From Kenya to California, Empowering Women

Rehema D. Jaldesa is one of many entrepreneurs coming to the Presidential Summit on Entrepreneurship April 26-27, from countries with sizeable Muslim populations. She owns three companies in the construction, telecommunications and distribution sectors in Kenya, and she chairs a nonprofit for the empowerment of rural women.

Linda Rottenberg is chief executive of Endeavor, a nonprofit that identifies and supports high-impact entrepreneurs in emerging markets.

Anita Dharapuram is interim director of C.E.O. Women, a nonprofit that creates economic opportunities for low-income immigrant and refugee women in California.

Rehema D. Jaldesa

Rehema D. Jaldesa

Rehema D. Jaldesa:
Every day brings a new challenge, an interesting opportunity or an exciting enterprise for me. One of the most important projects my companies have worked on was drilling boreholes for water exploration in the arid lands of Northern Kenya. Running my companies is rewarding as they have a strong culture of corporate responsibility. Inspiring women with an entrepreneurial spirit is a major element of that culture.

In fact, my life revolves around placing women in control of economic matters, thereby giving them more power on issues that matter to the entire society. This vision comes from the examples of people like Melinda Gates and Dr. Yunus Muhammad, who have improved lives of people around the world.

I have mentored women from marginalized communities for years. I encourage them to discover business opportunities that will drive them toward self reliance and economic empowerment. I often subcontract work to women or companies associated with women, encourage women to participate in the tendering process by lending them my company’s equipment, and act as a loan guarantor for women running small businesses. I particularly care about the empowerment of rural and nomadic women as they face the most difficult obstacles.

I begin my day by searching newspapers for work-project advertisements (tenders for work to be done) by government agencies and private entities. Next, I call my field workers and engineers to learn what they are doing, and then discuss operational matters with other staff. The rest of the day is for meeting prospective clients and following leads to attract new ones. In between, I must find time to work on new business ideas. I plan to expand my business, taking advantage of the trade links created by the East African Community and the Common Market for Eastern and Southern Africa to export goods and services to the Horn of Africa and Central Africa.

Linda Rottenberg

Linda Rottenberg

Linda Rottenberg:
Rehema is an excellent example of an entrepreneur with high-impact potential—someone with big ideas and a scalable business, who creates opportunities for others and serves as a role model for success.

When it comes to supporting women entrepreneurs in emerging markets, too often we think of microfinance. Indeed, microloans have played an important role helping lift people out of poverty. But Rehema is thinking bigger. She recognizes that to achieve true economic empowerment and social mobility, women entrepreneurs need to build scalable businesses and this in turns requires structured mentoring and access to role models.

For over a decade, my own organization Endeavor has been connecting entrepreneurs in emerging markets (with Kenya on the near horizon!) to successful local business leaders, who serve as mentors. Too often in emerging markets, wealth and opportunities are controlled by few top families and powerful interests, resulting in networks closed off to new entrepreneurs. Innovators like Rehema (an excellent example of an entrepreneur who is also a mentor) are dismantling this tradition, building bridges between the business community and the next generation of entrepreneurs. When entrepreneurs achieve high impact, everyone wins. In addition to creating jobs and wealth locally, an investor community takes root and young people are inspired to think big.

The point is clear: to reduce inequality and ensure shared economic growth, women entrepreneurs must be empowered to take their small businesses and scale them into successful, high-growth companies. They must become High-Impact Entrepreneurs.

Anita Dharapuram

Anita Dharapuram

Anita Dharapuram:
We increasingly see the roles of women changing across the globe, in some places for the better, in others for the worse. It is in the best interest of us all to foment a positive change.

I am inspired to see women such as Ms. Jaldesa making an extra effort to empower women through entrepreneurship. By embracing social entrepreneurship as second nature, Ms. Jaldesa can provide access to economic opportunities to many women business owners who otherwise might have had none.

At C.E.O. Women (Creating Economic Opportunities for Women), we, too, create economic opportunities for underprivileged women, in our case, low-income immigrants and refugees to the U.S. We teach them English and communication and entrepreneurial skills, so they can establish successful livelihoods. They also can count on mentoring, coaching and access to capital when they are ready to start small businesses. C.E.O. Women believes that all women who come to the United States have unique skills and intellectual assets, which, with the right support, can be used to improve their lives.

