3. MESSAGE FROM THE CEO 2
Building Inclusive Businesses
FACTS AND FIGURES 2015 6
BEST PRACTICES 8
Peru: Profiting from green enterprises 9
Sierra Leone: An urgent call for knowledge and expertise 11
Training for female entrepreneurs in Zambia 13
PARTNERSHIPS 14
Increasing employment in Ethiopia’s tourism industry 15
PUM secures funding to continue operations in Panama 17
PRIME18
Measuring the effects of our advice
SUMMARY STATEMENT OF FINANCIAL POSITION 20
SUMMARY STATEMENT OF OPERATIONS 22
Contents
4. Building
Inclusive
Businesses
For 38 years PUM has worked with small and
medium-sized enterprises (SMEs) in developing
countries, helping to educate entrepreneurs and
create paths for sustainable growth. In this capacity
we keep a “big picture” perspective, working
closely with all aspects of the value chain —
producers, processors and consumers. We look at
ways to engage lower-earning members of society
in business endeavours, creating sustainable liveli-
hoods. Working closely with partners, we advised
more than 1,710 businesses in 73 countries in 2015.
This annual report highlights some of those
projects as well as the facts and figures of our
operations.
MESSAGE FROM THE CEO
2 PUM ANNUAL REPORT 2015
5. Aiming for impact
Our senior experts (all volunteers) share their knowledge and expertise
with a large variety of clients, from individual SMEs to business-support
organisations and industry associations. To understand how our work
affects a business’s knowledge level, adoption of practices, growth, and
ultimately, impact on society, we are working closely with two universities
(Wageningen and Rotterdam) on a method for real-time monitoring and
evaluation. In 2015 we took some very important steps in this direction;
read about these on page 18.
New partnerships
When teaming up with partners around the world, boosting impact
of our knowledge sharing and generating inclusive business are our
main drivers. In Panama, for instance, we joined forces with IPACOOP,
an umbrella organisation for agricultural cooperatives. IPACOOP is
committed to increasing the efficiency of the value chain by addressing
the technical and managerial issues faced by many cooperatives.
We are especially pleased with this partnership in Panama as it provides
a financial basis for continuing operations in the country, where we have
been active since 1999. Read more about this on page 17.
Aid and trade
When a senior expert advises a business, he or she quickly understands
its potential for international trade. When a business shows promise
as a trade partner, the expert delves into his or her extensive network of
contacts in the Netherlands and makes introductions; these are often
followed up by a business link visit to the Netherlands, export contracts
and even joint ventures.
I am proud to say that in 2015 we facilitated 117 “Business Link” visits to
the Netherlands. A very effective tool, these visits are a logical step for
helping enterprises reach their next level of growth. Each year Business
Links generate many millions of euros for the Dutch economy.
Women and youth
The last topic I would like to mention is our work with women
entrepreneurs and youth. Both groups deserve a custom-tailored
approach to further their inclusion in economic activities.
PUM ANNUAL REPORT 2015 3
6. Women still face more barriers in business than men — In Zambia, for
example, women generally don’t receive training in the creative and
strategic thinking that would help them become successful entre
preneurs. One of our senior experts held a seminar for these women,
aiming to break established patterns without provoking a backlash from
men (see page 13).
Youth unemployment is a major driver of poverty, crime and even
terrorism. Many youngsters who did go to school end up unemployed
because their skills don’t line up with the needs of local businesses.
We work closely with business communities and vocational training
institutes to adapt curricula to the needs of businesses, and therefore
create jobs. Our work in the tourism industry in Ethiopia is an example
(see page 15).
To conclude, I would like to express my gratitude to the 3,000 senior
experts who make our work possible. Their drive and passion to share
knowledge on a volunteer basis continues to inspire me, as well as our
customers and partners. Keep up the good work!
Thijs van Praag
CEO
4 PUM ANNUAL REPORT 2015
7. ‘I could not have asked for
a better person to visit my
company. The PUM
expert was professional,
energetic and a fountain of
knowledge. He was 100%
perfect for my company!’
