Léogâne Poultry is a social business that focuses on model 4, the "give-back" model. It operates a chicken farm and slaughterhouse in Léogâne, Haiti to fill a gap in the local poultry market. The profits from poultry sales are used to financially support four local schools, allowing over 600 children to receive education. The business helps support education by subsidizing the school budgets and paying teacher salaries. For the business model canvas, the social impact fits in the cost and revenue streams, as profits are generated to cover costs faced by the beneficiary schools in their social mission of education.

1. Social Impact design
ECOREL Erasmus Training

2. 2Yunus Social Business
Understanding the Concept of Social Business
a) Framing the issue
b) The different social business models types
c) Case studies
Lecture structure

3. 3Yunus Social Business
• Definition of the different social business models
• A better understanding of your own Social Business Model
• Guidance on how to combine your business model and your social
impact:
◦ Where does you social impact fit into your Business Model Canvas?
◦ How do you integrate your profit formula with your Social Impact?
• Case Studies
End Result

4. 4Yunus Social Business
Framing the issue: « Doing well by doing good »
• Previously, giving money to do
« Good » and maximising profit
were seen as clearly seperated
activities…
• …But the world is changing:
“Business must be for profit but profit
must also be for purpose”
Mads Kjaer, co-founder MYC4
+
+
New school of
social
entrepreneurs
-
-
Old school
corporations
Old school not-
for-
profits
Social
impact
potential
Profit potential
Social Business Models are innovative ways to “do good” AND “do well”

5. 5Yunus Social Business
Social businesses bring a solution to a social
or environmental issue..
…while using classic business tools to reach
financial sustainability
?
who what
where
why
How
Problem Definition Integration of Social impact in Business
Model Canvas
1 2
2-steps approach to defining your social impact

6. 6Yunus Social Business
Define the social or environmental problem you are trying to solve
• Who is experiencing
the problem?
• Why does the
problem occur?
• What are the
consequences of the
problem?
Why define my social problem?
1) helps you to make sure the solution you build is adapted to your beneficiaries
2) helps you communicate more effectively to stakeholders
Example of cooking stoves in very
poor and remote rural areas
“Traditional cooking methods
primarily use firewood or charcoal,
which are polluting, expensive and
hazardous”
“Current cooking stoves are inefficient and
consume a lot of fuel. Alternatives for new
stoves are expensive”
What is the problem?
• Context
• Industry
• Scale
1
2
3
“Households living on less than $2 a day in
remote areas”
• Poor families spend a lot of money on fuel that
cannot be spent on education or health
• Smoke inhalation from old cooking stoves cause
serious illness incl. childhood pneumonia and
bronchitis
• Traditional cooking methods produce a lot of CO2
1

7. 7Yunus Social Business
Problem definition – Example in Education
What is the problem?
• 4/10 students in France have strong gaps upon
entering secondary school
• 160,000 children leave high school without a diploma
• Increased inequality in learning
Who?
Why? Consequences?
• Blue collar kids are especially impacted
• Lower income neighborhoods
• Not enough resources to teachers
• Parents not able to support/ help children
• Tutoring is expensive and increases inequalities
• Children leaving school most likely to know
unemployment
• Exclusion from society
• Increased likelihood of violence
1

8. 8Yunus Social Business
Problem definition – Your turn!
What is the problem? Who?
Why? Consequences?
1

9. 9Yunus Social Business
Here?
Here?
Here?
2
How does your social mission fit into your business model?

