Suminter India Organics was founded on the philosophy that fair, transparent business practices and high-quality products would provide part of a blended value business model that would generate benefits for local farmers while penetrating a significant and growing market for organic goods. Suminter is utilizing this model to establish itself as a leader in organic Indian products, supporting 600 farmers in five villages by commercializing their output in a $31 billion annual global organics market.

by Rajya Karipineni - New Ventures India

Satva is the Sanskrit word for Purity. It is also appropriately the brand name under which Suminter India Organics sells a wide variety of organically grown, non-perishable produce. Suminter’s farmers meet the highest international organic standards to bring consumers a healthier product that in turn gives farmers a safer and cleaner environment in which to work.

Three years ago, the Suminter team took the initiative to provide local farmers with the necessary training and certification from Skal International, an internationally recognized organics certifying body. Now, Suminter contracts with over 600 of these farmers, buying back all of their products and providing the necessary farming inputs for organic cultivation. Suminter then provides the forward linkages that farmers require to bring their products to market. Through this process, farmers incur substantially lower costs and also receive a 10 percent premium over market prices. In this way, Suminter India Organics bridges the gap between the company’s suppliers and the global market, commercializing their products through a fair and transparent process. Fairness is, in fact, the foundational philosophy of Suminter, and the company will soon receive Fair Trade certification in addition to its organics certification.

Driven by a commitment to quality and transparency, Suminter India Organics has built lasting relationships with its current customer base in the Netherlands and the United States. To support their activities abroad, the company created a division in the Netherlands that meets growing demand for the distribution of their product. Through this branch, Suminter has captured the entire value chain, from the farm to the market. Their Netherlands division handles warehousing and marketing, which eliminates third party exporters and traders. It is this type of integrated supply chain that differentiates Suminter from its competitors.

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I realize I've been pretty quiet on NextBillion lately.  Thankfully Derek, Tayo, Nitin, Al, Bill, and Julia have picked up a ton of slack and are writing fantastic pieces.

One of the reasons I've been so quiet lately is simply that I haven't been around much.  Between work travel and a little personal trip (to northern Michigan this weekend -- cherry country!) I've not spent a full week in the office in nearly a month.

That pattern holds up this week - I leave Wednesday for Bogota, Colombia, where I am speaking to a forum on "Business Opportunities at the Base of the Pyramid."  The forum is hosted by Semana and Dinero magazines, and will also feature Juan Luis Martinez, a Spanish CSR expert.  Should be an interesting conference.

In any case, if you know anything about Bogota (my first time there), leave me some tips in the comment section.  And if you'll be attending the event, be sure to let me know - I'd love to meet up.

Aneel Karnani, the Michigan strategy professor and controversial author of "Mirage at the Bottom of the Pyramid", has a new article in the Summer edition of the Stanford Social Innovation Review.  "Microfinance Misses Its Mark" examines some of the failures of microfinance, and argues that creating more jobs is the best way to alleviate poverty -- not simply giving loans or financial services.

The article makes some strong points, and is a worthwhile read.  After an initial read, I wonder whether it is fair to juxtapose job creation with microcredit.  To be sure, larger scale businesses create more salaried jobs, but there may have to be an intermediary period between "few jobs" at the BOP and equilibrium, where larger-scale businesses employ scores of people. 

Economic history may lend some insight here.  In the U.S., middle class growth occurred only after an entire generation (or two, or three) worked as self-employed farmers, tailors, merchants, craftsmen, etc.  Industrialization - and more efficient, larger firms - came later.  I'm not saying that low-income countries must follow the U.S. path, nor do I argue that there weren't external factors at play in the economic history of the United States.  I simply wonder whether it's fair to equate microcredit with "no jobs" and larger business with "yes jobs."

In any case, read the article.  No matter where you come out with regard to your opinion, it's a good read and well done.

(Via Origo)

I've run across numerous articles, briefs and blogs in the past few months talking about the trend of green business and investment that is heating up in China. The Investor Forum that New Ventures wrapped up in Beijing last week was a real testament to the fact that this is more than just empty heat, that there are real concrete examples of this generation of sustainable entrepreneurs sweeping China's private sector.

