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CROSS-CUTTINGINCLUSIVEINNOVATIONS
ScalingandReplicatingInclusiveBusinessModelInnovationsHowinclusivebusinessesarescalingandreplicating,andhowtheycanbesupportedintheseefforts
SarahFarhat,WorldBank
IntroductionThispaperexploreswhyscalingandreplicationisimportantforenterprisesdeliveringgoodsandservicesinlow-incomemarketsandhowselectedenterprisesscaleandreplicate.Itsmainobjectiveistoprovideinsightonhowscalingandreplicationcanbesupported.Thispaperisbasedontheexperienceofover300enterprisesdeliveringgoodsandservicesinlow-incomemarkets.Tosynthesizefindings,theseenterpriseswereclassifiedinto27stylizedinclusivebusinessmodelinnovations(BMI)acrossfivesectors--Education,Energy,Finance,Healthcare,andWaterandSanitation(WASH), and are presented in separate papers. EachBMI represents several enterprises addressing adevelopment challenge in a similar way, e.g. decentralized water treatment, low cost schooling,specializedclinics,etc.IndividualBMIswereanalyzedtoidentifypatternsinthewaytheseenterprisesscale and replicate. A set of enterprises from each of the business model innovations were alsointerviewedtogainadeeperunderstandingoftheiroperationsinlow-incomemarkets1.Thenoteisdividedintothreesections.ThefirstsectionexplainsthewhyitisimportanttodrivescalingandreplicatingofBMIs.Thesecondsectionprovidesananalysisofthestatusofscalingandreplicationinthefivefocussectorsofthisresearcheffort.ThelastsectionofthepaperprovidesrecommendationsonhowtosupportscalingandreplicationofBMIs.WhyscalingandreplicatingBMIsisimportantBMIs represent models that have already reached a certain scale or have replicated in differentgeographicalcontexts.Followingareviewofover3,500enterprises,27clustersofBMIs(seeannexfor
HIGHLIGHTS• Enterprisesthatdeliverservicestolow-
incomeconsumersfinditchallengingtoscaleandreplicatetheirbusinessmodels.
• Standardization,ICT,governmentsupportandhybridfinancingpartnersarekeyleversforgrowth.
• Adopters,orsecond-generationbusinesses,provideanothermeansofexpandingimpacttonewareas,andoftenreproduceanexistingmodelwithouttheactiveinvolvementoftheoriginator.
ThisseriesonCross-CuttingInclusiveInnovationsexploresthematiclessonsfrombusinessesthatimprovethelivesofthoselivinginpoverty.EditorsareElaineTinsleyandNataliaAgapitova.ResearchedanddevelopedbyEndevaUGandAshleyInsight.
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the full listofBMIs)were identified.Eachbusinessmodel isbasedonabout10examplesofdifferententerprisesthatdelivergoodsandservicestothepoorand/orcreateincomeopportunitiesinsimilarways.ThefactthatsomanysimilarmodelsexistwithinaBMIshowsthatthereisagroupofearlymoverstestingandtweakingthemodel,and,insomecases,providesevidenceofreplicationactivity.The BMIs show that enterprises have foundmarket-based solutions to tackle social, economic andenvironmentalchallengessustainably.Theyprovidenewgoodsandservicesthatwouldotherwisenotbeaccessibleoraffordabletolow-incomegroups.Forexample,AravindEyeCareHospitalsispreventingneedlessblindness.Itconducts378,000eyecataractsurgeriesperyearwithover50percentofpatientsin the low-income bracket. Furthermore, Enterprises support job creation or enhance the chances ofemployment.Forexample,97percentofeducationenterpriseDigitalDivideDataalumniareinfull-timeemploymentandearning3-4timestheregionalaverage.Yetmoremodelshelpincreaseproductivityandtheefficientuseofresources.Forexample,Clarohasbroughtover3,160acresoflandunderirrigationthrough the installation of over 1,200 pumps that reach 17,000people across 12 states in India, andreducedalmost511 tonsof carbondioxideeveryyear.Whilemanymodelshaveachieved impressiveresults, the scale of their impact has been limited given the size of the challenges they are tackling.EnablingmoreEnterprisestotakeonsuccessfulBMIscanbeaneffectivestrategytotacklingdevelopmentchallenges.Replicationcanbecomeakey tool forpolicymakers to sustainablymultiplypositive social,economicandenvironmentalimpact.Replicationmaystircompetition,furtherimprovingtheofferfortheend-consumeraswellasimprovethereachofsolutions.Theemergenceofseveralvariationsofabusinessmodel,forexample,maytriggerlearningbetweencompetitorsor increasechoicefor low-incomeconsumersandhelpspreadpro-poorsolutionswidely.Understanding the impact ofmodels and building a stronger evidence base is crucial to successfulreplication.WhilemanyBMIsappeartobecreatingpositiveresultsforunderservedpopulations,muchoftheevidenceremainsanecdotalorself-reported.Thefirststeptousingmodelsasatoolforchangemustbetounderstandwhichmodelsareeffectiveandwheretheirlimitationslie.2HowdoesscalingandreplicatingofBMIswork?Scalingupabusinessmeansincreasingthesize(e.g.intermsofrevenueorsalesvolume).Replicationrefers to the action of reproducing or copying a businessmodel or parts of it in another location.Thereforetheseareoverlappingbutdistinctterms.Abusinessthatcreatesvariousnewbranchoffices,forexample, is increasing in size,and is thus scalingup,but isalso reproducing itsmodel indifferentlocations,andisthusreplicating(seeFigure1below).Generallyactors inthesocialsectortendtouse“replication”and“scale”interchangeablywhilebusinessactorsoftensimplyspeakof“growth”.Forthispaper,thefulldefinitionsofscaleandreplicationused:• Scalingupreferstoanincreaseinsizeofaninclusivebusinessmodel,intermsofpeopleserved,
revenues generated, or the expansion of key targets related to the model’s social andenvironmentalimpact.
• Replicationreferstotheactionofcopyingorreproducingallorportionsofaninclusivebusinessmodel.Replicationdoesnotmean creatinganexact copyof thebusiness.Rather, theaim is toreplicatethebusinessmodelorkeycomponentsofitwhileadaptingtothenewtargetmarketandenvironment.Replicationcanbedrivenbytheoriginalorganization,aloneorwithpartners,orcanbemanagedbyacompletelyseparateentity.
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Figure1.MethodsofScaling-Up
Source:EndevaWeidentifiedsixapproachesthatenterprisescanusetoreplicateandscale.Thesecanbeplacedonacontinuumthatmovesfromthemostclosedapproachesthatofferanoriginatormodelandahighdegreeofcontroltothemostopenwhichofferlittletonocontrolinexchangeforgreaterspeedofreplication.Seefigureabove.Enterprises expand by replicating the model on their own (through a branch strategy) - or bycollaboratingwithothers(throughafranchise,jointventureorpartnershipstrategy).Enterprisestendtochooseareplicationstrategythatfitsthemissionandvisionoftheirbusiness.Entrepreneursprimarilyaimingtoincreasetheirowncompanyprofitstendtofavouramoreclosedapproachtoreplication.Thehighlevelofcontrolretainedbysuchapproachesallowstheoriginatortoprotectitsintellectualpropertyandbrand.Otherschoseaclosedapproachtomaintainahighlevelofquality.Highlymission-drivenentrepreneurssetouttodisseminatetheirmodel,enablingotherentrepreneurstoadoptit.Theyoftendosorealizingthattheycanreachonlyafractionoftheworld’spoorthroughtheirown business activities. Opening a business model to others for replication can be accomplished indifferentwaysandwithdifferingdegreesofinvolvementbytheoriginator.Forexample,businessescansimplydocumenttheirmodel,bestpracticesandlessonslearned,andmakethisinformationavailabletoothers. Alternatively, they can provide hands-on learning opportunities, for example by allowinginterestedorganizationstovisittheirbusinesssitesorsettinguplearningcentrestoteachentrepreneursmoreontheirmodel.However, expanding and disseminating are not mutually exclusive paths to replication. In fact,businessescandoboth,eithersimultaneouslyorsequentially.Businessesoftenchoosetoexpandwithintheirownterritories,wheretheyalreadyunderstandtheneedsofconsumersandcanbestensurethemaintenanceofquality,whileoptingtoprovideinformationontheirmodeltothosethatareexpertsinothermarkets.Adopters,orsecond-generationbusinesses,oftenalsoreproduceanexistingmodelwithouttheactiveinvolvementof theoriginator. Such businesses are often colloquially referred to as “copycats”. They
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adapt and apply the essence of the original model to their own specific context and circumstances.Sometimes,thecopiedversionofamodelcanoutperformitsoriginator.Mostly,however,successfulmodelsdon’thaveasingleoriginator.Rather,theybeginwithagroupofearlymoversthatadaptandtestamodel.Fromthisgroupofearlymovers,onebusinessmayemergewiththemostwidelyknownandsuccessfulformofaparticularbusinessmodel.
CaseStudy:AravindEyeCareHospitals,IndiaWorldwide,37millionpeopleareaffectedbyblindness;80percentofthesecasescouldbeeitherpreventedortreated.Cataract,adiseasegloballyontherise,isoneofthemajorcausesofblindness.InIndiaalone,3.8millionpeoplegoblindbecauseofcataractseachyear.Yetmostcasesofcataractsareoperable,whichmeansthatblindnesscouldbeavoidedifpatientsweregivenaccesstosurgery.ThisiswhereAravindEyeCareHospitals’missioncomesin.Foundedin1976byDr.Venkataswamy,thehospitalaimstoeliminateblindnessbyprovidinghigh-qualityeyecaretoboththerichandthepoor.FromamodestbeginninginMaduraiwithonly11bedsandfourmedicalstaffmembers,AravindEyeHospitalshasnowexpandeditsoperationsacrossthestateofTamilNaduinIndia,operatingbranchesofitseyehospitalinninelocations.Aravind’shospitalshandleover3.1millionoutpatientvisitsandperformover370,000surgeriesperyearwithover50percentofthepatientspayingnothingorverylittlefortheservices.Besidesestablishingmultiplewhollyownedbranches,Aravindalsoengagesinjointventuresandpartnerships,forexampleinNigeriaandBangladesh.Thesemodelsputstrongemphasisonlocalownership.Thecompanyalsoactivelydisseminatesitsapproachsoastofacilitateeffectiveadaptationofitsmodelinothercountries.Tothisend,itcreatedtheLionsAravindInstituteofCommunityOphthalmology(LAICO)traininginstitute,whichhassupportedreplicationoftheAravindmodelinover300eyehospitalsin30countries.Interestingly,someofthehospitalstrainedbyAravindhavealreadybecomedisseminatorsoftheapproachintheirownregion.Forexample,theVisualizahospitalinGuatemalahasdisseminatedthemodelinHaitiandPeru.TheLumbiniEyeInstituteinNepalismentoringhospitalsinNepalandCambodia.Source: Endeva (2014): “Multiplying Impact: Supporting the Replication of Inclusive Business Models”; Interview withThulasirajRavilla,AravindEyeCareSystem.
