Business Plan Business Plan Self-Sufficient Agricultural SchoolSelf-Sufficient Agricultural School

MissionMission

To establish a Self-To establish a Self-Sufficient Agricultural Sufficient Agricultural High School for the High School for the rural poor in Paraguay rural poor in Paraguay that provides practical that provides practical and entrepreneurial and entrepreneurial education that enables education that enables graduates to achieve graduates to achieve financial success.financial success.

To serve as a Model & To serve as a Model & Prototype for potential Prototype for potential replication elsewhere in replication elsewhere in Paraguay and other Paraguay and other developing countriesdeveloping countries

3 Desired Outcomes3 Desired Outcomes(A) Skilled graduates that (A) Skilled graduates that

(1) return to their (1) return to their communities to work on the communities to work on the farm, orfarm, or(2) go on to colleges, or (2) go on to colleges, or (3) are employed within six (3) are employed within six months of graduation.months of graduation.

(B) Phase 1:School is sustainable (B) Phase 1:School is sustainable by 2007, and covers 60% of by 2007, and covers 60% of operating costs in 2005.operating costs in 2005.

(C) Phase 2:Prototype-Model is (C) Phase 2:Prototype-Model is Disseminated to other Disseminated to other countries through:countries through:• Increased AwarenessIncreased Awareness• Replication of certain aspects Replication of certain aspects

of modelof model• Action: other schools Action: other schools

embarking in the self-embarking in the self-sufficiency roadsufficiency road

• Generate revenues from Generate revenues from Service FeesService Fees

A new way to addressA new way to address Rural Poverty Rural Poverty

Rural Poverty is a consequence of Rural Poverty is a consequence of lack of agricultural know-how, lack of agricultural know-how, entrepreneurial skills and access entrepreneurial skills and access to financing.to financing.

Land Reform, traditional charity & Land Reform, traditional charity & aid, equipment and subsidies have aid, equipment and subsidies have not workednot worked

Existing strategies have not been Existing strategies have not been able to address the problem of able to address the problem of farmer inefficiency.farmer inefficiency.

Rural schools teach general Rural schools teach general education courses disconnected education courses disconnected with students’ realities with students’ realities

Teaching agricultural and Teaching agricultural and entrepreneurial skills to young entrepreneurial skills to young farmers in an revenue-generating farmers in an revenue-generating farm school and providing farm school and providing microfinance to graduates is a microfinance to graduates is a viable alternativeviable alternative..

Our Value PropositionOur Value Proposition

For underprivileged Paraguayan rural youth For underprivileged Paraguayan rural youth  Who are structurally unemployed Who are structurally unemployed Fundacion ParaguayaFundacion Paraguaya’’s Agricultural High School is an innovative s Agricultural High School is an innovative

educational institution educational institution Which offers a high quality technical-entrepreneurial training and Which offers a high quality technical-entrepreneurial training and

post-graduation follow/up. post-graduation follow/up. Unlike traditional schools that do not promote usable skills for Unlike traditional schools that do not promote usable skills for

immediate placement in agribusiness, college, or the family farm immediate placement in agribusiness, college, or the family farm Our Agricultural School teaches not only marketable skills but also Our Agricultural School teaches not only marketable skills but also

entrepreneurial and business skills as well as practical hands-on entrepreneurial and business skills as well as practical hands-on experience and provides loans upon graduation when needed for experience and provides loans upon graduation when needed for business ventures.business ventures.

Value CreationValue Creation

(1)(1) Taking in poor rural students and providing them with Taking in poor rural students and providing them with entrepreneurial skills and loans in addition to agricultural entrepreneurial skills and loans in addition to agricultural education. Graduates are qualified for higher education, education. Graduates are qualified for higher education, employment in agribusiness or to return to productive employment in agribusiness or to return to productive farming farming

(2)(2) Converting a deficit-ridden school into profit-making Converting a deficit-ridden school into profit-making institution by using lessons learned in Microfinances and institution by using lessons learned in Microfinances and Junior AchievementJunior Achievement

(3)(3) Measure of Success: GraduatesMeasure of Success: Graduates’’ performance translates into performance translates into SchoolSchool’’s reputation which translates into more students, s reputation which translates into more students, faculty and resourcesfaculty and resources

Clients & BeneficiariesClients & Beneficiaries

(1)(1) Those who attend our School: young rural farmers who come from chronically Those who attend our School: young rural farmers who come from chronically unemployed families and poor communitiesunemployed families and poor communities

(2)(2) Those who employ our Graduates: private sector and business community Those who employ our Graduates: private sector and business community benefit from qualified middle-level human resources or Colleges. benefit from qualified middle-level human resources or Colleges. 