10. 10Yunus Social Business
Ex “Developing a chicken farm, from which all profits
are reinvested to support a local school”
TOM’s shoes
2
Social business models are generally divided into 4 models
Model 1: Bottom of the Pyramid (BOP) Model 2: Good jobs social businesses
Model 3: Value Chain (Suppliers or Distributors) Model 4: “Give-Back”
• Give access to essential / quality goods at the
lowest price possible to the base of the pyramid
• Key Impact driver: # customers served
Ex “selling nutritious yoghurt to poor families for a
few pennies”
• Create good jobs or opportunities for
underserved populations
• Key Impact driver: # paid jobs created
Ex “Employing women who have limited opportunities
in remote rural areas through a handicraft business”
• Create value and share it fairly along the value
chain: either with suppliers or distributors
• Key Impact driver: purchasing price
Ex with suppliers: “buying local farmers’ production at
guaranteed prices, enabling them to have a secure income”
Ex with distributors: “selling production to point of sales at
guaranteed prices”
• Generate a margin with your business, which
can then be used to finance a social work
• Key Impact driver: margin

11. 11Yunus Social Business
Diseases and child mortality – several cholera
outbreaks, 100.000 of deaths
• More than 78% of families live on less than
US$ 2 a day
• Cleaning products are extremely expensive in
Haiti (approximately 4 to 12 USD per gallon)
• Otherwise, randomly available based on NGO
handouts
• 67% of the population does not employ any treatment to ensure
the purity of their water before drinking
• 62% of households at the national level, two thirds in urban
areas and nearly six in ten households in rural areas have
access to a place to wash their hands
• 34% do not have access to any type of rudimentary toilet or
latrine
Model 1 Case Study: DIGO Distribution (1/3)
What is the problem? Who?
Why? Consequences?
Lack of access to clean water and sanitation
solutions in Haiti

12. 12Yunus Social Business
Model 1 Case Study: DIGO Distribution (2/3)
• Digo’s products are sold for 100-110 Haitian Gourde per
gallon (ca 2 USD per gallon)
• Competitors are selling the same products for 300-600
HTG/ gallon (ca 6-12 USD per gallon)
◦ Competitors offer bottles or pouches in the market
◦ Their products are exclusively imported
• Reasons why DIGO products are cheaper :
◦ Local production
◦ No packaging
◦ Willingness to sell low-cost!
• DIGO Distribution produces and
distributes affordable bleach for
water purification and cleaning
products to improve household
sanitation, health and hygiene
• 3 product lines:
◦ Chlorin
◦ Disinfectant
◦ Soap
• End users bring their own bottles
to points of sales and purchase
their products directly from the
source by fluid onces, at very
cheap prices
Business Activity DIGO’s products are 3 to 6x cheaper than the competition

13. 13Yunus Social Business
Model 1 Case Study: DIGO Distribution (3/3)
• It effectively reaches a large number of people
◦ High demand, with 99 Points of Sales opened in Haiti
◦ Plan to open 500 Points of Sales in the next 3 years
◦ Scaleable model in Haiti, ability to reach 5 Million people
• It satisfies a real need and solves a tangible problem
◦ High necessity products: drinking water and hygiene
• Products are designed with the customer in mind
◦ Very small quantities are available for purchase
◦ Cheap prices
What makes DIGO Distribution a successful example of Model 1: Bottom of the Pyramid?

14. 14Yunus Social Business
Back to the BMC: Where does the social impact fit in Model 1?
Customers:
Increased focus on
understanding your
customers, who are
also your
beneficiaries
Typical Challenges of Model 1: Product Fit, Product Costs, and Distribution
1
2
Cost structure:
Building a cost
structure which allows
you to sell cheap
while being financially
sustainable

15. 15Yunus Social Business
Women strive for financial independence in
order to access essentials such as healthcare
and clean water, and to afford schooling for
their children
• Especially challenging for women to secure safe
employment
• Problems of insecurity and violence against women
make it harder for them to earn an income
• Haitian culture unaccustomed to persons with
disabilities in the workforce
• Women in Thiotte, an area where KE sources Castor
Oil
• Disabled population are also vulnerable
Model 2 Case Study: Kreyol Essence (1/3)
What is the problem? Who?
Why? Consequences?
Haiti is still recovering from the devastating
2010 earthquake and is suffering from 40%
unemployment

