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Markley.tuesday

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  • 1. Deborah Markley NADO Training Conference August 27, 2013 Building Wealth Using WealthWorks Value Chains
  • 2. • Learn about the WealthWorks approach to economic and livelihood development through story and discussion • Understand the fundamental elements of the approach • Principles • Tools • Discuss how these principles and tools relate to your own work Objectives of this Presentation
  • 3. • Wealth, broadly defined, is the foundation for prosperity. • Poor places and people will stay poor unless they are connected to larger economies – and they have assets to bring to the table! • Those assets can be developed and linked to markets in ways that create multiple forms of wealth. • Structures exist or can be created to cause wealth to stick. • Wealth that sticks leads to improved livelihoods. Why focus on Wealth Creation??
  • 4. #1 WealthWorks is demand driven. #2 WealthWorks is intentionally inclusive. #3 Wealth is tied to place by WealthWorks value chains. #4 Measurement is used as a tool for planning and adaptive management. #5 Wealth sticks through attention to structures of ownership and control. #6 The WealthWorks approach is strategically flexible while doing no harm. WealthWorks Principles
  • 5. Biofuels in the Arkansas Delta Camelina: Fuel for Thought WealthWorks Story AGEN
  • 6. Regional/Urban Demand: • Purpose: Bring new money into rural communities • Valero needs biofuel to meet blending requirements per EPA RFS2; interested in investing in getting value chain to scale. • FedEx commitment: 50,000 gallons/day Local Demand: • Purpose: Price stabilization for vulnerable budgets • Municipalities and county governments want stable fuel prices • School system want to burn cleaner fuel in school buses transporting children Principle #1: WealthWorks is demand driven.
  • 7. Discussion Question In what ways are you connecting to demand in your work? Share some examples
  • 8. • Winter crop for soybean and cotton farmers  Focus: Minority and small farmers • New Entrepreneurial Opportunities  Micro-Bio-Refineries  Waste Oil Collection  Seed Management  Seed Crushing  Manufacturing of Refineries Example: Intentional focus on minority farmers by providing technical assistance, help with planting and harvesting. Principle #2: WealthWorks is intentionally inclusive.
  • 9. Discussion Question In what ways are you intentionally including low income individuals – as consumers, employees, entrepreneurs – in your work? Share some examples
  • 10. Principle #3: Wealth is tied to place by WealthWorks value chains. A WealthWorks value chain is a network of people, businesses, institutions and non-profits who collaborate to meet market demand for specific products or services – each advancing individual self-interest while together creating greater local wealth.
  • 11. AGEN: Deep Collaborations • Seeking larger systems change • A move beyond partnerships focused on specific projects • Deep collaboration built on each member’s self interest • Self interest creates momentum! • Example: Initial conversations with individual members identified their self interest. “What is in it for YOU?” • Collaboration is problem solving together almost on a weekly basis.
  • 12. Demand for biofuel Local municipalities, school districts, farmers, truckers Regional companies - Valero, FedEx Local and State Policy Support MSCC Mini Refinery Micro Refinery Spring- board Diesel Mfg Dist Gir Energy Mfg Angel Investor Net work Loan Funds Waste Vegetable Oil Collection Businesses Source of WVO: restaurants, convenience stores, schools, hospitals,prisons, casinos, etc. Community Mktg Strategy Ed/promo materials Community Recycling Programs Progressive Community Leadership Trans- porta- tion Camelina Seed Processing Company Growers of Camelina: Minority, Non- Minority Farmers Camelina research ASU, PCCUA Camelina Agronomic Service Business USDA Support Programs: NAP, Cover Crops, Crop Insurance ADTEC RET Training Fuel Blender Distributor Animal Feed Composting Cosmetic mfg By Products Meal Glycerol
  • 13. Principle #4: Measurement is used for planning and adaptive management. Intellectual capital Social capital Individual capital Natural capital Built capital Political capital Financial capital What are we measuring? Seven forms of capital that, together, comprise wealth.
  • 14. Type of Wealth Interventions in Value Chains Individual # of farmers growing Camelina Baseline: 0; 3 in Spring 2013 # of entrepreneurs who have started micro-refineries Baseline: 0; Today: 1 entrepreneur preparing to produce by Oct 2013 Social # Number of groups engaged in renewable energy policy work and the strength of their relationships Baseline:1; Today: 5 Intellectual # of requests for renewable energy installations from municipalities, residents, and business. Baseline: 0; Today: 3 Natural # of gallons replaced by biodiesel produced in the Delta Baseline: 0; Today: 1360 gallons Built # of micro refineries functioning within the value chain Baseline: 0; Today: 1 micro-refinery on campus of MidSouth CC fully operational Political # co-sponsors on renewable and energy efficiency bill and how far the bill advances in the political process. Baseline: 0; Today: 10 legislators; 4 bills approved by committees Financial Value of external investment in value chain. Baseline =0. Today 5 local investors committed to invest $1.2 million. Principle #4: Measurement is used for planning and adaptive management.
  • 15. Discussion Question In what ways are you building and measuring outcomes that go beyond jobs and income? Share some examples
  • 16. Value chain meeting in January 2012 focused on ownership structures Principle #5: Wealth sticks in rural areas through attention to structures of ownership and control. 1. Entrepreneurial Model: Individual/local investors purchase refinery to serve local and regional markets 2. Farm Coop Model: Coop owns refinery and converts farmers’ crop into fuel for on-farm use on a contract basis 3. Municipality owns refinery and leases it to entrepreneur with right to purchase % of output Intentionality: Focus on micro-refinery that costs $250,000 enabling investors to be local and wealth to stay in local communities
  • 17. Principle #6: The WealthWorks approach is strategically flexible while doing no harm. 1. Members introduce new opportunities  Solar Bioenergy 2. Problem solving together  Financing barrier led to 3 potential models 3. Connectedness  Community leaders  Market players  Political influence 4. Do no harm – how to grow camelina with fewer chemicals Transformational Benefits of a Value Chain Intermediary’s role: Maintain values, do no harm
  • 18. Central Appalachia Energy efficient housing, energy efficiency, food, forestry Alabama Black Belt and Mid-South Renewable energy, investment, forestry, food, community-based tourism Lower Rio Grande Valley region in Texas Green housing/neighborhoods, literacy Where are we working on the ground?
  • 19. Visit: www.wealthworks.org www.altconsulting.org Join the Community of Practice: www.ruralwealth.org Contact: Deborah Markley Center for Rural Entrepreneurship 919-932-7762 deb@e2mail.org For More Information