StatusofscaleandreplicationindifferentsectorsStandardization, information communication technology (ICT), government support and hybridfinancingpartnersarekeyleversforgrowth.Financialviabilitywithoutexternalsupportisnotnecessarilyapre-requisite for scale.We identifiedhybridmodels thatoperateat scaleandhavenotyet reachedfinancial viability and still rely on various sources of support such as governments and donors. Somemodelsseehybridstatusasatransitoryphaseandfinancialviabilityasanattainableobjectivetheyexpecttoreach.Othersseetheirhybridstatusaspartoftheirbusinessmodel.Inthesecases,thefullcostofaproductorservicecannotbepassedontoBaseofthePyramid(BoP)customersandsubsidizingthecostbecomes an efficientway to sustainably reach such clients. Both approaches are valid strategies andunderstandingwhen to usewhich financial viability approach is important for successfully promotingreplication.Most Enterprises have replicated through expansion, either replicating on their own (e.g. by creatingbranches/subsidiaries)orbycollaboratingwithothers(throughfranchises,jointventureorpartnershipstrategy).Partnershipsandthecreationofbranchesorsubsidiariesarethemostpopularapproachesto
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replicating.Franchisingisbecomingincreasinglypopular;thismodeloftenencouragesentrepreneurship,ownershipandjobcreation.Veryfewcompaniesactivelydisseminatetheirmodel,encouragingsecondmoverstopickitup.TheidentifiedBMIsshowthatthereissignificantreplicationineachsector—witheachBMIbeingbasedon at least 10 exampleswith very similarmodels. For thesemodels, one can rarely identify a singleoriginator;rather,agroupofearlymoversusuallypilotandadaptsthemodel.Nevertheless,thereislittleevidenceofsystematiclearningwithinaBMIcluster,i.e.,betweenenterprisesinacluster.Thesectorsectionsbelowprovideanaggregatedviewofeachsectoron
• Thereachbusinessmodelshaveachieved• Thereplicationapproacheschosen • Thefinancialviabilityofeachmodel
Itisimportanttonotethattheanalysisbelowisonlybasedonalimitednumberofmodelsthatwerepre-selected,withoneselectioncriteriabeingthescaleachieved.HealthsectorMostbusinessmodel innovations in thehealth sector are replicatingwithinor evenacross countries.Standardizingmodels for social franchisinghasbeenakey lever for replication.Reach—particularly inruralareas—isoftenachievedbyinvolvingandtraininglocalentrepreneurs.ModelsareoftenseedfundedbydonorsorincubatedbyNGOs,buthavethepotentialtobecomefinanciallyviableoncetheyreachasignificantscale.Figure2.Replicationandfinancialviabilityinthehealthsector
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Noteongraph:Reachreferstotherangeofthespecificmodelsstudied.Thereplicationrankisbasedonhowmuchreplicationactivityhastakenplacewithinamodel,thespeedofreplicationandthegrowthpotential.Withineachofthe3rankingsoflow,mediumandhigh,thereisnofurtherrankinge.g.learningcentersarenothigherinreplicationthanteacherquality.Differentshapesofferanindicationofwhichfinancialviabilitylevelaparticularmodelaparticularmodelismostcommonlyoperatingat.Mostmodelsarescalingupandexpanding,alsotoothercountries.Forexample,GreenstarinPakistanhasdevelopedanetworkofover7,000 clinicsproviding reproductivehealth services to thousandsofwomen.LivingGoods’networkoffemaleentrepreneursinUgandaisreachingonemillionpatientsandexpanding its operations to Kenya. Jayaashree Industries (JI) has enabled sevenmillionwomen in 17countriestoaccesssanitarypads.Standardization and focus are amongst the key levers for expansion. For example,most of the clinicnetworksfocusonaparticulartherapeuticarea—suchasfamilyplanning,reproductivehealthoreyecare.This focus facilitates the trainingofhealthcareprofessionalsand leverageseconomiesof scale.Somecompanies also standardize via a “business in a box” model, which they provide tofranchises/entrepreneurs(e.g.,LivingGoods)orpartnercompanies(e.g.,JayaashreeIndustries).Reachintoruralareasisoftenachievedbyinvolvingandtrainingpeoplefromlocalcommunitiesashealthentrepreneurs(e.g.,LivingGoods,LVPrasadEyeInstitute(LVPEI)).ICTsolutionssupportscalingandreplication—buthaveyettoliveuptotheirexpectation.Increasingaccesstomobilecommunication–eveninthemostremoteareas–providesthepotentialtoreachmillionswithsuitablemHealthservicestargetedatpatientsorhealthworkers.However,onlyafewmHealthsolutionshavereachedsignificantscale.Rather,mHealthandtelemedicinesolutionsareoftenusedas“plug-and-play”featurestoenhanceorhelpstandardizeanexistingbusinessmodel–andhenceimproveitsreach.Forexample,somespecializedclinicsmakeuseoftelemedicinetoincreasetheirreach(e.g.,Narayana,salaUno),oremploysocialmediatoattractneworretainexistingpatients(e.g.,salaUno).ICTsolutionscanalsohelpwithstandardization.Forexample,salaUnoappliessociallylicensedsoftwaretoimproveinternaldatamanagement.Computerizedtreatmentprotocolsimprovethequalityofserviceprovided by community health workers, also allowing them to reachmore patients in less time andfeeding data back into the health system. And services such asM-PESA facilitate payment for healthservicesortohealthentrepreneurs(e.g.,inthecaseofComprehensiveCommunityBasedRehabilitationinTanzania(CCBRT)DisabilityHopsital).Mostmodelsusesocial franchisingorbranchapproaches toexpand; somehave replicated toothercountriesthroughapartnershipsordisseminationapproach.Specializedclinicsareusuallysetupasnetworksofbranchesorfranchises.Forexample,Sorridentsoffersdental services through its franchised network of 180 affiliated clinics in Brazil, Greenstar providesreproductivehealthservicesthroughitsover7,000clinics inPakistan.Businessmodelsthatworkwithcommunityhealthworkerstoprovidetheirservicesarealsooftensetupasfranchises(e.g.,LivingGoods).Partnershipmodelsareappliedforexpansioninothercountries.Forexample,TechnologyforTomorrow(T4T) exports to Sierra Leone via a partnership with One Girl. Ruby Cup expands its reach to othercountriesbypartneringwithNGOnetworksacrossAfricatodistributetheirproduct,andLivingGoodspartnered with BRAC to tap their networks. Besides running its own clinics, RG Stone Urology &LaparoscopyHospitalscalesbypartneringwithurologists in jointventuresorsettingupandoperatingurologydepartmentsinotherlargeprivatehospitals.
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Aravind as well as Jayaashree Industries (JI) actively disseminate their business models. Aravind hastrainedover300hospitalsthroughLAICO;JIhasexportedover250sanitarypadproductionmachinesto17countries,supportingreplicatorsviaemailandvideotutorialsandalsowelcomestheminIndiatostudythemodel.Thescaleamodelhasachievedalsohasaninfluenceonitsfinancialsustainability.Manymodelsareprofitableatthelevelofthefranchiseeorbranch(i.e.,theclinicorthehealthentrepreneur),butonlyreachfinancialsustainabilityatthefranchisorleveloncesignificantscalehasbeenachieved.Thesameistrueformodelsproducingandsellingsanitarypadsorspeciallyformulatedfoodforinfants.Whilemostenterprisesgeneratesignificantrevenues,theyareonlyexpectedtobecomeprofitablewithhighersalesvolumes.Nevertheless,somemodels—particularlythoseincubatedorbackedupbyNGOs—maynotbeexplicitlyprofitoriented.Manyofthefinanciallyviablemodelshavereceivedfundingfrominternationaldonors.Anotherleveris the integration of the solution into the health system. For example, Living Goods receives donorsupporttocover itsoperationalcosts.TheclinicsMerrygoldandTunzaweresetupbyNGOsassocialfranchises.Theyareprofitableorbreakevenatthefranchiseelevel.However,itisoftennotclearifthefranchisorisanon-profitbydesignorduetoalackingbusinesscase.Mhealthmodelshavehighcapitalcostsatthebeginning—butthepotentialtoleverageeconomiesofscaleisgreat.However,manymodelsarestillworkingontheirbusinesscase.EducationsectorThereplicationofeducationbusinessmodelinnovationsisatanascentstage,withseveralfastgrowingmodels.ICTandstandardizationhavebeenkeyleversthatarepavingthewayforrapidexpansionandgrowth.Despiteattractinginvestment(USD3billion)aswellasgovernmentanddonorfunding,financialsustainabilityremainsoneofthekeychallenges.Figure3.Replicationandfinancialviabilityintheeducationsector
