Introduction to TechnoServeJune 2010

What We Do

TechnoServe is a leader in a movement that empowers people in the developing world to build businesses that break the cycle of poverty.

Who We Are

A U.S.-based, nonprofit economic development organization.

Philosophy: Private enterprise can drive economic growth and positive social change; a hand up is better than a handout.

History: Founded in 1968 by businessman Ed Bullard, who pioneered the private-enterprise approach to solving poverty.

Staff: Talented business advisors, many of them former management consultants or industry experts.

Partners: Leverage the expertise of strategic corporate, non-profit and government partners.

Funding Sources: U.S. and foreign government agencies, multi-lateral organizations, corporations, foundations and individuals.

Active Programs

HondurasIndia

KenyaMozambique

NicaraguaPeru

RwandaSouth AfricaSwazilandTanzaniaUganda

VenezuelaZambia

BeninBoliviaBrazil

Burkina FasoChile

ColombiaCôte d'Ivoire

EcuadorEl Salvador

EthiopiaGhana

GuatemalaHaiti

Where We Work

Past Work (extensive)

Democratic Republic of Congo

Guinea-BissauMadagascar

MaliSudan

BelizeCosta RicaDominicaPanamaPoland

Norwalk, CT OfficeWashington, DC Office

London, UK Office

Emerging Programs

GuineaMalawiMexicoNigeria

Zimbabwe

The Basis for Our Work

The problem: About 40 percent of the world’s population lives in poverty, mostly in rural areas of the developing world.

The solution: Boost private enterprise that helps poor people in developing countries, especially in rural areas.• Targeted economic growth drives development and creates

opportunities for poor people to improve their lives.

• Small- and medium-sized enterprises (SMEs) are a critical engine of growth, creating jobs as well as markets for products and services.

• Sound business strategies and practices help entrepreneurs createcompetitive SMEs.

How Helping Businesses Reduces Poverty

TechnoServe assists businesses in developing countries

These businesses earn revenues

They pay wages to employeesThey buy products from small-

scale producers*

These income sources lift families out of poverty

*In many cases, we also work directly with the small-scale producers.

The Results in 2009

TechnoServe assisted 2,140 businesses in more than a dozen industries

These businesses earned $189 million in revenues and $27 million in profits

They paid $20 million in wages to 53,900 employees

They bought $62 million worth of products from

218,100 small-scale producers

Nearly 1.4 million men, women and children people benefited from these income sources (based on 5 people per family)

In addition, our entrepreneurship development programs trained more than 5,400 people in nine countries.

Our Approach – Building Businesses and Industries

The core elements of our approach:

Identify a high-potential industry that can support

scaleable, replicable businesses that benefit the rural poor, and the point(s)

along the value chain where interventions can be most

effective

Find someone with business aptitude and the drive and determination necessary to

succeed

Provide the necessary technical and business

development support to help the business reach its full

potential

Promote regulations and policies that improve the business climate

Improve the business model based on experience and use it to launch or expand more

businesses within the industry

Improve the business environment

Analyze the business

opportunity

Identify the entrepreneur

Refine and scale up to expand

impact

Develop the business

Our Approach – Entrepreneurship Development

Business plan competitions (BPCs): Help fledgling entrepreneurs turn good ideas into workable businesses. Identify and encourage promising entrepreneurs, giving them business skills and seed money, and offering a forum for investors to find deserving projects.

Entrepreneurship classes and camps: Teach the “ABCs” of business to youth and adults (especially women), helping them develop viable business plans. Also train and certify teachers to conduct such training.

Local economic development (LED): Help entrepreneurial people build businesses within specific geographic regions – for example, in mining communities or poverty nodes

We also run entrepreneurship development programs that promote a culture of entrepreneurship:

Our Services

Developing EntrepreneursEntrepreneurship training

Business plan competitions

Building Businesses

Business needs and feasibility assessment

Business planning

Market linkages

Capital raising

Managerial and employee training

Management consulting

Technical advice

Intensive operational support

Farmer organization and support

World-class business mentor linkages

Building IndustriesMarket and industry research

Industry strategic planning

Supply chain organization

Industry association formation and support

Policy analysis

Advocacy support and training

Improving the BusinessEnvironment

Capital access

Leadership development

Developing local business service providers

Sectors in Which We Have Distinctive Expertise

Agriculture & agribusiness

• Notably Artemisia, cashew, coffee, cocoa, cotton, dairy, horticulture, livestock and feed, and tea

Alternative energy

Tourism

Strategic Partnerships

Impact

Core Indicators: Track our clients’ business performance and how that translates into direct benefits for the rural poor (in terms of jobs, wages and markets for small-scale producers).

Return on TechnoServe Investment (ROTI): Reflects our cost-effectiveness, in terms of impact per dollar spent.

