As an avid supporter of social entrepreneurship and impact investing, I have closely followed the economic renaissance many African countries have been experiencing over the last 5 years.  According to The Economist, “Africa’s economies are consistently growing faster than those of any other region in the world. At least a dozen have expanded by more than 6% a year for six or more years.”[1]

Yet the more fascinating part of the story is that Africa is becoming a hotbed of entrepreneurial activity, which in part is fueling the growth of many African economies.  The 2012 Entrepreneurship Index[2] sheds light on the best places around the world for entrepreneurial talent and ranks the Silicon Valleys of the world.  The ranking is based on the value society places on innovation, OCED’s assessment of the ease of an entrepreneur’s access to capital and the days needed to legally start a business.

The index puts the global average at 2.49.  The United States, long considered the world’s leader in entrepreneurship, ranks 2.8.  Three Sub-Saharan African countries, Nigeria, Kenya and Ghana, not only scored above the global average, but also received scores close to that of the United States.

Source:  Silicon Valleys of the World- The Best Places for Entrepreneurship around the Globe.

Not enough capital to go around

Yet despite all the interest and excitement around entrepreneurship, an interesting conundrum is taking place on the continent. The refrain from entrepreneurs, especially those seeking funding in the <$100,000 range, is “No one wants to finance my start-up”, while the refrain from investors, is “I can’t find any good deals;” hence the term “the missing middle.” As the graphic below shows, there is a large disconnect between investor’s preferences and the investment needs of entrepreneurs especially in the <$100,000 and $100,000 to $500,000 range.

I had the chance to witness this first-hand while working in Nigeria in the summer of 2011 with the Tony Elumelu Foundation to develop the strategy for a seed fund targeting entrepreneurs with innovations in maternal and child health. My work involved interviewing Venture Capital and Private Equity practitioners, established business owners and budding entrepreneurs around the continent. Through those interviews it was crystal clear that many innovations would not make it to market based on conventional investment standards.

Crowdfunding as a solution

Crowdfunding may hold the promise of filling in the missing middle. Start-up investing once reserved for U.S. Securities and Exchange Commission (S.E.C) qualified investors and venture capitalists will be open to individual investors who can pool small amounts of funds – usually between $25 and $500 – using an online portal. Start-ups seeking funding in the missing middle range can thereby assemble the necessary start-up capital from a series of individual investors who set their own criteria for investment. Inc.com’s review of four crowdfunding sites reveals that the median amount raised on these sites is $22,000.[3]

Invest Africa’s Pioneering Approach

Invest Africa, a micro-venture capital crowdfunding platform, was started in July 2011 by Sandra Ntsonde, who recognized the potential of crowdfunding to channel capital to promising start-ups throughout Africa. Invest Africa targets the group of entrepreneurs who have outgrown microfinance capital but do not yet qualify for loans and equity investments based on conventional criteria. Investors can get started with as little as $25.  Invest Africa partners with local institutions to identify, vet and monitor promising entrepreneurs. Currently partnerships have been established with on-ground partners in entrepreneurial hotbeds such as Nigeria and Ghana and also in Mali and Benin.

Invest Africa not only provides necessary capital but also provides mentoring to entrepreneurs to facilitate their continued expansion. Projects selected provide a social benefit to the communities served, such as providing jobs and increased access to nutritious foods. The benefits don’t only accrue to the entrepreneurs and their communities, but also to the investors who receive regular updates regarding the growth of funded businesses, repayment of the original investment and points that can be redeemed for rewards through the online platform.

Investors now can be a part of the exciting economic renaissance sweeping many African economies by supporting an entrepreneur through Invest Africa’s unique crowdfunding model. For more information, visit Invest Africa’s website: www.invest-africa.org

Rosedel Davies Adewebi is an advisory board member of Invest Africa.

The Goldman Sachs 10,000 Women is a five-year initiative to provide a business and management education to underserved female entrepreneurs in developing and emerging markets.

In South Africa, 10,000 Women is managed and delivered by the Gordon Institute of Business Science (GIBS), the business school of the University of Pretoria.  The Goldman Sachs-GIBS 10,000 Women Certificate Programme for Women Entrepreneurs provides targeted support to growing small businesses including business and management training delivered by leading faculty and industry specialists, mentoring, business advisory and access to networking opportunities.