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There isamediumlevelscalebuthighpotential forgrowth inthissector.Giventherapidgrowthofemergingmodelssuchaslowcostchainschools,thepotentialforreachishigh.However,themajorityofmodelsstudiedtendtoreacharound100,000-350,000studentsonaverage.Thevastmajorityofmodelsareinscalingupandexpandingphases,whileseveralsecondmoversareinthestartupphase.Relativelyfewmodelshavereplicatedacrossnationalborders.SomeexceptionsincludeKenya’sBridgeIT,whichhasexpandedto10countriesglobally,andLINK,whichhasgoneinto5countriesinAfrica.Replicationinmultiple countries is hinderedbydifferent regulations and curriculums ineach countrybut it hasnotpreventedsecondmovers fromcopyingandadaptingamodel inanewcountry.Forexample, ITAhascopiedtheGrayMattersmodelofschoolevaluationsinPakistan.Inanumberofcaseslowstandardsinpublicschoolshaveincreasedparents’willingnesstoseekaffordablealternativesintheprivatesector.ICTandstandardizationarekeyleversforrapidgrowthandscale.ICTsolutionsareapotentcatalystforeducational development particularly when integrated in a holistic manner. Combining thestandardizationofprocessesandlessonswithICTcanreducethecostofeducation,therebyattractingmoreclientsthroughimprovedaffordability.Scriptedlessonsontabletsforexample,asusedbyBridgeAcademies, can facilitate the delivery of quality classes3 by young graduates with limited teachingexperience,significantlyreducingstaffcosts.Mostmodelsareexpansionandpartnershipmodelswithanincreasingnumberofsecondmovers.Manyofthefastexpandingmodelsareverticallyintegrated‘buildandoperate’branchmodelsthatrelyheavilyon standardization and the use of ICT to maintain consistent standards of instruction and monitorperformance.ExamplesincludeOmega,BridgeAcademies,Citizens’FoundationandEnova.Thereareveryfewexamplesoffranchising.Hippocampusachainofpre-school learningcenterstriedtouseamicro-franchisingmodeltogetlocalwomentotakeonownershipofthecenters.Howeverthiswaseventuallyabandonedasmostwomenpreferredtobeemployeesandhaveastablesalary.InsteadHippocampusisnowfranchisingitsmodeltootherprivateschools.Mostpartnershipsarewithgovernmentagenciesatdifferentlevels,particularlythosemodelsthataimtoimproveteacherquality,suchasBridgeIT.ModelslikeeducationorientedBusinessProcessOutsourcing(BPO)andchainschoolshaveseenanincreasingnumberofsecondmovers.Manymodelshoverbetweenbreakevenandnon-profitonthefinancialviabilityscale.ExceptionsaremodelsinstudentfinancingandeducationorientedBPOmodelsthattendtobemoreprofitable.Severalmodels report that theyhave reachedbreakevenoperationally (Omega,Hippo,Enova)and that somehavetransitionedtobecomeself-sustainingoperationally(DAM,BRAC,CDIlearningcenters).AmajorchallengeformodelsisthelowpurchasingpowerofmanyBoPclients.Investingineducationevenwhenatalowcostrequiresongoingpaymentsovermanyyears.Whilethisinvestmentcanpayoffwithhigherearningsinthelongrun,intheshortrunitcanevennegativelyreducehouseholdearnings.Government subsidies and donor support have played a critical role in increasing the affordability ofeducationtoBoPclientsandthusspurringtheexpansionofcertainmodelse.g.,GyanShalaandLEAP.Itfollows that the models that are profitable and rely less on external funding are focused on highereducationandincludeanopportunitytoearnanincomeduringthelearningprocess.EnergysectorTheenergysectorisatamaturestageofreplicationwithmanymodelsexpandinginmultiplecountriesandalargenumberofsecondmoversinexistence.TheproductiveuseBMIisthesingleexception.Itisatanearlystagewithmostmodels inpilotingorrolloutphases.Thissectorhasasolidevidencebaseonimpacthoweverfinancialviabilityisaproblemforcertainmodels.Appropriatefinancingforbusinesses
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particularlyworkingcapital topre-financeproducts ismore important forscale,as thissector ismoredependentonimportmaterialsthanothers.Figure4.Replicationandfinancialviabilityintheenergysector
Reachvariesgreatlyamongstmodels,withsolarlampsandsolarhomesystemsreachingthemostBoPclients.GrameenShakti,forexamplehasreachedmorethaneightmillionpeople.GridconnectionforBoPclientstendstoreachbetween10,000to400,000clientswhilemodelsforproductiveusemodelshaveonlyreachedseveralthousand.Ensuring affordability has been key to successful replication and scale. Partnerships with variousfinancing institutes,governmentsanddonors toeithercoverhighsetupcostsorprovide financing toconsumershasbeenvitaltothesuccessofsomebusinessmodels.Accesstoafter-salesserviceshasalsobeenpivotalforexpansion,extendingthelifetimeofproductsandincreasingclients’valueformoney.Formodelsthatprovideafter-salesservicesthishasbeenmorecosteffectiveindenselypopulatedareas.Models have replicated using all the approaches with expansion and partnerships being the mostpopular.Thesolar lampmodel isthemostreplicatedmodelandtheeasiesttooperate.Consequentlythere are a significant number of secondmovers.Many solar home systems have replicated throughexpansionandareoperatinginmultiplecountries.Gridconnectionhassomereplication,whichisalmostalwaysdonethroughexpansion,whileminigridstendtoreplicatethroughbothexpandingontheirownorinpartnership.Thebusinessmodelinnovationsstudiedcoveredtheentirefinancialviabilityspectrumasshownabove.ExtendinggridconnectiontoBoPclientssuchasslumdwellersisoftenaCSReffortofprofitableutilitycompanies.InothercasesaddingBoPclientshasbeenprofitableduetogriduseintensificationandortheconversionofnon-payingconsumersintopayingcustomers.Whilesomesolarhomesystemmodelsareprofitablemanyarehybridmodelstemporarilyrelyingondonorfundingorgovernmentsubsidiesasthetransition to break even and eventual profitability. Mini grid models are the most difficult models
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regardingfinancialviabilityduetohighcapitalexpenditurerequirements.Modelsanalyzedcoveredtheentirefinancialviabilityspectrumandthemodelimplementedbyarangeofactors.Companiestendtooperatethemodelonaprofitableorpartiallysubsidizedbasis,whilecommunitydrivenmodelstendtobepartiallyorfullysubsidized.Productiveusemodelsareatanearlystageandnotyetfinanciallyviable.Modelsareoftenhybrid,partnershipswithbanks,MFIs,donorswhohelptomaketheendproductmoreaffordablefortheenduser.Mostofthebusinessesanalyzedarehighlydependentonsubsidies,with30-90percentoftheproductcostsbeingsubsidized.Productive usemodels are at an early stage and not yet financially viable.Models are often hybrid,partnershipswithbanks,MFIs,donorswhohelptomaketheendproductmoreaffordablefortheenduser.Therearelimitstoscalabilitygiventhatthissectorismoredependentonimportmaterialsthanothers.Oftenproductsarebought inonecurrency,butconsumerspayingforthemoveraperiodoftimeinadifferent currency. The interest rate and inflation pushes up the price for end consumers. This isparticularlythecaseincountriesvulnerabletoexchangeratevolatility,andinflation.FinancesectorThereissignificantreplicationactivityinthefinancesector,althoughthistendstobeconcentratedarounda fewmodels,namelymobilemoney,consumer financingparticularly in thehousingsectorand indexbasedagriculturalinsurance.Oneotherhighlyreplicatedmodelismicrofinancehoweverthiswasnotoneofthemodelscoveredinthisstudy.Mostmodelsthataresuccessfulstandouteitherasbeingprofitableorreceivingsignificantgovernmentsubsidies.Akeydriverforthesuccessfulmodelswasthatproductsmetdemandsatasatisfactorypricepoint;thisoftenwasfacilitatedbytheuseofICTandorsubsidies.Mobilemoneyisthemostwidelyreplicatedmodelwhilewithinagricultureinsuranceandconsumerfinancingafewspecificmodelshavemanagedtoreachsignificantscale.Mobilemoneymodelshavesignificantlyscaledtoreachhighnumbers,forexample15millionM-Pesaclients,14millionBEAMclientsand6millionclientsWizzit.Therateofreplicationofthismodelacrosscontinentshasbeenremarkable.“Attheendof2013,therewerealreadymoreregisteredmobilemoneyaccountsthanbanksaccountsin10Africancountries.Whilemost indexbasedagriculture insurancemodels tend to reachonlyseveralthousandclients, thosethat receivegovernmentsupportsuchasNIASandAIC in IndiaandCadena inMexico,wereabletoreachmillionswithgovernmentsubsidizingupto90percentofpremiums.WithinconsumerfinancingthereareonlyafewexamplesofhighreachincludingCemexandEchaleatuCasawithoneandtwomillionclientsrespectively.Financingforentrepreneursthatarepartofthedistributionchainof inclusivebusinesses isamorerecentBMI.Mostmodelshaveprovidedfinancingforbetween600–150,000entrepreneurs.ICTandgovernmentsupportarethebiggestdriversofscale.TheuseofICTandmobilephonesinthemobilemoneymodels hasmade it possible to economically reachmillions of clients. In addition thedistributionmodel that reliesonanetworkofagentshas successfully reachedeven themost remoteareas.TheincorporationofmobilemoneyinothermodelslikeindexbasedagricultureinsuranceandBoPconsumerfinancinghasbeenmutuallybeneficialinscaling-upthemodels.Forinstance,ACRE’scloselinkstotheM-PESAmobilebankingsystemnotonlyreducedtransactionscostsbutalsoincreasedavailability.ForconsumerfinancingforhousinginMexico,oneofthekeysuccessfactorswastheroleoftheMexicangovernmentthatrecognizedatanearlystagethattheCemexmodelcouldhelpthemovercometheurbanhousingcrisis.Theyputvariousmeasuresinplaceincludingasubsidyforlow-incomepeoplebuyingself-builthomes,whichunlockedalargevolumeofsalesforcompanieslikeCemex.