George Androuliakos
Managing Director of Fortwell Wholesale, Zimbabwe
PUM ANNUAL REPORT 2015 5
8. New
partnerships
with whom
we have
MoUs and
contracts
Customers
served
LEVEL OF SATISFACTION WITH PUM’S SERVICES
PEOPLE
IMPLEMENTED
RECOMMENDATIONS
6
96%
92%
79%
2976
294
147
52
1710
Staff members paid
71% 29%
Staff members volunteers
12% 88%
Representatives volunteers
35% 65%
Senior experts volunteers
10% 90%
“How would you rate
the usefulness of the
recommendations of
the expert?”
“How would you rate
the (expected) results in
relation to the costs you
incurred for the expert?”
of recommen-
dations have
been fully
or substantially
implemented.
excellent/good
TYPE OF
MISSIONS
SMEs
85%
% of SMEs
served verses
‘enabling
environment’-
missions
Enabling
Environment
15%
FACTS AND FIGURES 2015
6 PUM ANNUAL REPORT 2015
9. Agriculture
Horticulture
168
Building,
Construction
Trade
68
Business
Consultancy
152
Chemical
Synthetic
Materials
84
Publishing, Cross
media Printing
23
Stockbreeding
Fisheries
232
Food Beverages
Production
211
Healthcare
56
Metal
Industry
84
Transport
Logistics
18
Wood trade
Timber processing
44
Art, Crafts, Product Design,
Culture, Sport and Mass Media
13
Tourism Hotels
Catering
216
Textile
Leather
62
Trade
52
Vocational
education
Training
95
PROJECTS PER SECTOR
ACTIVITIES PER
COUNTRY
TOP 5 COUNTRIES
BY NUMBERS OF PROJECTS
Africa
644
Asia
476
Latin America
309
Europe
281
TOTAL 1,710
INDONESIA
159
UGANDA
47
MOROCCO
70
COLOMBIA
71
NEPAL
62
Government services
Unions
7
Electro technical
Industry
Engineering
20
Energy, Water, Waste
Environment/CSR
67
Banking
Insurance
28
Paper Packaging
10
PUM ANNUAL REPORT 2015 7
10. Unsafe or unhealthy
working conditions
278
Child labour and/
or forced labour
10
Unethical situations
with respect to
labour law, labour
relations
60
Pollution/
damage to the
environmental
163
Corruption/
unscrupulous
activities
96
Unethical situations
of a political nature
9
CSR issues 2015
‘The more you
know, the more
profit you can make.’
Alonso Saavedra
CEO of Peru Green Recycling
74
Other
8 PUM ANNUAL REPORT 2015
11. PROFITING FROM GREEN ENTERPRISES
Recycling in Peru
His company repurposes electronic waste
and reached the break-even point within a
single year. PUM expert Pieter van Hagen
visited Peru Green Recycling and advised
the business on waste management. He also
assessed working conditions, recommending
for instance that neon lighting be replaced
with energy-saving LED bulbs. “Because
the government of Peru promotes recycling,
the company has become viable,” says
Van Hagen. “But this entrepreneur is truly
a pioneer, an example for the whole country
and beyond. That’s why it’s important for
us to have helped him with recycling
expertise: the Netherlands is really a
leader in that area.”
After the visit by the PUM expert, Saavedra
travelled to the Netherlands within the
context of a business link visit. Van Hagen
organised the programme, which included
visits to waste management and recycling
companies as well as to policymakers such
as Wecycle; Saavedra has many contacts in
government, another area that could learn
from Dutch practises. Recycling of metal
and plastics has been done for some time
in Peru, but the reuse of electronic
components is new.
“As long as there are no penalties, why should we recycle? This is how
entrepreneurs in Peru think about recycling,” says Alonso Saavedra, CEO of
Peru Green Recycling.
Saavedra, who truly believes in his project,
finds motivation in sustainability and the
prospect of operating at a profit.
An important distinction between recycling
in the Netherlands and Peru is that labour
costs in Peru are much lower, which makes
employing people more attractive than
investing in machinery. The more detailed
the sorting process, the more profitable
the recycling. Besides being a leader in
sustainable “green” enterprise, Peru Green
Recycling creates jobs and as such plays
an important social role.