The judges panel at the Forum decided they had too many good options, so they picked four winners this year. One of the big winners was Landwasher, a company that produces eco-friendly toilets, of all things - see an example form the Forum pictured here. The company has heavy demand for its products particularly in rural areas where public infrastructure is not always perfect, and they have been asked to supply their system for the 2008 Olympics here in Beijing. I won't go into depth on exactly how this waterless system works as the details get a bit gritty, just to note that some of the greatest sustainable innovations of these entrepreneurs are often the least expected.

We could see from the Forum's attendance that investors are not unaware of the growth in these green sectors; some thirty funds were represented showing plenty of interest in the ten finalist entrepreneurs as well as an additional group that was presented at our Sustainable Market Place.

More details are available on the WRI site, where I posted a full wrap-up of the event. For some further thoughts, also check out our China program intern Xiao Jia's posts - she makes some really interesting contrasts, for instance between the old Maoist phrases written on the wall of the building where the Forum was held and the vibrant entrepreneurial atmosphere inside.

At the same time as plastic cutlery waste increases every year, the traditional Indian Jowar crop has been declining, leaving farmers to search for unsustainable alternatives. BK's solution to both: edible cutlery.

by Rajya Karipineni - New Ventures India

Sales of plastic cutlery grow at a rate of 20-30 percent per year, generating significant non-biodegradable waste and contributing to overflowing landfills. During the hour-long bus rides to and from their previous office job, entrepreneurs Narayana Peesapaty and Rama Devi Rayapudi devised a solution that provides the same convenience of disposable forks, spoons, and knives without the waste: edible cutlery.

Although the concept of edible utensils is not a new one, BK Environmental Innovations has been among the first to turn the concept into a reality by baking a mix of Sorghum flour, known in India as Jowar. Jowar has traditionally been an important source of nutrients such as folic acid and fiber, yet the domestic consumption of this crop has recently decreased and been replaced by starch-laden Rice. BK is helping to revitalize Jowar as consumers, especially those with diabetes, have also used the cutlery as a nutritious snack. It is because of this that BK’s tagline is, “Hygienic, healthy, and environmentally-friendly!”

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The role of the private sector in promoting education is a topic of considerable interest and discussion.

Atanu Dey's series of blog posts on The Indian Education System make for good reading.

An extract:

"Imagine for a bit what it would be like if education were provided by private sector firms. Can it be done? Would a socially optimal amount, variety, and quality of education be provided? Would there be market failures? If so, how can those market failures be corrected? Can one devise mechanisms to correct those failures?

The answer to whether the private sector can provide education is clearly ‘yes’ because around the world for a very long time private firms have provided education very successfully. Both private sector for-profit and not-for-profit business models exist. Education, at some level of description, is a service like any of a very large variety of goods and services provided very efficiently by the market. The generalization that markets work holds quite meaningfully in the specific case of education broadly."

The education sector - once seen as the exclusive obligation of the government and NGOs - now presents opportunities for research and
private investment.

For instance, The Spark Group (Full disclosure: I have been supporting Spark), founded by entrepreneurs from MIT, is creating a branded chain of $2 schools across India (Spark School-in-a-Box). The schools will be owned and operated by private entrepreneurs. Spark hopes to maximize outcomes of the initiative by harnessing the power of grassroots entrepreneurship. The model will be to provide a plug-and-play package that comes with everything required to start and run a low-end school - from curriculum to fee schedule to infrastructure design. The plan is to take the entrepreneur from "ink on the contract" to "chalk on the board" in 100 days flat. This chain of schools will be adapted for local needs - and yet be integrated under one brand that will be instantly recognized by every poor family in India. Backed by rigorous academic research from Harvard and MIT, Spark plans to make sustainable investments in schools by providing much-needed resources and value-added services.

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This came across my desk via Virginia Barreiro, director of New Ventures.  For your Tuesday afternoon (EDT) pleasure.