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Figure5.Replicationandfinancialviabilityinthefinancesector
Noteongraph:Reachreferstotherangeofthespecificmodelsstudied.Thereplicationrankisbasedonhowmuchreplicationactivityhastakenplacewithinamodel,thespeedofreplicationandthegrowthpotential.Withineachofthe3rankingsoflow,mediumandhigh,there isnofurtherrankinge.g. indexbasedagricultural finance isnothigher inreplicationthanconsumerfinance.Themostreplicatedmodelsuseexpansion,franchisingandpartnershipandattractedsecondmovers.For instance,M-PESAwas theoneof the firstmovers inMobileMoney. Theyhaveexpanded into10countriesthroughafranchisingmodelthatwastweakedtofitlocalrealitiesandregulations.Theyhavealsoenteredintomanypartnershipswithothermodelswhichhashelpedthemfurtherexpand.M-KopaSolarclientsinKenyaforexamplecanpaytheirinstallmentsforasolarhomesystemusingtheM-PESAmobilemoneyservice.Inadditionthereisamyriadofsecondmoversinlow-incomecountriesworldwide.InBoPconsumerfinancingandagricultureinsurance,expansionandpartnershipswerethemostpopularapproaches.Financialviabilitycanboostscalebutisnotapre-requisiteforreachingscale.Asshownindiagram4,financialviabilityhelpsmodelstoreachscale,asisthecaseformobilemoney.Forexample,BeamMoneybrokeeveninfouryearsandearnedrevenueofmorethanUS$15millionin2013bywhichpointtheyhadreachedatotalof14millionclients.4However,evenwhenamodelisnotfinanciallyviable,ifgovernmentsordonorssufficientlyvalueitsimpactit,forexampleitmaybemorecostefficientforthemtopaythemod5elstooffertheservicethanrelyonstandardnon-profitprograms,themodelcanstillreachscale.Thisisthecaseforindexbasedagricultureinsurance.InsomecasessuchasCemex,thislargecompanywasalreadyfinanciallyviablewhenitintroducedconsumerbasedfinancingforitsBoPproduct.WASHsector
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Thestudiedmodels intheWASHsectorreachhundredsofthousandsofpeopleandafewevenreachmillions.Mostorganizationshaveexpandedtoothercountries,withfranchisesbeingpopularamongstthe toilet and decentralized water treatment models. Some models are inherently set up fordissemination, fostering local entrepreneurship. In those cases, standardization of operations andprocessesarekeyleversforscale.Breakevenhasonlybeenreachedbyafew,butmostaimtobecomefinanciallyviablewithscale.MostmodelsintheWASHsectorreachhundredsofthousands.Afewmaturemodelsreachmillions,whileothersarestillintheirpilotstage.Themodelswiththehighestreachare,forexample,WaterHealthwith500sitesinsixcountriesin2012servingfivemillioncustomersorEcotacttoiletsinKenya,whichareusedby48,000peopleperday.SomeNGO-ledmulti-countryprogramstoactivatelocalvaluechainsforconstructionofhygienicandaffordabletoiletsalsoreachmillionsofhouseholds(e.g.,SNV’sSustainableSanitation&HygieneforAllResultsProgram).MostWASHmodelsarestillbeingpiloted.Forexample,X-runnerhasrentedlessthan100ofitswaterfreetoiletssofar.Also,theschemeinKotei(Ghana)isapilotthatprovidessafewaterfromtheutility’snetworkto5,000people.Forexample,X-runnerhasrentedlessthan100of itswaterfreetoiletssofar.Also,theschemeinKotei(Ghana) isapilotthatprovidessafewaterfromtheutility’snetworkto5,000people.Figure6.ReplicationandfinancialviabilityintheWASHsector
Mostorganizationshaveexpandedtoothercountries.Forexample,Ikotoiletoperatesitshigh-quality,public,pay-per-usesanitationfacilitiesinKenyaandTanzania,BlueDiversionoperatesitstoiletfranchisesinUgandaandKenya.WaterHealthisactiveinIndia,Bangladesh,Ghana,Nigeria,Liberia,PhilippinesandLifelinkoperatesitswaterprojectinUganda,HaitiandMalawi.Toiletandtreatmentplantbusinessesareoftenoperatedasfranchises.Forexample,SanergybuiltanetworkFreshLifeOperators—local residentswhopurchaseandoperatehygienic sanitation facilities.BlueDiversionworkswithlocalfranchiseesassalespeopletorenttoilets.Inadditiontheycollectthewaste
May2017/ 13
and transport it to off-site resource recovery plants, where it is converted into fertilizer. Sarjavalfranchiseesoperatethetreatmentplantandshareaproportionofrevenuewiththefranchisortocovere.g.maintenancecostsandcostsforwatertesting.Many models are inherently set up for dissemination, since they aim to activate the market andincentivizelocalentrepreneurship.Forexample,theIndianNGOGramalayasupportslocalproducersinmanufacturingbetterqualitylatrinesatlowercost—andcreatesthemarketthroughawarenessraisingand offering end-user financing. Likewise, SaniShop has sales entrepreneurs in Cambodia, India andMozambiquetriggerdemandintheircommunitythroughsalesandawarenessevents,withtoiletsbeingsupplied by local masons who have undergone SaniShop production training. Spring Health (India)providesservicestodevelopafiltrationsystemandensureswaterquality,whileanentrepreneursuppliesland,electricityconnectionandday-to-dayoperationalmanagement.MostmodelsintheWASHsectorarestrugglingtobecomefinanciallyviable.Asinmanyothersectors,manymodelsareprofitableonthelocallevel(e.g.,ontheleveloftheentrepreneursellingthetoiletoroperatingthewatertreatmentplant).However,theystruggletocoveroverheadcostsassociatedwith,forexample,creatingawarenessforsafewaterorforusingtoilets/latrinesortrainingentrepreneurs.However,manymodelsexpecttobreakevenoncetheyreachalargerscale.Forexample,CleanTeaminGhanaaimstoreachbreakevenat1,500toilets installedbyMarch2016,X-Runner inPerusimilarlyestimatesthatproductionof1,500toiletswouldenablethecompanytocoverallitscosts.Also,eKutirinIndia aims to reach breakeven in 2016, coveringmarket activation activities from its toilet sales. TheapproachbythesesocialenterprisesalsoencouragesNGOslikeGramayala,WaterSHED,iDEtoexplorewaystoevolvefrompuregrantfundingintoasocialbusinesstoachievelong-termsustainability.The fewcompanies thathave reached significant scaleareable to cross-finance their activities. Forexample,WaterHealthrunsthebusinessonaclusterbasiswheretreatmentplantsthatperformbettercross-subsidizethosethatarenotyetbreakingeven.Theclustersalsoshareservicestokeepoperatingcostslow.Sometimes,governmentinitiativeswithfullysubsidizedproductsundermineentrepreneur´sviability.Butgovernmentscanalsohelpcompaniesreachscalebypreferringsocialenterprises intheirtenders.However, frequently low-cost (andhenceoften low-quality)optionsarepreferredbypublicbuyers.Adriver for financial viability ispartnershipswithMFIs thatprovide loans toentrepreneursorend-userfinancing.StepstosupportingscalingandreplicationReplication-specific support ispracticallynon-existentdespite the fact thatBMIsareachievingsocio-economicandenvironmentimpact.Werecommendthefollowingthreeinterventionareasasawaytosupporttheexpansion,disseminationandadoptionofprovenmodels.
(1) Understandreplicationandcreateawarenessforit(2) Adjustexistinginterventionstoincludeareplicationfocus(3) CreatenewinterventionstosupporttheadoptionofprovenandviableBMIs
1) UnderstandreplicationandcreateawarenessforitScalingandreplicationisalreadyhappening—butthereisalmostnosystematiclearningamongstpeers.Whilecasestudiescanbefoundonanumberofthemodelsstudiedforthisproject,therehastodatenotbeenanefforttolearnsystematically.Thecomprehensivenatureoftheresearchproject;analyzingclose
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to300models clustered into26businessmodel innovationsacross five sectorswith54 in-depthcasestudiesisthusauniqueandvaluableresourcefororiginatorsandreplicatorsalike.Existing findingson scalingand replicationneed tobedisseminated amongstenterprisesandotherstakeholders. It couldprovideenterpriseswith ideasonhowto improve theirmodel,oroffer secondmoversinspirationandlessonsondesigninganewmodel.Tocreateawareness,researchresultsneedtobemadeavailabletoentrepreneurshipcenters,incubators,accelerators,atindustryconferences/fairsortomembersofindustryassociations.Current research isagoodstartingpointbut considerablegapsneed tobeaddressed. Forexample,additionalsectorsmaybeincludedintheresearch—andnewclustersmaybeidentifiedineachsector.Anindepth insight into the functioning,effectivenessandpreconditionsofmodels couldalsoaddvalue.Crucially,thereisaneedformorerobustdataontheimpactofmanymodels.Inalargenumberofcasestheeconomicandsocialimpactisbasedonanecdotalorself-reportedevidence.However,tobeabletofosterthereplicationofprovenmodels, it isvitaltoknowwhichmodelsactuallygenerateresultsthatmeritreplicationandwhereimprovementsarenecessary.Ensureresearchtranslatesintoaction.Toooftenvaluableresearchfailstoachieveitspotentialimpact.Thedisseminationofstudiesandpaperscanbeagoodstartingpointfordialogueandaction,butsomecreativethinkingmaybenecessarytoensurethishappens.DisseminationactivitiesshouldmoveawayfromthestandardPowerPointpresentationsplusQ&Asessiontomoreinteractiveandactionorientedformats. For example, a workshop could bring several originators together to discuss findings andencouragepeerlearningforreplication.Aninteractiveworkshopseriescouldbringtogetheragroupofpolicymakersandenterprisesaroundovercomingaparticularconstraintoraspecificsocialtargetsuchas50percentimprovementinlearningoutcomesforgirls.2) BuildonexistinginterventionstoincludeareplicationfocusActorscanreinforceexistingprograms,policiesand instrumentsby includinga replication focus.Anoverviewofthefactorsthatdriveandconstrainreplicationandscalerevealsthatmanyofthesefactorsarerelatedtothecommonchallengesofdoingbusiness. Indeedreplicationdoesnotnecessarilybringaboutnewchallengesbutratheraddsalayerofcomplexitytoalreadyexistingchallenges.Forexampleunderstandingevolvingregulationrequirementsandadaptingabusinessmodelaccordinglyisallthemorecomplexwhenabusinessisoperatinginadozencountries.ThismeansmanyinterventionsthattacklethekeyconstraintsshowninTable1areimplicitlysupportingreplication.Basedonanunderstandingofthedriversandconstraints,actorscanbuildonanexistinginterventiontodeliberatelypromotereplication.For example, some models successfully scaled because a government realized that certain businessmodels offered a more cost efficient and sustainable way to achieve a specific development goal.Supportinggovernmentstousebusinessmodelstoachievesocialobjectivesmoresystematicallycouldbepartofanongoingpolicysupportprogram.Table1.ConstraintsofExpandingBusinesses
Constraint DriversandsupportbeingofferedInformationandawareness
• Lackofevidencebase.Whilesomemodelsreceiveawardsandhaveanecdotalevidence,itcanbedifficultforsecondmoversandecosystempartnerstobesureamodelisachievingitsallegedimpact.
• Difficultforsecondmoverstolearnfromfirstmovers.Thereisadearthofgranular
• HighdemandfromBoPclients.Modelsthatcanshowclearvaluetoclientsatanaffordablepricepointtendtoflourish.E.g.Mobilemoney.
• GovernmentsponsoredpublicawarenesscampaignsinHealthandWASHhavehelpedmodelsattractclients.Particularlyvaluablein
May2017/ 15
informationonsuccessfulbusinessmodelswiththeoperationalandfinancialdetailsthatwouldbeofparticularrelevance.