Click here to download the Goldman Sachs 10 000 Women Brochure and the Application Form for Cohort 2. 

The programme is structured in a practical, interactive way to enable participants to apply what they learn in the classroom to their businesses.

At the end of the programme, participants will be able to:

• Build a robust business by refining business models and strategies
• Form and implement growth strategies
• Gear up to meet the challenges of growing competition

GIBS is looking for 50 women entrepreneurs who manage their own businesses in Gauteng and who fit the criteria below*:

• Minimum of a matric qualification
• Good understanding of English
• Business to have an annual turnover of R300,000 to R5million
• Business must be in operation for over a year
• Businesses that employ five or more people will be given preference
• Entrepreneur must be prepared to comply with the measurement requirements of the programme

*If an entrepreneur fulfills most criteria but is unsure about any particular one (e.g. turnover is slightly below or higher), please ask her contact us.

GIBS will be hosting an awareness event on Friday, June 8th for the individuals who were not able to attend the previous ones – the purpose is to explain to prospective candidates what the programme entails. It is however NOT compulsory for the individual to attend the event in order to apply, but the purpose of the presentation is to provide more detail about the scholarship. For those interested in attending, please contact Lydia Siziba on 011 771 4101 or email sizibal@gibs.co.za

Details of awareness event:

Date: Friday, June 8th

Time: 09h00 to 11h00

Venue: Classroom 6, Gordon Institute of Business Science, 26 Melville Road, Illovo, Sandton

Connect with Goldman Sachs-GIBS on Facebook and LinkedIn.  Also check out photos and videos  on the programme.

We believe this is a great initiative and are happy to get the word out.  If you or anyone you know may be the right fit for this program, we encourage you to apply.  Good luck to all the applicants!

Photo credit: Goldman Sachs-GIBS

Our team had an opportunity to attend the event on April 16^th to 18th and engage in discussions on nonprofit capacity building, skills-based volunteerism, education and more.

Speaking at a plenary session on creating sustainable, systemic social change, Jean went on to state that in today’s interconnected world of shared economic downturns and civic unrest, the need to address social issues is becoming more urgent.  Social sector leaders must create a road map to disrupt old, ineffective efforts with diligent and innovative approaches that represent measureable progress.   And one cannot achieve this goal alone; effective cross-sector partnerships are critical in pushing boundaries and raising the bar on social change.  Jean asked the leaders to “be bold, and be fearless with a sense of urgency when we approach social challenges.”

Jean shared with the audience that time and time again cross-sector partnerships that buck tradition have proven this African proverb to be true … “If you want to go fast, go alone. If you want to go far, go together.”

While the traditional role of businesses in the social sector was through their philanthropic arm, the leaders at the BCLC conference focused on identifying and promoting innovative solutions to complex challenges that break down silos and remove barriers to sustainable change.

“Partnerships between nonprofits and corporations should not be about more money and fundraising” stated Rhonda Mims, President of ING Foundation.  In addition to the grant making and sponsorships that ING Foundation handles, Rhonda spoke about the partnership with Girls Inc., which is a multi-year innovative investment challenge for girls ages 12-18 where they learn the basics of long-term investing while managing $50,000 virtual portfolios.  Speaking about the effectiveness of such partnerships, Rhonda explained that “There’s always debate about how to measure the success of CSR. Every industry has different measurements and objectives.  At the end of the day it’s about impact, and the way social goals are structured and measured is important.  The days of just giving away money are long, long gone. Design metrics specifically for your organization.”

Opportunities for businesses to take on alternative and collaborative approaches to social change were a recurring theme from the speakers with conversations around skills-based volunteerism on a local and global level moving center-stage.  Evan Hochberg from Deloitte, Bo Miller from The Dow Chemical Company, Dale Herzog from UPS and Christine Salerno from Marsh & McLennan spoke about the intricacies of  starting a  skills-based volunteerism program in a large corporation, shared best practices, and the opportunities of using specialized expertise in addressing local and international challenges.