16. 16Yunus Social Business
Model 2 Case Study: Kreyol Essence (2/3)
Business Activity KE produces locally and exports its products
• Kreyol Essence is an agribusiness that
manufactures and distributes an array of
luxury beauty products anchored around
its signature product, the Palma Christi:
Haitian Black Castor Oil
• KE sources organic and unrefined
castor oil harvested and produced in
Haiti. KE can derive a broad product line
of quality hair and beauty products from
this oil
• Kreyol Essence has a factory on the
ground . It caters to women and focuses
on women hires
• 8 lines of products launched with several SKUs,
including pure castor oil, scented castor oil,
pomades, body creams, hair masks, soaps and
candles
• Products are sold on Kreyol Essence’s website and
through retailers
• Presence in Haiti, USA, Canada, France and Nigeria
• KE aims to further distribute its products in the US
through a network of spas and health clubs, local
retailers and small businesses

17. 17Yunus Social Business
Model 2 Case Study: Kreyol Essence (3/3)
What makes Kreyol Essence a successful example of Model 2: “good jobs”?
2015E 2016E
Direct jobs 24 36
Indirect jobs 129 183
Total 153 219
• Local employment created
• Examples of Direct Jobs:
o Production workers (oil, soap, candles and bottling)
o Bottle fulfillment
o Administration
o Account services and call center
• Employment for specific underserved populations
o Women are specifically targetted in hiring process:
fair, safe and stable employment
o These women would not be able to have income
sources without Kreyol Essence opportunities

18. 18Yunus Social Business
Back to the BMC: Where does the social impact fit in Model 2?
Key resources:
Your employees, who
are also your
beneficiaries
Castor Oil, which is
the raw material
Typical Challenges of Model 2: Access to high margin markets
1
2
Revenue Streams:
Ensuring recurring
revenues in order to
pay employees
regularly

19. 19Yunus Social Business
Small producers have no visibility on their
sales, and are not able to save any money or
provide for their children’s futures
Highly volatile potato prices and difficult conditions
for suppliers in the open markets
Farmers who are especially vulnerable:
• Farmers who lack resources to make their plots of land
productive
• Farmers who don’t own land to grow their crops or have
been displaced by violence
Model 3 Case Study: Campo Vivo (1/3)
What is the problem? Who?
Why? Consequences?
Difficult for small potato producers in Colombia
to make a stable living from their potatoes’
crops

20. 20Yunus Social Business
Model 3 Case Study: Campo Vivo (2/3)
• Campo Vivo buys the harvest from the
farmers and is responsible for finding
commercialization paths that reduce the
impact, in a minimum percentage, of
open market sales.
• Campo Vivo also provides support to
farmers:
• Technical assistance for increased
productivity
• Links to a social network of fellow
producers
• Coaching on Entrepreneurial skills
to help them better manage their
business
Business Activity Focus of the Business Model: Commercial Strategy
.
Institutional
50%
Retail-QSR
30%
Open Market
10%
POTATO
Small
producer Campo
Vivo

21. 21Yunus Social Business
Model 3 Case Study: Campo Vivo (3/3)
What makes Campo Vivo a successful example of Model 3: Value Chain - Suppliers?
• It benefits small producers by offering them a stable
channel through which to sell their products
◦ Guaranteeing stable prices. By signing forward
contracts with McCain and other institutions,
+50% of harvest is guaranteed at set price;
◦ Producers by themselves would not be able to sign
these contracts
◦ Continuous and constant income to families.
• It provides additional support and assistance to
help producers improve
◦ Campo Vivo farmers have yields which are higher
than the national average in Colombia

22. 22Yunus Social Business
Back to the BMC: Where does the social impact fit in Model 3?
Key Partners:
Increased focus on
understanding your suppliers
(or distributors), who are also
your beneficiaries
Typical Challenges of Model 3: Access to markets and end user, Supply Chain
1
2
Channels:
Understand what role
you can play in the value
chain to benefit your
suppliers

23. 23Yunus Social Business
Quality and availability of education is very poor,
affecting the future of children in Haiti
Unemployment can be as high as 85% of the
population, families often times cannot afford to pay
much and schools have difficulties to survive
• 90% of schools must rely solely on enrollment fees
• Nearly 50% of school age children don’t go to school.
Model 4 Case Study: Léogâne Poultry (1/3)
What is the problem? Who?
Why? Consequences?
Léogâne is a seaside town in Haiti. The town
was at the epicenter of the 12 Jan 2010
earthquake, and was catastrophically affected,
with 80-90% of buildings damaged, of which
schools.