This is a rare case of an administrative message on NextBillion.net. We wanted to let everyone know that commenting is temporarily disabled for anonymous users because of a large influx of spam on the site. We will be working hard to find a solution so that commenting can be brought back online and conversations can continue. In the meantime, please contact us with any questions that you might have.

Via Pablo Halkyard, who many will recognize as a co-founder of PSD Blog. He's now up at NYU doing a master's degree. In any case, Pablo sent me an e-mail regarding the following event...if you're in NYC, check it out:

The Microfinance Club of New York in cooperation with The Taipei Economic and Cultural Office New York presents:

Beyond microfinance: Micro venture capital for small business entrepreneurs

Date: Wednesday, June 13, 2007, 6:00 pm
Speaker: Ben Powell, Agora Partnerships
Reception: Following the Q and A

Taipei Economic and Cultural Office in New York - 1 East 42nd Street

Keynote Speaker:
Ben Powell, Co-Founder and Managing Partner, Agora Partnerships
www.agorapartnerships.org

With brief remarks by the Representative of Taipei Economic and Cultural Office in New York

MF Club Members: Free
Non-Members: $10

Ravi Goel's and Marukh Bulsara's Indian eco-tourism venture exposes major corporate clients to the benefits of sustainable living while supporting local communities with employment and local investment.

by Rajya Karipineni - New Ventures India

Ravi Goel stresses that he and his colleague, Mahrukh Bulsara, have come a long way since their first difficult experience attempting to obtain a loan for their eco-tourism business. The two entrepreneurs had the necessary accounting information and collateral in place for their company, EcoMantra Nature Awareness and Travel, yet they found that banks were reluctant to provide finance for small enterprises regardless of their financial stability. Eco-tourism entrepreneurs still face many barriers to entry and growth in India, but Ravi and Marukh have worked tirelessly to build EcoMantra’s reputation as a superior eco-tourism destination. They believe strongly in the power of eco-tourism to spread sustainability values and they have become pioneers in innovative initiatives for the sector. 

Listening to Ravi speak about the philosophy behind eco-tourism, it is easy to understand his passion. He speaks about the importance of conserving natural resources for the future of all business, and the necessity of preventing green-washing in his field so that eco-tourism sites can make a genuine contribution to conservation efforts. For him, eco-tourism is the most effective means to preserve nature because revenue generated must be invested in the community in order to maintain the site’s appeal. In addition, staff members who are necessarily employed in the local region need little motivation to exceed expectations because they are effectively beautifying their own home.

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For those of you who have been watching the site, you know that comments were temporarily disabled on the site last week because of a spam attack. Commenting is back on now for everyone, so please comment away... We'll be keeping an eye on the site to help keep it this way. Happy commenting!

That TED Global came and went without so much as a whisper here on NextBillion.net is a shame.  The curator, Emeka Okafor, is a friend and also the mind behind Timbuktu Chronicles, a must-read for those of us in the BOP set.  How could I miss reporting on his major conference?

Thankfully, others are there to pick up the slack.  Most notable is Ethan Zuckerman - where doesn't this guy go? - whose insightful posts give us blow-by-blow reporting on who says what and what it all means.  Check out My Heart's in Accra and browse through the archives from last week and the week before, you'll learn more than you can imagine.

I have a chronic habit of seeking out cool people. Can’t help it; it’s just what I do. A few months ago, I asked one of my friends, a Stanford Graduate School of Business grad, to e-introduce me to a then second year student. We exchanged ideas and information, a process that always makes me happy. Imagine my delight (pun intended) when the aforementioned student e-introduced me to two of his classmates, Sam Goldman and Ned Tozun, founders of d.light design. I was absolutely tickled, and you’ll understand why shortly.

d.light’s mission is to “develop and commercialize sustainable lighting and power solutions for underserved rural markets in areas without access to electricity.” The d.light team hopes to supplant the use of kerosene and candles, which are “expensive, inefficient, dangerous, low-quality sources of light.” (Source: http://www.dlightdesign.com/vision.html)

Some of you may recall a previous mention by Rob Katz referencing d.light’s participation in the Global Social Venture Competition. But given this happy bit of serendipity, I’ve stepped in for round two.

