Empowering community-based social enterprises
A social enterprise that supports disadvantaged groups in overcoming marginalization through their own social enterprises.
We provide product development, technical training, and market access to livelihood programs of marginalized communities e.g. former prison inmates, urban poor women, and indigenous groups.
This means added income that impacts their health, housing, and education, that allow families to achieve a dignified standard of living. Increased spending supports the local and national economy and reduces dependence on government welfare.
Facts
2006
| Two years ago: | 40,246 |
| Last year: | 45,910 |
| This year (forecast): | 72,917 |
| Year 2 (forecast): | 81,250 |
| Year 3 (forecast): | 100,000 |
| Two years ago: | -8317 |
| Last year: | -33347 |
| This year (forecast): | -17189 |
| Year 2 (forecast): | -11100 |
| Year 3 (forecast): | 5,314 |
| Two years ago: | 2 |
| Last year: | 4 |
| This year (forecast): | 5 |
| Year 2 (forecast): | 6 |
| Year 3 (forecast): | 8 |
Finance needed
| Finance needed for fixed assets (buying of machines, buildings, ...) | 15,000 |
| Finance needed for working capital (salaries, stock, rental, leasing, transport, ...) | 300,000 |
| Total finance needed (US$) | 315,000 |
How do you expect this to be financed? Please note: the total amount mentioned here should be equal to the total finance needed at the previous question.
| Own Contribution in cash | 0 |
| Loans (debt) | 0 |
| Share capital that you seek from investors (equity) | 0 |
| Other sources | 300,000 |
| Total finance needed (US$) | 300,000 |
The Business
For our primary customers - Gifts and Graces 20 partner communities, our services are 1. product development, 2. technical training and support on enterprise management, 3. and market access for the livelihood products.
For our secondary customers - those who buy the livelihood products, our main products are the products of our partner communities. We also provide a birthday reminder service for some clients.
Livelihood communities do not have the financial and human resources on product development and marketing. Further they need technical help on livelihood management e.g. pricing, costing, production.
Gifts and Graces has in-house capability and taps volunteers to deliver the services to our partner communities. Specifically, G&G has an in-house designer and volunteer designers for product development. G&G has completed a lecture series on product development, record keeping, and social entrepreneurship. Resource persons were from G&G staff and volunteers. G&G board and staff market our communities' products.
Marketing strategy consists of building the Gifts and Graces brand so that quality, value for money, empowering the marginalized are attributes associated with a G&G product.
Promotion and distribution will be to
1. corporate clients through one-on-one presentations
2. retail through bazaars, exclusive viewing parties, partnership with retail establishments, utilizing e-commerce, and social networking tools for a global presence
3. wholesale
70% corporate clients - The G&G corporate market consists of conference needs and gift giving needs to directors, VIP clients, media, on special occasions especially Christmas
20% retail - the retail customer is from Classes A and B from ages 15 - 70.
10% wholesale - retail establishments who promote our products under their own brand.
In general, the G&G client appreciates quality, exclusivity, and supporting community based enterprises.
Gifts and Graces is the only not-for-profit social enterprise that supports marginalized groups through NGOs.
Our competitors:
1. Other fair trade organizations supporting handicrafts by SMEs
2. Other foundations and not-for-profit organizations with gift items e.g. Unicef
3. For-profit organizations with SMEs with similar products as suppliers
4. Retail establishments as gift sources e.g. department stores, specialty boutiques
Gifts and Graces products give emotional satisfaction to the customer because they are good quality gifts made under the principles of fair trade by marginalized groups that are empowered to be self-sufficient
A breakthrough innovation challenges existing procedures and norms.
NGOs and other marginalized groups are traditionally considered unreliable producers and their products unmarketable.
Gifts and Graces innovation is challenging this commonly held belief by championing only marginalized groups working with NGOs, cooperatives, and P.O.s. By marketing products these products we guarantee the quality and delivery of items which we don't produce.
Growth will be driven by increased sales and distribution of our products. We will look into strategic partnerships with other like-minded individuals by exploring a social distributorship or social franchising arrangements.
We will also explore developing other income streams especially in the area of training and capability building to ease pressure on sustainability through marketing. Lowering margins on products sold will also boost sales.
The Entrepreneur & Management
The board of directors is composed of social entrepreneurs who embrace the Gifts and Graces mission of social development through empowerment. They are leaders in their fields who use their expertise in marketing, PR, and development work to set the direction for G&G's greater impact.
G&G's executive director's solid experience in social development in direct service to urban poor groups is complemented by experience in sales and marketing.
As Executive Director I bring my experience in marketing livelihood products of urban poor communities and use this to multiply my impact to Gifts and Graces 18 partner communities. I am currently undergoing training on creating a sustainable scaled up social enterprise with focus measuring its social return on investment.
Together with the board we use our resources and networks to attract customers, volunteers, and supporters to our cause.
I spend a minimum of 40 hours a week on the business. I spend around 50 hours a week on average. When the work requires it during peak season I can spend as much as 12 hours in a day or 60 hours a week.
Development
Increase production for our communities means increased income for food, education, and shelter and their secondary needs. This therefore means a better quality of life. It also means a new found self-esteem and a new hope that spreads throughout the communities.
Some of our products are made out of recyclable material e.g. tarpaulin banners, soda cans, doy packs. Recycling them cleans up the environment and reduces trash in landfills.