This presentation introduces Ashoka’s Full Economic Citizenship (FEC) initiative and introduction to Hybrid Value Chain.

2. WHAT IS
ASHOKA’S
FULL
ECONOMIC
CITIZENSHIP
INITIATIVE
?
1

3. FULL ECONOMIC CITIZENSHIP
“ FULL ECONOMIC CITIZENSHIP (FEC) PROVIDES EVERY CITI-
ZEN THE OPPORTUNITY TO EXERCISE HIS OR HER ECO-
NOMIC, SOCIAL AND CULTURAL RIGHTS. TO ACHIEVE FEC,
A CITIZEN MUST HAVE ACCESS TO THE ESSENTIAL PROD-
UCTS AND SERVICES REQUIRED TO ENABLE THEIR ACTIV-
ITY AS A CONSUMER, PRODUCER AND HOLDER OF ASSETS.
FEC SEEKS TO END THE EXCLUSION OF TWO-THIRDS OF
”
Valeria Budinich,
Chief Entrepreneur THE WORLD’S POPULATION FROM GLOBAL MARKETS.
Full Economic
Citizenship
2

4. ASHOKA IS PROMOTING FEC
THROUGH HYBRID VALUE
CHAINS (HVC). HVC IS A NEW
OPERATING FRAMEWORK
THAT TRANSFORMS MARKETS
BY LEVERAGING THE
STRENGTHS OF BUSINESS AND
SOCIAL ACTORS.
3

5. HOW
DOES HVC
WORK
?
4

6. A
FARMER
STORY
5

7. PEDRO DOES NOT HAVE A TRACTOR OR A TRUCK
AND IS SELLING HIS PRODUCTION TO A LOCAL
“COYOTE” WHO IS TAKING MOST OF THE MARGIN.
HE LACKS ACCESS TO CREDIT TO INVEST IN
PRODUCTIVE TECHNOLOGY. 40% OF HIS COSTS ARE
FOR AGROCHEMICAL FERTILIZERS WHICH MAKES
HIM VULNERABLE TO OIL PRICES.
6

8. FORMAL MARKETS ARE NOT ATTENDING
FARMERS LIKE PEDRO. THERE ARE OVER 2
MILLION IN MEXICO ALONE AND MANY MORE
AROUND THE WORLD.
7

9. SOLUTION: ASHOKA’S HYBRID VALUE CHAIN
IN ORDER TO TRANSFORM THE WAY MARKETS WORK FOR SMALL
FARMERS, ASHOKA IS BUILDING AN ECOSYSTEM OF PARTNERS
Buyers who Providers of Financial Social entrepreneurs
integrate farmers technology institutions who who change
to their supply and inputs who give them a chance mindsets and
chain and provide innovate to provide to invest in their mobilize and
them the chance competitive own growth organize the farmers
to build their solutions adapted through a so that they can
technical skills and to the reality of guarantee fund aggregate demand
get rid of unwanted small farmers that mobilizes 1 mn and play in the
intermediaries (Amanco and in credit (Banamex markets (Arturo
(Gamesa, Fairtrasa Netafim to date); Accion, Ve Por Mas, Garcia, Victor
to date); ANEC Sofom to Suarez).
date);
8

10. SOLUTION: HYBRID VALUE CHAIN IN ACTION
AMANCO & ASHOKA FELLOWS
CURRENT SCENARIO: 2 MILLION FARMERS IN MEXICO HAVE LESS
THAN 5 HECTARES OF LAND AND LACK ACCESS TO IRRIGATION
COLLABORATIVE HVC INSIGHTS TRANSFORMATIVE
ENTREPRENEURSHIP IMPACT
Ashoka, Amanco and selected
Arturo Garcia, Juan Jose Fellows are working on access to 50% to 300%
Consejo and Patrick irrigation technology for small- is the increase in production
Struebi, Ashoka Fellows, farmers. This requires adapted that farmers can expect to
are playing a key role technical solutions and new have with this new irrigation
in organizing farmers credit processes. The scheme technology.
to bring them access to
new opportunities such
is strengthened by a network of
agro businesses to reach out to $100,000 dollar
small farmers who have access to Fund created by Ashoka with
as commercialization.
the support of the Walmart
They have also identified markets. This HVC is changing
Foundation.
the need for better mindsets and helping farmers
technological solutions. see their farm as a business.
Transparency International is a
1,500 small farmers
benefitted from productive
key partner in the alliance to help projects.
address rampant corruption.
9

