The MicroConsignment Model (the MCM) is  our signature social innovation. The mission of the MCM is to create first-time access to life-changing technologies, products and services for isolated villagers by empowering first-time entrepreneurs as “community advisors”

Priority beneficiaries:
Families and individuals living in rural/isolated villages, local first-time women entrepreneurs

Please CLICK HERE or on the image to learn more about the MCM is highlighted in a recent documentary created by the Peery Film Fellows

 

Why do we need the MicroConsignment Model?
Villagers in developing countries continue to live in sustained poverty. This is in large part due to the problem that there is a profound and sustained lack of access to vital technologies, products and services that address real, perceived, and desired needs to solve problems such as pulmonary illnesses, gastrointestinal illnesses, visual problems, malnutrition, energy deficiencies, educational resource gaps, productivity loss and income generation.  In spite of the success of microfinance, there continues to be a need for an efficient and effective model that leverages all stakeholders’ competencies and mitigates limitations to address this lack of access in a sustainable and scalable manner. A variable cost-based, holistic, product vetting, entrepreneur identifying, financing, training and logistical model is needed. A distribution model that empowers local individuals to solve local problems on an ongoing basis is non-existent. Isolated communities simply aren’t getting the essential solutions they need to improve their lives.

For poor villagers access to capital through micro credit is important. It provides an opportunity. It makes increased revenues a possibility. Access to eye glasses, solar technologies, water purification buckets, improved cook stoves and the like makes cost savings and productivity gains a certainty. And without this certainty, there is diminished possibility. The MicroConsignment Model creates this certainty in communities where it never existed before. Donating these types of solutions works, but it is a relief solution. Ideally local businesses create access. But what if they don’t exist? Then empowering micro credit supported entrepreneurs to sell these solutions might work. But this only works if there is a going concern with access to a distributor. What about when there are neither? Then what about micro franchising? This helps people start new businesses and solves the distribution problem. But there’s a problem. Micro franchising uses credit financing for entrepreneurs. This works for “micro” goods such as medicines, nutrition and hygiene products (consumables) where there is predictable market demand. Asking a new entrepreneur to take credit risk to promote and sell new, “capital” technologies in villages where they have never been sold is highly uncertain and doesn’t work. Credit works with risk. This is a highly uncertain endeavor for an entrepreneur. So there exists a gap between donation and credit-based solutions. The MicroConsignment Model fills this gap. It creates first-time access to a diverse “basket” of “certainty” through entrepreneurship.

Social Impact Solutions

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