“Research has shown that philanthropy is flat-lining but skills-based volunteerism (SBV) has increased significantly,” stated BCLC Executive Director, Stephen Jordan.  82% of conference attendees stated to have volunteer program at their businesses, but only 38% of these programs currently have a skills-based component.  The conference discussions were a clear indication that greater emphasis will be placed in changing that statistic.

A CDC report released in April supports this trend and even showed significant growth in International Corporate Volunteering (ICV).  Companies have steadily invested in these programs and are also improving their abilities to measure the benefits they receive.  The annual growth rate of number of corporate volunteers sent on these programs increased 52% from 2006 to 2011.  Leadership skills development and staff retention are at the top of the list for the goals of the program.  And since 2006, corporate volunteers have worked in over 62 countries versus 4 countries in Africa and South America prior to that.  PepsiCo’s first-ever PepsiCorps program last year is a great example of the newer initiatives being explored by corporations towards addressing social challenges using business acumen.

It was evident that there has been a shift in the kind of partnerships formed between the business world and nonprofit community.  The relationships today are more mutually beneficial and in a lot of ways more meaningful for both parties.  This new socially responsible model and corporate culture is pivotal for nonprofits to understand so they do not go about seeking partnerships in the same manner.

Click here to view BCLC National Conference Photo Stream

Launched in 2011, this three-year, 100-city $50 million program—IBM’s single-largest philanthropic initiative— funds top IBM executives to work onsite along with local experts from the public and private sectors of the winning cities, who study and then make detailed recommendations addressing locally important urban issues.

As part of the grant, IBM will provide special assistance to each winning city on the use of City Forward, a free online site IBM created with public policy experts.  Citizens, elected officials and urban planners can use the site to explore trends and statistics in a visual and accessible way, which can be adapted for the examination of any number of urban issues—leading to better decision making.

“The cities that have been selected are all different, but they have one clear similarity: the strong personal commitment by the city’s leadership to put in place the changes needed to help the city make smarter decisions,” Stanley S. Litow, IBM vice president of corporate citizenship and corporate affairs, and president of IBM’s Foundation, said in a statement.  ”These cities demonstrated a desire to set an example for other municipalities, an eagerness to collaborate with multiple stakeholders, and a strong commitment to consider implementing recommendations the city felt would be the most feasible and beneficial to their residents.”

Over 140 applications were received by the Smarter Cities Challenge program from over 40 countries around the world.  It is indeed great to see the four African countries demonstrate a willingness to exchange ideas and data freely among citizens, elected officials, nonprofits, businesses and city agencies, to formulate strategies for improving the quality of life for their citizens, which ultimately won them the grant.

The winning cities proposed intriguing projects and areas of focus for IBM experts. They included initiatives for:

·        Economic and Workforce Development — attracting a diverse variety of jobs and industries

·        Transportation — integrating bus, rail, bicycle, car and pedestrian modes of transportation

·        Sustainability — measuring vehicle miles traveled more precisely to help lower pollution levels

·        Health — using inhaler and air quality data to identify and reduce asthma outbreaks

·        Education — applying data analytics to identify the most effective investments for improving an entire school system

·        Urban Planning- – revitalizing and redeveloping older neighborhoods

In the four African cities, officials are encouraged to see that the government is willing to engage in private-public partnerships, which in the past have yielded successful results

In Kenya, IBM East Africa General Manager Tony Mwai said that IBM executives will collaborate with civil society organizations to help identify smarter transportation solutions that could help resolve the city’s traffic gridlocks that currently cost the Kenyan economy Sh50 million daily.

The grant will enable Accra, Ghana to streamline its revenue collection channels, leveraging IBM’s expertise in developing smarter systems for emerging cities.

Leaders from Rabat, Morocco plan to tap into IBM has a long history of helping governments, industries, and business leaders take on complex problems and develop solutions that transformed the workings of societies and economies.

“The City of Tshwane, South Africa, looks forward to working with a grant-funded IBM team on exploring smarter solutions to improve the city’s operations while enhancing service delivery including Smarter Transport solutions.” says Tshwane Executive Mayor, Councillor Kgosientso Ramokgopa.