11. ASHOKA AND ITS PARTNERS BELIEVE THE
ANSWER TO UNLEASHING NEW MARKETS
IS A NEW FORM OF BUSINESS
designed to generate social impact at scale not philanthropy!
10

12. A
HEALTH
STORY
11

14. JASMEET KAUR HAD SEVERE ABDOMINAL PAIN. SHE
COULD CHOOSE A “QUACK” IN THE VILLAGE OR
SPEND TIME AND MONEY TO TRAVEL TO A LARGER
CITY FOR MEDICAL CARE. UNABLE TO TAKE TIME
AWAY FROM HER FAMILY AS HER HUSBAND WORKED,
JASMEET VISITED A QUACK AND WAS GIVEN ASPIRIN
BUT HER PAIN PERSISTED. SHE MUST FORGO QUALITY
HEALTHCARE DUE TO LACK OF ACCESS AT THE
VILLAGE LEVEL.
13

15. VILLAGES TYPICALLY DON’T HAVE CLINICS AS MANY
DOCTORS AND NURSES OFTEN DO NOT WISH TO
STAY AND WORK IN REMOTE AREAS. DIAGNOSTIC
TESTS AND MEDICINES DO NOT REACH THESE AR-
EAS. WATER IS NOT CLEAN, INCREASING THE BUR-
DEN OF DISEASE.
14

16. SOLUTION: ASHOKA + HEALTHPOINT SERVICES (EHP)
CURRENT SCENARIO: LIFE EXPECTANCY IN INDIA IS ONLY 54 YEARS
OF AGE. DIARRHEA IS RESPONSIBLE FOR 20% OF CHILDHOOD MOR-
TALITY UNDER THE AGE OF 5. IN A COUNTRY WHERE TOTAL EXPEN-
DITURE ON HEALTH IS ONLY 4.9% OF GDP, NEW SOLUTIONS FOR
HEALTHCARE PROVISION MUST BE PROVIDED.
COLLABORATIVE HVC INSIGHTS TRANSFORMATIVE IMPACT
ENTREPRENEURSHIP
The combination of ad- 20,000 patients seen
Al Hammond, Ashoka’s Senior En- vanced technology with a since launch
trepreneur, founded Healthpoint new business model allows
Services (EHP), a new social en- doctor consultations over 120,000 patients
terprise that brings quality, afford- telemedicine, diagnostic expected to be seen by end
able healthcare to villages in rural tests, treatment, and clean of 2010
India through an innovative deliv- water to be provided at
ery model. Amit Jain, CEO of EHP prices villagers can afford.
and Indian social entrepreneur, Electronic health records 60,000 water people
is using his local knowledge and and novel social marketing per day
expertise to launch and manage schemes allow for maxi-
the EHP model in India while en- mum impact in health and 2 pilots launched in new
suring that products and services business. geographies using the EHP
are designed appropriately for the model in Latin America and
target market. Southeast Asia
15

17. A
HOUSING
16
STORY

19. SOLUTION: KAIROS,
APRODEFA & GRUPO CORONA
CURRENT SCENARIO: 24% OF THE COLOMBIAN POPULATION IS
IN NEED OF ADEQUATE HOMES.
COLLABORATIVE HVC INSIGHTS
TRANSFORMATIVE IMPACT
ENTREPRENEURSHIP
Internal Champion at Grupo
• Build a network of
community based
28,000 low-income
families improved their homes
Corona called Ashoka to promoters, building
investigate the potential material companies,
to launch its first ever technical assistance $12 million in sales
affordable tile product line in providers, financial
alliance with Ashoka Social institutions to develop 178 community promoters
Entrepreneurs. Collaboration a new market and social earn US$200 monthly
has expanded to include organization.
several other corporations in 8 cities where the model has
order to expand their product • Citizen sector been replicated
offer along the housing value generates new sources
chain. of revenue.
18

20. HYBRID VALUE CHAINS AND THEIR POWER
TO TRANSFORM INDUSTRIES
BUSINESS CITIZEN SECTOR
GOALS
GOALS • Improved products & services to
• Access to markets communities
• Greater profitability
• Increased funding & income streams
ASSETS
• Essential goods and services ASSETS
• Deep knowledge of communities and
• Ability to operate at scale consumers
• Investment capacity • Ability to aggregate demand
• Operational capacity • Social Networks & behavior change
• Infrastructure and logistics capacity
19

21. HYBRID VALUE CHAINS AND THEIR
POWER TO TRANSFORM INDUSTRIES
BUSINESS CITIZEN SECTOR
ASHOKA HYBRID
VALUE CHAIN
• Enables collaborative entrepreneurship
at a country and global level
• Identifies and engages partners
providing complementary competencies
• Demonstrates how to deliver integrated
solutions at scale
• Spread knowledge, learning and
specific know-how emerging from HVC
applications
20

