Partnering for Effective Enterprise Development

Earl Sampson, Country Director, Mail: esampson@technoserve.org.za

Contents

Introduction to TechnoServe

Partnering for Effective Enterprise Development• Problem Statement • The partnership relationships• What problem are we trying to solve?• Moving from SPEND to IMPACT• Lessons Learnt

Guiding Thoughts

“ history shows that countries thrive when they invest in their people and infrastructure; when they promote multiple exportindustries, develop a skilled workforce, and create space for small and medium-sized businesses that create jobs”

President Barak Obama2009 speech to Ghana Parliament

“Only by letting thousands and millions of entrepreneurs try new ideas, to innovate, to create businesses that put those Ideas to work in a competitive and open way, only by doing those things are we going to be able to tackle some of the world’s big problems”

Angel Cabrera, President, Thunderbird School of Global ManagementChair Global Agenda Council on Entrepreneurship

“I am arguing that business is good for society and essential for sustained development. Companies, business leaders and their organisations should play a much more thoughtful, strategic and involved role in the societies in which they operate. The book is a call to ‘arms’ as Martin Wolf of the Financial Times has described it. A call on business leaders tostop apologising and stand up for competitive capitalism especially in developing countries. The facts are undoubtedly on their side.”

Ann Bernstein, AuthorThe Case for Business in Developing Economies

TechnoServe is a global non-profit with activities in over 20 countries

In 2009, over 1 million people benefited from TechnoServe programmes

5

TechnoServe worked alongside 2140 businesses, in over a dozen industries

Approx. 1.4 million men, women and children benefitedfrom these income sources (based on 5 persons per family)

In addition, TechnoServe Entrepreneurship programmes trained and mentored more than 1500 people in 9 countries

2008 2009

Revenue ($) 149m 189m

Products Purchased 64m 62m

# Smallscale Producers 196,000 218,000

Wages Paid(# employees)

9m32,000

20m53,900

Profit 16m 27m

Main Programmes

• Agriculture Value Chain Development

• Entrepreneurship / SME Development

• Local Economic Development

Enterprise Development - Problem Statement

ED is a key pillar of the BBBEE scorecard where Companies can make a real and sustainable impact in South Africa

Situation Complication

Solution

• Impact from ED spend is seldom measured

• ED spend is often diluted through “being all things to all men”

• ED spend is seldom approached through linkage to core business and strategy

• Think strategically around your company vision for ED • Choose a credible partner for implementation• Then, stick with it, allowing for lessons to be learnt• Get out into the field, see it in action, engage• Then, start to measure impact

Corporate

Beneficiaries

ImplementationPartner

Government

Local Communities

Interest Groups

Enabling Partnerships

The partnership relationships can often be numerous and complex

Primary Partnerships

What problem are we trying to solve?

Thinking this through helps clarify intent and allows for robust ED projects::• Who are the beneficiaries?• What size of beneficiaries do you plan to work with?• Is it financing or technical assistance?• Is it working with smallholder farming?• Is it creating markets?• Is it culture change?• Is it piloting for scale and sustainability?• Who are the key stakeholders?

• Allows for Monitoring and Evaluation to be incorporated from the outset

Monitoring and Evaluation - Moving from Spend to Impact Measuring Spend• Calculates various ED initiatives happening across the organisation• Takes time and resource• Understands the impact on the BBBEE scorecard

Measuring Impact

Financial Metrics• Revenue and profit• Jobs created• Wages paid• Sourcing from local suppliers

Social Metrics• Household income• Gender• Household food security• Impact on education• Impact on health

Why are you measuring Impact?

• Auditors View - backward looking

• PR / Marketing View

• For learning and doing

Lessons Learnt

• What problem are we trying to solve?

• South Africa is complex - best practice solutions must be transferred with care, and tested in context

• Selection of entrepreneurs / farmers / businesses is an important first step to a successful programme

• There is a place for small scale first - allowing for learning’s and robust model development

• Ensure that you have budgeted for Monitoring and Evaluation from the outset