WASHwheregainingcustomersisagreaterchallengethanretainingcustomers.
Rulesandregulation
• Missingregulation.Forsomenewinnovativemodels,thereisanabsenceofregulatoryprovisionse.g.StudentfinancingandmHealth.
• Prohibitiveregulation:Thisaffectsallmodelsandincludespoliciessuchashighimporttariffs,strictrequirementsforregistrationorlicenses.ForexampleregulationinIndiathatrestrictsschoolsfromearningprofits.InMalawihighimporttariffsmakeitdifficultforbusinessmodelsthatrelyonimportedproductse.g.inthewatersector.ThesesectorswouldbenefitfromsimilartaxexemptionsthegovernmenthasofferedtothesolarsectorinMalawi.
• Destructivepoliciesanddisincentives.Insomecasessubsidiescandistortmarketsanderasewillingnesstopay.ThishasbeenobservedintheSolarandEnergysector.
• GovernmentsmainstreamingBMIintoexistingstructures.ForexampleGyanShalaachainofprimaryschoolshasbeenabletoimprovegovernmentschoolresultsbyupto35percentthroughanadditionalprogramthatadvisesgovernmentoncurriculumdesignandtrainsgovernmentteachersbasedontheGyanShalaapproach.
• Conduciveregulatoryenvironment.Insomecasesalackofregulationhasallowedmodelstoflourish,chainschoolsandmobilemoneyinEastAfricavs.India.Itisimportantthatregulationgrowswithasectorinawaythatencouragesgrowth.
• Supportivepolicies.Whengovernmentsseevalueinabusinessmodelandactivelysupportitthroughtaxbreaks,andsubsidiesthiscanhelprapidlyexpandmodels.E.g.consumerfinancingforlow-costhousinginMexico.
Financialresources
• BoPclients’lackofpurchasingpower.WhileclientsmayseesignificantvalueinaproductorservicetheirincomeconstraintsandirregularcashflowsremainakeybarrierthisisrelevantforallsectorsespeciallyEducation,HealthandWASH.Whereongoingcostscanbecomeasubstantialdrainonresources.
• Modelsneedfinancingtocoverhighsetupcosts.CommonconstraintinsomeEducation,WASH,energyandHealthmodels.ForexampleasettingupeachnewchainschoolcostsaroundUSD65,000.
• Relianceonunreliablefundingstreams.Overrelianceongovernmentordonorsupportcanberiskyasitissubjecttopoliticalandregulatorychange.Manyfinancing,educationandhealthmodelsfacethisconstraint.
• Affordablefinancingforoperatingcosts.Manycompaniesstruggledtogrowduetoalackofaffordableworkingcapital,particularlysmallbusinesses.
• Supportfromgovernmentorotherpartnerstomakeaproductaffordable.InagricultureinsurancemanygovernmenthaveprovidedsubsidiestoextendcoveragetoalargenumberofBoPmodels.
• Costsavingmechanisms:Hyperefficienciessuchaspara-skilling,standardizationandtheuseofICThavebeenabletodrivedowncostsinHealthandEducation.
• AppropriateandattractivefinancingoptionsforBoPclients.Optionslikeleasing-to-buyforBoPentrepreneurfinancingandrisksharingfinancingschemesineducationcanhelpaddresscashflowchallenges.
• IncreasingBoPclient’sincomeinarelativelyshorttimeframe.ModelsthataddressBoPclientsultimatechallenge-poverty-atareasonablecostandprofitablytendtoexpandrapidlye.g.educationorientedBPOandmobilemoney.
• Highdensityofclientshelpsreducethecostofdistributionandaftersalessupportofmodels.e.g.EnergyandWASHmodels.
StructureandCapacity
• Findingandretainingtalentedstaffparticularlyatmanageriallevelorskilledemployees
• Poorinfrastructureunstablepowersupply,missing3Gconnectivityandpoortransportnetworkscanbeamajorchallenge,particularlyforICTintensiveenterprisese.g.
• StandardizationandparaskillingByusinga“businessinabox”modelwithahighdegreeofstandardizationandbreakingdownskilledservicesintosimplifiedtasks,lessskilledstaffcanbehiredtoeffectivelycarryoutskilledwork.Thisalsohelpsbringdowncostsandis
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Mobilebanking,Telemedicine,educationorientedBPOinruralareas,andaftersalessupportinEnergy.
commonpracticeintheHealthandEducationsectors.
3)CreatenewinterventionstosupporttheadoptionofprovenandviableBMIsOriginatorsare interested inreplicatingtheirmodelwithpartners;secondmoversactivelyscoutforreplicableBMIs.Mission-drivenorganizationsandentrepreneursthathavedevelopedaviablebusinessmodelwithproven impactoftenactivelyseektoreplicate it.However,theythemselvesoften lacktheresourcesandtimetofosterreplicationinothercountriesorregions.Inaddition,theymaylackaccesstotherightindividualsornetworksinterestedincopyingtheirmodel.Whilethetopicofreplicationisslowlyrisinguptheagenda,atpresenttherearehardlyanyagenciesspecificallyfocusedonit.Atthesametime,motivatedsocialentrepreneursinotherregionsmaybescoutingforbusinessmodelswithpositiveeconomicandsocial results.Withtheirknowledgeontheirhomemarket, theymayalsohaveanadvantagewhen itcomestoadaptingexistingmodelstotheirspecificculturalandregulatorycontext.Intermediariescanplayacrucialroleinengineeringandbrokeringrelationshipsbetweenoriginatorsand potential adopters or expansion partners. For example, development partners or otherintermediariescanorganizehands-onworkshopsinaspecificcountryorregionthatshowcaseexistingmodels and invite adopters to learn from them. Inviting additional stakeholders and experts to suchworkshops could further enhance the value of the event. They could range from investors or otherfinanciers, legal specialists that could provide advice on social franchising to consultants that haveexperiencedadviceonhowtopackageand“hand-over”amodel.Disseminatorscanalsobesupportedtosetuptrainingprogramsandcenterstocoachsecondmovers.Indeed,someEnterpriseskeentodisseminatetheirmodeldeveloptheirowntrainingprograms,withthegoal of actively spreading their approach and building the capacities of potential secondmovers. Forexample,theeye-carehospitalAravindhastrainedover300hospitalsontheirapproach.TheprogramofferedbyLAICOisessentiallyalonger-termconsultancyprocess,includingaweek-longcapacitybuildingand strategic planning workshop in India. Development partners can help with financial or technicalsupport, such as curriculum development or even training implementation. When bringing togetheroriginatorsandadopters,alsobringtogetherotherstakeholdersthatcouldprovidethemsupport.New financing instruments specifically targeted at disseminators or second movers may furtherincentivizereplication.Arangeoffinancialsupportalreadyexistsforthosecompaniespilotingbusinessmodel innovations that cater to theunderserved.However, replicatingwhatworksmayactuallyofferfundersahighersocial returnon investment. Instrumentscould includegrants forbusinessestoopentheirmodeltothepublic(i.e.,documentit),financialsupporttoopenupdisseminationcentres,orstart-up loans for franchisees and second-generation businesses. Grants could also be provided for theorganizationofvisitsofentrepreneurstoothercountriestostudyspecificmodels(e.g.,immersionandon-sitetraining).
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AnnexI.OverviewofBMIsStudiedThetablelists27BMIclustersthatwerestudiedaspartofthisresearch.
Sector BMI AboutBMI Examplesstudied
Reach(Aggregatednumber)
Range Averagereach
Heatmap
Education ChainSchools Chainschoolsofferstandardizededucationtomanychi\ldreninlow-incomecommunitiesthroughacentralizeddesignoflow-cost,reliableandreplicableschoolmodels.
10 451,250 Students 950-125,000
45,125 Medium
10 23,566 Teachers 110-5,040
2,357
Education LearningCenters
Learningcentersoffernon-traditionalsourcesofeducationtothoseintheBoPcommunitiesbyprovidingnewspacesandformatsforlow-cost,locallydeliveredlearning.
11 9,380,000 Learners 1,000-5,000,000
852,727 High
11 223,010 Employees 510-200,000
20,274
Education EducationFinancing
Studentfinancingfromnon-bankingfinancialinstitutions(NBFI)canofferaffordable,realisticandlow-riskfinancingsolutions,aswellasguidanceandtrainingtoimproveemployabilityforBoPstudents.
9 3,150,000 Loansdisbursed
157-2,300,000
350,000 High
Education TeacherEducation
Trainingandeducatingteachersincost-constrainedareasbyequippingthemwithinnovativemodelsofteaching-kits,exchangenetworksandcloud-basedplatformscanpositivelyimpactthequalityandaccessibilityofeducationandimprovethelivelihoodsofthestudents.
10 146,050 Teachers 550-40,000
14,605 High
10 1,300,000 Students 3,000-700,000
130,000
Education ImpactSourcing
ImpactSourcingServiceProviders(ISSPs)offeremploymentopportunitiestolow-income,disadvantagedyouth,andoftensupportthemintheirtransitiontoworkingoutsidetheISSPsbyprovidingcareerguidanceandaccesstovocationaltrainingandhighereducation.
7 5,200 Employed 150-2,000
743 High
7 7,980 Trainees 300-7,000
1,140
Education 8 8,432 Schools 22-3,462 1,054 Medium
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SchoolEvaluationandManagement
Schoolevaluationandmanagementconsultantscutcostsandincreasethevalueofeducationbyassessingschoolstodeterminewhereimprovementscanbemadeandbyguidingtheimplementationphase.
8 3,000,000 Students 115-2,000,000
375,000
8 54,400 Teachers 288-30,000
6,800
Energy MiniGrids Mini-gridsexpandcommercialaccesstoelectricitybyofferingcoveragetocommunitiesthatareexcludedfromthenationalgrid.
15 819,125 Peoplereached
900-340,000
54,608 Medium
15 918 Mini-grid 10-500 61
Energy GridConnection
Bydevelopinglocalsolutionstoexpandconnectiontothegrid,distributioncompaniesandtheirpartnerscanofferaccesstolegal,safeelectricitytothoseinlow-income,urbanareas.
9 2,600,000 Peoplereached
26,000-1,000,000
288,889 High
Energy ProductiveUse
Innovativestand-alonerenewableenergysolutionsthatarecustomizedfortheBoPmarketcancreateaccesstoelectricityandthusmultiplyproductivityandprofitsofmicro,smallandmedium-sizedenterprises.
