reaching families. The long-term SOCIAL MICROFINANCE impact which these services have on the businesses and lives of members of the families involved is possible only because they are accompanied by 144,294 borrowers & savers socioeconomic services which empower families and reduce their isola- 123,826 loans tion and vulnerability. Average loan amount: €161 Financial services Socio-economic services €225,891 attendances at training courses

SOCIAL ENTREPRENEURSHIP 2,561 gas stoves & improved stoves sold MICROCREDIT TRAINING 197 kilos of spirulina sold The amount of each microcredit is The micro-entrepreneurs have formed adapted to the needs of each income- groups which meet on a regular basis to 179 crafts people trained generating business and is collateral share experiences and take part in train- in building earthquake free. Across all the countries in which ing sessions covering professional issues and cyclone resistant houses we operate, these credits average €147, such as management and sales, or social or in recycling earthquake with initial loans averaging €107. “Kick issues such as health, education, self- Start” loans of between €15 and €30 confidence, etc. Each group elects a rubble can also be granted to those in situa- chairperson, a treasurer and, in some tions of extreme hardship. The loans are countries, a peer educator, who acts as repaid within a few months. an intermediary between micro-entre- CREATION OF VERY preneurs and the instructor on social SMALL BUSINESSES SAVINGS issues (see Dorothy’s story, below). Each micro-entre- 90 VSBs* set-up/strengthened preneur opens a SUPPORT 189 jobs created savings account The credit of- into which he or she puts money as and ficer encourag- *VSB: Very Small Business when is convenient. These savings allow es and advises the micro-entrepreneur to provide for re- the micro-en- stocking and cover the household’s t re p re n e u r s planned expenditure (schooling, health, and makes a etc.) and unplanned expenses such as hos- regular assessment of the socio-eco- pital care or the death of a family member. nomic progress made by their families. Intensive social support, such as counsel- ling, referral to relevant social agencies I’ve only managed to improve etc., is available for those who need it. « my sales of drinkable water bags thanks to ID Ghana*. I’m also very proud to have been HEALTH MICRO-INSURANCE elected community development Several of our part- worker by the other women in my ner organisations group of micro-entrepreneurs. Since offer micro-entre- then, I have participated in the ID preneurs access to Ghana trainer’s monthly briefings, so I health micro-insurance. Families, can hold awareness-raising sessions therefore, pay far on children’s and women’s rights, the less for medication and health care and prevention of cholera and malaria, are no longer forced to use working DOROTHY domestic violence etc.” capital from their businesses to cover Ghana * Entrepreneurs du Monde’s local partner in Ghana. their health-related expenses.

4 | October 2013 | Presentation of Entrepreneurs du Monde SOCIAL ENTREPRENEURSHIP CREATION OF VSB

Access to essential goods ENERGY INITIATIVE In the earthquake-hit areas of Haiti, we and services We have chosen access for all to encourage the creation or re-launch of clean energy as our focus for 2012- Very Small Businesses. Access to lighting is rare and the use of 2016. Programmes are being prepared wood as a source of fuel for cooking or are in the process of being Prioritisation on certain has a harmful effect on forest resources, launched in Cambodia, Haiti and Togo. businesses health (due to the toxic fumes) and These programmes will be able to household budgets. Additionally, a large draw on our experience with Nafa We select either manufacturing or serv- proportion of those with whom we Naana in Burkina Faso. ice businesses (rather than buy and sell work suffer from nutritional deficien- businesses which are supported by our cies and weakened immune systems. Fi- viding credit, supplying posters and bro- social microfinance strand) to create nally, they urgently need affordable and chures, and individual guidance. In value added and jobs in the earthquake- suitable housing which, in certain high- Burkina Faso, we have created a social hit regions or rehousing areas. risk areas, must also be earthquake and enterprise for the long-term distribu- cyclone resistant. tion of access to energy products. In Business plan support Mongolia, we are supporting a project which brings together families of no- The selected entrepreneurs receive in- madic herdsmen in a supply chain for dividual support during the planning fermented mare’s milk and cheese. stage for the creation, development or re-launch of their businesses. Communication and credit for beneficiaries We organise campaigns to raise awareness of useful products, particularly Identification or amongst those families who are supported by our partner social microfi- development of applicable nance institutions. We also offer them a products loans or savings solution to help them Simple and cost-effective solutions are buy these products. available. We identify and promote the best solutions in terms of quality, price Training and availability: gas stoves and improved They have regular meetings with their wood or charcoal cook stoves (which tutors and come together for training cut wood consumption by 40%) and sessions (stock management and ac- solar-powered lamps (in districts where counts for example) or to exchange electricity is extremely scarce). We im- questions and good practice in round prove access to spirulina, a local algae table discussions. which is rich in proteins, vitamins and essential minerals. Finally, in Haiti, in partnership with the CRAterre re- I used to sell beauty products. search laboratory, we have developed a « Nafa Naana*, a social enter- model for an earthquake and cyclone prise, has helped me to start up sales resistant house. of gas canisters, refills, improved coal and wood stoves which reduce toxic gas emissions and deforestation, as The creation or well as solar lamps and thermos strengthening of sustainable flasks. In six months, I have already economic networks sold 1,350 gas canister refills and 52 To ensure that these products are avail- canisters, stoves, lamps etc. I serve my able, we work with salespeople, distrib- community and I make €86 per utors and artisans, training them and month.” helping them to promote the products. GILBERTE * Social enterprise started by Entrepreneurs du This might take the form of organising Monde. or strengthening the supply chain, pro- Burkina Faso

