落後地區學齡前教育學校建立規劃書 - 政大學術集成

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(1)國立政治大學商學院國際經營管理英語碩士學位學程 International MBA Program College of Commerce National Chengchi University. 碩士論文政治. 大. 立Master’s Thesis. ‧. ‧ 國. 學 sit. y. Nat. 落後地區學齡前教育學校建立規劃書 n. al. er. io. IMPCT: Early childhood education in urban slums. Ch. engchi. i n U. v. Student: Andres Eduardo Escobar Lara Advisor: Dr. Shari S. C. Shang. 中華民國一〇四年六月 June 2015.

(2) 落後地區學齡前教育學校建立規劃書 IMPCT: Early childhood education in urban slums. 研究生：艾安禮. Student: Andres Eduardo Escobar Lara. 指導教授：尚孝純. 政治大國立政治大學. 學. ‧ 國. 立. Advisor: Shari S. C. Shang. ‧. 商學院國際經營管理英語碩士學位學程碩士論文. er. io. sit. y. Nat. A Thesis. n. a to International MBA Program Submitted iv l C n U NationalhChengchi University engchi. in partial fulfillment of the Requirements for the degree of Master in Business Administration. 中華民國一〇四年六月 June 2015.

(3) Acknowledgements First and most importantly thanks to GOD for giving me this IMBA opportunity and for letting me know I now have a mission to help others. This thesis would not have been possible without the love and support of a number of incredibly special people. This Social Enterprise startup is the result of thousands of hours of work with our amazing. 政治大. team IMPCT: Juan Diego, Taylor and Annung thank you for believing in me enough that I suddenly believed in myself. Big things are coming our way.. 立. Javier and Diego for cheering me up during stressful days.. 學. ‧ 國. To my mom and dad for always supporting me in all my crazy adventures. To my brothers. ‧. I acknowledge with thanks the invaluable support of my beloved friends Ness, Jose, Javier, Kim and all the IMBA classmates.. sit. y. Nat. io. the rest of my amazing professors, thank you all.. al. er. Professor Edward Chow, Professor Samuel Chen, Chester Ho, Jason Tsai, Jennifer Gao and. n. v i n C hmentor on a numberU of levels and has guided me through Professor Shari Shang has been my engchi more than just this thesis.. I am particularly grateful with my Taiwanese parents Frank Chang and Lichi Ho for always helping me with absolutely anything. On behalf of team IMPCT, sincere thanks to Hult Prize Foundation, FEPADE, FUSAL, TECHO, Casa Maternal, TCS, Taipei Angels, ICDF, La Prensa Grafica, El Diario de Hoy, Taiwanese Embassy in El Salvador, El Salvador Embassy in Taiwan, Marcela Hasbun, Valeria Lopez, Frida Cobar, Marcela Richardson and Sofia Avila.. ii.

(4) Abstract IMPCT: Early Childhood Education in Urban Slums By Andres Eduardo Escobar Lara Right at this moment, there are more than a hundred million kids under the age of six living in urban slums worldwide that are not receiving quality education. Research has shown that early childhood education (E.C.E.) from zero to six years is the. 政治大. critical and unmet need of this century. NGOs, governments and the private sector efforts have not been enough to solve this challenge. Social enterprises may be an effective option to. 立. address this issue.. ‧ 國. 學. Four students in the International Master of Business Administration program of National Chengchi University decided to tackle this issue and create a social enterprise called IMPCT.. ‧. Social enterprises are nonprofit or for-profit business ventures that strive to achieve a. y. sit. io. al. er. self-sufficient.. Nat. quantifiable double bottom line of financial and social returns. These ventures are financially. n. IMPCT is built on the idea that the only viable solution to the problem of urban slum early. Ch. i n U. v. childhood education is having safe and nurturing facilities for children to flourish in. This is. engchi. currently how the developed world handles early childhood education. More privileged families can take their newborns and babies to professional facilities where they get cognitive development and proper brain stimulations. IMPCT plans to make this privilege accessible to everyone in urban slums. Real ECE facilities will be built within the community for the community by the community. The kids will receive the proper quality education and nutrition in a safe and nurturing environment. IMPCT plans to begin the operations in August 2015 by building the first pilot school in the slums of San Salvador, El Salvador. The ultimate goal is to expand to the Central American countries, Mexico and South America reaching millions of children in the next decade. Keywords: Early Childhood Education, urban slums, social enterprise, educational daycares.. iii.