Knowledge is vital for his business,
according to Saavedra. “The more you
know, the more profit you can make,” he
says. Sustainability, you see, is gaining
traction in Peru too.
PUM ANNUAL REPORT 2015 9
12. ‘PUM and the Pig Poultry
Association look into the
opportunities of transferring
knowledge and skills to the
players in the sector.’
Gerrit Koeslag
PUM expert
10 PUM ANNUAL REPORT 2015
13. SIERRA LEONE: AN URGENT CALL FOR KNOWLEDGE AND EXPERTISE
Opportunities for
the private sector
PUM is contributing to the rebuilding of
the nation by providing on-site advice to its
small and medium-sized businesses (SMEs).
To go about this as efficiently as possible,
and with results foremost in mind, PUM
carried out a so-called Quick Scan visit in
October of 2015. A meeting was organised
in Freetown, the capital that attracted some
130 businesses. Of these, 80 were selected
for three-week visits by various PUM
experts. In each case, the experts determined
which areas could use advice and whether
a project had a chance of succeeding.
Women take up the wrench
Agriculture is one of the most important
economic sectors of Sierra Leone. With
about 13.5 million acres of fertile soil and
some 150 inches of precipitation per year,
it is one of the wettest countries in Africa.
These natural conditions support growing
a wide range of crops such as rice, cacao,
palm oil, coffee, cassava, ginger, cashews
and peanuts. In the north and northeast
of Sierra Leone, many women are active
in agriculture. During Quick Scan visits,
PUM experts determined that although
these women had a variety of farm
In July of 2015 Minister Ploumen visited Sierra Leone within the context of a
trade mission. The Minister for Foreign Trade and Development Cooperation of
the Netherlands emphasised at the time how very vital Dutch aid and trade were
for this ebola-stricken country.
implements at their disposal, in many cases
the implements stood idle in a shed because
of some malfunction or other, often minor.
These women, it was found, lack spare parts
for the equipment as well as the expertise
required to bring the machines back to
working order. When harvesting cannot be
done by machine, part of the crop can be
lost. PUM is now actively educating these
women on how to repair simple
malfunctions in their equipment.
PUM and the Pig Poultry
Association
In late 2015 PUM poultry experts entered
into a collaboration with the Pig Poultry
Farmers Association of Sierra Leone. In
addition to assessing the quality and living
conditions of the poultry, experts from the
sector took a hard look at the entire value
chain from feed production, parent stock
through hatchery to veterinary services.
“The success of poultry production depends
on several factors such as supply of day-old
chickens, feed and water quality, housing
conditions, management and climatic
conditions,” says PUM poultry farming
expert Gerrit Koeslag.
PUM ANNUAL REPORT 2015 11
14. ‘I hate poverty, that’s my drive.
Women invest money in
education, progress. They
should be given opportunities,
then they will grab them!’
Namakau Siyanga
Founder Naleli Initiative
12 PUM ANNUAL REPORT 2015
15. TRAINING FOR FEMALE ENTREPRENEURS IN ZAMBIA
Broadening your creative
horizons
A belief in hard work
Namakau Siyanga considers herself a
born entrepreneur. Her father was an
entrepreneur, her mother a teacher.
She sold chickens to finance her studies.
She believes in hard work: To make
money, she cut and sold reed canary grass
in her village. Now she has a company
that trades in aluminum and glass. In the
past, glass and aluminum could only be
purchased through a South Africa
supplier at exorbitant prices.
A strategy for women
Siyanga’s organisation supports
vulnerable female entrepreneurs, who
often suffer more from lack of knowledge
than lack of funds. When Siyanga heard
about PUM through Bijl, she saw an
opportunity. “Her” women could receive
training in creative strategic thinking in
order to become successful entrepreneurs.
“We specifically focused our attention
here on women,” says Bijl. “The ambition
was to break established patterns without
provoking a backlash from men. At the
end of the day, their children will benefit.”
Last year Namakau Siyanga, who has her own building company, was hailed as
Entrepreneur of the Year in Zambia. Three years ago she founded an organisation,
Naleli Initiative, that has attracted 500 female members, mainly poor women from
rural areas. The purpose is to give them a push towards economic independence.