16 797,000 Peoplereached
17,000-450,000
49,813 Low
16 10,000 Dripirrigationsystems
0-10,000 625
16 2,500 Stoves 0-2,500 15616 140,175 Solar-
poweredpumpsinstalled
50-140,000
8,761
Energy SolarHomeSystems
Solarhomesystems(SHS)areanaffordable,easy-to-useandenvironmentallyfriendlysolutionforprovidingruraloff-gridpopulationswithelectricitythatcanhavecatalyticeffectforthedevelopmentforthem.
18 26,500,000 Peoplereached
9,000-7,977,765
1,472,222 High
18 2,623,287 Solarsystemsinstalled
500-1,595,553
145,738
Finance Agri-Insurance
Index-basedagriculturalmicroinsurancesubstantiallyreducestransactioncostsandremovesbureaucraticbarriersforlow-incomefarmers.
13 27,000,000 Farmersreached
100-17,500,00
0
2,076,923 Low
Finance MobileMoney
Mobilemoneyplatformsallowpeoplewithno,orlimited,accesstoformalbankingfacilitiestousearangeoffinancial
13 42,800,000 Users 60,000-15,000,00
0
3,292,308 High
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servicesthroughtheirmobilephones.
Finance EntrepreneurFinance
Inclusivebusinessesarenowestablishinginnovativemodelstoprovideaffordablecredittomicro-entrepreneursinboththeBoPandlow-incomemarkets.
8 346,700 Peoplereached
500-150,000
43,338 Low
Finance ConsumerFinance
Someinclusivebusinessesareofferingaffordablecredittotheirconsumerstoallowthempurchasehighquality,alternativeproducts.
5 4,200,000 Peopleserved
400-2,000,000
840,000 Medium
WASH DecentralizedCommunityWaterTreatment
Decentralizedcommunitywatertreatmentmodelsprovidesafeandaffordabledrinkingwaterbycombininggrantorimpactinvestmentcapitalwithpaymentforthewaterbytheusertocoverthedirectcostsofproduction.
22 7,000,000 Peopleserved
1,300-5,000,000
318,182 Medium
22 850 Plantinstalled
0-850 39
WASH MobileToilets Mobiletoiletsarecompacttoiletunitsservicedbyabusinessthatevacuateswaste,andcanthereforebeusedinurbanhomesandcommunitiesinareaswithoutaccesstocentralizedsewagesystems.
16 127,360 Peoplereached
380-48,000
7,960 Medium
16 7,150 Toiletsbuilt 100-3,450
447
16 200 Sewagetreatmentplants
0-200 13
16 52 Biocenters 0-52 316 995,000 Bio-
degradableself-
sanitizingbags
0-995,000
62,188
WASH RuralLatrines Market-ledsanitationprojectsaimtoactivatelocalvaluechainsforconstructionofhygienicandaffordabletoiletsinruralhomesandcommunities.
16 55,000,000 Peoplereached
500-25,900,00
0
3,437,500 Low
16 11,000,000 Toiletblocks
constructed
3,200-122,840
687,500
WASH HybridModelsforUtilityWaterDelivery
Hybridmodelsmakesafe,affordablewaterfromtheutility’spipednetworkavailableforsaletohouseholdsthatdonothaveaconnectiontothenetwork.
9 2,000,000.0
Peoplereached
2,000-1,500,000
222,222 Low
9 4,000 Stand-pipesinstalled
0-4,000 444
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Health Telemedicine Telemedicineisaninnovativesolutiontoexpandhealthcareservicesandeducationtoruralandlow-incomecommunitiesviaICTdevices.
1 1,000,000 Patientsreached
0-1,000,000
1,000,000 Low
Health SpecializedHospitals
Highlyspecializedhealthcareclinicswithloweroperatingcostsandcross-subsidizationofrevenuesacrosspatientsegmentscanprovideaffordableservicesforthoseattheBoP.
15 41,470,000 Patientsreached
4,200-6,000,000
2,764,667 Medium
Health mHealth mHealthcanimprovethehealthoutcomesforanypersonwithaccesstoamobiledevicebyofferingefficientandeffectivemobilehealthservices.
10 5,800,000 patientsreached
5,000-3,000,000
580,000 Low-medium
Health Nutrition Withadvicefromnutritionexperts,businessescandeveloplow-cost,fortifiedfoodforspecificgroupswithinlow-incomecommunities,whilealsoincludingtheminthevaluechainassuppliers.
7 ,770,000,000
portions/unitssold
3,200-1,755000
0
252,857,143
Medium
Health Microinsurance
Healthmicroinsuranceschemesprotecthouseholdsfromsteepout-of-pocketexpensesformedicalneeds.
7 40,200,000 Users 25,190-40,000,00
0
5,742,857 Medium
7 60,000 agents 0-60,000 8,5717 153 customer
touchpoints
0-153 22
Health Women'sHealth
Women’shealthfranchisesdeliverqualityreproductivehealthservicestolow-incomewomen,thusdecreasingbothmaternalandnewbornmortality.
16 87,000,000 Couplesreceive
protection
72,000-15,000,00
0
5,437,500 Medium-high
16 75,000 retailoutlets
0-75,000 4,688
16 7,968 clinics 370-7,000
498
16 80 hospitals 5Health Community
HealthWorkers
Usinglocallybasedcommunityhealthworkers(CHW)toprovideservicestotheircommunitiescanimproveequitableaccesstobasichealthserviceswhileaimingforfinancialsustainability.
7 6,600,000 peoplereached
2,500-2,500,000
942,857 Medium
7 250 facilities 0-250 36
Health FemaleHygiene
Socialenterprisesdeveloplow-costmethodsofsanitary
11 529,312 girlsandwomenimpacted
32-125,000
48,119 Medium
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padproductioncoupledwithinnovativemodelsofdistributionandmarketing,whileincludingwomenattheBoPatallstagesofthevaluechain.
11 505,000 sanitarypadsproduced
500-500,000
45,909
11 407 communities/villagesimpacted
5-300 37
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AnnexII.DescriptionofCompaniesMentioned(Alphabetical)Color-codingofexamples
EducationEnergyFinanceHealthWASH
Company Country Weblink SolutiondescriptionACRE(FormerlyknownasKilimoSalama)
Kenya,Rwanda,Tanzania
http://www.acreafrica.com/
ACREoffersmicroinsuranceproductsusingmobilebankingandindicesbasedonvariousdatasources.
AravindEyeCareHospitals
India http://www.aravind.org/
AravindEyeCareHospitalsprovidehigh-qualityeye-caretotherichandpoor.Thecompanyalsoactivelydisseminatesitsapproachsoastofacilitateeffectiveadaptationofitsmodelinothercountries.Tothisend,itcreatedtheLionsAravindInstituteofCommunityOphthalmology(LAICO)traininginstitute,whichhassupportedreplicationoftheAravindmodelinover300eyehospitalsin30countries.
BeamMoney India http://www.beam.co.in/
Beamhasdevelopedamobilemoneywalletthatallowsbothbanked&unbankedcustomerstotransactatanytimethroughapps,SMSandtheWeb.Servicesincludedomesticmoneytransfers,mobilerecharge,DTHTVrecharge,utilitybillpaymentsetc.OnceregisteredwithBeam,customerscantopuptheirBeamwalletsusingcredit/debitcardsorthroughdirectcashtransferthroughBeamfranchisees.
BlueDiversion Uganda,Kenya
http://www.bluediversiontoilet.com/
BlueDiversionworkswithlocalfranchiseesfromlow-incomecommunitiesassalespeopletorenttoiletstohouseholds,landlordsandcommunities.Thereare2pricemodelsforcommercialandhouseholdcustomers.Thereisanupfrontfeeforinstallation,paidforbyamicroloanfortheprivatecustomer.Thelocalfranchiseesalsocollectthewasteandtransportittooff-siteresourcerecoveryplants,whereitisconvertedintomarketablefertilizerendproducts.FieldtestsconductedincollaborationwithSanergy.
BridgeInternationalAcademies
Kenya http://www.bridgeinternationalacademies.com
Bridgeoperatesprivate,low-fee($6permonthin2014)nursery&primaryschoolsusingaverticallyintegrated,highlystandardized'school-in-a-box'business&educationalmodel.Itusesweb-enabledtechnologiestoconstantlymonitor,evaluateandstreamlineallprocesses,enablingrapidscale-upatlowmarginalcost.
BridgeIT Philippines,Tanzania,Chile,Colombia,India,Bangladesh,Indonesia,Nigeria,SouthAfrica,Haiti
http://text2teach.org.ph/
BridgeITisapublic-privatepartnershipthatusesmobilephonestodeliverprofessionaldevelopmentmaterialsandeducationalresourcestoteachers(videos,lessonplans,onlinenetwork).Schoolsreceiveapackagecontainingamobilephone,throughwhichtheyareabletoaccessanddownloadavarietyofeducationalcontentandteachertrainingmaterial.Thepackagefurtherincludesacableandaprojector/screenthroughwhichvideoscanbedisplayedinclass.
CCBRTDisabilityHospital
Tanzania http://www.ccbrt.or.tz/disability/
CCBRTDisabilityHospitalprovidessurgicalandoutpatientservicesforophthalmology,obstetricfistula,orthopedics,andreconstructivesurgeryandanesthesia,targetingthelowestincomecommunitiessubsidizinglowpricesorfreeofchargeservicesthroughcharginghigherpricesatthePrivateClinicwhereextrassuchasconvenienceofappointmentsandfasttrackserviceisavailable.thequalityofcareisthesameforallincomegroups.
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Cemex(PatrimonioHoy)
Mexico www.cemex.com PatrimonioHoyprovideslow-incomefamilieslivinginurbanandsemi-urbanareaswithaccesstobuildingmaterialsandtechnicalassistancetobuildgood-qualityhouses.Thecompanyoffersfinancetocustomersthroughasavingsandcreditfacility.
CentersforDigitalInclusion(CDI)
Brazil,Chile,Colombia,Spain,UnitedStates,England,Mexico,Portugal,Venezuela,Wales,Ireland,Scotland,Poland,Romania,Latvia
http://www.cdi.org.br/
CDIpartnerswithcommunitygroupsandpublicinstitutionstoestablishinformalcentersequippedwithdonatedcomputerequipmentwhichprovidecomputeraccessandskillstrainingforallages,aswellasciviceducationandentrepreneurialskills.CDIcentersintimebecomeautonomousself-financingcommunityenterprises.CDIoperatesinlow-incomecommunities,publicschools,prisons,psychiatricinstitutionsthatcareforpeoplewithphysicaland/ormentaldisabilities,indigenousvillages.
