KickStarting the End of Poverty

This post was written by first year MBA student and CASE Fellow Greg Payne. Greg reflects on a recent visit from Martin Fisher, Co-Founder and CEO of KickStart International. CASE was honored to recently host Martin at Fuqua and award Kickstart the 2012 CASE Enterprising Social Innovation (ESI) Award.

What is the most effective way to address poverty, hunger, and sickness in Sub-Saharan Africa, where 40% go to bed hungry every night and nearly half the population lives on less than $1 a day?

Obviously, this is an incredibly difficult question to answer.  There are many excellent methods of intervention – improving access to healthcare, developing clean water systems, establishing safe and secure housing – all of which arguably must be implemented concurrently in order to have maximum impact.  But Martin Fisher, Co-Founder and CEO of KickStart, would quickly and confidently answer that the most important method is to give people a way to earn an income.

Through decades of on-the-ground experience in Kenya, Fisher has found that, while there may be gaps in formal education, the poor rural population is incredibly entrepreneurial, often requiring only some technical assistance to identify and develop business ideas, or the technology to execute those ideas.  However, Fisher has found that “handouts” are often ineffective.  Fisher and KickStart have instead harnessed the power of local markets and the determination of Kenyan farmers’ to fight rural poverty.

KickStart’s approach to improving the condition of rural Kenyan farmers is conceptually straightforward and incredibly effective: for an affordable price, they provide water pump technology that allows farmers to significantly increase the yield from their land.  One of KickStart’s best-selling pumps (aptly named the “Super-MoneyMaker”) costs less than $100, and allows farmers to draw water from as much as 30 feet deep and irrigate a 2-acre plot in less than a day – a fraction of which would be possible with buckets shuttled from a nearby well.

Fisher cites many examples of farmers able to pull themselves out of poverty by earning an income, rather than simply surviving.  And for some, as Fisher describes, it goes beyond just earning income – with less concern about surviving day-to-day, rural farmers are now empowered.  One woman, now earning $3200 per year, organizes other women in her community to speak out against abusive cultural practices.  A pump has arguably not only changed her life, but has caused a ripple that is changing her entire community.

KickStart’s impact, by the numbers, is astounding: nearly 130,000 profitable new farm businesses and 650,000 people lifted out of poverty.  Enough fruits and vegetables produced to feed 10 million.  Speaking for myself, as a business school student intent on working in the social sector, KickStart and Martin Fisher have provided me with an example of how to use business principles – understanding your customer, effective marketing, proper pricing – to address the root cause of poverty.  It’s precisely this type of social innovation that expands my understanding of the field and inspires me to further explore its boundaries.  After all, for the many complex social issues to address in the world, the solutions often lie in harnessing the very determination and spirit of the population in need.

Watch Martin Fisher’s full lecture here:

About the Award:

CASE launched the Award for Enterprising Social Innovation (ESI) to recognize outstanding individuals, organizations, or companies whose innovations blend methods from the worlds of business and philanthropy to create sustainable social value that has the potential for large-scale impact. CASE awarded the inaugural recipient of the CASE Award for Enterprising Social Innovation (ESI) in the spring of 2009 and accepts nominations from the public annual each spring. Past recipients have included E&Co (2009); VisionSpring (2010); and Benetech (2011).

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Impact Investor – Video Recap (Part 2)

This post was written by Sarah Ritter, Program Coordinator of Insight at Pacific Community Ventures and originally posted on the PCV blog. Sarah recaps our recent launch event of the Impact Investor project.  This is part 2 of the recap, for part 1 click here!

As promised in part 1, here is the second installment of InSight’s video highlights from our launch event of The Impact Investor.  The event marked the beginning of a two-year project to build data-driven and practitioner-guided knowledge for the rapidly growing field of impact investing, which we are undertaking along with our partners CASE at Duke and ImpactAssets.

The second session focused on the General Partners, identifying the successes and failures from their experiences making direct investments to projects with social and environmental benefits.  A central concern of the discussion (and the industry at large) was the struggle between financial and social returns and determining what is most important to measure, and how to measure it.  The discussion also shifted to ask not only about the impact coming from the projects demanding the capital but also the impact from the supply (i.e., do impact markets risk simply being an offset mechanism for corporations making a profit from socially irresponsible activities?)

In addition to some of these big picture topics, the conversation began to focus in on some the ‘nitty gritty’ details that will really help to grow impact investing markets.  These included:

Defining different business models and investment structures within impact investing and creating better tools to communicate those differences.

Collaborating to make a more cost effective due diligence processes that will lead to a more efficient pipeline of investments.

And determining appropriate exit strategies.  Are new instrument needed in to improve the process and capture the needs of impact investments?

The session concluded with another excellent synthesis and analysis by Laura Callanan followed by a closing request from Ben Thornley to continue the dialogue and sharing of experiences as The Impact Investor Project moves forward.

As we prepare for our next set of convenings at SOCAP this fall, we look forward to diving deep into may of the issues raised during these two sessions in Oxford.   The project is dependent upon the willingness of investors in the field to share their invaluable experiences and perspectives – we are therefore extremely grateful to those have already participate and look forward to developing additional conversations over the next two years!