22. WHY
HYBRID
VALUE
CHAINS
NOW
?
21

23. GLOBAL CHALLENGE
BAL
NS TO GLO DED.
E SO LUTIO ENTLY NEE RE
E SCAL S ARE URG S TODAY A AITING
• LARG L ISSUE BLEM TS W
S OCIA SOCIAL PRO MIC MARKE
O
MANYPPED ECON
UNTA FULFILLED
TO BE AND
S INESS MODELS
• CURRENT BU ARE BROKEN
VALUE CHAINS
• MARKETS ARE NOT REACHING THEIR POTENTIAL
AND BUSINESSES EXCLUDE POTENTIALLY
PROFITABLE CUSTOMERS
• CSOS ARE MO
BASED MARKE VING FROM AID TO CAPITA
VIABLE BUSINETS AND ARE EMERGING AS L
SS PARTNERS
• SHORT TE
HAS PROV RM CAPITALIST MO
ED ITS LIM D
ITATION EL
22

24. WHY
HVC ARE
GOOD
FOR
BUSINESS
?
23

25. FINANCIAL
UNLEASH OPPORTUNITIES FOR GROWTH AND
PROFITABILITY. BUSINESSES SEEK INNOVATION,
MORE VALUABLE SUPPLY CHAIN AND DISTRIBUTION
PARTNERS. THEY SEEK A CHANCE TO EXPAND
CURRENT MARKETS FROM BILLIONS TO TRILLIONS.
$6.4 TRILLION UNTAPPED MARKET !
ESTIMATED MARKET SIZE FOR THE 4 BILLION MARKET
EXCLUDING FOOD THAT ACCOUNTS FOR US$3.6 TRILLION
553
424
SIZE OF GLOBAL
MARKETS
IN US$BILLION 202
gy
g
th
in
al
er
us
He
En
Ho
Source: The Next Four Billion report,
(increased 2007 numbers by estimating a conservative 5% annual growth for each market)
24

26. KNOWLEDGE
COMPANIES THAT PIONEER HVCS WILL RUN
UP THE LEARNING CURVE, LEAVING COMPETITORS
IN THEIR WAKE. HVCS HAVE THE CAPACITY TO
DISRUPT AND REVERSE INNOVATION FROM
DEVELOPING TO DEVELOPED COUNTRIES.
25

27. TALENT
HVCS REQUIRE ENTREPRENEURS WHO CAN SPOT
OPPORTUNITIES AND DEVISE CREATIVE SOLUTIONS.
IT ATTRACTS PROGRESSIVE THINKERS AND
INCREASES COMMITMENT TO THE FIRM BECAUSE
WORKING ON THIS NEW FRONTIER OF BUSINESS IS
EXCITING, SOCIALLY RELEVANT, AND CHALLENGING.
26

28. WHY IS THE
CITIZEN
SECTOR A
GOOD
BUSINESS
PARTNER
?
27

29. BRAND VALUE ACCESS TO NEW MARKETS TALENT
Businesses that partner with By partnering with the citizen The citizen sector attracts
the citizen sector and so- sector and social entrepreneurs, highly talented, systemchang-
cial entrepreneurs on issues businesses can reach new net- ers, creative leaders and inno-
like housing, energy and works of potential customers and vators who are focusing their
healthcare add value to their suppliers in viable under-served effort on the world’s most
brand’s personalities and and under-valued markets. pressing issues and markets.
how they are perceived in
the marketplace.
28

30. HVC DELIVER
A WIN-WIN
SOLUTION
CUSTOMERS WIN CITIZEN SECTOR WIN BUSINESS WIN
THEY GET ACCESS SUSTAINABLE MODEL NEW PRODUCTS
TO HIGH-QUALITY DELIVERING SOCIAL AND SERVICES
PRODUCTS FOR LESS IMPACT AT LARGE THAT INCREASE
COSTS, BE IT BUILDING SCALE THEIR PROFITS
MATERIAL OR AND DELIVER
LIFE-INSURANCE SOCIAL IMPACT
29