(3)(3) Those who buy our products and services: consumers, schools, and general Those who buy our products and services: consumers, schools, and general publicpublic

(4)(4) Those who adopt a new educational model: policy makers and international Those who adopt a new educational model: policy makers and international donor agenciesdonor agencies

Potential Obstacles & RisksPotential Obstacles & Risks

It is yet to be proven that It is yet to be proven that educators will accept this educators will accept this ““Learning By DoingLearning By Doing”” model model

There is a bias against There is a bias against business in school & money-business in school & money-making faculty and studentsmaking faculty and students

Lack of resourcesLack of resources Ability to attract faculty and Ability to attract faculty and

supporting workforce supporting workforce because of lower salaries because of lower salaries than private sectorthan private sector

Misunderstanding regarding Misunderstanding regarding the value of work-studythe value of work-study

Government impositions of Government impositions of different curriculum different curriculum (theoretical vs. practical)(theoretical vs. practical)

General economic General economic environment may force environment may force students to stay homestudents to stay home

Strategy to Serve the MarketStrategy to Serve the Market

Fundacion Paraguaya is Fundacion Paraguaya is a 28-year-old Non-Profit a 28-year-old Non-Profit OrganizationOrganization

Experience in attaining Experience in attaining Self-Sufficiency in its Self-Sufficiency in its Microfinance & Microfinance & Entrepreneurial Entrepreneurial EducationEducation

Subsidize Agricultural Subsidize Agricultural School until it reaches School until it reaches self-sufficiencyself-sufficiency

Take lessons learned in Take lessons learned in Microfinance and apply Microfinance and apply them to Agricultural them to Agricultural Education:Education:• Poor want to developPoor want to develop• Poor are willing to payPoor are willing to pay• Need to use Appropriate Need to use Appropriate

Methodology and scaleMethodology and scale• Self-sufficiency is possibleSelf-sufficiency is possible• Work dignifiesWork dignifies

How will the school become self-How will the school become self-sustaining?sustaining?

Multiple sources of revenue, Multiple sources of revenue, includingincluding• Sale of products produced at Sale of products produced at

schoolschool• Providing services to Providing services to

agricultural communityagricultural community• Renting facilitiesRenting facilities• Nominal tuition and work-Nominal tuition and work-

study scholarshipsstudy scholarships Public funding is not Public funding is not

considered desirable because considered desirable because of political constraints of political constraints attached to that fundingattached to that funding

School has the full financial School has the full financial support of Fundacion support of Fundacion Paraguaya and has the Paraguaya and has the Management Team & Management Team & OrganizationOrganization

School has Income Streams fromSchool has Income Streams from17 Products & Services17 Products & Services

LivestockLivestock• Milk & CheeseMilk & Cheese• Steers for BeefSteers for Beef• PigsPigs• Chicken, Broilers & EggsChicken, Broilers & Eggs• GoatsGoats• RabbitsRabbits• HoneyHoney

AgricultureAgriculture• Vegetable GardenVegetable Garden• Crops & FruitCrops & Fruit

Community Training CenterCommunity Training Center• Housing Housing • Food & LodgingFood & Lodging• Conference RoomsConference Rooms• Guided ToursGuided Tours• Special Events for Business Special Events for Business

CommunityCommunity StoreStore

• Goods produced at the schoolGoods produced at the school• Food producedFood produced• Grocery store productsGrocery store products

Sustainable AdvantageSustainable Advantage Ability to recruitAbility to recruit and select students and select students

that are that are ““likely winnerslikely winners”” from a big from a big pool of candidatespool of candidates

Ability to produceAbility to produce a continuous flow of a continuous flow of qualified high school graduates qualified high school graduates who either go on to college, get a who either go on to college, get a good job, or return to their good job, or return to their communities to run their family communities to run their family farms. farms.

