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Partnering for effective enterprise development - Tshikululu Serious Enterprise Development workshop 2010

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Presented during Tshikululu's first Serious Enterprise Development workshop, which took place on 6 October 2010. Earl Sampson (country director, TechnoServe SA) discusses provides insights into …

Presented during Tshikululu's first Serious Enterprise Development workshop, which took place on 6 October 2010. Earl Sampson (country director, TechnoServe SA) discusses provides insights into strategies and learnings gathered over the years.

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  • 1. Partnering for Effective Enterprise Development Earl Sampson, Country Director, Mail: esampson@technoserve.org.za
  • 2. Contents Introduction to TechnoServe Partnering for Effective Enterprise Development • Problem Statement • The partnership relationships • What problem are we trying to solve? • Moving from SPEND to IMPACT • Lessons Learnt
  • 3. Guiding Thoughts “ history shows that countries thrive when they invest in their people and infrastructure; when they promote multiple export industries, develop a skilled workforce, and create space for small and medium-sized businesses that create jobs” President Barak Obama 2009 speech to Ghana Parliament “Only by letting thousands and millions of entrepreneurs try new ideas, to innovate, to create businesses that put those Ideas to work in a competitive and open way, only by doing those things are we going to be able to tackle some of the world’s big problems” Angel Cabrera, President, Thunderbird School of Global Management Chair Global Agenda Council on Entrepreneurship “I am arguing that business is good for society and essential for sustained development. Companies, business leaders and their organisations should play a much more thoughtful, strategic and involved role in the societies in which they operate. The book is a call to ‘arms’ as Martin Wolf of the Financial Times has described it. A call on business leaders to stop apologising and stand up for competitive capitalism especially in developing countries. The facts are undoubtedly on their side.” Ann Bernstein, Author The Case for Business in Developing Economies
  • 4. TechnoServe is a global non-profit with activities in over 20 countries
  • 5. In 2009, over 1 million people benefited from TechnoServe programmes TechnoServe worked alongside 2140 businesses, in over a dozen industries 2008 2009 Revenue ($) 149m 189m Main Programmes Products Purchased 64m 62m • Agriculture Value Chain Development # Smallscale Producers 196,000 218,000 • Entrepreneurship / SME Development Wages Paid 9m 20m (# employees) 32,000 53,900 • Local Economic Development Profit 16m 27m Approx. 1.4 million men, women and children benefited from these income sources (based on 5 persons per family) In addition, TechnoServe Entrepreneurship programmes trained and mentored more than 1500 people in 9 countries 5
  • 6. Enterprise Development - Problem Statement Situation Complication ED is a key pillar of the BBBEE • Impact from ED spend is seldom scorecard where Companies can make a measured real and sustainable impact in South • ED spend is often diluted through Africa “being all things to all men” • ED spend is seldom approached through linkage to core business and strategy Solution • Think strategically around your company vision for ED • Choose a credible partner for implementation • Then, stick with it, allowing for lessons to be learnt • Get out into the field, see it in action, engage • Then, start to measure impact
  • 7. The partnership relationships can often be numerous and complex Corporate Government Implementation Partner Local Communities Interest Groups Beneficiaries Primary Partnerships Enabling Partnerships
  • 8. What problem are we trying to solve? Thinking this through helps clarify intent and allows for robust ED projects:: • Who are the beneficiaries? • What size of beneficiaries do you plan to work with? • Is it financing or technical assistance? • Is it working with smallholder farming? • Is it creating markets? • Is it culture change? • Is it piloting for scale and sustainability? • Who are the key stakeholders? • Allows for Monitoring and Evaluation to be incorporated from the outset
  • 9. Monitoring and Evaluation - Moving from Spend to Impact Measuring Spend • Calculates various ED initiatives happening across the organisation • Takes time and resource • Understands the impact on the BBBEE scorecard Measuring Impact Why are you measuring Impact? Financial Metrics • Revenue and profit • Auditors View - backward looking • Jobs created • Wages paid • PR / Marketing View • Sourcing from local suppliers • For learning and doing Social Metrics • Household income • Gender • Household food security • Impact on education • Impact on health
  • 10. Lessons Learnt • What problem are we trying to solve? • South Africa is complex - best practice solutions must be transferred with care, and tested in context • Selection of entrepreneurs / farmers / businesses is an important first step to a successful programme • There is a place for small scale first - allowing for learning’s and robust model development • Ensure that you have budgeted for Monitoring and Evaluation from the outset