2. Literature Review
2.8. Examples of Social Entrepreneurship
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Channels
Revenue Streams
Key Partners
Key Activities
Key Resources
Cost structure: how much will it cost to deliver your solution at scale?
Surplus
Type of Intervention
Figure 1: Social Business Model Canvas
2.8. Examples of Social Entrepreneurship
Ecotact’s IkoToilet
One of the most interesting cases of social entrepreneurship that I have stumbled across in recent months is the case of Ecotact’s IkoToilet. IkoToilet stands for “there is a toilet” and it is revolutionary initiative started by David Kuria in Nairobi Kenya. David is an architect as well as having years of experience in community assessment and urban environment. In Nairobi, bathroom facilities exist, but they are unsanitary and often locations of crime and
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unsanitary), bagging the feces and littering. These were called flying toilets as people would leave the bags wherever they felt like. David Kuria saw an opportunity and he capitalized on it. IkoToilet is a bathroom that provides water free sanitation system (thanks to their partner Roto Moulders) for a low cost of $0.06 per use. Not only do IkoToilet’s provide toilets, but they include showers, urinals and soap as well. With the growth and acceptance of IkoToilet, they have not only become areas of sanitation but business has been built around them.IkoToilets today include convenience stores, salons, shoe shine stations, and ATM’s. Not only was there a social and environmental impact with the introduction of IkoToilets, but David was able to change the way the Kenyans viewed these sanitation centers.
Along with cleaning the environment and promoting a safer community, each IkoToilet employs on average 10 people. By 2011, there were 34 IkoToilets throught 12 municipalites in Kenya, and they have reached 10 million people. This in terms of environmental impact is huge. David has one various awards and is currently expanding into Uganda.
Value Proposition: provide sanitation services to Kenya’s population. Only 50% of the population had access to proper sanitation services (Acumen, 2015). Create a culture of proper usage of sanitary facilities. Impact measures included amount of people that their services reach. Amount of usage per year. Customer service satisfaction in the use of surveys (currently they have a 67% satisfaction) (Karugu, 2011). "Ecotact strives to develop innovative answers to the growing environmental sanitation cry in Africa and globally." (ecotact, 2013)
Customer segments: Customers are the users of the facilities, people that if not for this service will have to solve using less sanitary means. The beneficiaries are the same customers and communities who see a cleaner environment and see diminishing health risks. Another segment that is benefited is the low income segment which this creates jobs for. Partners and investors include the municipalities, which allow them to use the land
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rent free for five years, acumen fund, Global Water Challenge, eabl foundation, Kepsa, Ashoka, Schwab Foundation, The Dutch Government, amongst others. (Karugu, 2011)
Channels: Since this is a service people need to walk to or have access to their IkoToilets.
With 34 units in 12 municipalities in Kenya, large communities have access to them.
Revenue stream: Their Initial Capital has come in the form of investment from various sources such as Ashoka and Schwab Foundation and awards like $200,000 from Global Water Challenge. As far as their revenue model is concerned, IkoToilet generate income from user fees ($0.06 for toilet usage and $0.125 for shower usage), advertising from different corporate clients, and rent from micro-entrepreneurs using their facilities to run businesses. This income covers operational and administrative costs. They are currently starting to franchise their model at $6,500 per franchise per year. They have 4 franchisees running 8 facilities. (Karugu, 2011) A facility earns on average $30,000.
Key Partners: The Government as well as NGOs such as Schwab Foundation and Ashoka.
Key activities: Creating of centers, leasing of store space, and management of a clean environment.
Key resources: financing as well as governmental help. Entrepreneur spirit.
Cost structure: Each IkoToilet facility needs a $25,000 investment. \
Surplus: from franchising and charging of services as well as leasing store space.
Type of intervention: Part of their impact starts with the image change that sanitation in Africa is having, especially in Kenya. Ecotact is making sanitation fashionable and clean.
Another one of the main impacts that IkoToilets have is the innovation aspect, which includes the complete “Dry-Toilet System,” a bio-digestion system and urine harvesting system, which saves water. It is estimated that 10,000,000 people have used an IkoToilet since its start in 2007, and the amount of urban pollution reduction and employment generated (260) is of significance.
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A large part of Nicaragua’s population suffers from malnourishment. LOMBRIABONO has the potential to close the unfair gap that has been created in food consumption encouraged by the differences in salaries and the price of the basket of goods.
3.2. Mission
LOMBRIBONO is an organization dedicated to bridging the food gap in Nicaraguan families while promoting recycling of food waste.
3.3. Vision
Start a recycling revolution in Nicaragua that will not only clean the environment, but will provide food to thousands of underprivileged Nicaraguan families. Have the LOMBRIBONO name represent a cultural change in Nicaragua where it is possible to make a business and help others at the same time; starting a social revolution in the process.
3.4. Objectives
3.4.1. General Introducing Nicaraguans to vermicomposting, assuring products of excellent quality meeting all the standards and nutrient content of a top fertilizer.
Make a big impact not only in the way Nicaraguans view recycling, but how they view social enterprises.
Alleviate those whose salaries are not enough to support their family’s consumption needs.
3.4.2. Specific
Be the number one brand of organic fertilizer in the country by the end of the third year.
Have four farms running vermicomposting centers by the end of the first year.
Start shipping to other Central American countries before the end of the fifth year.
Place LOMBRIBONO with the largest distributor of agriculture products in Nicaragua, DISAGRO as well as supermarket chains La Colonia, La Union, and Pali.