Business ApproachBusiness Approach and practical and practical training which ensures permanent training which ensures permanent innovation as well as cost-controls.innovation as well as cost-controls.

Valued as a Valued as a important resourceimportant resource in the in the agricultural community. It is a agricultural community. It is a magnet for business interests who magnet for business interests who come to it in search of its excellent come to it in search of its excellent faculty and qualified graduatesfaculty and qualified graduates

Produces superior Produces superior quality goodsquality goods because it has trained faculty and because it has trained faculty and staff managing production.staff managing production.

Does not depend on government Does not depend on government subsidies and is subsidies and is removed from removed from politicspolitics

SchoolSchool’’s s reputationreputation: biggest asset: biggest asset

Fundacion Paraguaya Team & Fundacion Paraguaya Team & Organization Organization

Board of Directors & CEO w/experience$400.000/yr surplus

330 Employees

Microfinances$500.000/yr

28 Regional Offices54.000 clients/yr

Entrepreneurial Education

(Breaks-Even)30.000 students/yr

4 AgriculturalHigh School

Agricultural School Team & Agricultural School Team & OrganizationOrganization

School DirectorExperienced in

Academics & Business

Production ChiefExperience in Academics &

Farming

Academic DirectorExperienced and

Junior AchievementBackground

Finance & Administration

Staff: Experienced

Revenue and Business ModelRevenue and Business Model

This Model School will This Model School will produce self sustaining produce self sustaining revenues by the sale of revenues by the sale of agricultural goods and agricultural goods and multiple services.  multiple services. 

The level of sales revenues The level of sales revenues (turnover) that is hoped to (turnover) that is hoped to be achieve is US$175.000 be achieve is US$175.000 a year by 2007.  a year by 2007. 

Revenues reflect market Revenues reflect market realities and School realities and School competes in the market.competes in the market.

Distribution of RevenuesDistribution of Revenues Nominal Tuition: 5%Nominal Tuition: 5% Road-Side Store: 10%Road-Side Store: 10% Vegetable Garden, Vegetable Garden,

Crops & Fruits: 20%Crops & Fruits: 20% Livestock & Small Livestock & Small

Animals: 25%Animals: 25% Community Training Community Training

Center: 40%Center: 40%

Phase 2: Dissemination of Phase 2: Dissemination of Model-Prototype School to other Model-Prototype School to other Schools in Paraguay and other Schools in Paraguay and other

Developing countries Developing countries

• Raise Awareness in Raise Awareness in 1000 schools 1000 schools

• Promote Replication Promote Replication of certain aspects of certain aspects of model in 50 of model in 50 schoolsschools

• Action: 10 schools Action: 10 schools embarking in the embarking in the self-sufficiency roadself-sufficiency road

Basis on which to Basis on which to ““sellsell”” Model Model

On its educational merits On its educational merits – stressing the academic – stressing the academic success of graduatessuccess of graduates

On its income increasing On its income increasing benefits benefits

As a means of ensuring As a means of ensuring institutional institutional independenceindependence

As a fresh paradigm – but As a fresh paradigm – but one which they can work one which they can work towards at their own towards at their own pacepace

As a support package As a support package that can be implemented that can be implemented in modulesin modules

As a support network for As a support network for technical assistance, and technical assistance, and fundingfunding

A call to Action: A call to Action: Stakeholders role in ExpansionStakeholders role in Expansion

We need to address We need to address rural poverty and rural poverty and develop a new breed of develop a new breed of rural entrepreneursrural entrepreneurs

Stakeholders need to Stakeholders need to take actiontake action• future employers, future employers,

ranchers and the ranchers and the agricultural business agricultural business community community

• Donors, foundations and Donors, foundations and international development international development agencies (World Bank)agencies (World Bank)

A Village School for US$ A Village School for US$ 500.000500.000

The time has come:The time has come:We have a RoadmapWe have a Roadmap

The PeopleThe People The OpportunityThe Opportunity The ContextThe Context Risk and RewardRisk and Reward

RewardReward

• Develop a true Develop a true ““Social InnovationSocial Innovation””

• To turn upside-down To turn upside-down the way we think the way we think about education about education

• to Make Poverty to Make Poverty HistoryHistory