TheCitizensFoundationSchools(TCF)
Pakistan http://www.tcf.org.pk/
TCFprovidesaffordableprimaryandsecondaryprivateeducationtolow-incomestudentsinPakistan’surbanslumsandruralareas,withafocusongirls.Allschoolprincipalsandteachersarefemale,therebyaddressingculturalconstraintsongirls’education.
CleanTeam Ghana http://cleanteamtoilets.com/
CleanTeamchargesamonthlysubscriptionfeeforaninhouseportabletoiletwithawastecollectionservice2-4timesperweekforhousesnotconnectedtosewageorwaterinfrastructure.Itisamoreprivate,safeandhygienicsolutionthandefecatinginthestreetoruncleanpublictoilets.
ComponenteAtenciónaDesatresNaturales(CADENA)
Mexico http://www.sagarpa.gob.mx/Paginas/default.aspx
TheCADENAprogramcontainstwomaincomponents:theCatastropheAgriculturalInsurance(SAC):macro-levelindex-basedcropandlivestockcatastropheinsuranceprogram,andinStateswhereSACisnotprovided,thecontinueddirectsupport(ApoyoDirecto)compensationpaymentstofarmersforclimaticdisasters.
¡Échale!aTuCasa
Mexico http://www.echale.com.mx/
InMexico,¡Échale!atucasa,anaffordablehousingprovider,hascommittedtomakingUS$25millioninlow-costfinancingavailableoverthenextfiveyearstoenable25,000low-incomefamiliestobuildtheirown“eco-friendly”homes,whichincludewood-savingstovesorbio-digestersforenergyneedsandrainharvestingwaterpurificationsystems.NearlyninemillionfamiliesinMexicohaveinadequatehousing,andtwothirdsofthemfacedifficultyobtainingloanstopurchasehomes.Asaresult,millionsresorttobuildingunsafeandunsecurehousingstructures.¡Échale!atucasa‘sself-builtkitsareuptohalfasexpensiveasbuyingalreadybuilthomes.
Ecotact(Ikotoilet)
Kenya,Tanzania
http://ecotact.org/
EcotactrunsIkotoilet,buildingandoperatinghigh-quality,public,pay-per-usesanitationfacilities.Eachblockcontainsatoilet,showerfacilities,taps&soap,tanksforrainwaterharvesting,watertapwithtreateddrinkingwater,babychangingareas&sanitarybins.Eachunitalsocontainsashop&shoeshinearea,tocreateacentralmeetingplace.Publiclandinurbancentersisprovidedbylocalgovernmenttomaketheprojectaffordableandpartofthecommunity.
eKutir India http://www.ekutirsb.com
eKutir(Svadha)trainslocalentrepreneurssothattheycanestablishself-sustainingbusinessestosupply,installandmaintainhygienictoiletsinruralhouseholds,andeducatelocalcommunitiesontheimportanceofsanitation.Svadhaisasocialbusinessthatbuysgoodsinbulkandsellsthemontoentrepreneursatacheaperprice.
EnovaDigitalCenters
Mexico http://www.enova.mx/en
Enovaofferstechnologyaccessandaffordablee-learningcoursesforallageswithpersonalizedsupportindigitalcentersanddigitallibrarieslocatedinBOPcommunities.Enova'saimistocreateanetworkofcommunitycentersthattriggersocialchange.
GhanaWaterCompanyLimited(GWCL)
Ghana http://www.gwcl.com.gh/pgs/hmp.php
Themodeldeliverswaterviastandpipestolow-incomeconsumersinpartnershipwiththeseunder-servedcommunities.IthasbeenpilotedonKotei,adistrictofthecityofKumasi,andisnowbeingrolledoutinaseconddistrictinGhana.GWCLretainstheownershipofthepiped
May2017/ 24
infrastructureandisresponsibleforupkeepandmaintenancebutawardsamanagementcontracttotheCMC(CommunityManagementcommittee).
Gramalaya India http://www.gramalaya.in/
NGOGramalayaengageslocalcommunitiesinawarenessraisingprogramandworkswithcommitteesresponsibleforsanitationprovisionintheirarea.Itpromotesarangeoftoiletmodelstohouseholds,supportslocalproducersinmanufacturingbetterqualitylatrinesatlowercost,trainsmasonsininstallingthem,andoffersend-userfinancingthroughitsspinoffarmGuardianorpartnershipswithlocalMFIs.
GrameenShakti
India http://www.gshakti.org
GrameenShaktihasdevelopedoneofthemostsuccessfulmarketbasedprogramswithasocialobjectiveforpopularizingSolarHomeSystems(SHSs)includingotherrenewableenergytechnologiestomillionsofruralvillagers.GSisthefirstcompanyintheworldtopromotesolarenergytechnologytoruralcommunitiesanddevelopasustainableandcost-effectiverenewableenergyprogramforthepoor.
Greenstar(SabzSitara)Network
Pakistan www.greenstar.org.pk/Sabzsitara-Clinic.html
GreenstarworksthroughbothprivateandpublicchannelstowardsimprovinghealthcareinPakistan.AreasofactivityforGreenstarincludesocialmarketingoffamilyplanningproductsandservices,trainingforhealthcareprofessionals,motherandchildhealthservices,clinicconstructionandrehabilitation,vouchersforsafedelivery,outreachactivitiesandtuberculosisdetectionandtreatment.
GyanShala India http://www.gyanshala.org/
GyanShalaprovideshigh-qualityprimaryclassestoout-of-schoolchildreninnetworksof400-500single-roomcentersinrentedpremises,staffedbycommunitymemberstrainedaspara-teachers.Resultsshowstudentsoutperforminggovernmentandprivateschools.
Hippocampus India http://www.hlc.hippocampus.in/hlc/
HippocampusLearningCenters(HLC)providesafee-payingKindergartenprograminsmallcentershousingthreeclasses(max.25childreneachclass)inrentedpremisesinIndianvillageswhilecreatingjobsforvillagewomenbyhiringthemasteachers.
iDE(InternationalDevelopmentEnterprises)
Honduras,Nepal,Zambia
http://www.ideorg.org
Solar-poweredpumpsforimprovedirrigation.iDE’sCleanIrrigationSolution(CIS)cancompetewithfossilfuelpumpsbothintermsofcostandenhancingagriculturalproductivity.CIS’suniversalpistonpumpcanrunonavarietyofpowersources—solarsteampower,photovoltaicpower,andgrid-connectedalternatingcurrent(AC)whereavailable.Thesystemaccessesgroundwaterfromdeeperdepthsthanconventionalpumps,andmaintainsaslow,steadydischargerate.iDEwillworkwithlocalbusinessestosellandservicetheCIS.
JayaashreeIndustries
India http://newinventions.in/
JayaashreeIndustriescurrentlyhasmademorethan1300low-costmachinestoproducesanitarytowels,whichareinstalledacross27statesinIndiaandsevenothercountries.Thelowcostmachinesaresolddirectlytoruralwomenthroughthesupportofbankloansandnot-for-profitorganizations.Amachineoperatorcanlearntheentiretowel-makingprocessinthreehoursandthenemploythreeotherstohelpwithprocessinganddistribution.
LEAPScienceandMathSchools
SouthAfrica http://leapschool.org.za/
LEAPSchoolsareachainofno-feeindependenthighschoolsoffering'whole-child',learner-centerededucationinrelativelysmallclassestounderprivilegedSouthAfricans.LEAPrequiresallstudentsstudyMaths,Science,Englishandhasanextendedschoolday/Saturdayclasses.Itincorporatesextended'LifeOrientation'self-awareness/confidencetraining,communitywork.Inaddition,LEAPprovideslearningcenterswithincommunitieswhereschoolsarelocated.
LifeLink(Grundfos),WaterMissionsInternational
Uganda,Haiti,Malawi
http://www.grundfos.com/cases/find-case/sustainable-private-water-service-delivery-by-Water-Missions-International.html
TheTradeWaterprojectisrunbynon-profitWaterMissionsInternationalwhobuildsGrundfospumps,withLivingWaterfiltrationsystemsinthecenterofcommunities.WMImaintainsresponsibilityforallfinancialmanagementandadministrationofthesystem.Alocallyrecruited‘wateragent’istrainedtoberesponsiblefordailyoperationsandcustomerservice.Additionalrevenuestreamshavebeenaddedincludingsolarchargingofmobilephonesandsolarlamps.
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LINKCommunityDevelopmentInternational
Ethiopia,Ghana,Malawi,SouthAfrica,Uganda
http://www.lcdinternational.org/
Link’sSchoolPerformanceReview(SPR)processisapartnershipwithruralgovernmentschooldistricts.Linktrainslocaleducatorstogatherschooldatacoveringmultipleindicatorsofquality.Linkanalyzesthedataandproducesrecommendationsthattheschool'sstakeholdersdiscussestoformulateaschoolactionplan.Theprocessisrepeatedforallschoolsinadistrict,buildingadistrict-widepictureofschoolquality.Linkco-facilitatesdistrict-levelmeetingstohelpformulatedistrictimprovementplans.LinkalsoprovidesaSolarConnectprogram,whichenhancesschools'capacitytouseICTtosharedata.
LivingGoods Uganda http://livinggoods.org/
TheLivingGoodsmodelcombinespracticesfromtheworldsofmicrofinance,franchising,andpublichealthtocreateasustainablesystemfordefeatingdiseasesofpoverty.LivingGoodsreducesillnessanddeathbysignificantlyimprovingaccesstoandadoptionofhealthinterventionsinthemanyplacesthesearescarceornon-existent.Networkoffranchisedcommunityhealthpromoterswhoprovidehealtheducationandearnalivingsellingessentialhealthproductsdoor-to-dooratpricesaffordabletothepoor.
LumbiniEyeInstitute
Nepal http://www.lei.org.np/
Atthegrassrootslevel,LEIprovidesprimaryeyecareservicesthatareprovidedthroughhouse-to-housevisit,schoolscreening,screeningcampsatsubhealthpostandhealthpostlevels,whicharevitalcomponentsofprimaryeyecareandtreatmentofeyedisease.Atthedistrictlevel,eyecareservicesareprovidedthroughprimaryeyecarecenterswherebasiceyediseasearetreated,glassesareprescribed,outreachsurgicalcampsareorganizedandspecialinvestigationarereferredtothebaseeyehospital.Tertiaryeyecareservices,aswellashighvolumecataractsurgery,areprovidedatthezonallevelattheShreeRana-AmbikaeyehospitalinBhairahawa.