PUM expert Anne Heleen Bijl travelled to Zambia at the request of Siyanga and
her initiative to give a seminar for 200 women.
The mission and follow-up
The mission to Zambia was an inspiration
to the women, many of whom travelled
many hours to attend the seminar. Bijl
trained the women in groups of 30 on the
basis of professional background.
Following the mission, a visit was made to
the Netherlands to establish contacts and
explore a new sustainability project that
Siyanga wants to start. She has noticed
that every day Chinese cargo boats arrive
with containers, and depart empty. Can
waste be sold, if it is sorted and supplied
as recyclable materials such as glass and
paper? Thanks to Bijl’s network, Siyanga
met leading entrepreneurs during the
visit; they in turn were drawn to the
charisma of the Zambian businesswoman.
PUM ANNUAL REPORT 2015 13
16. ‘The Dioraphte Foundation supports
charitable causes in six countries: the
Netherlands, Ethiopia, Kenya, Uganda,
South Sudan and Malawi. We’re becoming
quite invested in stimulating employment
in small and medium-sized enterprises
(SMEs). PUM is a natural partner in this
endeavour, and we are pleased that
our mutual synergy will lead to jobs!’
Henk J.Th. van Stokkom
Chief Operating Officer Dioraphte Foundation
Some businesses in developing
countries and emerging
markets have difficulty finding
properly trained employees
We have more than 200
experts in the vocational
education sector
who can help
Resulting in:
A good fit for the market
+
Improved teaching skills
PUM Vocational Education
Results for SMEs in developing countries and emerging markets
This is how we stimulate
sustainable economic growth
of SMEs on the spot
Businesses have less trouble
finding skilled workers
14 PUM ANNUAL REPORT 2015
17. INCREASING EMPLOYMENT IN ETHIOPIA’S TOURISM INDUSTRY
Improving the quality
of education
Joining forces
In 2015 the European Council on Tourism
and Trade named Ethiopia World Best
Tourist Destination, citing the country’s
outstanding natural beauty, dramatic
landscapes and ancient culture. In addition,
Ethiopia is home to nine UNESCO World
Heritage Sites. It comes as no surprise,
then, to learn that more than 600,000
tourists visited the sub-Saharan nation last
year, generating nearly a million jobs and
more than two billion dollars in revenue.
But where Ethiopia earns high marks for
its natural beauty, the level of service at
its hotels leaves something to be desired.
In response, PUM and the Dioraphte
Foundation joined forces and launched
a three-year programme to boost the
knowledge of local hospitality-industry
graduates.
The main objective of the programme is to
improve the quality of education, which in
turn will increase employment opportunities
for students. To this end PUM will
collaborate with three local universities.
To ensure that the curriculum meets
the requirements of the local market,
What if you’re named World Best Tourist Destination, but don’t have enough
professionals to serve incoming tourists? Ethiopia faces this very challenge in the
coming years. In response, PUM has set up a programme with local partners and the
Dioraphte Foundation, a Dutch charitable fund, to improve the curriculum of local
Tourism and Hospitality Studies programmes.
an advisory board made up of local hotels,
travel agencies and tour operators will be
appointed for each university.
Results
For the universities in question, the
curriculum development is a longer-term
investment. The industry, on the other
hand, seeks results within a shorter time
frame. To fulfill the needs of both, the
programme will start with a short course
to bring those already in the industry up
to par. In designing these courses, the
universities will create formal curriculum
while serving the industry with better-
equipped personnel. At the conclusion of
the three-year programme, PUM senior
experts will have completed their training
of local hospitality personnel and teachers
at the three universities. At that point,
PUM will no longer be needed, as staff will
be qualified to teach the classes on their
own. With this “train the trainer” concept
we ensure local embedding.
PUM ANNUAL REPORT 2015 15
18. ‘Thanks to our projects with
PUM experts in Panama,
thousands of farmers have
been able to substantially
improve their daily and longer
term operations.’
