Yunus Social Business - Sociale innovatiefabriek · 2020-02-05 · Yunus Social Business Last Year’s Winner: LIKE U Since 2016, our team in Colombia has been running an accelerator

Yunus Social Business

Promoting impact-driven social investments

January 28, 2020

Our Story:1.800 Entrepreneurs and 9 million people impacted in 7 Years


Our story begins with one man’s dream

Prof. Muhammad YunusCo-Founder & Chairman Yunus Social Business

In 1983, Prof. Muhammad Yunus founded the GrameenBank, beginning a microfinance revolution which earned him one of humanity’s most prestigious awards in 2006, the Nobel Peace Prize.

Grameen grew from a microcredit bank into a group of enterprises created with the specific intention of solving human problems. These embodied the first cases of a new, emerging model: social business.


Together with the Grameen network, we have touched the lives of over 27M people. Now, we are expanding the success of social business from Bangladesh around the world.

We are actively supporting social entrepreneurs in Uganda, Kenya, Brazil, Colombia & India and work with corporate teams globally.

Building on 40 years of social business experience, we are expand the model to the rest of the world


Uganda& Kenya

Brazil

Colombia India

Germany (Global Office)

Where do we work?

Bangladesh(Yunus Centre)

1800 Social Entrepreneurs supported

60+ Social Businesses financed

$14+ million invested

55,000+ jobs supported 9+ million impacted clients 1,200+ 3,400+ 15,000+ 30,000+

55,000+

2014 2015 2016 2017 2018

0.5M 0.8M 1.5M3M 9M+

2014 2015 2016 2017 2018Yunus Social Business

Our impact to date

The YSB Model


Half of the world lives in poverty today. Without a livelihood, people cannot access basic necessities and take control of their own futures.

We aim to change this.


Providing either:

● Essential products and services like

healthcare, clean water or clean

energy.

● Or higher incomes for the poor.

We work with entrepreneurs focused on a social problem

Social business combines the mission of a charity with the business acumen of traditional for-profit business.The entrepreneur’s goal is to be financially self-sustaining, while company profits are reinvested in strengthening the company’s social mission and further serving the poor.

We harness the power of social business to end poverty.

Our Sectors

Charitable money is scarce, so we need to use it as efficiently as possible. That is why we focus on taking a market-driven approach in sectors that have the greatest impact on the poor.

The social businesses we support make change across a variety of sectors, and at the same time creates decent jobs and income opportunities for the poor.

We support social enterprises that solve social problems andfocus on the poor

Agriculture & Livelihoods

Health &Sanitation

Environment & Plastics

Education

10 investments

Half the world live on $2.50 a day.

2.1 billion people lack safe drinking water.

Around 263 million children worldwide are not enrolled in school

Worldwide 18,000 people die every day due

to air pollution.

6 investments

38 investments

7 investments

We help social entrepreneurs to prove their model and get onto a path for sustained growth while maximizing their positive impact on poor communities.

How do our philanthropic venture funds support social businesses?


We Invest

Patient Finance

Long-term, low interest rate concessional loans that help

social entrepreneurs grow their businesses and bridge the gap between microfinance and

commercial capital

We Advise

Growth Support

Accelerators and Investment Readiness Programs to build essential skills and develop

hands-on mentoring relationships that prepare entrepreneurs for the next

phases of growth

Core Activities

We Grow

Ecosystem Building

Tools, publications, resources, and trainings that build the

efficacy of intermediaries and bring more investors to

support entrepreneurs in emerging markets worldwide

Investing in promising entrepreneurs

Our loans cover the

“Missing Middle”

typically between $100,000 & $300,000

We believe that social enterprises are the

most efficient and effective way to tackle

poverty. But it isn’t as simple as that.

The most promising social entrepreneurs

need time, hands-on growth support and

flexible capital before they become

attractive to mainstream investors. This is

especially difficult in developing and

emerging markets. Our patient loans bridge

the vital gap for social enterprises until

they are able to access later-stage sources

of funding.

We fit in the essential gap that is too big

for microfinance institutions, yet too

time-consuming and financially risky for

most larger funds or local banks that are

focused solely on profit.


Patient Financing Made for the Missing Middle




We Invest

Patient Finance



commercial capital

We Advise

Growth Support



phases of growth

Core Activities

We Grow

Ecosystem Building




Our hands-on approach gives our social businesses the extra support they need

1:1 Coaching

Closely matched mentors & experts

from different industries around

the world

Access to Markets

Invaluable connections to target

customers and professional service

providers

Ecosystem & Community

Strong ties with local network &

access to the globalYSB/Grameen

Community

Growth Support Tailored to Each Entrepreneur

Spouts of Water received support through our

network for Salesforce implementation.

Green Bio Energy cleared up their accounts

Charles, YSB's finance officer, is currently working

with the GBE accounts team to guide and mentor

them on good accounting practices.

Waste Ventures & Ignis Careers we identified

need for financial management training and

connected them to the right providers

Support Spotlights:

In 2018 we released What Have We Learned, a

report with USAID to share with our learnings

from supporting social businesses in Uganda with

the broader ecosystem

http://www.yunussb.com/blog/what-have-we-learned-report/

We look for early stage social entrepreneurs with game-changing potential

Our teams look out for visionary entrepreneurs who have early signs of success, but who need support and capital to reach their goals. Our services help these promising entrepreneurs to refine their social enterprises and serve more customers from poor communities.

Entrepreneur Profile

Post-Investment TA

For YSB, the work doesn’t stop at the pointof investment. We aim to be an activeinvestor and add value in as many wayspossible. Our portfolio businesses eachreceive detailed 100 Day Plans that outlinethe first steps they can take to grow, andour teams continue to provide hands-onsupport and monitoring to ensure everyinvestee thrives for years to come.

