Hybrid Value Chain

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This presentation introduces Ashoka’s Full Economic Citizenship (FEC) initiative and introduction to Hybrid Value Chain.

Transcript of Hybrid Value Chain

  • WHAT IS ASHOKAS FULL ECONOMIC CITIZENSHIP INITIATIVE ? 1
  • FULL ECONOMIC CITIZENSHIP FULL ECONOMIC CITIZENSHIP (FEC) PROVIDES EVERY CITI- ZEN THE OPPORTUNITY TO EXERCISE HIS OR HER ECO- NOMIC, SOCIAL AND CULTURAL RIGHTS. TO ACHIEVE FEC, A CITIZEN MUST HAVE ACCESS TO THE ESSENTIAL PROD- UCTS AND SERVICES REQUIRED TO ENABLE THEIR ACTIV- ITY AS A CONSUMER, PRODUCER AND HOLDER OF ASSETS. FEC SEEKS TO END THE EXCLUSION OF TWO-THIRDS OF Valeria Budinich, Chief Entrepreneur THE WORLDS POPULATION FROM GLOBAL MARKETS. Full Economic Citizenship 2
  • ASHOKA IS PROMOTING FEC THROUGH HYBRID VALUE CHAINS (HVC). HVC IS A NEW OPERATING FRAMEWORK THAT TRANSFORMS MARKETS BY LEVERAGING THE STRENGTHS OF BUSINESS AND SOCIAL ACTORS. 3
  • HOW DOES HVC WORK ? 4
  • A FARMER STORY 5
  • PEDRO DOES NOT HAVE A TRACTOR OR A TRUCK AND IS SELLING HIS PRODUCTION TO A LOCAL COYOTE WHO IS TAKING MOST OF THE MARGIN. HE LACKS ACCESS TO CREDIT TO INVEST IN PRODUCTIVE TECHNOLOGY. 40% OF HIS COSTS ARE FOR AGROCHEMICAL FERTILIZERS WHICH MAKES HIM VULNERABLE TO OIL PRICES. 6
  • FORMAL MARKETS ARE NOT ATTENDING FARMERS LIKE PEDRO. THERE ARE OVER 2 MILLION IN MEXICO ALONE AND MANY MORE AROUND THE WORLD. 7
  • SOLUTION: ASHOKAS HYBRID VALUE CHAIN IN ORDER TO TRANSFORM THE WAY MARKETS WORK FOR SMALL FARMERS, ASHOKA IS BUILDING AN ECOSYSTEM OF PARTNERS Buyers who Providers of Financial Social entrepreneurs integrate farmers technology institutions who who change to their supply and inputs who give them a chance mindsets and chain and provide innovate to provide to invest in their mobilize and them the chance competitive own growth organize the farmers to build their solutions adapted through a so that they can technical skills and to the reality of guarantee fund aggregate demand get rid of unwanted small farmers that mobilizes 1 mn and play in the intermediaries (Amanco and in credit (Banamex markets (Arturo (Gamesa, Fairtrasa Netafim to date); Accion, Ve Por Mas, Garcia, Victor to date); ANEC Sofom to Suarez). date); 8
  • SOLUTION: HYBRID VALUE CHAIN IN ACTION AMANCO & ASHOKA FELLOWS CURRENT SCENARIO: 2 MILLION FARMERS IN MEXICO HAVE LESS THAN 5 HECTARES OF LAND AND LACK ACCESS TO IRRIGATION COLLABORATIVE HVC INSIGHTS TRANSFORMATIVE ENTREPRENEURSHIP IMPACT Ashoka, Amanco and selected Arturo Garcia, Juan Jose Fellows are working on access to 50% to 300% Consejo and Patrick irrigation technology for small- is the increase in production Struebi, Ashoka Fellows, farmers. This requires adapted that farmers can expect to are playing a key role technical solutions and new have with this new irrigation in organizing farmers credit processes. The scheme technology. to bring them access to new opportunities such is strengthened by a network of agro businesses to reach out to $100,000 dollar small farmers who have access to Fund created by Ashoka with as commercialization. the support of the Walmart They have also identified markets. This HVC is changing Foundation. the need for better mindsets and helping farmers technological solutions. see their farm as a business. Transparency International is a 1,500 small farmers benefitted from productive key partner in the alliance to help projects. address rampant corruption. 9