Presentation of Entrepreneurs du Monde | 2013 October | 5 FINANCIAL TRANSPARENCY

SOURCES OF INCOMING The contribution of foundations and Operating costs €274,590 RESOURCES business organisations represents Operating costs were higher than last 42% of this revenue; that is €1,306,791. year: €274,590 compared to €159,598 We raised €3,075,046 in 2012 through Public funds brought €1,129,027 and in 2011. The principal reasons for this donations, sponsorships and subsidies make up 37% of the total incoming re- are the creation of two jobs at Head from private individuals, foundations, sources. Office, an organisation-wide adjustment companies and public organisations. Support from private individuals to the salary scale and the cost of rent- amounts to €338,126, which constitutes ing office space in Paris. 4% 11% of the total funds. 4% Other items, mostly comprising the Surplus of incoming resources 37% transfer of running costs and some for the year service provisions, represent 10% of to- We have recorded a positive income of tal resources. €52,583. This has increased our equity to €382,646. 34% USE OF RESOURCES 10% 11% Entrepreneurs du Monde dedicates most of the incoming resources to its Public funds actions in the field, by bringing the ex- Businesses penses that are not directly implied by Foundations and business associations the programmes down to their mini- Other foundations and associations mum. We guarantee precise follow-up Private individuals of the realisations and accounting trans- Other funds parency to our sponsors. Operational expenditure in 2012 rose from €3,463,727 and are dedicat- ed by 90% to social missions. AUDIT Social missions €3,105,085 Our accounts are au- dited by KMPG and Entrepreneurs du Monde’s social mis- our financial report sions were carried out according to the is available upon re- geographic distribution shown in the quest. graph out against. In addition, Entrepre- In France funds were used to support neurs du Monde is certified by the awareness-raising initiatives to promote `Comité de la Charte du don en confi- peace, solidarity and sustainable devel- 90% ance´, an independent body which ap- opment in educational establishments proves and monitors publically funded via the KuriOz association. 8% charities and foundations. 2% In order to gain its approval, Entrepre- Fundraising expenses €84,052 neurs du Monde is regularly monitored Fundraising expenses include salaries in four areas: for the team in charge of communica- • financial transparency tions and relations with sponsors and • constitutional arrangements and non- donors, as well as the production of profit management marketing materials. Social missions • stringent management Operating costs • quality of communications and fund- Fundraising expenses raising activities.

LOUISSONNE Cabinetmaker - Haiti Despite working 6 days a week, 12 hours a day, I was not able to develop my workshop, « due to the lack of tools to properly finish my furniture and an unreliable energy supply. Entrepreneurs du Monde granted me a loan of €1,900 to buy a generator, a sandblaster and an electric drill. I have since hired three apprentices and have significantly expanded production. Today my workshop has a turnover of €860 per month.”

6 | October 2013 | Presentation of Entrepreneurs du Monde MAIN SPONSORS

Presentation of Entrepreneurs du Monde | October 2013 | 7 In some countries, with ridiculously small sums of money, you can achieve truly extraordinary things’ Thus every year, in developing countries, the French NGO, Entrepreneurs du Monde enables thousands of men and women to start their own micro-enterprise thanks to microcredit, savings accounts and training. Help these micro-entrepreneurs to run their projects successfully by donating at www.entrepreneursdumonde.org Entrepreneurs du Monde is a French NGO part-financed by the French Development Agency. With next to nothing , change practically everything!

29 rue Ladmirault F-86000 Poitiers | +33 (0)5 49 60 73 63 | www.entrepreneursdumonde.org