Dutch/Swedish Postcode Lotteries


Investment Readiness

Promising entrepreneurs with potential totake on a debt investment of $100k+within the next six months are selected foran intensive Investment ReadinessProgram (IRP). Our curriculum covers anumber of key topics including financialmanagement, HR, and impactmeasurement, and includes expertpresentations and peer learning exercises.

Affordable & Patient Debt

Successful graduates from our IRPs as wellas referrals from sector partners areinvited to apply for our patient andaffordable loans, tailor-made to the needsof social entrepreneurs. Our investmentprocess includes 3+ stages of review andentrepreneurs are coached through thewhole process by our experiencedinvestment teams.

Journey of a YSB entrepreneur

THOUGHT PARTNERS

Identifying behavior patterns in entrepreneurs and social businesses themselves that lead to healthy, successful investments.

AFFORDABLE FINANCE

The top concerns entrepreneurs shared with us were around the ticket size and interest rates for investment, suggesting a lack of viable financing options.


So, what do entrepreneurs need?

ACCESS TO EXPERTISE

Entrepreneurs also highlighted difficulties in finding and retaining talent, as well as access to technical skills and expertise.

PORTFOLIO SUPPORT

Social businesses are operating in challenging environments, they need support in building their capabilities in order to grow and scale their impact.

*Yunus Social Business & Robert Bosch Foundation, ‘A Road Less Traveled: Scaling Social Businesses in Emerging Economies’

http://www.yunussb.com/blog/survey-scaling-social-businesses-emerging-economies/

Brazil Case Study: Instituto Muda


How has the support helped?

Instituto Muda tackle the problem of waste management in São Paulo. Over the last year the Brazilian team has been following a more structured support offering, focussing on three key areas of growth support, Operational, Strategic and Networking Support.

It’s difficult to measure exactly how growth support affects the bottom line of a business. However, since our partnership with Muda over the last 18 months they have been able to reach three times the amount of subscribed clients then they had in the previous nine years.

“The portfolio management support we receive

provides us with hands-on business planning,

guidance in setting our revenue goals, and analyse

of our expenses. YSB is constantly pushing us to

do better and we see this is a really positive support

to foster our development.”

- Alexandre Furlan, the CEO and Founder of Instituto Muda

What Makes a difference - Hands-On Approach




We Invest

Patient Finance



commercial capital

We Advise

Growth Support



phases of growth

Core Activities

We Grow

Ecosystem Building




TOOLS FOR INTERMEDIARIES

We create resources and actionable tools in partnership with industry participants and other organisations to better

support entrepreneurs.


Ecosystem Building and Learning

REPORTS AND PUBLICATIONS

We distill our learnings into publications and leverage our

network partners to ensure our learnings reach as wide of an

audience as possible.

INVESTOR ECO-SYSTEMS

• Connecting like-minded investors and social businesses

• Joint platforms for exchange of experience, learning and networks

TOOLS FOR ENTREPRENEURS

Our investment readiness and acceleration programs feature resources built from years of

experience across emerging markets that help entrepreneurs overcome

major hurdles in their journeys.

We are committed to building a learning community. We regularly exchange and share learnings with our peers.

Colombia Case Study: Investment Readiness Programme


Last Year’s Winner: LIKE U

Since 2016, our team in Colombia has been running an accelerator programme in collaboration with The Boston Consulting Group (BCG). The goal of the programme is to build the ecosystem around social business in Colombia and help those with a high potential to become ‘investment ready’.

LIKE U creates dignified jobs and income for women in Colombia with outsourced business services such as customer service, marketing & sales and back office. They maintain part time and full time jobs, allowing women the flexibility to combine work and family life.

“Through the experience of the last three cohorts,

we can really appreciate how deeply the

consultancy has altered the perspectives of the

social entrepreneurs that took part, from the core of

their businesses to their understanding of how they

can scale. “

- Ernesto Daza, Yunus Social Business Colombia

Bringing in expertise though our partnerships

So, what have we learned?

We are a learning organisation, constantly analysing the decisions we make in order to make better investments and provide better support.

Our bi-annual Training & Strategy Weeks see our Investment Teams from across the world share learnings and implement strategy.


Early Warning Signs on performance

We want to ensure that our social businesses are on the right track, so we learn from our mistakes and look out for early warning signs that a business needs help.

What should we watch out for

Early Success Signals of a social business


To improve our investment process, we build on the learnings from our social businesses that succeed and track patterns of behaviourthat could project future successes.

What should we look for

Relevant Experience

Experience in the sector and / or in

the geography within the senior team

Impact in operating model

How core the social impact is on the

operating & business model

EARLY SIGNALS

Identifying the patterns of behaviour in entrepreneurs and social businesses themselves that lead to healthy, successful investments.

INVESTMENT CRITERIA

We’ve tightened our criteria to ensure a portfolio of companies that offer improved financial stability with the most social impact possible.


Takeaway Messages as Investors

1 2 3 4

LOAN STRUCTURING

We have changed the way the loans are structured, in order to minimize our risk, and protect our investment, in case of a default.

PORTFOLIO SUPPORT

Social businesses are operating in challenging environments, they need support in building their capabilities in order to grow and scale their impact.

Contact

LAKSHMI [email protected] Investment Director


mailto:[email protected]

Let’s Grow Together


Documents

Yunus Social Business - Sociale innovatiefabriek · 2020-02-05 · Yunus Social Business Last Year’s Winner: LIKE U Since 2016, our team in Colombia has been running an accelerator