M-KopaSolar Kenya solar.m-kopa.com M-KOPAmakessolarproductsaffordabletolow-incomehouseholdsonapay-per-useinstallmentplan.Customersacquiresolarsystemsforadepositandthenpurchasedailyusage“credits”forUS$0.45,orlessthanthepriceoftraditionalkerosenelighting.Afteroneyearofpaymentscustomersowntheirsolarsystemsandcanupgradetomorepower.
M-PESA Kenya http://www.safaricom.co.ke/personal/m-pesa/m-pesa-services
M-PESAbeganin2007andquicklybecameapioneerinthemobilemoneyspace.Itprovidescustomerswithbasicfinancialservicesthroughamobileplatform.Customers,mostofwhoareformerlyunbanked,sendmoneyquicklyandeasilyusingthepay-as-yougoservice.M-PesastartedoffasasimplemobilewalletbutnowalsohaspartnershipswithbanksandMFIstoprovideotherbankingservices.
MerrygoldHealthNetwork
India www.merrygold.org.in
MerrygoldHealthNetworkcreatesaccesstolowcostgoodqualityMaternalandChildHealth(MCH)servicesbynetworkingwithPrivatehealthserviceprovidersasfranchisees.
Narayana India http://www.narayanahealth.org/
Byapplyingtheprinciplesofassemblylineproductiontocardiacsurgeryhewasabletodemonstratethatworld-classcardiacsurgerycouldbeperformedatlowercosts.Heachievedthisdifficultfeatbyenhancedproductivity(morenumberofsurgeriesinadaythanothersurgeons),whichinturntranslatedintoaffordabilitythatbroughtprofitabilitytothehospital.
OmegaSchools
Ghana http://www.omega-schools.com/
Omega's38schoolsofferlow-feeprimaryandjuniorhighschooleducationtoover20,000childreninlow-incomecommunitiesinGhana(2013-2014),paidforwithanall-inclusivedailyfeeincorporatingmeals,uniforms,learningmaterialsetc..Its“school-in-abox”businessmodelisbasedonscale(largenumbersofstudents)andstandardization,in-houseteachertraininganddevelopmentoflessonplans,withatechnology-enabledcentralizedmanagementsystemregularmonitoringandevaluation.
OneGirl(Launchpad)
SierraLeone http://www.onegirl.org.au/what-we-do/launchpad
LaunchPaddeliversaffordable,biodegradablesanitarypadstowomenandgirlsinSierraLeone,usinganetworkoffemaleentrepreneursandschoolsystems.
RGStoneUrology&
India http://www.rghospitals.com/
RGisspreadingtheservicesofurologythrougheitherestablishingownclinics,partneringwithdoctorsinJVsorestablishingadepartmentinalargeclinic.
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LaparoscopyHospitalRubyCup Kenya,
Zambia,SouthAfrica,Uganda
http://www.ruby-cup.com
RubyCupdevelopedamenstrualcupwhichleveragedcanbeusedfor10years.RubyCupisnowpartneringwithNGOnetworksacrossAfricatodistributetheirproduct,andisalsousingabuyonegiveonefreemodeltosubsidizethedistributioninAfrica.
salaUno Mexico http://www.salauno.com.mx/
SalaUnoeradicatesneedlessblindnessthrough6linesofactivitiesthatpreventorrevertblindness:cataractssurgery,photocoagulationlasertotreatdiabeticretinopathy,pterygiumsurgery,glaucomatreatment,prescriptionglassesandcornealtransplants.
SanergyInc. Kenya http://saner.gy/ Sanergyhasdevelopedalowcosttoiletwhichitrents/sellstomicro-entrepreneursinareaswithoutaccesstopipedsewagesystems.Thetoiletsareusedbythecommunityatanaffordableprice.ThewasteiscollectedbySanergyandprocessedintousefulproductssuchasorganicfertilizer.
SaniShop(WorldToiletOrganization)
Cambodia,India,Mozambique
http://worldtoilet.org/what-we-do/sanishop/
Lowcosttoiletproductsbuiltwithlocallyavailablematerialsanddistributed/soldbylocalentrepreneurs.
Sarvajal India http://www.sarvajal.com/
For-profitsocialenterprisethatoperatescommunitywater-filtrationplantsthroughlocalfranchiseesinmid-sizedIndianvillages(approximately5,000inhabitants).FranchiseepaysSarvajal40percentmonthlyrevenuesTheyhavealsorecentlyexpandedtolinkWaterATMs,whichsellsmalleramountsofwateratseparatelocations.
SNV’sSustainableSanitation&HygieneforAllResultsProgram(SSH4A)
Multi-regional
http://www.snvworld.org/en/sectors/water-sanitation-hygiene/sustainable-sanitation-hygiene-for-all-results-programme
SNVanditslocalpartnersimplementedtheSSH4Aapproachin15countriesacrossAfricaandAsia.Theprogrambuildscapacitytoimplementdemandcreationinpartnershipwithlocalgovernmentsandlocalcommunityledtotalsanitationfacilitators.Itdevelopsthemarket-basedsolutionsinthesupplychainforhardwareandservices.
Sorridents Brazil http://sorridents.com.br/
Sorridentsisthelargestchainofdentalclinics,eitherfullyownedorfranchisedinLatinAmerica.Theseclinicsaimtoprovideaccessible,affordabledentalcareclosertohome,typicallyontheoutskirtsoflargeandmid-sizedcities,whererealestateismoreaffordableandmostlow-incomepeoplelive.Sorridentsclinicsofferavarietyofdentalprocedures,servingasamuch-neededone-stopshopfordentalcare,especiallyfortheelderlyandpeoplewithdisabilities.
SpringHealth India http://www.springhealth.co.in/
Providingcleansafedrinkingwatertocommunitiesoflessthan200to500householdsinIndiasufferingfrommicrobialcontaminationthroughapartnershipmodelofwaterkiosks.SpringHealthprovidesthefiltrationsystemandensuresitsongoingqualitybutthekiosksaresetupwithalocaloperatorwhoisresponsibleformanagingthedaytodayofthefacilityaswellassales.Entrepreneurscoverthecostofland,watersource,andelectricityconnectionaswellasansubscriptionfeeof5,000(US$80),tocover20percentofcapitalcost.ThishelpsSpringHealthcovernotonlytheoperatingcostsbutalsothecapitalcoststoo.ThefiltrationsystemremainsthepropertyofSpringHealth.
TechnologyforTomorrow(T4T)
SierraLeone http://t4tafrica.co/
MakaPad,asanitarynapkinmadeofpapyrusandpaperwaste,manufacturedlocallyinUgandawithouttheuseofelectricity.Thisisamoreaffordablealternativetotraditionalstore-boughtproducts,cuttingthecostbyabout50to75percent.Healsoinventedspecialincineratorstodisposenon-biodegradablewasteinschools.Theyarealsobuiltonalargerscalesotheycanbeusedinhospitalsandclinics
TunzaFamilyHealthNetwork
Kenya http://www.psikenya.org/index.php?id=73
TheTunzafranchiserecruitsandtrainsprivatepractitionersintheprovisionofarangeofcontraceptivemethodswhilepromotinguptakeinthecommunityandprovidesaccesstoqualityandaffordablehealthservicesincludingcervicalcancerandSTIscreening,HIVcounseling,malecircumcisionandchildhooddiseases.
Visualiza Guatemala,Haiti,Peru
http://visualiza.org.gt/
Visualizaoperatesclinicsinthatprovideprivatecarealongsidefreevisionservicesforthepoor.Leadingthenation,Visualizaperformsover20
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Endnotes
percentofallcataractsurgeriesinGuatemala,andistheonlyinstitutioninthecountrythatprovideseyecarescreeningforchildren.
WaterHealthInternational
India,Bangladesh,Ghana,Nigeria,Liberia,Phillippines
http://www.waterhealth.com/
WHIusesabuild-operate-transfermodel,tobuildwater-filteringplantsinlocalcommunities.CAPEXexpensesarecoveredbygrantssowatercanbesoldatamoreaffordableprice.Accesstoland,electricityandwaterareprovidedbythecommunity(orcouncilonbehalfofthecommunity).
Waterlife India http://www.waterlifeindia.com/
Waterlifeworksthroughpublic-privatepartnershipssettingupatreatmentsystemandoperatesitunderamanagementcontractfor5–15years.Itchargesthelocalcommunityforwateratafixedratetocoveroperationalandmaintenancecosts.ThesystemoperatorisfromthelocalcommunityandistrainedbyWaterlife.Thecompanyhasaservicingteamof120employees,andhasdeployedanationaltoll-freenumberfortechnicalsupport.
WaterSHED Cambodia http://www.watershedasia.org/
NGOactingasmarketfacilitator,Watershedcreatessupplychainnetworks,workingwithlocalbusinesses,governmentandcommunitiestocommercializelow-costlatrines.Itcurrentlyworkswith165latrinemanufacturers
Wizzit SouthAfrica www.wizzit-int.com
WizzitisthefirstcompanyinSouthAfricatodevelopamobiletechnologyplatformandabranchlessbankingmodelthatallowspeopletoopenfull-fledgedbankaccountsthroughtheirmobilephones.Accountholderscanconductfinancialtransactions,remitmoney,payaccountsandgettheirbalancethroughtheirmobilephones24hoursaday.
X-runner Peru www.xrunner-venture.com
Mobile,waterfreetoiletsrentedbyhouseholdswithoutaccesstofixedsewageorwaterinurbanslums.Thewasteiscollectedonaweeklybasisandturnedintobiofertilizer.
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1 Thenote also takes into accountprevious researchundertakenby Endeva.Mostnotably, the study“MultiplyingImpact:SupportingtheReplicationofInclusiveBusinessModels,”whichwascommissionedandpublishedin2014bytheGermanMinistryforEconomicCooperationandDevelopment. 2Thediscussionontheevidenceofimpact,whileintegraltoreplication,isreservedfortheEvidenceCrossCuttingpaper.SeeWorldBank.2017.GatheringandusingevidenceforinnovativebusinessmodelsservingtheBaseofthePyramid.Washington,D.C:WorldBank3Thisisparticularlythecasewhenthescriptisadaptedtonationalcurriculaanddevelopedbyteachingexperts.4BEAMMobile,“BeaminNews,”BEAMMobilehttp://blog.beam.co.in/category/Beam-in-News