Willy Chin Lee
Executive Director of IPACOOP / Panama
16 PUM ANNUAL REPORT 2015
19. PUM SECURES FUNDING TO CONTINUE OPERATIONS IN PANAMA
Enhancing the
business performance
PUM has been active in Panama since
1999, its work funded by the Netherlands
Ministry of Foreign Affairs. To date PUM
has given advice to 125 Panamanian
entrepreneurs who lacked the technical
know-how needed to solve bottlenecks in
their business operations. PUM senior
experts – most with more than 30 years
of experience in their fields – shared their
knowledge and experience on a pro bono
basis, enhancing business performance
while creating opportunity and jobs.
Shifting priorities in Dutch
government
As a result of shifting priorities in the
Dutch government, it was announced that
development aid for Panama would cease
as of 1 January 2016. Without alternative
funding, PUM would be unable to
continue its work in Panama. IPACOOP,
a local partner that values PUM’s technical
advice and the opportunities it creates for
the rural community, decided to step in.
In the coming three years, IPACOOP will
finance ten yearly missions to Panama by
PUM experts.
Good news for agricultural cooperatives in Panama: many can continue to seek the
advice of PUM senior experts. IPACOOP, the umbrella organisation of collectives in
the country, has agreed to take over funding from the Netherlands Ministry of
Foreign Affairs, which stopped its support in 2015.
IPACOOP
PUM has a considerable history of
collaboration with IPACOOP (Instituto
Panameño Autónomo Cooperativo), an
umbrella organisation comprising 250
agricultural cooperatives. Many of the
cooperatives lack the knowledge needed
to solve technical and managerial issues.
Recent PUM projects have dealt with
such products as palm oil, bananas, cocoa,
coffee and maize. However, there is still
much to be done. In the cocoa sector, for
example, cooperatives need advice on
improving their organisational structure,
setting up a central fermentation site
for cocoa beans, and finding better sales
channels. PUM will work with them
to enhance their business performance,
laying the groundwork for a stronger
value chain.
PUM ANNUAL REPORT 2015 17
20. PRIME
Measuring the
effects of our
advice
PUM operates believing that knowledge transfer leads
to better businesses. But, is this supported by evidence?
In 2015, PRIME collected complementary information
through an on-line survey to SMEs (July-August) and experts
(October-November). In six countries PRIME takes a closer
look at PUM support and looks for enablers and barriers of
effectiveness. Also, PRIME analyses the professional and
academic literature to learn from research on similar
interventions.
The preliminary analysis of the 2015 data
confirmed that there is a strong correlation
between the knowledge and application
of good business practices, and PUM is
often mentioned as a contributory factor.
According to researched data, PUM
missions contribute to the improvement
in all researched areas. However, most
missions focus on a subset of business
practices, with highest effectiveness in
the area ‘ideas about new products and
services’, ‘leading planning and organising
the business’ and ‘efficient ways of
organising the production processes’.
PRIME needs more years of data to verify
if these business practices contribute to a
better business performance. The wider
impact literature is, however, supportive
to this assumption. A recent systematic
review of 40 impact studies shows that
business training to SMEs does improve
their revenue and profits, their ability to
create jobs, labour productivity and their
ability to invest.
18 PUM ANNUAL REPORT 2015
21. What is next?
The yearly data collection with the online
surveys will strengthen the evidence-base
behind the support and facilitate
counterfactual analysis with a cohort
WHAT IS PRIME?
PRIME is the acronym for Pioneering Real-time Impact Monitoring
and Evaluation in SMEs.
PRIME is a partnership between the Agricultural Economics Research Institute
(LEI Wageningen UR), the Erasmus School of Economics (ESE), the Centre for the
Promotion of Imports from Developing Countries (CBI), and PUM. Its aim is to pioneer
impact evaluation methods of the support provided to small and medium enterprises in
developing countries. PRIME has been set up to develop an approach to data collection
in order to track the impact of PUM and CBI, while at the same time giving both
organisations more insight into their interventions and an opportunity to learn how they
might increase effectiveness.