[youtube http://www.youtube.com/watch?v=1sJ_3H0K3zo?rel=0&w=560&h=315]

To learn more about IBM’s corporate citizenship initiatives, visit: http://www.citizenibm.com or follow on Twitter @citizenIBM

And, to find out more about IBM Smarter Cities Challenge grants, please visit IBM’s Smarter Cities Challenge Web site , or watch an overview of our work on YouTube

Source: IBM Web Site: http://smartercitieschallenge.org

The 7^th annual Board of Boards CEO conference held at McGraw Hill headquarters convened the top executives from diverse businesses including pharmaceuticals, consumer goods, electronics, public affairs and communications, asset management, manufacturing, business consulting, real estate among others.  These thought leaders “are initiating partnerships across sectors to discover how the company’s products and expertise can complement and extend the important work of the nonprofit and government sectors.  They are investing in a more nuanced understanding of the complexity and interconnectedness of factors that lead to staggering high school drop-out rates or domestic violence” said Margaret Coady, Director of CECP.

At the conference, the opening remarks were made by H.E. Fernando Henrique Cardoso, Former President of Brazil, and the interactive discussion panels had Angela Ahrendts, CEO, Burberry, Shelly Lazarus, Chairman, Ogilvy & Mather, Hikmet Ersek, President & CEO, The Western Union Company and Daniel L. Doctoroff, President & CEO, Bloomberg L. P.

President Cardozo spoke about some of the societal improvements that happened during his leadership – Brazil recorded a decline in infant mortality rates, a fall in the number of child laborers and attainment of near-universal primary education.  He also spoke about the need for democratization of access and equity of outcomes in education.  He remarked that it was time for transformation of social policies, where governments compete against each other to improve their systems and services. Governments should partner with corporations and nonprofits to create win-win situations for the social good.

President Cardozo was followed by panel discussions which focused on 1) CEO leadership in educating consumers on the societal impacts of the choices they make and 2) CEO leadership in educating investors about the long-term benefits of pursuing strategies that link positive societal impact and business benefit.

With the ‘Occupy Wall Street’ movement and other pushback from the general public, there are observations that business’ social license to operate is in crisis. A new definition of capitalism and triple bottom line needs to be developed that does not violate the trust of its public and government.  The key takeaways from the polls and discussions were –

• The overwhelming response from an audience poll was that businesses are only somewhat successful in living up to their social contracts. While there are improvements, not much changed over the past few years.

• Agreement on businesses’ need to figure out a better way of living up to the social contract and to develop opportunities for CEOs to move the discourse in the right direction.

• A significant obstacle that businesses face in opting for socially-sustainable practices is ‘competitive pressure’ to drive down costs.  This ranked high above ‘consumer pressure’ and ‘shareholder pressure’ for business leaders.

• It was surveyed that the most significant barrier in making more socially-sustainable buying decisions is that these choices are often not as affordable or convenient for the consumer.

• CEOs also felt that most consumers have not been educated on the full negative impact of their purchasing habits.

• Leadership has noticed a slight hike in demand for greater transparency regarding company’s community practices compared to five years ago and they believe that consumers do reward CSR efforts by a corporation.

For CEOs in companies engaged in environmental and societal sustainability, bringing investors along on their journey has not been simple.

• CEO’s lamented that the demand from investors to pursue business strategies that support social good has been limited.  Angela Ahrendts, while speaking about the tremendous impact of Burberry’s philanthropic initiatives on employees and consumers, commented that not once was she asked about these initiatives by an investor.

• Many have moved towards integrated reporting, which combines financial and sustainability performance in a step forward to educate/share better information of their financial, social & environmental efforts.  Daniel Doctoroff remarked that requests coming in from investors regarding a company’s sustainability and community engagement practices are ‘modest at best’.

• There was disagreement on the quality and transparency of integrated / CSR reporting due to apparent lack of standards.  Klaus Kleinfeld, CEO of Alcoa Inc., challenged the group of elaborate reporting on philanthropic giving by a corporation when the company’s supply chain management and employee relations are completely wrong.

• Speakers and audience agreed that standardization of measurement and more comprehensive tools needs to be put in place before shareholders can be brought into closer alignment with stakeholder expectations.