(5) TABLE OF CONTENTS Needs and current situation ............................................................................................. 1 1.1.. Early Childhood Education ........................................................................................ 1. 1.2.. Current Situation ........................................................................................................ 3. 1.3.. 1.2.1.. Micro: Early Childhood development ........................................................ 3. 1.2.2.. Macro: the missing link .............................................................................. 4. 1.3.1.. Macro: Impact Investment Platform ........................................................... 6. 學. 1.3.2. 2.. 政治大 Micro: Social 立 Enterprises ........................................................................... 5. Business Opportunity .................................................................................................. 5. ‧ 國. Company overview ................................................................................................... 7. ‧. Mission........................................................................................................................ 8. 2.2.. Vision .......................................................................................................................... 8. 2.3.. Objectives ................................................................................................................... 8. io. sit. y. Nat. 2.1.. n. al. er. 1.. i n U. v. 2.3.1.. Main Objective ........................................................................................... 8. 2.3.2.. Specific Objectives ..................................................................................... 8. Ch. engchi. 2.4.. Key success factors ..................................................................................................... 9. 2.5.. Brand and service overview ..................................................................................... 11 2.5.1.. IMPCT - Bringing the Necessary Capital: Human .................................. 11. 2.5.2.. IMPCT - Bringing the Necessary Capital: Knowledge (Building Solution) 12. 2.5.3.. IMPCT - Bringing the Necessary Capital: Knowledge (Curriculum) ...... 13. 2.5.4.. IMPCT - Bringing the Necessary Capital Financial: Capital (Microequity) 15. iv.

(6) 2.5.5. 2.6. 3.. The IMPCT Platform: A Revolutionary Microequity Platform ............... 16. Logo .......................................................................................................................... 18 Organization structure ........................................................................................... 19. 3.1.. Legal entity ............................................................................................................... 19. 3.2.. Governance ............................................................................................................... 21. 4.. People ....................................................................................................................... 23 4.1.. The IMPCT team ...................................................................................................... 23. 4.2.. Key Personnel ........................................................................................................... 25. 4.3.. Mentors ..................................................................................................................... 27. 4.4.. Supporters/partners .................................................................................................. 28. 4.5.. Organizational chart ................................................................................................ 29. ‧. ‧ 國. 學. Marketing Plan ....................................................................................................... 30. y. Nat. Market Analysis ........................................................................................................ 30. io. sit. 5.1.. 5.1.1.. Current Market Situation .......................................................................... 30. 5.1.2.. Target Market: characteristics and needs ................................................. 32. n. al. er. 5.. 立. 政治大. 5.2.. 5.4.. engchi. v. Marketing Strategy ................................................................................................... 33 5.2.1.. 5.3.. Ch. i n U. Product (service) ....................................................................................... 33. Pricing ...................................................................................................................... 34 5.3.1.. Placement.................................................................................................. 34. 5.3.2.. Promotion ................................................................................................. 36. Crowdfunding Campaign.......................................................................................... 37 5.4.1.. Indiegogo .................................................................................................. 37. 5.4.2.. Strategy ..................................................................................................... 38. 5.4.3.. Results ...................................................................................................... 39. v.

(7) Competitive Analysis .............................................................................................. 42. 6. 6.1.. Competitors .............................................................................................................. 42. 6.2.. Alternatives ............................................................................................................... 44. 7.. Social Impact assessment ....................................................................................... 47 7.1.. Social impact ............................................................................................................ 47. 7.2.. Assessment ................................................................................................................ 47. 8.. Risks ......................................................................................................................... 50. 政治大. 8.1.. Major risks ................................................................................................................ 50. 8.2.. How they are mitigated ............................................................................................. 51. 立. ‧ 國. 學. Conclusion ............................................................................................................... 55. 10.. Bibliography ............................................................................................................ 56. ‧. 9.. n. er. io. sit. y. Nat. al. Ch. engchi. vi. i n U. v.