I believe that every woman in Kenya also is unique in this sense. Similar to women I work with in the United States, many Kenyan women may simply need tools to navigate the local educational and legal systems to be successful.

Most of our graduates register increases in their incomes and participate more actively in their communities. Some become the pillars of their families and communities similar to those whom Ms. Jaldesa mentors and supports. That’s why it is so important to invest in the advancement of women around the world. Without doing so, we often deny entire communities a chance of development.

Back to Basics for Entrepreneurs in Bahrain

Raman Jaggi is one of many delegates coming to the Presidential Summit on Entrepreneurship April 26-27, from countries with sizeable Muslim populations. As head of business development for Bahrain Development Bank, Jaggi promotes entrepreneurship in the Kingdom of Bahrain. His program has grown from helping 50 entrepreneurs per year a decade ago to nearly 1,400 in 2009.

Dane Stangler is a senior analyst at the Kauffman Foundation, one of the largest charitable foundations in the United States. One of the foundation’s primary missions is to promote entrepreneurship.

Raman Jaggi

Raman Jaggi

Raman Jaggi:
We at the bank created a unique package of support services to promote entrepreneurship and SME development in Bahrain. The package approach entails nurturing the potential of entrepreneurs; helping them select viable business opportunities, develop business plans and link with appropriate finance schemes; and facilitating business implementation through incubation support.

We’ve seen tremendous upsurge in entrepreneurial activity in the recent years that resulted in bigger demand for bank’s services.

It needed a pool of resources to handle the demand from society. We built up human capacity in the bank so that we have more hands and more counselors. Together the bank expanded its outreach through a network of branches established at different locations in the country and introduced more products and services in line with the felt needs of entrepreneurs.

Bahrain maintains high standards in human resource development and education. The issue was bringing up the awareness of entrepreneurship, encouraging and hand holding the budding entrepreneurs. We successfully did that working in close cooperation with other development entities.

We guide new entrepreneurs in matching their ideas to what they are capable of doing. Entrepreneurs sometimes get into something that doesn’t fit their capabilities. Also, small business entrepreneurs at times lack particular attention toward the basic management of finance, accounting. They’re overly engaged in marketing and producing more to increase their sales. This leads to imbalance in overall management of the business enterprise and creates hurdles to growth.

As an entrepreneur counselor, I am committed to the cause of entrepreneurship development and supporting the entrepreneurial efforts of Bahraini entrepreneurs thereby contributing meaningfully to the development of Bahrain.

Dane Strangler

Dane Stangler

Dane Stangler:
While so much discussion around entrepreneurship gets lost in a narrow focus on high technology, you bring us back to two elements, seemingly mundane, that are absolutely essential to business formation.

The first is basic awareness: We often find that talented and driven individuals with promising ideas have not considered entrepreneurship as an option for them. This may be due to a lack of exposure, whether in the educational system or in broader discussions of economic activity. Or, in some cases, it may be due to institutional biases (for example, at some universities) against starting a business. Whatever the reason, progress can be made by promoting the importance (and accessibility) of entrepreneurship.

The second element you highlight is the importance of basic financial literacy — it is amazing that in high-flying discussions about heroic entrepreneurs and cutting-edge innovation, we lose sight of how crucial basic finance is for running and growing a business. A new firm can possess the best idea in the world, but if it cannot manage to remain cash-flow positive, it might not matter. The actual operation of the company is just as important as the ideas that inspire it.

But Bahrain’s success reflects what the Kauffman Foundation’s research and experience have told us for years: The essentials for any nation seeking to spur and sustain entrepreneurship must include an entire ecosystem of networks, education, policies and innovations that support rather than hinder the operation of firms at the startup stage as well as those seeking to grow and expand.

Will Cooking with Solar Ovens Stop Deforestation in Uganda?

[guest name="Ronald Mutebi, Paul Munsen, Jeff Klein and Patrick Doyle" biography="Entrepreneur Ronald Mutebi is from Uganda and lives in Chicago. He has a bachelor’s degree in socio psychology from Makerere University in Uganda and is pursuing a master’s degree in computer science in the United States.

