Collaborative Incubation Model (CIM) Natalie Nasseri

Welcome to the Collaborative Incubation Model To clearly understand the Collaborative Incubation Model as a sustainable development tool to empower communities, we invite you to become familiar with the following definitions: Social Enterprise Enterprise Incubation Social Enterprise Incubation © WomenforGrowth

less dependency on donor money Social Enterprise is: A business with primarily social objectives whose profits are principally reinvested (for that purpose) in the business or community, rather than being driven by the need to maximize profit for shareholders and owners Social enterprises can achieve economic, social, and environmental goals with less dependency on donor money

Enterprise Incubation is: A business support process that accelerates the successful development of start-up companies by providing entrepreneurs with an array of targeted resources and services These services are developed by the incubator and offered by the incubator and its network An incubator’s main goal is to produce financially viable and sustainable businesses © WomenforGrowth

Social Enterprise Incubation is: A business and social support process that accelerates successful development of social enterprises by providing social entrepreneurs with an array of targeted economic and social resources These resources are developed and delivered by the incubator and its network of contacts (or partners) © WomenforGrowth

Collaborative Incubation Model (CIM) Various stakeholders incubate social enterprises, achieving common economic, social, and environmental goals The model uses the incubation approach to establish social enterprises that are financially sustainable while empowering their communities by pursuing their economical, social and environmental objectives WomenforGrowth has developed CIM to assist disadvantaged communities through these next steps… © WomenforGrowth

CIM Steps Identify vulnerable groups, Community-Based Organizations (CBOs), and viable businesses that are interested in developing social enterprises as a tool to empower themselves and their communities Identify immediate and long-term economic and business needs Identify immediate and long-term social objectives Partner with relevant stakeholders to incubate groups, CBOs, and enterprises to deliver identified economic and social resources and transform the groups and enterprises into social enterprises After incubation, facilitate appropriate business and social infrastructure in order to enable social enterprises to sustain and scale up their operations © WomenforGrowth

For Example Organization XYZ needs innovative and sustainable approaches to improve socioeconomic conditions of women-owned enterprises or women’s groups to prevent and reduce HIV-infection among women and their communities © WomenforGrowth

Select women’s groups, CBOs, or businesses that First Step: Identify vulnerable women’s groups, Community-Based Organizations (CBOs), and viable businesses that are interested in partnering and developing social enterprises as a tool to empower women while reducing or preventing HIV/AIDS Select women’s groups, CBOs, or businesses that Have viable and expandable business or business ideas Are willing to be incubated to become social enterprises Are interested in improving their economic conditions while reducing or preventing HIV/AIDS Are committed to assisting their members (employees) and communities © WomenforGrowth

Second Step: Identify immediate and long-term economic and business needs of the social enterprises, e.g.: Personal savings /credit services Group savings Business Loans Social Enterprises Business training New Product development Marketing & Branding (S) Partnership with distributors Link to financial services Collaboration with Private Sector Establish market share with “socially conscious consumers” Assist product design Provide trade information © WomenforGrowth

Third Step: Identify resources needed to assist the social enterprises to achieve their social objective. In our example HIV-prevention is the social objective Health education services Home based care, OVC support Services SOCIAL ENTERPRISES Workplace HIV/AIDS program BCC & Peer support Male involvement Family Outreach Social & Health Services Group Savings Scheme Development & Implementation of the women’s Social Objective Primary and reproductive health services VCT HIV Treatment & PMTCT © WomenforGrowth

Community Service Providers (private & public sector) Fourth Step: Partner and collaborate with appropriate stakeholders to deliver identified economic and social resources during incubation period which will develop and strengthen the social enterprises Economic Resources Social Resources Microfinance Institutions/ formal banking sector Personal saving /credit services Group savings Business Loans Community Service Providers (private & public sector) Health education services Home based care, OVC support Services SOCIAL ENTERPRISES Technical training to new hires Basic business training to employees & other women groups Manage all operational costs Establish/expand market share Strengthen HIV/AIDS services for employee & families CHANGE AGENTS to promote HIV/AIDS prevention in their communities Business Developers Business training New Product development Marketing & Brandings Partnership with distributors Link to financial services Collaboration with Private Sector HIV/AIDS Service providers Workplace HIV/AIDS program BCC & Peer support Male involvement Family Outreach Social & Health Services Group Savings Scheme Development & Implementation of the women’s Social Objective Health Services Primary and reproductive health services VCT HIV Treatment & PMTCT Product Distributors Establish market share with “socially conscious consumers” Assist product design Provide trade information © WomenforGrowth

Final Step: After incubation facilitate appropriate business and social infrastructure for the social enterprises to sustain their operations and stand alone After incubation the social enterprises should perform the following on their own: SOCIAL ENTERPRISES Provide business and technical training to new hires Manage operational activities and costs Establish/expand market share for products and services Actively pursue and achieve their social objectives Encourage community members to become CHANGE AGENTS of their communities © WomenforGrowth

Benefits of CIM Develops and expands sustainable businesses that economically and socially empower disadvantaged communities Facilitates development of less donor-dependent projects Promotes responsibility within communities to take ownership of economic, social, and environmental challenges and seeks viable solutions to diminish those challenges Easily replicates and expands Assists multiple projects to interlink activities, increasing project efficiencies. © WomenforGrowth

HOW CAN YOU REPLICATE AND EXPAND CIM IN A LESS DONOR-DEPENDENT WAY? © WomenforGrowth

Recovering Costs CIM is sustainable and flexible, making it easy for NGOs, Civil Societies, and Local Governments to cover costs of incubation Hence they can easily replicate and expand the model, extending services WomenforGrowth develops viable strategies for this purpose © WomenforGrowth

Selecting a right strategy for cost recovery depends upon: Legal & business environment Cultural norms & barriers Social capital Next two slides are examples of how viable strategies can recover costs of incubation, allowing funds to revolve and be used to expand and replicate CIM and its benefits © WomenforGrowth

Financial Sustainability Strategies (examples) Profit Sharing: cost of incubation is recovered through profit sharing Phase III Donor Independent + Revenue Generation Profit Sharing Profit will cover enterprises operating costs Profit sharing starts with the project Phase II Donor Dependent + Revenue Generation As enterprises increase their revenue, they are able to cover operating costs Phase I Seed Money Donor Dependent Where enterprise incubation depends on donor contribution © WomenforGrowth

Financial Sustainability Strategies (continued) Microfinance: loans provide resources for the incubation process Phase III Loan Independent + Revenue Generation Loans are paid off Profit will cover enterprises operating costs Phase II Loan Dependent + Revenue Generation As enterprises increase their revenue, they are able to repay loans Phase I Loan Dependent Where enterprise incubation depends on capital seed money through microfinance © WomenforGrowth

Thank You! For further information please contact Natalie Nasseri at womenforgrowth@yahoo.com or (650) 996-1929 © WomenforGrowth