The secret to addressing poverty in the world once and for all, is not doing what we’ve been doing. In the words of our Intercept Poverty partners on the ground in Ethiopia :: “We are sick of Aid. It steals our dignity”.
Enterprising People:: Problem Solving People
The answer lies in enroling enterprising people to share intellectual property, ideas and resource that enables the underdeveloped to better understand how they can lift themselves from being impoverished.
Enterprise is the solution. Enterprise thinking is the solution. Marry enterprise with a replicable system of perpetual enterprise. Package this in a way that those in the world who need it most can use it and take it forward themselves.
But why should we? Why should we in the developed world with our comfortable sofa’s sucking cola and watching dancing with the stars care about someone in pain on the other side of the world? If humanitarian reasons are not enough, take a look at the commercial reasons - because it can make good business sense.
Doing good makes good sense for business
In this month’s edition of business franchise magazine, I wrote an article about how franchises who give back can give back by enroling the time and talent of their teams. Organisations are looking for ‘deeper ways’ to enrol their teams, to keep them connected to the brand they work for. Why not use franchising concepts from developed world contexts to solve problems that exist in parts of the world with problems i.e. underdeveloped world contexts.
It’s all about scale
I’m not talking about plonking a McDonalds in the middle of Addis Ababa Ethiopia. What I am talking about is taking the elements of franchising such as systemisation, replicability and branding and applying them in a context that is congruent with the market in Addis Ababa. On a recent trip to Addis Ababa, I personally identified at least 10 opportunities for franchises. These range from gatekeepers, to cleaners to cooks, and this is only looking at the market supplying to the local consulates and organisations that exist on the ground there. There are 85 million people in Ethiopia. The types of franchise opportunities I have chosen in this article are more ‘western’ simply to get your head around the idea if this is the first time you’ve read about franchising or micro-franchising.
Solving a few problems
On the ground in a developing country there are always cross cultural issues. In personally working with and visiting a number of non-government organisations as well as some consulates in Addis, you get to see the use of local labour to fulfill service roles. The trouble is that this is often uncoordinated and not to a standard of the employer.
Imagine if there was a franchise system that set up a franchisor on the ground say to supply gate keepers, or cleaners or cooks.:: Imagine if they recruited, inducted these people to a high standard then secured the contract for labour supply at very reasonable rates to the employer and of course good rates for the employees as well as good conditions. Presto you have a business that is on the ground in Addis Ababa, employing local people and operating at a service level that better satisfies the end user. Now apply a franchise model over the top of that. A franchisor from a developed country works in partnership with the developing location. Teaches them what to do and how to do it and in partnership perhaps develops a new exciting annexe brand to the experience of their own western brand. This intercepts a problem and creates an new business. Complaints would decrease. Smiles increase.
While the value entry point or dollar return may not be as high as one could achieve in a developed community context, when you take in scale and then consider the population base and territory to be covered, there is more money to be made in smaller fees taken more often.
Solving Problems & Saving Lives
If we take Addis Ababa for an example. The conversion rate of local currency (Birr) to US is about 10 to 1. And 1 USD can go a long way in Ethiopia. If this type of business enterprise or employment can achieve an increase in $1 a day – that means that they are now achieving $2 a day to live on as opposed to $1 a day. A $1 increase achieves more than you can imagine. It achieves self respect, a sense of earning the right, self esteem, contribution, new skills, new sense of well being and of course both emotional and economic self reliance, more investment into the local econonmy and things lift. This new way of being for the employee for instance is transmitted to their extended family. The ripple of influence expands, quality of life is increased and lives are saved – literally saved.
Social Entrepreneurship or Social Enterprise Thinking + Micro-Franchising + Micro-Finance = Intercept Poverty
First step is it take enterprising, problem solving people to get their minds around this. Then it takes a heart and care factor for fellow human beings. Then it takes the committment to self reliance where providing ideas, resource and business savvy are shared and taught. Concepts need to be proved and financed, but that’s where micro-finance, micro-lending and private enterprise lending come in. These hybrid forms of lending on a small scale can add up to make the difference and launch these enterprises. Then it takes mentorship or coaching and support of the budding developing nation entrepreneurs. All doable, with committment and will.
What one person can do
The main aim with this article is to share these ideas. Our Intercept brand is a franchised leadership and enterprise solutions business working in the developed world context. However we have started working from the underdeveloped context side too and are building a bridge.
If you like the sound of this, and have any ideas or stories of where this is happening already, we’d love to hear from you. I’m twittering now at www.twitter.com/intercept
We are a small organisation with a big vision. A vision of building a human chain of problems solving people. Some of this will be organic, where people will just pick up the ideas and run with them themselves. Others will join Intercept and connect with Intercept and Intercept Poverty programs and do something from either side of the challenge.
Regardless, one person can do much just by taking a leadership role and doing something with this idea. This idea that Franchising will Intercept Poverty.