The theme of the event resonated well with the audience for the ‘Next Generation Community Involvement: A Transformative Business Opportunity’.  There was a call to action made to the CEOs to take greater responsibility for their company’s actions in the social and environmental sustainability.  The leadership team agreed that businesses had a significant role in this transformation and it was up to leaders like themselves to build support of investors, consumers and other stakeholder groups along with them on this journey.

For social good advocates around the world, this is great news when CEOs are willing to put the pressure on themselves and their peers to deliver products and services in a socially-sustainable way.  If they practice what they preach, there will be much progress made in accountability from businesses and for more strategic giving which will have positive impact on communities around the world.

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For further reading, check out posts by

Reuters

and

BCLC: Business Civic Leadership Center

Now in its ninth year, ICPD is observed around the country through corporate philanthropic initiatives, in-depth reports on progress from last year and newer opportunities ahead, and raising awareness of the important role of corporate philanthropy as a force for social good.  In commemoration of ICPD, the Empire State Building in New York and clock tower of the Wrigley Building in Chicago light each year in blue and green for this day.

In New York City, events such as the Board of Boards CEO conference hosted by CECP, A Billion + Change: Mobilizing Billions in Skills-Based Volunteering hosted by A Billion + Change, and several partnership events such as Breaking New Ground: Partnerships for more and better jobs for young people hosted at United Nations Headquarters took place on Monday, February 27^th.

In a two-part series, ConceptLink will share some of the highlights from the two major events in New York City that direct the course of CEO leadership in socially-sustainable businesses and skill-based volunteerism from corporate America for the coming year.

A Billion + Change held a celebratory event at Morgan Stanley to recognize its 78-company strong network, who has pledged a total of $1.6 billion in skills-based volunteer services to nonprofits.  Launched in 2008 by the Corporation for National and Community Service, A Billion + Change is a national campaign to mobilize billions of dollars of pro bono and skills-based volunteer service from corporate America by 2013.

Corporate volunteerism is by no means a new idea.  However, the past several years we have seen an explosion in thought leadership and the recognition of a need for a deeper relationship between the corporate and social sector.  There has been a major shift from “donate-a-day” volunteering, where a corporate team might give a few hours to read to students, build a swing set, or help at a soup kitchen, to Skills-Based-Volunteering (SBV), which enables corporate volunteers to use the skills of their vocation to assist nonprofits with more strategic, systemic needs.

A Billion + Change attendees heard from Gary Bagley from New York Cares, who described how Morgan Stanley’s Strategy Challenge team was able to save them $30,000 annually by recommending improvements to its volunteer on-boarding process.  Could the Morgan Stanley employees have painted a cafeteria or cleaned a park? Definitely, but the changes implemented as a result of their social enterprise initiative yielded infinitely higher benefits both for the nonprofit and for Morgan Stanley.

Indeed, Corporate Social Responsibility (CSR) is now being redefined as more than just a “nice thing to do”, but as a strategic business decision with real bottom-line benefits.  As facilitator Deirdre White of CDC Development Solutions remarked, companies are starting to realize that CSR does benefit the triple bottom line – people, planet and profit.  For the employee, CSR is an opportunity for skill development and building a connection between personal values and professional work. Employees who engage in CSR activities also report an increased level of enjoyment of their work. This benefit translates to the company as well, as a happier and higher skilled workforce has been shown to increase employee retention and loyalty to the company.

CSR also gives the company access to new markets – especially opportunities to do business for those at the bottom of the pyramid – and increased opportunities to share solutions with innovators around the globe.  And, a commitment to social sustainability of their products, services and practices from corporations can have enormous benefits for the planet and its people.

And, of course, social good organizations benefit from access to highly skilled resources and new technology that would not have been financially accessible to them without reach and resources of corporate America.

The celebratory event was a great opportunity for CSR and philanthropy enthusiasts to share ideas about this fascinating and growing practice.  Are you a nonprofit or SME interested in CSR partnerships? Contact ConceptLink for more information and we can assist you.

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For further reading, New York Cares published a blog last year with some great statistics about the benefits of CSR to companies.  Also, check out Morgan Stanley’s strategic priorities in making a positive contribution to its stakeholders.

Images courtesy: CECP and A Billion + Change.

