1. Business Plan Self-Sufficient Agricultural School

2. Mission
To establish a Self-Sufficient Agricultural High School for the rural poor in Paraguay that provides practical and entrepreneurial education that enables graduates to achieve financial success.
To serve as a Model & Prototype for potential replication elsewhere in Paraguay and other developing countries

3. 3 Desired Outcomes (A) Skilled graduates that
(1) return to their communities to work on the farm, or
(2) go on to colleges, or
(3) are employed within six months of graduation.
(B) Phase 1:School is sustainable by 2007, and covers 60% of operating costs in 2005.
(C) Phase 2:Prototype-Model is Disseminated to other countries through:
Increased Awareness
Replication of certain aspects of model
Action: other schools embarking in the self-sufficiency road
Generate revenues from Service Fees

4. A new way to address Rural Poverty
Rural Poverty is a consequence of lack of agricultural know-how, entrepreneurial skills and access to financing.
Land Reform, traditional charity & aid, equipment and subsidies have not worked
Existing strategies have not been able to address the problem of farmer inefficiency.
Rural schools teach general education courses disconnected with students’ realities
Teaching agricultural and entrepreneurial skills to young farmers in an revenue-generating farm school and providing microfinance to graduates is a viable alternative.

5. Our Value Proposition For underprivileged Paraguayan rural youth
Who are structurally unemployed
Fundacion Paraguaya’s Agricultural High School is an innovative educational institution
Which offers a high quality technical-entrepreneurial training and post-graduation follow/up.
Unlike traditional schools that do not promote usable skills for immediate placement in agribusiness, college, or the family farm
Our Agricultural School teaches not only marketable skills but also entrepreneurial and business skills as well as practical hands-on experience and provides loans upon graduation when needed for business ventures.

6. Value Creation
Taking in poor rural students and providing them with entrepreneurial skills and loans in addition to agricultural education. Graduates are qualified for higher education, employment in agribusiness or to return to productive farming
Converting a deficit-ridden school into profit-making institution by using lessons learned in Microfinances and Junior Achievement
Measure of Success: Graduates’ performance translates into School’s reputation which translates into more students, faculty and resources

7. Clients & Beneficiaries
(1) Those who attend our School: young rural farmers who come from chronically unemployed families and poor communities
(2) Those who employ our Graduates: private sector and business community benefit from qualified middle-level human resources or Colleges. 
(3) Those who buy our products and services: consumers, schools, and general public
(4) Those who adopt a new educational model: policy makers and international donor agencies

8. Environmental Enablers
High % of GNP comes from Agriculture
For a country such as Paraguay its imperative that the agricultural sector becomes more efficient and more competitive in the world market
This can only be achieved with an educated workforce that also has business skills

9. Potential Obstacles & Risks
It is yet to be proven that educators will accept this “Learning By Doing” model
There is a bias against business in school & money-making faculty and students
Lack of resources
Ability to attract faculty and supporting workforce because of lower salaries than private sector
Misunderstanding regarding the value of work-study
Government impositions of different curriculum (theoretical vs. practical)
General economic environment may force students to stay home

10. Strategy to Serve the Market
Fundacion Paraguaya is a 28-year-old Non-Profit Organization
Experience in attaining Self-Sufficiency in its Microfinance & Entrepreneurial Education
Subsidize Agricultural School until it reaches self-sufficiency
Take lessons learned in Microfinance and apply them to Agricultural Education:
Poor want to develop
Poor are willing to pay
Need to use Appropriate Methodology and scale
Self-sufficiency is possible
Work dignifies

11. How will the school become self-sustaining?
Multiple sources of revenue, including
Sale of products produced at school
Providing services to agricultural community
Renting facilities
Nominal tuition and work-study scholarships
Public funding is not considered desirable because of political constraints attached to that funding
School has the full financial support of Fundacion Paraguaya and has the Management Team & Organization

12. School has Income Streams from 17 Products & Services
Livestock
Milk & Cheese
Steers for Beef
Pigs
Chicken, Broilers & Eggs
Goats
Rabbits
Honey
Agriculture
Vegetable Garden
Crops & Fruit
Community Training Center
Housing
Food & Lodging
Conference Rooms
Guided Tours
Special Events for Business Community
Store
Goods produced at the school
Food produced
Grocery store products

13. Sustainable Advantage
Ability to recruit and select students that are “likely winners” from a big pool of candidates
Ability to produce a continuous flow of qualified high school graduates who either go on to college, get a good job, or return to their communities to run their family farms.
Business Approach and practical training which ensures permanent innovation as well as cost-controls.
Valued as a important resource in the agricultural community. It is a magnet for business interests who come to it in search of its excellent faculty and qualified graduates
Produces superior quality goods because it has trained faculty and staff managing production.
Does not depend on government subsidies and is removed from politics
School’s reputation: biggest asset

14. Fundacion Paraguaya Team & Organization
Board of Directors &
CEO w/experience
$ /yr surplus
330 Employees
Microfinances
$ /yr
28 Regional Offices
clients/yr
Entrepreneurial
Education
(Breaks-Even)
students/yr
4 Agricultural
High School

15. Agricultural School Team & Organization
School Director
Experienced in
Academics
& Business
Production Chief
Experience in
Academics &
Farming
Academic Director
Experienced and
Junior Achievement
Background
Finance &
Administration
Staff: Experienced

16. Revenue and Business Model
This Model School will produce self sustaining revenues by the sale of agricultural goods and multiple services. 
The level of sales revenues (turnover) that is hoped to be achieve is US$ a year by 2007. 
Revenues reflect market realities and School competes in the market.

17. Distribution of Revenues
Nominal Tuition: 5%
Road-Side Store: 10%
Vegetable Garden, Crops & Fruits: 20%
Livestock & Small Animals: 25%
Community Training Center: 40%

18. Phase 2: Dissemination of Model-Prototype School to other Schools in Paraguay and other Developing countries
Raise Awareness in 1000 schools
Promote Replication of certain aspects of model in 50 schools
Action: 10 schools embarking in the self-sufficiency road

19. Basis on which to “sell” Model
On its educational merits – stressing the academic success of graduates
On its income increasing benefits
As a means of ensuring institutional independence
As a fresh paradigm – but one which they can work towards at their own pace
As a support package that can be implemented in modules
As a support network for technical assistance, and funding

20. A call to Action: Stakeholders role in Expansion
We need to address rural poverty and develop a new breed of rural entrepreneurs
Stakeholders need to take action
future employers, ranchers and the agricultural business community
Donors, foundations and international development agencies (World Bank)
A Village School for US$

21. The time has come: We have a Roadmap
The People
The Opportunity
The Context
Risk and Reward

22. Reward Develop a true “Social Innovation”
To turn upside-down the way we think about education
to Make Poverty History