Social Impact: In-depth impact assessment studies. There are also important results we can’t measure, such as the self-assurance, pride and hope that come with success.

We track and evaluate our impact through:

Case Study: Rebuilding Mozambique’s Cashew Industry

Mozambique was a world leader in production and processing in the early 1970s, twenty years later the industry had collapsed.Undifferentiated FAQ raw nuts were all exported; other nations benefited from the value-added processing.

Context

Our solution

Work with local entrepreneurs to establish small processing plants near rural suppliers, help in capital raising, plant design, training.Use efficient labor-intensive technologies to extract premium nuts; build durable marketing structures and linkages. Help create and sustain new market linkages (forward and backward), build brand, and improve bargaining power.Help farmers improve productivity and quality of nuts and replant

Results

In 2008, 13 assisted plants purchased raw product from more than 102,150 producers, paying premiums of up to 15%.Processing plants have average export sales of nearly $600,000.More than 5,100 direct jobs created. Local entrepreneur-owned services company managing brand/quality and providing ongoing services.

Case Study: Driving shared value with Nespresso/Nestle and smallholder coffee farmers in Colombia

Associations of smallholder farming families located in a geographic area with an ideal climate for growing coffee that could enter into the Nespresso premium-grade “AAA” category and receive a premium.No established value chain; lack of farmer knowledge of how to take advantage of the opportunity.

Context

Our solution

Partnership between anchor buyer of premium grade “AAA” coffee (Nespresso)m committed smallholder farmers (1,260 families), and support institutions (the National Coffee Producer Association and Expocafe)Develop the value chain model; calculate the benefits for each playerDeliver technical, farm-level training to improve qualityDevelop practical traceability system and drive efficiencies along the value chainFacilitate an innovative partnership between farmer, buyer and sector support institutions

ResultsTrained 1,260 small-scale farmers, resulting in the sustainable integration of 1,740 farmers in the “AAA” value chainIncreased the volume of “AAA” quality coffee bought from small-scale farmers by 99 percentReduced payment time to farmers by 50 percentImplemented a “AAA” coffee traceability system

Accolades

Rated one of the top 5 NGOs for corporate partnerships by the Financial Times

Named one of the world’s “Outstanding Social Entrepreneurs” by the Schwab Foundation for Social Entrepreneurship

Rated one of “America’s 100 Best Charities” by Worth Magazine

Received the Presidential End Hunger Award from USAID

“TechnoServe’s partnership with our government is bringing concrete results in the fight against poverty: jobs, opportunities, and globally competitive industries.”

— Aiuba Cuereneia, Minister of Planning and Development, Mozambique

"I was greatly impressed by the variety of sectors that TechnoServe is involved with and the tremendous impact that TechnoServe’s work is having with regards to economic development and job creation."

— Titus Brenninkmeijer, Founder of Solgenix and Energy Access Foundation and

TechnoServe member since 1998

“Google is an entrepreneurial company, so we appreciate TechnoServe’s business focused approach to development…Together we are helping men and women turn their good business ideas into thriving enterprises.

— Rachel Payne, Google.org manager

TNS is currently working in 9 sectors across West and Southern Africa

*Includes youth entrepreneurship and other enterprise development/local economic development

Country Cotton Timber Feed + Livestock

Cocoa Cashew Oilseeds Hort. BPC YE and other ED/ LED*

Cote d’Ivoire

Ghana

Moza-mbique

South Africa

Swazi-land

And 11 in East Africa

*Includes youth entrepreneurship and other enterprise development/local economic development

Country Cotton Feed + Lives-tock

Bananas Cocoa Cashew Coffee Tea Hort. Dairy BPC YE and other ED/ LED*

Ethiopia

Kenya

Rwanda

Tanzania

Uganda

19

TNS is currently working in 15 areas across Latin America

*Includes youth entrepreneurship, business plan competition aftercare and supply chain development^Melon, peach, native fruits jocote, nance, pomelo^^Pea, green beans, plantain, tomato, onion, green pepper, chili pepper, eggplant, lettuce, cabbage,carrot, broccoli, beets, asparagus

  Bol. Col. Chile Ecua. El Salv Guat. Haiti Hond. Nica. Peru Venez.

Aquiculture

Biofuels            

Coffee            

Dairy            

Entrepreneurship*

Ethnic Products

Cocoa            

Fruits^            

Vegetables^^            

Wood Products            

Roots and Tubers

Soybean

Floriculture

Oil Palm

Recycling

Contact Information

TechnoServe headquarters:

1800 M Street, NW, Suite 1066, South TowerWashington, DC 20036Tel: +1 202 785 4515Fax: +1 202 785 4544

Email: technoserve@tns.org

For office locations around the world, check www.technoserve.org