Business Plan Self-Sufficient Agricultural School

1. Business Plan Self-Sufficient Agricultural School

2. Mission • To establish a Self-Sufficient Agricultural High School for the rural poor in Paraguay that provides practical and entrepreneurial education that enables graduates to achieve financial success. • To serve as a Model & Prototype for potential replication elsewhere in Paraguay and other developing countries

3. 3 Desired Outcomes (A) Skilled graduates that (1) return to their communities to work on the farm, or (2) go on to colleges, or (3) are employed within six months of graduation. (B) Phase 1:School is sustainable by 2007, and covers 60% of operating costs in 2005. (C) Phase 2:Prototype-Model is Disseminated to other countries through: • Increased Awareness • Replication of certain aspects of model • Action: other schools embarking in the self-sufficiency road • Generate revenues from Service Fees

4. A new way to address Rural Poverty • Rural Poverty is a consequence of lack of agricultural know-how, entrepreneurial skills and access to financing. • Land Reform, traditional charity & aid, equipment and subsidies have not worked • Existing strategies have not been able to address the problem of farmer inefficiency. • Rural schools teach general education courses disconnected with students’ realities • Teaching agricultural and entrepreneurial skills to young farmers in an revenue-generating farm school and providing microfinance to graduates is a viable alternative.

5. Our Value Proposition • For underprivileged Paraguayan rural youth  • Who are structurally unemployed • Fundacion Paraguaya’s Agricultural High School is an innovative educational institution • Which offers a high quality technical-entrepreneurial training and post-graduation follow/up. • Unlike traditional schools that do not promote usable skills for immediate placement in agribusiness, college, or the family farm • Our Agricultural School teaches not only marketable skills but also entrepreneurial and business skills as well as practical hands-on experience and provides loans upon graduation when needed for business ventures.

6. Value Creation • Taking in poor rural students and providing them with entrepreneurial skills and loans in addition to agricultural education. Graduates are qualified for higher education, employment in agribusiness or to return to productive farming • Converting a deficit-ridden school into profit-making institution by using lessons learned in Microfinances and Junior Achievement • Measure of Success: Graduates’ performance translates into School’s reputation which translates into more students, faculty and resources

7. Clients & Beneficiaries (1) Those who attend our School: young rural farmers who come from chronically unemployed families and poor communities (2) Those who employ our Graduates: private sector and business community benefit from qualified middle-level human resources or Colleges.  (3) Those who buy our products and services: consumers, schools, and general public (4) Those who adopt a new educational model: policy makers and international donor agencies

8. Potential Obstacles & Risks • It is yet to be proven that educators will accept this “Learning By Doing” model • There is a bias against business in school & money-making faculty and students • Lack of resources • Ability to attract faculty and supporting workforce because of lower salaries than private sector • Misunderstanding regarding the value of work-study • Government impositions of different curriculum (theoretical vs. practical) • General economic environment may force students to stay home

9. FundacionParaguaya is a 28-year-old Non-Profit Organization Experience in attaining Self-Sufficiency in its Microfinance & Entrepreneurial Education Subsidize Agricultural School until it reaches self-sufficiency Take lessons learned in Microfinance and apply them to Agricultural Education: Poor want to develop Poor are willing to pay Need to use Appropriate Methodology and scale Self-sufficiency is possible Work dignifies Strategy to Serve the Market

10. How will the school become self-sustaining? • Multiple sources of revenue, including • Sale of products produced at school • Providing services to agricultural community • Renting facilities • Nominal tuition and work-study scholarships • Public funding is not considered desirable because of political constraints attached to that funding • School has the full financial support of Fundacion Paraguaya and has the Management Team & Organization

11. School has Income Streams from17 Products & Services • Livestock • Milk & Cheese • Steers for Beef • Pigs • Chicken, Broilers & Eggs • Goats • Rabbits • Honey • Agriculture • Vegetable Garden • Crops & Fruit • Community Training Center • Housing • Food & Lodging • Conference Rooms • Guided Tours • Special Events for Business Community • Store • Goods produced at the school • Food produced • Grocery store products

12. Sustainable Advantage Ability to recruit and select students that are “likely winners” from a big pool of candidates Ability to produce a continuous flow of qualified high school graduates who either go on to college, get a good job, or return to their communities to run their family farms. Business Approach and practical training which ensures permanent innovation as well as cost-controls. Valued as a important resource in the agricultural community. It is a magnet for business interests who come to it in search of its excellent faculty and qualified graduates Produces superior quality goods because it has trained faculty and staff managing production. Does not depend on government subsidies and is removed from politics School’s reputation: biggest asset

13. Board of Directors & CEO w/experience $400.000/yr surplus 330 Employees Microfinances $500.000/yr 28 Regional Offices 54.000 clients/yr Entrepreneurial Education (Breaks-Even) 30.000 students/yr 4 Agricultural High School Fundacion Paraguaya Team & Organization

14. School Director Experienced in Academics & Business Production Chief Experience in Academics & Farming Academic Director Experienced and Junior Achievement Background Finance & Administration Staff: Experienced Agricultural School Team & Organization

15. Revenue and Business Model • This Model School will produce self sustaining revenues by the sale of agricultural goods and multiple services.  • The level of sales revenues (turnover) that is hoped to be achieve is US$175.000 a year by 2007.  • Revenues reflect market realities and School competes in the market.

16. Distribution of Revenues • Nominal Tuition: 5% • Road-Side Store: 10% • Vegetable Garden, Crops & Fruits: 20% • Livestock & Small Animals: 25% • Community Training Center: 40%

17. Phase 2: Dissemination of Model-Prototype School to other Schools in Paraguay and other Developing countries • Raise Awareness in 1000 schools • Promote Replication of certain aspects of model in 50 schools • Action: 10 schools embarking in the self-sufficiency road

18. Basis on which to “sell” Model • On its educational merits – stressing the academic success of graduates • On its income increasing benefits • As a means of ensuring institutional independence • As a fresh paradigm – but one which they can work towards at their own pace • As a support package that can be implemented in modules • As a support network for technical assistance, and funding

19. A call to Action: Stakeholders role in Expansion • We need to address rural poverty and develop a new breed of rural entrepreneurs • Stakeholders need to take action • future employers, ranchers and the agricultural business community • Donors, foundations and international development agencies (World Bank) • A Village School for US$ 500.000

20. The time has come:We have a Roadmap • The People • The Opportunity • The Context • Risk and Reward

21. Reward • Develop a true “Social Innovation” • To turn upside-down the way we think about education • to Make Poverty History