24. 24Yunus Social Business
Model 4 Case Study: Léogâne Poultry (2/3)
Business Activity Business Model: Fill a gap in the local market
• The business will rear chicken and
produce ready-for-sale poultry products.
o A poultry farm with a production
capacity of 7,000 chicken and its
own slaughterhouse
o The chicken are prepared and
packaged at Leogane Poultry’s
facility before being sent out to a
cold storage.
• The company will be the only poultry
production firm in the area that sells
prepared chicken meat
• Value proposition: The presence of the farm in
Léogâne will allow customers to purchase poultry in
the area rather than having to travel long distances.
• Key customers: Families, restaurants and hotels,
shops and retailers, churches, orphanages and
NGOs in the La Gonâve area and its surroundings.
• The revenue of the poultry farm is used to
financially support four schools in surrounding
areas and assisting families that do not have the
economic capacity to fund their child’s education.

25. 25Yunus Social Business
Model 4 Case Study: Léogâne Poultry (3/3)
What makes Leogane Poultry a successful example of Model 4: “Give Back”?
• The chicken farm’s first purpose is the financial
support of a social cause: 4 schools and
education help to families
o The profit of the poultry farm will subsidize
the budgets of these schools, allowing over
600 children to receive better quality
education
o The business helps to pay salaries of
teachers and other employees in the 4
schools

26. 26Yunus Social Business
Back to the BMC: Where does the social impact fit in Model 4?
Key Partners:
Your partner (school, librariy,
non-for-profit) is your
beneficiary. Its mission is a
social cause. The partner has
limited resources
Typical Challenges of Model 4: Governance (money flows), Scalability
1
2
Cost and revenues:
Create enough profit to
cover some of the costs
faced by the beneficiary
in its social mission
2

27. 27Yunus Social Business
Closing thoughts
• Most often, there are overlaps between the 4 Social Business Models:
o DIGO Distribution is an example of overlap between Model 1 and Model 3. DIGO’s
secondary goal is also to empower the owners of the small ‘points of sales” in their
business, thus empowering their distributors (model 3 – distributors).
o Kreyol Essence not only creates jobs, it also provides a stable market for small, very
poor producers of castor oil. Hence in this case study, there is an overlap between
Model 2 (Good Jobs) and 3 (Value Chain)
o Leogane poultry supports a school (model 4), but also creates employment (model 2)
• However, most successful social business models start by focusing one type of
beneficiary
o Once the primary goal is successful, other secondary beneficiaries can be
looked at in more depth

28. 28Yunus Social Business 28
Your turn!
• What social model does your business mostly focus on?
• Where is your impact on the BMC?
• What challenges can you face?

29. 29Yunus Social Business 29
Reading List
• Innovating for Shared Value :
http://www.philoma.org/docs/2013_2014_Valeur_actionnariale_a_partagee/Pfit
zer_and_co_-_HBR_-_Innovating_for_shared_value.pdf
• http://www.businessmodelgeneration.com/downloads/business_model_canvas
_poster.pdf
• Social Business Model Canvas :
http://sehub.stanford.edu/sites/default/files/Social%20Business%20Model%20
Canvas_1.pdf
• KaBoom! Case Study for Social Enterprises :
http://monitorinstitute.com/downloads/what-we-
think/kaboom/KaBOOM_Case_Study.pdf
• Business Model for SE Design : https://mbs.edu/getmedia/91cc0d01-3641-
4844-b34c-7aee15c8edaf/Business-Model-for-SE-Design-Burkett.pdf