Global Hubs of Innovation 3 Dena Levitz 1776 Dena Levitz.
Slide 1 Slide 2 Global Hubs of Innovation Slide 3 3 Dena Levitz 1776 Slide 4 Dena Levitz Slide 5 5 Slide 6 Slide 7 Slide 8 Slide 9 Slide 10 Slide 11 Slide 12 Slide 13 Isabel Castillo NESsT Slide 14 Enterprising Solutions in Low-Income Communities in Peru NESsT Peru Slide 15 Provide sustainable income opportunities for low- income individuals. Promote labor inclusion, by creating employment options for marginalized groups. Make affordable technologies and basic services accessible to underserved markets. SOCIAL ENTERPRISES BREAK THE CYCLE OF POVERTY. Social enterprises generate both financial and social returns. Rather than depending on donations to reach their impact goals, these small and growing businesses reinvest their income into solutions to critical social problems. They are self-sustaining and scalable. NESsT is a catalyst for emerging-market social enterprises that: 15 Watch NESsT & Social Enterprise on YouTube.NESsT & Social Enterprise Slide 16 Since 1997, NESsT has developed sustainable social enterprisesfrom planning to scaling. We use a multifaceted approach that includes financial investments, capacity support, and social capital. 16 Social Capital: Access to corporate professionals providing pro-bono consulting support Capacity Support: Business training to increase entrepreneurial and management skills Investment: Seed capital in the form of grants and soft loans NESsT IS A CATALYST FOR SOCIAL ENTERPRISES IN EMERGING MARKETS. Slide 17 Supporting Social Enterprise: Sponsors & Partners 17 Slide 18 Despite ongoing economic growth, marginalized communities in Peru are deprived of employment opportunities, fair wages, basic services, and access to affordable technologies. NESsT social enterprises help them overcome these barriers in the long-term. Slide 19 19 Peruvians are native entrepreneurs? In fact that 98% of companies are small or micro, demonstrates this entrepreneurial impetus of Peruvians But, what are their real potencial to scale? What are the big problems/barriers in order to growth in this Incipient Ecosystem? Peru = Emerging economy Slide 20 20 Seed Capital Investment in different stages Appropriate technologies Research and Development Entrepreneur Profile The Team Capacity Building Government Metrics and indicators Impact Networking and partners Bureaucracy in the public sector Legal Standards LONG TERMS OF SUPPORT Slide 21 How It Works: NESsTs Methodology 21 NESsTs methodology to support high-impact social enterprises follows three phases: planning, incubation, and scaling. We use a customized performance measurement tool to determine an enterprises eligibility for each phase. Enterprises selected to join our portfolio receive five to seven years of support, which includes grants and soft loans; leadership, marketing, sales, human resources, investment-readiness, and scaling workshops; collaborative retreats; finance and management tools; on-site mentoring; and access to our Business Advisory Network of corporate professionals. Accelerators Impact investors Business plan competitions Philanthropic Capital 47 years grants + transformational Loans +capacity support + one-on- one mentoring First Stage Scaling Proof of Concept 3 years grants + incubation loans + capacity support Pipeline Universities Performance Metrics NESsT Methodology Business Advisory Network Slide 22 ARPEGIO T RUJILLO, P ERU Social Challenge: In 2005, in La Libertad, 23% of children did not finish primary school and 34% did not complete secondary school. Trujillo has one of the highest juvenile delinquency rates in the country. NESsT Enterprise: Arpegios social enterprise, the Arpegio Music Academy, offers music lessons to children and youth. The Academy charges fees to children from higher-income families to subsidize scholarships for low-income children. Additionally, 50 of the students participate in the Orquesta de Barro, which offers public performances. Impact Area: Education Years in NESsT Portfolio: 4 Portfolio Stage: Incubation NESsT value added: Helped determine an appropriate price point to achieve a balance between the price for students who pay and students who receive scholarships. Assisted with the creation of a monitoring system for students to better ensure their individual growth. Developed outreach and loyalty strategies for parents and students and supported the development of a musical syllabus to offer classes at other locations. Trained Arpegio to measure and manage the results of the social enterprise, including assessing the impact on its mission and values. Thanks to NESsT, we were able to consolidate our educational proposal, both in terms of infrastructure and quality of services. Giuliana Casas, Arpegio $62,155 NESsT investment to date 430 children reached and educated in music $55,570 total revenues from social enterprise 86% increase in indirect beneficiaries 22 Slide 23 CASA de PANCHITA L IMA, P ERU Social Challenge: According to studies, 40% of the workforce in Peru works in the informal economy, where domestic workers are one of the most vulnerable groups and child labor is common. NESsT Enterprise: AGTR operates an employment agency for domestic workers called, "La Casa de Panchita. The agency provides tailored and comprehensive training to domestic workers, from cooking to child and elderly care. It then places these highly skilled workers in formal and dignified employment opportunities, while generating sustainable income for the organization by charging a fee to the employer. 1,579 job placements for domestic workers 144% increase in enterprise income 7,000 total indirect beneficiaries in 2013 Impact Area: Labor Inclusion Years in NESsT Portfolio: 4 Portfolio Stage: Incubation, in scaling process NESsT value added: Assisted Casa de Panchita to define its business model and to increase its capacity to manage and measure its financial and social impact. Helped to strengthen AGTRs structure, operations, culture and relations with stakeholders, and trained the team to improve its sales and marketing skills. Initially, we had no idea how to create a business plan and we did not think we could do it. With NESsT support we realized that we could. Blanca Figueroa, President, Casa de Panchita $98,000 NESsT investment to date 23 Slide 24 INGENIMED C USCO, P ERU Social Challenge: Approximately 50% of newborns have some incidence of Neonatal Jaundice and between 4% and 6% develop Pathological Jaundice. In 2013 approximately 41,000 children required phototherapy treatment. If not treated properly, jaundice can cause permanent neurological problems. The technology available for treatment in rural areas is inadequate. NESsT Enterprise: Ingenimed designs, produces and sells blue light phototherapy equipment called NEOLED, a high-quality, cost-effective treatment for neonatal jaundice. It offers two solutions: a conventional one used directly over incubators and an alternative known as Madre Canguro or Kangaroo Pouch. 2,800 newborns have benefitted from the technology 400% increase in beneficiaries in 2013 Impact Area: Affordable Technology Years in NESsT Portfolio: 4 Portfolio Stage: Incubation, in scaling process NESsT value added: Helped the development and improvement of the prototype, and tested it in 3 clinics and helped formally start the business. Supported and advised on clinical validation and obtaining permits necessary to market the technology. Provided strategic, operational and financial advice on the development of a business plan to expand the companys scale on a national level. NESsT supported us to set up the company, helped to develop and improve our prototypes until they were ready for market, first with NEOLED and then with our others biomedical equipment. Sandro Gamarra, Ingenimed $78,765 NESsT investment to date 2424 Slide 25