(8) List of Figures and Tables Figure 1 Synapse pruning and formation ............................................................................... 1 Figure 2 Child development stages ......................................................................................... 2 Figure 3 Growth Map ............................................................................................................... 3 Figure 4 Children under Six living in Slums (in millions) .................................................... 4. 政治大. Figure 5 IMPCT Platform and target areas ........................................................................... 7. 立. Figure 6 The IMPCT Educational Daycare ......................................................................... 12. ‧ 國. 學. Figure 7 The IMPCT Platform website ................................................................................ 17. ‧. Figure 8 IMPCT logo.............................................................................................................. 18. y. Nat. io. sit. Figure 9 The IMPCT team ..................................................................................................... 23. er. Figure 10 Key personnel in a community ............................................................................. 25. al. n. v i n C chart 29 Figure 11 IMPCT organizational h e n................................................................................ gchi U Figure 12 IMPCT C.O.O. Andres Escobar in urban slum “El Sunza” and “San Isidro”, 2015 .................................................................................................................................. 32 Figure 13 Map of San Salvador, El Salvador ....................................................................... 35 Figure 14 Map of potential Educational Daycare location in “Cristo Redentor”, 2015 .. 36 Figure 15 Summary Statistics Indiegogo campaign ............................................................ 40 Figure 16 Amount raised vs. time .......................................................................................... 40. vii.

(9) Figure 17 Contributions vs. time ........................................................................................... 41 Figure 18 Countries by contribution..................................................................................... 41 Figure 19 Informal daycare in San Salvador ....................................................................... 44 Figure 20 Flowchart of social impact assessment ................................................................ 48 Figure 21 Social impact assessment guideline for country managers ................................ 49 Figure 22 IMPCT cycle of education for children, mothers and caregivers ..................... 54. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. viii. i n U. v.

(10) 1. Needs and current situation 1.1.. Early Childhood Education. Early Childhood Education refers to educational programs for children from birth to the age of six. A time of remarkable brain growth, these years lay the foundation for subsequent development. These years are considered the most vulnerable and crucial stage of a person's life. Early childhood education, for example, tries to guide children to learn how to think through guided play. Brain science shows that the neurons in the brain begin to activate and the synapses start to. 政治大 this is why we need to provide early childhood education. The normal process of brain 立 development resides in “pruning” and “neural proliferation”. A kid that did not receive connect on birth until the age of six (see Figure 1). This is why this period is so important and. ‧ 國. 學. stimulations and education in this critical period will need to make huge efforts to develop brain functions as they grow. Therefore it is very important to shape the brain in early years. ‧. when it is making millions of new connections or synapses per second.. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Figure 1 Synapse pruning and formation (Harvard “Core Concepts in the Science of ECE”, 2012) The years from 0 to 6 are essential for future learning. During this period (see Figure 2) a child slowly develops sigh, hearing, receptive language and speech. The brain is developing fast because it is learning executive functions like: working memory and self-control, higher. 1.

(11) cognitive functions like solving puzzles, fine motor skills like picking up objects and writing, and, gross motor skills like walking and running. A holistic solution must address the needs of kids at different stages:. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Figure 2 Child development stages (Harvard “Core Concepts in the Science of ECE”, 2012) Giving education earlier in life will provide lifetime positive returns. As seen in Figure 3, the difference as the result of not receiving ECE. Kids are less prepared for primary school, high school and the work life. This is a vicious cycle for the less fortunate living in urban slums.. 2.

(12) 立. 政治大. ‧. ‧ 國. 學 Figure 3 Growth Map. y. Nat. Current Situation. n. a. l C development 1.2.1. Micro: Early Childhood. hengchi. er. io. 1.2.. sit. (Harvard “Core Concepts in the Science of ECE”, 2012). i n U. v. More than a hundred million children aged zero to six living in urban slums (See Figure 4) are not getting the proper quality education to be prepared for primary school and to be competitive in life. In 2014, around 1.3 billion people in third world countries lived with less than US$3 per day. It is obvious that less fortunate kids experience more difficulties compared to privileged higher income families: the level of language skills and even health is significantly different. It is a fact that education can eliminate the poverty cycle and is a factor to improve people’s lives.. 3.

(13) 政治大. 立. Figure 4 Children under Six living in Slums (in millions). ‧ 國. 學. (2015 population reports from the UN). Unfortunately, according to an IXL Center study in October 2013, most parents and informal. ‧. care givers do not provide proper ECE. Parents believe that for babies, a home, food and love are enough for child development and education will be provided by other institutions in later. y. Nat. sit. years. Limited money and time makes it hard for parents to give their kids ECE even if they. al. er. io. would like to. They just have to decide whether to go to work and make some extra money or. n. stay at home and be full time parents.. Ch. engchi. i n U. v. Government, NGOs and private sector efforts are not enough to solve this problem. For instance governments focus mostly in primary and secondary education. In most developing countries nothing is being done for ECE (IXL study, 2013). Secondly, NGOs offer better alternatives but are simply not scalable ones. Lastly, private sector can provide high-quality ECE alternatives but are way too expensive for these people to afford.. 1.2.2. Macro: the missing link On another note, having so many problems in the world doesn’t mean that there are thousands or millions of people with good intentions wanting to help the less fortunate. Every day people are bombarded with bad news all around the world: wars, natural catastrophes, terrorism, rapes, gangs, global warming and environmental issues. There are currently many. 4.