31. WHY
ASHOKA
?
30

32. THROUGH OVER 50
BUSINESS/SOCIAL
PARTNERSHIPS ASHOKA’S
FEC PILOTS IN 6 COUNTRIES WORKED WITH MORE THAN
ARE DELIVERING 3,000 SOCIAL ENTREPRENEURS
IMPRESSIVE RESULTS AND OVER THE PAST 30 YEARS,
PROMISE EXTRAORDINARY AND WE’VE SEEN THE CITIZEN
GROWTH. SECTOR GROW AND MATURE.
ASHOKA IS COMMITTED
TO EVERYONE A FULL
ECONOMIC CITIZEN
31

33. JOIN US
32

34. CURRENT PARTNERS
Business Citizen Sector
FEC Partners
State owned
Foundations

35. HOW CAN YOU JOIN THIS MOVEMENT?
CONSUMERS CITIZEN SECTOR BUSINESS
-FOCUS ON HOLISTIC NEEDS - LEADERS MUST
-ORGANIZE TO DEMAND
OF CONSUMERS & SMALL COMMUNICATE
GOODS & SERVICES FROM
PRODUCERS. FROM PRODUCT VIGOROUSLY ABOUT
COMMUNITY LEADERS, AND
USE TO ABILITY TO PAY. IMPORTANCE OF
VENDORS.
INNOVATION AND
- LEVERAGE COMMUNITY ORGANIZATIONAL
- FOCUS ON ABILITY TO
TRUST TO MOVE FROM FLEXIBILITY TO FIND NEW
PAY & START WITH LIFE
COLLABORATION TO CLIENT- CUSTOMERS AND TAILOR
NEEDS AND NOT WANTS.
VENDOR RELATIONSHIP. PRODUCTS
- SEEK TRANSPARENCY IN
- BUILD BUSINESS SKILLS & -IDENTIFY INTERNAL
PROMOTER COMPENSATION
ORGANIZATIONAL CAPACITY. CHAMPIONS
WITH LIFE OF LOAN.
- MANAGE INCOME FLOW - REDESIGN FIRM
FROM BUSINESS WHILE STRUCTURE/VALUE
TIGHTENING CREDIT AND CHAIN TO TRULY
COLLECTION STANDARDS. INNOVATE FOR ALL
POTENTIAL CUSTOMERS

36. APPENDICES
34

37. VISION
EVERYONE A FULL ECONOMIC CITIZEN
MISION
UNLEASH MAJOR MARKETS THROUGH A NEW OPERATING
FRAMEWORK THAT LEVERAGES THE STRENGHTS OF
BUSINESS AND SOCIAL ENTREPRENEURS TO DELIVER
UNPRECEDENTED SOCIAL IMPACT GLOBALLY.

38. CRITERIA FOR
SELECTING HVC
OPPORTUNITIES
HIGH PRICE PRICE IS NOT TRUST-BASED HUMAN
TICKET THE PRIMARY SOCIAL AND SOCIAL
ITEMS BARRIER NETWORK CAPITAL
CONSUMERS NEED A SERIOUS OF SYS- MARKET SEGMENTS FOR ALL TO REAL-
TO INVEST IN ORDER TEMIC FAILURES ARE IN WHICH PACK- IZE FULL MARKET
TO EITHER SATISFY INHIBITING DEMAND AGED VALUE ADDED POTENTIAL THE
ESSENTIAL HUMAN (E.G. ACCESS TO FI- SERVICES REQUIRE INITIATIVE MUST
NEEDS (E.G., SHEL- NANCING, LACK OF AN EXTENSIVE SO- ENHANCE THE
TER, HEALTH AND TECHNICAL SUPPORT, CIAL NETWORK PARTICIPATION OF
WAATER) OR SIG- AVAILABILITY OF LO- CLOSE TO END CLI- ALL: COMMUNITIES
NIFICANTLY TRANS- CALLY BASED RETAIL ENT ON A RECUR- SERVES, CITIZEN
FORM THEIR INCOME INFRASTRUCTURE). RENT BASIS. SECTOR AND BUSI-
GENERATING POTEN- NESSES.
TIAL (E.G. IRRIGA-
TION SYSTEMS).

39. CRITERIA FOR
SELECTING HVC
SOCIAL
ENTREPRENEURS
1. A PRODUCT THAT TRANSFORM LIVES
2. A BUSINESS MODEL THAT IS COMMERCIAL IN NATURE
3. AN INITIATIVE WITH THE EXPLICIT ASPIRATION TO BECOME A
“BEFORE AND AFTER INDUSTRY. (I.E. HEALTHCARE, EDUCATION ETC).
4. A BUSINESS MODEL BASED ON VISIONS FROM BOTH BUSINESSES
AND CSOS.
36

40. For More Information Contact:
Pilar Martinez
pmartinez@ashoka.org