Mapping the Trickle Out Benefits of Social and Environmental Enterprises- A Pilot Study of an East African Ecobusiness Dr David Littlewood and Dr Diane Holt and Queen‘s University Belfast, Queen‘s University Management School

Contents Introduction The Trickle Out Africa Project Social and Environmental Enterprise Definitions Identifying Impact Methods Trickle Out Impact Framework Case Study Cookswell Enterprises “Save Money, Save Energy, Save our Forests and Eat Well” Conclusions

Introduction "Social entrepreneurs are not content just to give a fish or teach how to fish. They will not rest until they have revolutionized the fishing industry.” (Bill Drayton, CEO, chair and founder of Ashoka) Rio +20 focus on the green economy, key role ascribed to social and environmental innovation in global sustainable development United Nations SEED Initiative. Supports innovative small-scale, locally driven social and environmental entrepreneurship.

The Trickle Out Africa Project Study of social and environmental enterprises in East and Southern Africa and their role in sustainable development and poverty alleviation Covers 19 countries Funded by the Economic and Social Research Council (ESRC) A survey of social and environmental enterprises, and online directory with over 3500 businesses listed 20 in-depth case studies in Kenya, South Africa, Zambia and Mozambique Website:

Definitions Social Enterprise (Some) key characteristics: Mission centred Surpluses used for social or social and environmental purposes Income generation through trading activity Address social and or environmental problems in an innovative way Non profit maximising approach Environmental Enterprise Enterprises that have a product or service that is based predominantly on managing or using environmental/ natural capital and consider (to varying degrees) the three aspects of the pillars of sustainability, incorporating environmental, social, and economic criteria.

Identifying Impact London’s (2008) Base of the Pyramid Impact Assessment Framework The Oxfam Poverty Footprint (2009) Social IMPact measurement for Local Economies (SIMPLE) framework ISO Environmental Management System and ISO Social responsibility EU Eco-Management and Audit Scheme (EMAS) SIMPLE Framework Oxfam Poverty Footprint

Methods In-depth case studies (20 in total in Kenya, Zambia, South Africa and Mozambique) Stakeholder and key informant interviews, focus groups, observation research, questionnaires, secondary materials analysis Cookswell Enterprise Case Study 12 interviews (Founder, owner, production technicians, purchasers, business owners) Questionnaire of purchasers Analysis of secondary materials

Trickle Out Impact Framework Sustainable Development o Dimensions (economic, social and environmental) o Scale (National, Local, Household, Individual) Poverty Alleviation 1.Assets, income and livelihoods 2.Wellbeing 3.Opportunity and choice 4.Network and relationship 5.Natural resources and environment o Impacts on different stakeholders NationalLocalHouseholdIndividual Economic +/- Social +/- Environmental +/- Impact Areas Stakeholder Groups (Employees, communities, producers etc) Assets, income and livelihoods +/- Wellbeing+/- Education, opportunity and choice +/- Network and relationship +/- Natural resources and environment +/-

Case Study Cookswell Enterprises “Save Money, Save Energy, Save our Forests and Eat Well” Key Facts Founded 1982 by Dr Max Kinyanjui Sells energy saving charcoal stoves and ovens in Kenya, Rwanda, Tanzania and Uganda Musaki Enterprises production company, Cookswell Enterprises marketing and distribution Kenya Seeds of Change- Packets of multi-use indigenous tree seeds for BOP and household customers Tree planting and forestry related consultancy

