The document discusses establishing a rural back-office business in India called "Profits for People" to address economic and social issues. It would organize rural youth into a co-invested back-office venture providing data entry and conversion services. This would generate profits through shared investment and employment opportunities to enable rural populations' participation in India's growing economy while reducing unemployment, migration, and improving living conditions. The business model, opportunities, implementation plan, management team, and financial projections are outlined along with the anticipated social returns.

1. April 27 th , 2007

3. Profits for People Solution Profits for People enables the rural poor to participate in the growing Indian economy, by creating a portfolio of co-invested businesses Identify ‘cutting-edge’ business opportunities Organizing the rural poor into co-invested businesses - the functional unit to commercialize these business opportunities Investment Profits Dividends Profits for People

4. How does the model work? Investment Microfinance Loans VC Funding and Grants Co-investment Businesses Salaries and Dividends Dividends

5. Cutting-edge Opportunity: Back-office Back-office venture, providing Data entry and Conversion services Investment for Computers Profits Salaries and Dividends Type of Service Example Data Entry A consumer products company needs to process its 50,000 paper-based contest forms Digitization services - OCR and Scanning A local newspaper needs all the archived editions from early 1900s to be scanned and corrected Data clean-up and OCR correction The McGraw Hill company needs some of its archived journals corrected for scanning errors

6. Back-Office Market in India Industry Challenges Revenues in US $ Billion US $ 7.2 billion in revenues in 2007 10 percent comes from the Data Entry and Data Conversion sub-sector Expected to grow to US $ 25 billion in 2010 Low end services are increasingly becoming commodity offerings Rising labor costs and competition from other low-cost locations High levels of employee turnover

7. Rural Back-office business model 60% 40% 70% 30% Rural Back-Office Profits for People Large back-office firms within India Small businesses seeking data entry and conversion services Share of Investment Share of Value-chain Profits Challenges for the large firms High Attrition Low-end services are commoditized Raising labor costs Advantages for the back-office venture Abundant availability of Labor 50 – 60 percent cheaper than urban employees

9. Implementation Plan Trichy 400,000 educated youth. Unemployment: 30% May – Aug 2007 Exploratory Research, Forging Partnerships and Recruitment Aug – Dec 2007 Recruitment of stakeholders and setting up the worksite Jan 2008 Co-invested venture will be functional Partnerships ASA GV – The top microfinance institution in the region Funding for the members Local Employment Exchange Recruitment of members

11. Financials Growth in Profit After Tax Deal Structure Total Start-up Capital Required $ 220,000 Investment by members $ 115,000 Grant Funding/Venture Capital $ 95,000

12. Social Return on Investment Profits for People creates $12 of Social Return for every dollar invested in the venture Benefits Outputs Outcome Job creation No. of members employed in the venture & incremental income earned by these members Reducing unemployment and under-employment among rural youth. Avoid migration to urban areas The percentage of members who would have otherwise migrated to urban areas The youth stay in their villages and towns. Sustainable living conditions in both urban and rural areas Creating rural entrepreneurs No. of members who start their own enterprises within the next five years Stimulate the rural economy by creating more jobs Bridging the digital divide Incremental number of members with access to information through the internet Providing access to information to the rural communities, through the Internet

13. Risks and Assumptions Systematic Unsystematic Emergence of other cheaper low-cost locations Lack of stable contracts and lack of work for the members Technological development – Automation of manual tasks Maintaining quality Security concerns and ensuring data integrity Infrastructure – Internet connectivity, Uninterrupted power supply etc

14. Non Quantifiable Social Impact

15. Thank You