Rural Entrepreneurship

 

 

The Model

 

CE Solutions believes that true development is best achieved by working with constituents to design intelligent, beneficiary outcomes-based opportunities. To that end, CE Solutions has created its unique “MicroConsignment” model.  MicroConsignment, a holistic microfinance model developed by CE Solutions founders Greg Van Kirk and George Glickley, is a proven, social entrepreneurship execution strategy which we are implementing with our outstanding expatriate and local leadership in the most inaccessible communities of rural Guatemala.

The MicroConsignment model's primary mission is to convert what have traditionally been rural relief/development projects into locally-owned, profitable entrepreneurial ventures.

As we all know, the underlying problem is that villagers continue to live in sustained poverty. Amongst other causes, this is in large part due to the fact that there is a lack of access to basic healthcare products/services that solve the problems of pulmonary illnesses, gastrointestinal illnesses, visual problems, malnutrition and a lack of access to clean water.  This effects not only health but as well has a profound negative economic impact. Additionally there are limited new income earning opportunities being created for capable individuals. The problem is, that in spite of the success of microfinance and the promotion of “Bottom of the Pyramid” concepts, there are few models that are addressing these causes in a sustainable and scalable manner. There are products that exist. There are no lack of appropriate technology stoves, water filters, reading glasses, seeds and the like. There is both local and foreign latent human capital looking for solutions. There are financial resources and organizations inspired to serve these people in need. And there exist local transportation networks to reach these vulnerable communities. The real problem is that a variable cost based and holistic, product vetting, social entrepreneur identification, financing, training and logistical model is needed. Our MicroConsignment model is a proven method that is intelligently addressing problems on a daily basis, has helped tens of thousands of villagers gain access to needed products and services, is continually creating new compelling income generation opportunities and is replicable in any developing country in the world. 

In short, the MicroConsignment model creates both jobs and access where none were previously in existence. MicroConsignment is a solution whereby primarily low-income women with no entrepreneurial experience but strong entrepreneurial qualities can start their own businesses (usually part-time as they cannot set aside family obligations) through "sweat equity" and realize profits from inception. Under the MicroConsignment model, expatriate and local CE Solutions staff and entrepreneurs devise solutions and train and support these hard-working individuals in ventures which serve the healthcare and economic needs of rural families. The impact is doubled as these entrepreneurs now have a source of income to invest in their own household and children's healthcare, nutrition and education needs. What drives the model is that is an interdisciplinary, intuitive and non-linear approach whereby all stakeholders add value.

Briefly stated, the MicroConsignment Model gets the “what” to the “who” by creating a “how” that is profitable, sustainable and acts as a mechanism to solve long-standing problems. It is a “last mile solution” whereby CE Solutions trained entrepreneurs are currently selling products such as wood burning stoves, reading glasses, water filters, seeds and gardening techniques and energy efficient light bulbs to villagers at an appropriate price, in the appropriate manner and at the appropriate place.  Within this model incredible leverage is created and all stakeholders do what he/she/they do best and contribute to implementation, expansion and improvements on an ongoing basis. Financial, human and organizational capital is effectively and efficiently captured to create a high impact with low start-up costs.

The MicroConsignment model utilizes a rotating capital mechanism and has the following highlighted advantages:

• It is quickly and inexpensively scalable using a hub and spoke system
  
  
• Community problems are addressed by local social entrepreneurs and not through donations
  
  
• New businesses and income generating opportunities are created as "first movers"
  
  
• Local social entrepreneurs realize a profit within one month of start-up
  
  
• Social entrepreneurs are provided with capital, training and strategic and tactical support
  
  
• Individuals are able to “test drive” a business and do not suffer financially if he/she decides the business is not suitable or if leadership sees that the individual is not providing sufficient initiative and effort to develop the enterprise
  
  
• Local social entrepreneurs gain respect in their communities and are therefore looked at to provide further beneficial products and services thus allowing them to expand their offering and “piggy back”
  
  
• A high- quality product/service is assured as the beneficiaries are paying clients
  
  
• Individuals with very little education or with limited time can be very successful
  
  
• Local organizational (artisan groups, ngo’s, microcredit banks, Peace Corps volunteers, internet centers etc) are leveraged to identify entrepreneurs and train and thus increase reach and maintain a low overhead cost structure
  
  
• Impact is measurable on an ongoing basis as local social entrepreneur/microfranchisee income is tracked and the delivery of products/services is easily accounted for on a person by person and village by village level
  
  
• An elegant mechanism for transferring knowledge is created as local social entrepreneur/microfranchisees must be responsive to villager needs and the NGO must be responsive to subsequent  local social entrepreneur/microfranchisees needs

• THE APPROPRIATE PRODUCTS/SERVICES GET TO THE APPROPRIATE PEOPLE IN THE APPROPRIATE PLACE IN AN APPROPRIATE AND SUSTAINABLE WAY

In summary, the MicroConsignment model is a solution whereby primarily low-income women with no entrepreneurial experience but strong entrepreneurial qualities can start their own businesses (usually part-time as they cannot set aside family obligations) through "sweat equity" and realize profits from inception. Under the MicroConsignment model, CE Solutions staff local leadership devise solutions and train and support hard-working individuals in ventures which serve the healthcare and economic needs of rural families. The impact is doubled as these local social entrepreneurs/microfranchisees now have a source of income to invest in their own household and children's healthcare, nutrition and education needs.. What drives the model is that is an interdisciplinary, intuitive and non-linear approach whereby all stakeholders add value.

MicroConsignment is a “last mile solution” whereby CE Solutions trained social entrepreneurs/microfranchisees are currently selling products such as wood burning stoves, reading glasses, water filters, seeds and gardening techniques and energy efficient light bulbs to villagers at an appropriate price, in the appropriate manner and at the appropriate place.  Incredible leverage is created and all stakeholders do what he/she/they do best and contribute to implementation, expansion and improvements on an ongoing basis. Financial, human and organizational capital is effectively and efficiently captured to create a high impact with low start-up costs. MicroConsignment  is a proven method that is intelligently addressing problems on a daily basis, has helped tens of thousands of villagers gain access to needed products and services, is continually creating new compelling income generation opportunities and is replicable in any developing country in the world. 

“Working with a non-profit organization like this one is different from working with other organizations or businesses. For example, you need to be responsible, take initiative and have good character. You need to have faith in yourself and trust the people you work with. During the years I have worked with CE Solutions, first as a waiter in El Descanso, the as an administrator and now as a leader of the MicroConsignment ventures, I have gained immeasurable experience. Learning to work effectively with people and manage human resources is probably the best thing I have learned." "The reason I continue to work with CE Solutions is because I feel satisfied with the work I do and with the help we provide for many people. I make enough money to take care of my family and cover my basic needs and wants. I like the work and I know that it is a well organized NGO with a strong vision unlike some others who lack vision and are poorly organized. For all these reasons I am extremely proud to work here.” Miguel Brito Ramírez, Nebaj, Quiche

 

“I like working with the Ixil Stoves business model because I like to travel and work with the people in all of the tiny villages in the Ixil region. The stoves we build are of very high quality, affordable through the payment plan we offer and  really benefit every family that buys them. What’s more, I like working with my hands and overseeing the construction. My business has grown significantly and with the help of the CE Solutions I hope to expand it even more in the future.” Agustin Rivera Corio, Nebaj, Quiche

 

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