For more information:
www.primepartnership.nl
Average 3,4
3,4
3,4
3,3
2,9
4,0
4,0
4,1
3,5
PUM’s contribution to the change in business practices
over the past 12 months. Score 0-8
Ways to retain, motivate and train people
Quality requirements of (inter)national buyers
Marketing techniques to increase sales
of your product or service
Leading, planning and organizing the business
Ideas about new product services
Financial management
Effects of the business on the environment
Efficient ways of organising the production
proces or service delivery
analysis. In 2016 the missions to the
case study countries will provide more
information on the main barriers and
enablers of effectiveness.
PUM ANNUAL REPORT 2015 19
22. SUMMARY STATEMENT
OF FINANCIAL POSITION
As at 31 December 2015
ASSETS in euros
FIXED ASSETS
Tangible fixed assets
Hardware/software 519,942
Inventory 72,730
592,673
CURRENT ASSETS
Receivables
Subsidies to be received 208,838
Accounts receivable 256,073
Taxes and social security premiums 56,509
Other claims 298,770
820,191
LIQUID ASSETS 1,590,570
BALANCE SHEET TOTAL 3,003,433
20 PUM ANNUAL REPORT 2015
23. LIABILITIES in euros
EQUALISATION ACCOUNTS
Equalisation funds 482,556
Equalisation reserve 256,245
738,800
SHORT-TERM LIABILITIES
Advances received from sponsors 22,600
Subsidies to be repaid 1,127,611
Accounts payable 503,969
Taxes and social security premiums 150,011
Accrued expenses and deferred income 460,441
2,264,663
BALANCE SHEET TOTAL 3,003,433
PUM ANNUAL REPORT 2015 21
24. SUMMARY STATEMENT
OF OPERATIONS
Year ended 31 December 2015
REVENUES in euros
Netherlands Ministry of Foreign Affairs, DGIS-DDE 9,275,375
Netherlands Ministry of Foreign Affairs, DGIS-DSO 408,428
Netherlands Ministry of Economic Affairs 37,726
Netherlands Ministry of the Interior and Kingdom Relations 55,356
Contribution of the Confederation of Netherlands Industry
and Employers (VNO-NCW)
267,068
Contribution to volunteer services paid by applicants 198,983
Argidius Foundation 153,736
Donations to the Hans Blankert Fund 53,884
Interest 33,295
DAMU (Kazakhstan) 139,200
CCHO 5,000
Corporates 38,250
FNV Mondiaal / CNV International 4,704
CAIEP (China) 13,200
Unilever 17,655
Other contributions 5,011
TOTAL REVENUES 10,706,871
22 PUM ANNUAL REPORT 2015
25. EXPENSES in euros
Salaries of non-project staff 1,409,006
Housing costs 522,683
Office costs 79,294
ICT 250,940
General costs 253,807
TOTAL OVERHEAD 2,515,730
Monitoring and evaluation 75,326
Salaries of project staff 1,499,941
Salaries of fundraising staff 221,674
Fundraising 20,291
Project development visits of country coordinators 549,707
Representatives (acquisition costs) 318,299
Communications 188,490
Regional marketing 47,495
Travel costs PUM management 50,706
Voluntary staff reimbursement 381,695
Internal training meetings 101,394
Recruitment of experts 12,118
TOTAL INDIRECT COSTS 3,467,135 ›
PUM ANNUAL REPORT 2015 23
26. EXPENSES in euros
Direct project costs 4,027,642
Representatives (expert care on site) 326,696
Business links 174,448
Hans Blankert Fund 235,486
TOTAL DIRECT COSTS 4,764,271
EQUALISATION ACCOUNT -40,265
TOTAL EXPENSES 10,706,871
› CONTINUED FROM PREVIOUS PAGE
Note
Both summaries are translations of the
audited statements that have been drawn
up in Dutch, and of which original copies
can be found at www.pum.nl
24 PUM ANNUAL REPORT 2015
27.
28. Find us online
PUM Netherlands
senior experts
Bezuidenhoutseweg 12
P.O. Box 93078
2509 AB The Hague
The Netherlands
T +31 (0)70 349 05 55
F +31 (0)70 349 05 90
info@pum.nl
www.pum.nl