  • ASHOKA AND ITS PARTNERS BELIEVE THE ANSWER TO UNLEASHING NEW MARKETS IS A NEW FORM OF BUSINESS designed to generate social impact at scale not philanthropy! 10
  • A HEALTH STORY 11
  • JASMEET KAUR HAD SEVERE ABDOMINAL PAIN. SHE COULD CHOOSE A QUACK IN THE VILLAGE OR SPEND TIME AND MONEY TO TRAVEL TO A LARGER CITY FOR MEDICAL CARE. UNABLE TO TAKE TIME AWAY FROM HER FAMILY AS HER HUSBAND WORKED, JASMEET VISITED A QUACK AND WAS GIVEN ASPIRIN BUT HER PAIN PERSISTED. SHE MUST FORGO QUALITY HEALTHCARE DUE TO LACK OF ACCESS AT THE VILLAGE LEVEL. 13
  • VILLAGES TYPICALLY DONT HAVE CLINICS AS MANY DOCTORS AND NURSES OFTEN DO NOT WISH TO STAY AND WORK IN REMOTE AREAS. DIAGNOSTIC TESTS AND MEDICINES DO NOT REACH THESE AR- EAS. WATER IS NOT CLEAN, INCREASING THE BUR- DEN OF DISEASE. 14
  • SOLUTION: ASHOKA + HEALTHPOINT SERVICES (EHP) CURRENT SCENARIO: LIFE EXPECTANCY IN INDIA IS ONLY 54 YEARS OF AGE. DIARRHEA IS RESPONSIBLE FOR 20% OF CHILDHOOD MOR- TALITY UNDER THE AGE OF 5. IN A COUNTRY WHERE TOTAL EXPEN- DITURE ON HEALTH IS ONLY 4.9% OF GDP, NEW SOLUTIONS FOR HEALTHCARE PROVISION MUST BE PROVIDED. COLLABORATIVE HVC INSIGHTS TRANSFORMATIVE IMPACT ENTREPRENEURSHIP The combination of ad- 20,000 patients seen Al Hammond, Ashokas Senior En- vanced technology with a since launch trepreneur, founded Healthpoint new business model allows Services (EHP), a new social en- doctor consultations over 120,000 patients terprise that brings quality, afford- telemedicine, diagnostic expected to be seen by end able healthcare to villages in rural tests, treatment, and clean of 2010 India through an innovative deliv- water to be provided at ery model. Amit Jain, CEO of EHP prices villagers can afford. and Indian social entrepreneur, Electronic health records 60,000 water people is using his local knowledge and and novel social marketing per day expertise to launch and manage schemes allow for maxi- the EHP model in India while en- mum impact in health and 2 pilots launched in new suring that products and services business. geographies using the EHP are designed appropriately for the model in Latin America and target market. Southeast Asia 15
  • A HOUSING 16 STORY
  • SOLUTION: KAIROS, APRODEFA & GRUPO CORONA CURRENT SCENARIO: 24% OF THE COLOMBIAN POPULATION IS IN NEED OF ADEQUATE HOMES. COLLABORATIVE HVC INSIGHTS TRANSFORMATIVE IMPACT ENTREPRENEURSHIP Internal Champion at Grupo Build a network of community based 28,000 low-income families improved their homes Corona called Ashoka to promoters, building investigate the potential material companies, to launch its first ever technical assistance $12 million in sales affordable tile product line in providers, financial alliance with Ashoka Social institutions to develop 178 community promoters Entrepreneurs. Collaboration a new market and social earn US$200 monthly has expanded to include organization. several other corporations in 8 cities where the model has order to expand their product Citizen sector been replicated offer along the housing value generates new sources chain. of revenue. 18
  • HYBRID VALUE CHAINS AND THEIR POWER TO TRANSFORM INDUSTRIES BUSINESS CITIZEN SECTOR GOALS GOALS Improved products & services to Access to markets communities Greater profitability Increased funding & income streams ASSETS Ess