Partner/supplier Paul Munsen is president of Sun Ovens International Inc., based in Elburn, Illinois.

Expert Jeff Klein is director of the Wharton Leadership Program at The Wharton School, University of Pennsylvania, and instructs the school’s Social Enterprise Fellows.

Expert Patrick Doyle is manager of energy and climate change division for Development Alternatives Inc.
"]

America.gov asked finalists from among the more than 700 African immigrants who submitted business plans to the “African Diaspora Marketplace” to blog about their ideas. Sponsored by USAID and Western Union Company, the African Diaspora Marketplace is a contest that will award seed money to approximately 15 winners to help them bring their ideas to life in their home countries.

RONALD MUTEBI, entrepreneur:

Ronald Mutebi demonstrating solar oven

Ronald Mutebi demos an oven.

Uganda sits on the equator in eastern Africa, more than 1100 meters above sea level. My country was once covered by lush forests and rich vegetation. However, wars and lack of good governance have resulted in deforestation. This problem has also been driven by poverty, especially in the rural areas, where trees have been cut down and sold for cooking fuel and charcoal production.

Deforestation, in turn, has caused radical change in weather patterns, especially rainfall. We see regular food shortages and famines, extended drought and flooding.

In many treeless villages, people have started to cook with grass for fuel. In other places, there is no fuel at all, so people must eat their foods raw. In still other places, people must choose either food or fuel; they live in a situation in which they can afford only one cooked meal a day. The biggest casualty in all this has been the children, who have become malnourished or undernourished.

In 2002, my business partner, Denis Wandera, and I came across an oven that uses the sun’s heat to cook. It is made by Sun Ovens International, based in Elburn, Illinois. We plan to manufacture and sell these ovens in Uganda.

Since the start, we have encountered and overcome many obstacles, ranging from high Ugandan taxes to a lack of knowledge by customers of how to use the ovens. After extensive training and demonstrations, the Ugandan government now sees the value of this oven and supports our project. (The ovens can not only bake but can also be used to boil water, which will result in better health because many water-borne diseases will be eliminated.)

My partner and I have acquired the license to manufacture the sun ovens in Uganda. We will make them readily available to everyone at an affordable price. The manufacturing process is labor intensive, so many jobs will be created.

PAUL MUNSEN, supplier/partner:

Solar ovens are desperately needed in deforested countries like Uganda. The business concept that Ronald has developed – making and marketing the ovens locally – will make the price affordable and create jobs. His purchase plan allows people to pay for the ovens in small weekly installments, using money they will save by not having to buy charcoal. It is a win-win solution for everyone concerned.

The ovens are sold at a profit. Initially, we here at Sun Ovens International are going to ship oven parts to Uganda for assembly there. Later, Ronald will develop the manufacturing capacity to make most of the oven parts in Uganda. At that point, Sun Ovens will be financially rewarded stilll, because the company will receive royalties on a special gasket that allows our ovens to get considerably hotter than other sun-fueled ovens. Each Sun Oven can cook for a family of eight people. We believe that 75 to 80 percent of Ugandan households could significantly benefit from these ovens, so the market is potentially huge. Because the country has a great deal of sunshine, our ovens will be very useful there.

Ronald has shown entrepreneurial ingenuity in making this project possible. Originally, the high government taxes on the ovens doomed the project. In most places in the world, that is still our biggest issue.

Ronald was able to convince the Ugandan government to grant a total exemption of both the import taxes and the value added taxes for the ovens. That has changed the economic viability of the project dramatically. Ronald went to the home of the then Ugandan minister of finance and worked with the minister’s maid to cook with a Sun Oven. The minister’s wife got involved with the cooking and was so impressed that she sent her driver out three times that day to put additional food in the oven. She lobbied her husband, and he arranged for the tax exemption. Ronald showed exceptional creativity in working with the minister’s maid and wife to get that accomplished.