Sustainable Development Impacts NationalLocalHouseholdIndividual Economic + Taxation revenues + Small business development + Local business and economy through wages, procurement, SME growth and increased customer income and spending + Household income and assets through wage employment, reduced energy bills and business start-up + Household saving + Household financial resilience + Income and livelihood diversification, start-up money for business + Individual income and assets (through wages, reduced energy bills and business development) + Income stability + Income diversification + Savings and ability to save + Financial Resilience - “Jua Kali” business limited government taxation revenues - Decrease in income for local charcoal sellers - Negative impacts of increased household income. Irresponsible spending. - Negative impacts of increased individual income Social + Skills development + Employment + Skills development + Livelihood strengthening and diversification (employees, sellers, purchasers) + Employee skills + Standard of living and quality of life (employees purchasers, business owners and sellers) + Long term household energy security + Livelihood strengthening and diversification + Status for employees, sellers and business people + Employee skills +Standard of living and quality of life (employees purchasers, business owners and sellers) + Livelihood strengthening and diversification + Status for employees, sellers and business people + Long term energy security - Negative impact charcoal sellers - Household income distribution - Limited number of women employed - No guarantee women receive additional income Environmental + Reforestation + Reduce deforestation + Environmental awareness + Environmental innovation +Climate change mitigation +Retaining and improving soil fertility + Reforestation + Reduce deforestation + Environmental education and capacity building + Community resources + Household resources + Environmental education and capacity building + Individual resources + Environmental education and capacity building - Deforestation - No guarantee trees planted - Still deforestation - Degrade community resources - No guarantee trees planted - Still deforestation - Degrade household resources - No guarantee trees planted - Still deforestation - Degrade individual resources - No guarantee trees planted Household Purchases SME Sellers + Reduced wood fuel consumption/ Deforestation +Reforestation + Reduced wood fuel consumption/ Deforestation +Reforestation + Living standards + Quality of life + Living standards + Quality of life Businesses using Jikos (Lodges, Bakeries, Restaurants) + Reduced deforestation +Reforestation + Awareness raising + Capacity and knowledge + Reduced deforestation +Reforestation + Awareness raising + Capacity and knowledge + Income/ Reduced energy bills + Business start-up + Income/ Reduced energy bills + Business start-up COOKSWELL ENTERPRISES MUSAKI ENTERPRISES Purchasers + Reduced wood fuel consumption/ Deforestation +Reforestation + Reduced wood fuel consumption/ Deforestation +Reforestation + Reduced energy bills +Business start up + Reduced energy bills +Business start up + Environmental innovation +Environmental advocacy + Environmental innovation +Environmental advocacy Kenya Seeds of Change + Reforestation + Soil fertility, agricultural productivity + Reforestation + Soil fertility, agricultural productivity Consultancy, Landuse Planning, Training and Advocacy + Reforestation + Environmental Awareness + Environmental behaviour change + Reforestation + Environmental Awareness + Environmental behaviour change + Employment + Living standards + Quality of life + Employment + Living standards + Quality of life + Taxation + Procurement + Taxation + Procurement + Business start up +Income + Business start up +Income + Income/ reduced energy bills + Living standards + Quality of life + Living standards + Quality of life + Reduced wood fuel consumption/ Deforestation +Reforestation + Reduced wood fuel consumption/ Deforestation +Reforestation + Living standards + Quality of life + Living standards + Quality of life + Living standards + Quality of life + Living standards + Quality of life + Income charcoal selling + Living standard + Quality of life +Energy security + Living standard + Quality of life +Energy security + Living standards + Quality of life + Living standards + Quality of life Supermarket

Poverty Alleviation Impacts EmployeesPrivate CustomersBusiness Customers SME Sellers ASSETS, INCOME AND LIVLIHOODS + Assets; + Income; + Income stability; +livelihood strengthening; + Income diversification; + livelihood diversification; + Financial resilience; + livelihood resilience;+ Ability to save; + Income through reduced energy bills; + Household assets; + Increased ability to save + Income ; + Assets; + Ability to save; + Financial resilience + Income; + Assets; + Livelihood creation; + Livelihood diversification; + Livelihood strengthening; Income diversification; + Ability to save; + Financial resilience WELLBEING + Income for basic needs; + Food security; + Emotional wellbeing from employment; + Reduction in vulnerability + Improved nutrition; + Reduced particulates; + Income for health, food etc; + Reduction in vulnerability; Food security; Agricultural productivity + Income for basic needs; + Reduced particulates; +Improved nutrition; + Reduction in vulnerability; + Food security + Income for basic needs;+ reduction in vulnerability; OPPORTUNITY AND CHOICE + Skills and capacities; + Income for education + Income for personal and family’s education + Income for personal and family’s education NETWORK AND RELATIONSHIPS +Status in household and community; + Support extended family; - Few women employed + Potential gender empowerment; + Status in household and community; + Status in household and community; + Potential gender empowerment NATURAL RESOURCES AND THE ENVIRONMENT + Household and community resources (tree planting and reduced deforestation) - Feedback effects. Unsustainable resource use elsewhere + Business natural resources - Feedback effects. Unsustainable resource use elsewhere

Conclusions Pilot framework for mapping the sustainable development and poverty alleviation impacts of social and environmental enterprises Framework is formative and flexible Potential for positive and negative impacts. Temporality and impact, short and longer term. Impacts at different scales and amongst various stakeholders “Trickle Out” Impacts