Jed Emerson, Executive Vice President of ImpactAssets, opened the conference by encouraging both sectors to step back from their silos and reevaluate value in a way that unites the two for mutual gain. As Emerson explained, “it’s no longer necessary to view the only purpose of business to be investments that make money, or the only tools for solving social challenges to be donations and subsidy.”

Jed’s optimism for the potential of collaboration was echoed throughout the conference. Below, a few key takeaways:

1. There is a dearth of rigor in the nonprofit space. Generally speaking, high net worth individuals and companies don’t place the same level of value, time, talent, and resources in their philanthropic ventures as their business projects. The consensus is not that there isn’t sufficient skill in the market place to promote sustainable social change, but simply that these resources and talents need to be harnessed for the social sector with the same level of expediency and eagerness in which the business sector employs them.
2. Partnerships require a shift in thinking. As one panelist stated, “we need to stop viewing companies as evil and work instead on creating partnerships that matter.” Nonprofits are market researchers because they work in the communities they’re trying to serve, so they are in a key position to figure out how the innovations of the private sector can accomplish social goals. See a great example of this in this TED Talk with Melinda Gates. 
3. Metrics are essential… Some experts expressed a concern about the social sector’s fear of the term “ROI” (return on investment). Panelists argued, however, that ROI is an essential component to the theory of the triple bottom line,and should be encouraged. The key to socially-driven ROI is a market approach to valuation. What is the “value” of education? clean water? lower maternity death rates? And how are returns in these areas valued vis-à-vis monetary returns? Metrics don’t always have to be qualitative, but for the business sector to recognize the social sector as a viable partner, there needs to be more candid discussion on how philanthropic investments can benefit the bottom line.
4. …as is our definition of success. Historically, one of the major definitions of a “successful” nonprofit was how little it spent on administration and overhead. This approach, formerly adopted by nonprofit watchdog groups such as Charity Navigator, implicitly assumed that a nonprofit’s value should be determined by how little it spends on itself, and, thus, how much it spends on its beneficiaries. Conference experts argued that our idea of success should be focused instead on how many – and to what degree – lives are changed. Indeed, if we’re hoping for scalability and sustainable change, it’s crucial we focus our scrutiny on an organization’s or philanthropic business venture’s ability to deliver real impact.

As we wrestle with how to maximize efficiencies for both sectors through partnership, we must keep in mind the question of accountability. Businesses answer to their investors and customers. Social ventures answer to their donors and beneficiaries. When each of these stakeholder groups are in accord, impact investing  and business philanthropy have the potential for explosive change in improving lives around the globe.  Support for business and social partnerships is growing – so how do we integrate these conversations into maximized impact for the sector?

Share your thoughts on business philanthropy, impact investing, or the Conference with us!

Photo credit: gnhcommunity.ning.com

This week, our blog theme is money – who’s got it, and where it’s going.

Alright, maybe not, but we do want to highlight this article from Forbes about the philanthropic leanings of Africa’s 40 richest people. Africa’s wealthiest have yet to make a name for themselves from the perspective of global philanthropy, but some have made significant investments in their respective countries. According to the article, healthcare, small business development/microfinance, education, and “poverty alleviation” are the major interest areas for Africa’s well-to-do do-gooders.

Because ConceptLink isn’t above a little healthy peer pressure, we notice that some of the names featured in Monday’s infographic of Africa’s Top Ten Wealthiest People seem to be missing from Forbes’ highlight of Africa’s significant givers. (This means you, Johann Rupert, Patrice Motsepe, Mike Adenuga, Yasseen Mansour, and Christoffel Wiese!)

Photo credit: power-of-giving.com

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If you come across one of these billionaires, please do not run up to him with requests for donations.  Rather, do some homework…If the opportunity arises to meet one of them, a few informed questions will make a much better first impression!

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Image courtesy of Inyathelo

ConceptLink would like to congratulate the recipients of the 2011 Inyathelo Philanthropy Awards.  On November 15, ten individuals were honored for their philanthropic efforts and contributions to social change in South Africa.  This year’s honorees include some of South Africa’s most inspiring entrepreneurs, financiers, and artists.  Read more about the awards and the amazing work Inyathelo is doing to advance philanthropy in South Africa here.