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The NextBillion.net team and the World Resources Institute are pleased to introduce Ella Delio as a Senior Associate working with the Markets and Enterprise program (which includes NextBillion.net).

Ella has 8 years of relevant experience in enterprise and private sector development. Originally from the Philippines, Ella worked for Procter and Gamble and ran or helped run two businesses. When she came to the U.S., Ella obtained her MBA degree from the Harvard Business School and Masters in Public Administration degree from the Kennedy School of Government. During this time, she had internships at the Philippine Department of Trade & Industry and Booz Allen Hamilton.

After graduate school, she worked with the Center for Women and Enterprise in Boston where she led the Springboard New England, a program which aimed to increase equity investments in high-growth, women-led businesses in the East Coast. In February 2007, she joined WRI as a consultant to the New Ventures project, helping to create an investor network in India. She is now a Senior Associate with Development Through Enterprise.

Ella joins the NextBillion.net team, which now includes Allen, Bill, Ella, Rob, Julia, Nitin, Tayo, and Derek.  Read staff profiles and contact us individually via the About page.

Something that has consistently bothered me since I began exploring the "business for social good" continuum is the notion (implied, but not often stated), that the government has been usurped as the primary provider of public goods. Government has failed and private enterprise must take over. Conventional wisdom dictates that government bureaucracies aren’t facile enough to meet the dynamic needs of the populace. In the words of David Bornstein, author of How to Change the World: Social Entrepreneurs and the Power of New Ideas:

Today, many people do not believe that we can alleviate poverty, or fix the education system, or improve the government, or find better ways to deal with many social problems. Amidst this disenchantment with government, the field of social entrepreneurship has emerged…..But in order to [solve these problems] society needs to think differently about the approach.
(Source: article introducing How to Change the World: Social Entrepreneurs and the Power of New Ideas by David Bornstein)

It’s to the point at which topics like “Governments as Agents of Change,” broached at the Business for Social Responsibility (BSR) conference “Innovative Strategies – Measurable Impacts,” held last year in New York City, seem almost laughable. But are they?

Now clearly, my professional choices have demonstrated a certain degree of sympathy for this point of view. After all, I am pursuing a business degree, not a degree in public policy — not to imply that two are mutually-exclusive. But I cannot say that I have stopped to analyze this core assumption about the role of government. Not surprisingly, my examination of this question has fallen victim to a seemingly endless flurry of pre-MBA activity.

However, it came bouncing back to the surface (as these things often do) quite unexpectedly after a trip to visit a friend in New Orleans. She courageously decided to move home to NOLA from Nigeria eighteen months ago after witnessing the devastation of Hurricane Katrina via CNN. I remember anxiously tracking the progress of the storm with her and subsequently acting as a sounding board to her internal debate about how, when, and whether to return home.

More than a year later, as she took me on an impromptu tour of the city, she deftly explained some of the issues encountered by the citizens of the New Orleans after the storm. The issues: rebuilding homes and neighborhoods via the “Road Home” fund with all of its delays, the lack of support for renters, the negligence of the levee system, the inefficient and expensive use of mobile homes for temporary housing, control of federal aid disbursement, local political reform, and the practical implications of what a “market driven recovery” should look like, seemed ridiculously daunting. Nonetheless, despite all of this, the people of New Orleans are taking the initiative to set priorities, rebuild, and bring their city back.

As encouraged as I was by the determination of NOLA’s citizens, I was equally shocked and disappointed by the (arguably) apparent lack of a comprehensive recovery plan sponsored by; you guessed it, the city government. (It was still in the approval process at the time of my visit). To make matter worse, even if there had been a finalized plan, given the federal government’s ineffective response to the disaster, including the under-funding of the relief effort relative to the extent of the damage sustained in Louisiana, and the conflation of disaster relief and rebuilding funds, it might not have been financed even if it had been finished sooner.

So my question is, “Is it really okay to abdicate, implicitly or explicitly, the distribution and management of public goods to private enterprise?”

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