How the poor do business

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How the poor do business

• Informal Economy
• In poor countries, 40 of economy is informal
• Heavy regulation and weak property rights exclude
  poor
• Cost of doing business in poor countries is three
  times the cost in rich countries
• Micro-enterprise
• Most clients fall around or just below poverty
  line, the economically active poor
• There are approximately 500 million people using
  financial institutions designed for the poor.
• Need still unmet translates into 13 in 100 poor
  people worldwide.
• Small and Medium Enterprises
• In low income countries, 80-95 of SMEs have 10
  or fewer employees.
• In emerging economies SMEs
• Stimulate private ownership and entrepreneurial
  skills
• Are flexible and adapt quickly to changing market
  demand
• Generate employment and diversify economic
  activity

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TBN on the Ground

• Network of business professionals created in
  2003 now have over 250 associated members
• Our members and partners have invested or
  leveraged over 25 million in more than 40
  Business Projects
• The projects created over 6000 jobs and
  counting
• Other projects strengthened and protected
  existing jobs
• Members provided essential business support
  services to start-up and growing businesses

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Production
Tile Factory Tsunami Boats Fair Trade
clothing Textile Handicrafts Wooden
Handicrafts Micro-producers
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Retail and Service Providers
IT Helpdesk Facility Kuzuko Game
Park Reconditioned Computer sales Internet
Cafe Microfinance Institutions SME
Finance Business Training and MicroMBA
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Social Services
Health Financing Prevention and Mitigation of
AIDS Access to Water Appropriate Medical
Technology Health Data Analysis
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Agriculture
Honey Production Fish Farm Bio-fuel
Cultivation Small Scale Producers
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Our strength

• The knowledge, experience, and engagement of
  our members provides access to expertise
  currently unavailable to micro-businesses and
  SMEs in the form of
• - Access to Markets and Market Information
• - Access to Improved Technology
• - Access to Financing

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Exposure and Assessment Trips

• Three days to two weeks
• A starting point for creating change and
  participating in TBN activities
• Meet businesses, develop relationships, and
  identify enterprise opportunities
• Understand country context and business
  environment

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Microfinance

• Financial products targeting the very poor
• - two-thirds of MFI loans go to those making
  less than 1/day
• - loan sizes from 10 (6) to 2000 (1145)
• Microfinance Partners
• Window Development Fund
• Hope International
• Opportunity International
• The Bridge Foundation
• Five Talents
• BPN (Business Professional Network)

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Synergy SME Fund

• What?
• A mechanism for providing debt financing to
  developing SMEs
• Why?
• Small and medium enterprises are too large for
  microfinance and too small for regular bank loans
  called the missing middle currently have
  almost no financing options, creating a major
  impediment to growth
• Where?
• East Africa Kenya anchor
• Central Asia Afghanistan anchor
• Who?
• Businesses needing financing of 10,000 to
  50,000 (5,700 to 28,600)

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The Process Recommendation to Loan
Expo Trip
Business
TBN in-country staff
Business
Expo Trip
Business
Expo Trip
Business
Business
Business
Strategic Partner
Business
Business
Strategic Partner
Strategic Partner
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Our Goal

• Raise 10m (5.7m) in seed funding to create
  Synergy SME fund, in order to support 500 SMEs to
  create jobs and increase incomes in developing
  countries