JEFF KLEIN, business expert:

This business plan demonstrates social innovation and wealth creation at a number of key junctures. In developing economies, the consumer’s purchasing power is severely constrained – especially for larger, one-time payments. By developing a payment structure that allows buyers to channel their savings on charcoal into the purchase of a Sun Oven, Ronald enables a large segment of the population to become buyers. This marketing and pricing structure is a true “bottom-of-the-pyramid” strategy.

Local manufacturing is another impressive feature of the plan. Not only will the region benefit from the additional wealth generated through the venture (and retained in Uganda), but it will also benefit from the capacity built within the workforce to adapt the Sun Oven to local conditions and uses.

Nutrition and safe drinking water are two of the major social challenges facing the world today. By adapting an existing product for use in a new market, Ronald applies new, market-driven solutions to address these challenges. The for-profit model that he has developed creates incentives for multiple stakeholders and supports long-term sustainability.

Ultimately, the success of this project – indeed, most projects – will depend upon the network of collaborators and supporters who stand behind the launch. By generating government support at an early stage, Ronald has both eliminated an obstacle (high taxes) and enlisted an ally. The alliance with Sun Oven imports technical knowledge and business process support. It is my hope that Ronald can continue to grow this network of collaborators to include additional parties from the private, public and NGO sectors.

PATRICK DOYLE, business expert:

Solar oven.

Solar oven.

This appears to be an excellent technology-transfer project and hopefully the exemption of taxes and tariffs for this particular oven will be applied to other ovens and renewable/efficiency products in the future.

It would be good to have some more information on the Sun Oven technology. It appears Sun Ovens are easier to manufacture locally than parabolic solar cooker technologies, for example. Local manufacturing will help avoid or reduce tariffs if the policy changes in the future. I do have some questions about the project. Has the technology been proven in other similar environments? How many units will be operating? Are there any independent reviews comparing the technology to others? Some factors to consider, in addition to cost, would be its hardiness and durability in rough conditions and ease of cleaning. How long does the stove take to boil water? The stoves can’t be used on cloudy, rainy, windy days, so being able to set it up quickly during brief periods of sunshine would be useful.

The cost and lifespan of this gasket that must be supplied by the manufacturer over the long term is critical, as I’m sure you realized.

Unless the manufacturer –- Sun Ovens International Inc. — is financing the ovens for you, it appears you will need a loan. The cost of this finance is key, as it makes the systems more costly for you and your customers. Have you worked out this issue in your business plan?

You may want to consider leveraging the carbon markets to help finance the stoves by registering your project with the United Nations Framework Convention on Climate Change as a “Clean Development Mechanism” (CDM) project or with the Voluntary Carbon Standard group. A CDM project in Indonesia using parabolic solar ovens has resulted in the reduction of more than 1000 tons of CO2e emissions. Each stove in the early stage produced about .5 tons of reduction per year. The reductions depend on how often the stoves are used and the fuel type that the solar oven is replacing.

Donor funding may be able to help get the project off the ground as well. Good luck!

Harnessing the Power of Ideas in Muslim Countries

Today, guest-blogger and economics writer for America.gov Andrzej Zwaniecki talks about Muslim entrepreneurship.

Looking at economies across much of the Muslim World, some people might question whether Islam is compatible with entrepreneurship and innovation. 

Yet a major 2007 study says that adherence to Islam can’t explain Arab countries’ low scores on business-formation measures.

Many Muslim communities around the world boast a large number of individuals with considerable business acumen.  One Muslim nation – Dubai – has excelled in promoting entrepreneurship, and some others like Indonesia are doing quite well too.

But there are still countries and communities that could benefit from an entrepreneurial boost. President Obama hopes that by strengthening existing Muslim entrepreneurial efforts, and inspiring new ones, an upcoming conference on entrepreneurship has the potential to change Muslim economies.  As a world hub of entrepreneurial activity, the U.S.A. has a wealth of experience, after all.

The White House-sponsored event – the Presidential Summit on Entrepreneurship – will take place in Washington in the spring of 2010.  The rule allowing delegates to self-nominate strikes me as innovative and a good way to produce a summit with new ideas and entrepreneurial energy. On the downside, the nomination deadline is close – November 30! So don’t procrastinate if you have an interest in promoting small Muslim businesses.