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Impact Investor – Video Recap (part 1)

This post was written by Sarah Ritter, Program Coordinator of Insight at Pacific Community Ventures and originally posted on the PCV blog. Sarah recaps our recent launch event of the Impact Investor project.  This is part 1 of the recap, keep an eye out for part 2 coming soon!

Here at InSight we’re still sorting through all the incredible conversation from the launch of our new project – The Impact Investor.  The launch took place in Oxford, UK before the Skoll World Forum, where over 80 impact investors participated in the dialogue that will inform and shape much of our research.  We are undertaking this two-year project to build data-driven and practitioner-guided knowledge for the rapidly growing field of impact investing, along with out partners CASE at Duke University and Impact Assets.

Below we’ve pulled out some of the key threads from the first panel of Limited Partners. Part 2 from the GP panel and discussion coming soon!

The event kicked off with intro remarks from Paula Goldman of Omidyar Network and a project overview provided by our research partners Jed Emerson and Cathy Clarke.

Continue reading

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Are you a Note Holder?

This post was written by second year MBA student and CASE Fellow Beth Bafford. Beth reflects on a recent visit from Lisa Hall, President and CEO of the Calvert Foundation.

As we’ve mentioned on this blog before, there is a lot of excitement around impact investing both here at Duke and around the world.  But a big question that has been raised in the field is how to make this new, exciting field accessible to a broader group of investors.  Lisa Hall, President and CEO of the Calvert Foundation, came down to Fuqua earlier this year as a part of our CASE i3 Speaker Series to explain how she and her organization are answering that important question.

Lisa explained to all of us what makes the Calvert Foundation unique (watch the full video of her talk at the end of this post!).  For 16 years, they’ve been raising money to invest in communities both domestically and abroad, but they haven’t been raising money from limited partners (LPs) or high net worth individuals.  Instead, they’ve amassed over $500 million from “everyday” investors through their retail impact investing product, the Calvert Community Investment Note.  This Note – a bond product that returns up to 2 percent annually – can be purchased in three ways:

  1. on MicroPlace where you can purchase the Note in $20 increments,
  2. through the Calvert Foundation directly, or
  3. through their growing list of participating financial advisors who can purchase the Note electronically through their brokerage firm. Continue reading
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2012 Award Winner!

CASE is proud to announce the winner of our 2012 Enterprising Social Innovation Award: KickStart International!KickStart develops and promotes technologies that can be used by entrepreneurs to establish and run profitable small scale enterprises and help families improve their economic status. As of February 2012, KickStart has helped create 128,400 enterprises in Africa, sold 198,292 irrigation pumps to farmers and moved 641,800 people out of poverty. Continue reading

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Update on CASE Activities

Q3 has already come and gone – our 10th anniversary year sure is flying by fast!  As we do each quarter, we’ve summarized our recent happenings below:

  • Our most recent newsletter is chock full – including a recap of the 7th annual Duke Net Impact “Sustainable Business and Social Impact” conference, launch of the “Impact Investor” project, recaps of recent speakers and events, and, announcing the 2012 CASE Enterprising Social Innovation (ESI) Award recipient – KickStart International!
  • Prefer the 1 page snapshot? Read our Q3 highlights here (pdf file).

Don’t forget to sign up to make sure you receive the next newsletter at www.caseatduke.org/contact

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“Building a Field That Has Really Been More of a Yard”: The Impact Investor at Oxford

This post was written by Mailande Moran, a first year Duke MBA and a student fellow with CASE i3.

On Wednesday, the CASE i3 Initiative on Impact Investing co-hosted a meeting of roughly 80 leading investors, entrepreneurs, academics and intermediaries from the global impact investing community in Oxford, before the start of the Skoll World Forum on Social Entrepreneurship. These leaders came together to discuss the best practices and barriers that currently exist in the field of impact investing – a field that holds immense potential, but which is still maturing and lacks data-driven and practitioner-guided research.

In order to meet this need, CASE, InSight at Pacific Community Ventures, and ImpactAssets announced an exciting new global research partnership at Wednesday’s meeting: “The Impact Investor: People and Practices Delivering Exceptional Financial and Social Returns.” (read full press release here) The project has attracted significant funding, most recently a $350,000 grant from Omidyar Network, and has released its first report, “The Need for Evidence and Engagement” (download pdf of report here). Continue reading

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Sustainability in the Military?

This post was written by Brendan Mullen, a first year student at Fuqua.  Brendan recaps “Disruption in the Military,” a recent panel at the 2012 Duke Sustainable Business and Social Impact conference.

A Net Impact conference at a business school can be pretty broad. By its definition, Net Impact can—and should—cover a lot of ground. And when a Net Impact conference is about “disrupting the status quo,” then that conference should be able to design a panel around just about anything.

That said, the military is, to most, not inherently about the environment or business and it is certainly not designed for “disruption.” Continue reading

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Connecting with Customers through Sustainability

This post was written by Elana Boehm, a first year Duke MBA and CASE Fellow. Elana reflects on some of the marketing panels from this year’s Sustainable Business and Social Impact conference and how different companies are implementing programs and connecting with their customers around sustainability and social impact issues.

“When was your spear-in-the-chest moment?”

Continue reading

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