Incubating & Scaling Business Solutions to Poverty Issues

1. VSLA: An Effective Means of Promoting Social Enterprise Incubating & Scaling Business Solutions to Poverty Issues

2. What is a VSLA? The Village Saving and Loan Association is a groups of 20-30 self-selected participants who make regular savings contributions by purchasing shares to a loan fund from which any of the members can borrow and pay back with interest The growth of the fund permits group members to acquire assets which build economic stability at the household level

3. Why VSLA? Groups are low-cost, simple to manage and can be seen as a first step for people to reach a more formal and wider array of financial services. VSLAs can dramatically raise the self-respect of individual members and help to build up social capital within communities, particularly among women who represent approximately 70 percent of member

4. What is Social Enterprise? Market-based programming Development projects achieving social impact via engagement of the poor as resilient and creative entrepreneurs as well as value-demanding consumers Social Enterprise Ventures that advance their primary social mission using business models and approaches

5. Why Social Enterprise? • Harness market-based mechanisms for program impact, sustainability & scalability; • Explore new models of operation and of financing, especially in countries with diminishing aid assistance and increasing private sector presence; • Adopt a more entrepreneurial approach: encourage innovation, replication & scale; incubate real game-changers.

6. CARE HAITI VSLA & Eco Dev Strategic Plan VSLA Program Goal By 2017, CARE Haiti’s VSLA program will reach 300,000 people (70% women) enabling them to live in a socially and economically secure and enabling environment and exercise their rights. Advocate reducing barriers to financial access. Identify financial sector policies and procedures that meaningfully increase women and youth’s access to formal financial services. Establish collaborative linkages for mature VSLAs with formal financial services and Market engagement. WOMEN’S EMPOWERMENT Social Enterprise Explore new models of operation and of financing, especially in countries with diminishing aid assistance and increasing private sector presence; Scale up Village Savings and Loan Associations effectively and efficiently through Implementation Partners Organizations (IPO).

7. Summary Statistics for VSLA Groups in Haiti 385 VSLAs formed with 10,878members of whom 77% are women Savings mobilized equals 462,886 USD Outstanding loan portfolio totals 437,150 USD Portfolio at risk is 0.4% Loan utilization rate is 73% Data from MIS, September 2013

8. CARE Enterprises’ mandate • To support the incubation of enterprise-based solutions to poverty issues, their evolution to self-sustainable entities, their growth and long-term success; • To attract social investments from foundations, corporations and investment funds in the form of equity or debt investments to fuel the growth of CARE’s enterprises.

9. How does CARE develop social enterprises in Haiti? • Since 2009, CARE Haiti has successfully formed and supported 385 Village Savings and Loans Associations (VSLAs) made up of 10, 878 participants. Our plan is to expand this experience to 10,000 VSLAs creating a network of 300,000 micro-entrepreneurs across the country. • Through CARE’s VSLA approach, the village groups quickly increase the level of their investment capital and form stronger micro-entrepreneurs. The network of these micro-entrepreneurs constitutes a strong platform for a large range of social enterprises. CARE Haiti incubates a portfolio of social enterprises and set up a social investment fund to support the growth and quality of these social enterprises

10. Assessment & roadmap Business proposal design Transition Spin-off Social Enterprise Project / Idea Phase IV Phase V Phase I Phase II Phase III Pathway for evolution Key phases Funding mechanism Venture capital Grants • Assess potential ventures; • Develop a roadmap for evolution; • Engage donors; • Provide technical assistance. • Spin-off the entity; • Bring in co-investors; • Manage venture ensuring long term results. • Mainstream social enterprises as part of project design; • Work at an early stage with potential partners & investors. Key activities

11. CARE backed Social Enterprises in Haiti • Micama Soley: In partnership with Micama Soley, CARE works to strengthen the capacity of existing VSLA members to access financial services and engage in profitable new enterprises, particularly in the area of solar power. • LIV : CARE donates seed capital in the form of books to the SMCs who then sell and reinvest profits back into the school / Sustainable school. • Cocoa: The Haitian cocoa market presents an example of an emerging opportunity for social enterprise.

12. Diaspora • I have a voiceto influence the Haitian and US Governments • I have skills to offer my country and the organizations working in Haiti. • I have financial resources to contribute to lasting social change through social investment. CARE partnership Model Together we are powerful • People in Haiti • Haitians have ideas about what they want for their country. • Haitians have entrepreneurial spirit. • Haitians know the potential and challenges in their communities. • CARE and Partners • CARE works through community driven development toimplement programs addressing poverty and social injustice. • CARE builds social enterprise and manages social investment funds. • CARE organizes personal investment into scalable long-term programs with shared learning. Partnership / Investments

13. For more information please, please contact: • Innocent RUTIKANGA| Financial Inclusion & Social Enterprise Coordinator : rinnocent@pap.care.org • Gilda Charles | VSLA & Women’s Empowerment Manager: charlesg@pap.care.org • Mc Arthur Elisma | Linkages & Enterprise Development Manager : elisma@pap.care.org