Tenets of Social Enterprise for the Bottom of the Pyramid
I was asked today I had any general lessons to share that would applicable to water and sanitation social enterprises and I realized that I do. The tenets I developed for the Archimedes Project of an ideal enterprise are as follows:
Is a true social enterprise
The Archimedes Project’s definition of social enterprise is a company for which financial success and social benefit are inextricably linked.
Delivers a product or service that people want
The goal of the company must be to deliver a water or sanitation product or service for which there is local demand. Just because you have widgets doesn’t mean that anyone wants widgets.
Incorporates lessons from previous efforts within and outside the region
Those who do not know history are doomed to repeat it. This is never more true than in international development and bottom of the pyramid businesses. The business idea must incorporate lessons learned from organizations active in the space.
Builds on partnerships with local organizations
No one knows the landscape better than local organizations. How will this business incorporate those organizations into partnerships that are mutually beneficial?
Relies on proven water and sanitation technology
The technology must be low-cost, low energy, and easy to use and repair. Breakdowns from overly complex technology or a lack of local capacity to manage the technology can be a major stumbling block. We overcome this by using simple technology that has been proven to be cost-effective in similar contexts.
Creates local jobs, including management positions, especially for women
Women and girls are most likely to be responsible for collecting water, treating it and handling the health consequences when household members fall ill. Because of this fact, it makes sense to us that they should lead clean water businesses as well. They will be an asset to the company, better understanding the most likely target customers.
Is a market driven lean-startup
A lean startup is designed to launch quickly, get its product into customers’ hands, learn from early mistakes and improve the business as it moves forward. It can also launch with minimal funds to begin proving (or challenging) the model. Financial independence is a key metric for any business co-founded by the Archimedes Project. At scale, the business must be designed to run without the addition of outside capital so operations must be lean and cost saving in every way possible.
This is a living list and I am always looking to add, subtract and modify it.