(14) NGOs working and fighting restlessly to relieve them with the help of social conscious people. An example would be the earthquake in Nepal in 2015 (U.N. report, May 2015): huge tangible losses and more than 8000 deaths. However, the whole world was informed about it and people came to the rescue. International aid agencies like Médecins Sans Frontières (Doctors Without Borders) and the Red Cross were able to start medically evacuating the critically wounded. Volunteers helped plan emergency aid work, UNICEF appealed for donations and NGOs from all over were doing their best to help. These are all examples of people having the good will to help. So we have on one side the people with money wanting to help and on the other hand people. 政治大. without money in need of opportunities. The problem is that many times people don’t know. 立. how to help or, even worse, they don’t know where their money goes. It can even be said that. ‧. 1.3.. ‧ 國. relies.. 學. sometimes there’s not even a channel to connect them both. This is where the opportunity. Business Opportunity. y. Nat. 1.3.1. Micro: Social Enterprises. io. sit. According to a study by UNESCO, (EFA Global Monitoring report, 2013) if we could make. n. al. er. all kids from third world countries have a decent and basic level of reading, 172 million. i n U. v. people could be lifted out of poverty, this represents a 13% cut in worldwide poverty. The. Ch. engchi. same study showed that for every additional year of school, a child can increase his lifetime earnings by 11%. Moreover this can even increase the average annual gross domestic product (GDP) by 0.8%. Every dollar invested in ECE provides an incredible social impact in return on investment of $7 to $13. Social enterprises may be an effective alternative to address this problem. In fact, a social enterprise delivers both social impact and business profit that assures sustainability and scalability. They provide social impact by significantly improving the education of the less fortunate. Social enterprises can be of two forms: for-profit or not-for-profit. But, their goal is to use a pricing strategy and a one of a kind business that will create a sustainable, consumerdriven or partner-driven business. This is key to eliminate the problem of depending on donations.. 5.

(15) 1.3.2. Macro: Impact Investment Platform In more general terms, to address the problem of the gap between people who want to help and people who need financial opportunities, innovators need to think on how to link them together. A financial intermediary could solve this. By definition, a financial intermediary is an institution, such as a bank, building society, or unit-trust company, that holds funds from lenders in order to make loans to borrowers. The problem is that there is no interest for people to just lend money to these less fortunate people. If there could be something better, something that would provide not only a return on investment but a social return on investment, it would be a more interesting option. This is where the idea of “impact investing”. 政治大 funds with the intention to generate a measurable, beneficial social or environmental impact 立 alongside a financial return". Corporate Social Responsibility has been getting popular. emerges. Impact investing refers to investments "made into companies, organizations, and. ‧ 國. 學. recently but no one has heard of Personal Social Responsibility. It sounds like these are companies wanting to make these investments but it would be better to create a tool for. ‧. individuals anywhere in the world to make these kind of impact investments. Impact investors are primarily distinguished by their desire to solve social and environmental challenges. y. Nat. sit. through their distribution of capital. The issue is the “how” they will make these investments. al. er. io. into people that are excluded from society. This business plan proposes a Social Enterprise. n. named IMPCT with a platform that links conscious investors with capable entrepreneurs in urban slums.. Ch. engchi. 6. i n U. v.

(16) 2. Company overview IMPCT social enterprise proposes to build a network of ECE school businesses that are operated by the community, but globally owned. This will be done through the first-of-itskind education impact investment platform. The platform will allow individuals anywhere in the world to make easy, direct and personal investments in the sustainable education businesses of talented people in urban slums.. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Figure 5 IMPCT Platform and target areas IMPCT will transform that investment into quality ECE schools with our unique contextappropriate building, curriculum, and teacher training solutions. The investors around the globe will become stakeholders in urban slum education and IMPCT’s profit-sharing model will bring all stakeholders together to create a positive education investment cycle.. 7.

(17) 2.1.. Mission. Help finance, build, and run quality early learning education businesses in urban slum communities across the world by leveraging the power of micro equity through our revolutionary impact investment platform.. 2.2.. Vision. A world where individuals anywhere can frictionlessly become stakeholders in urban slum education projects improving the life of millions.. 2.3.. Objectives. 2.3.1. Main Objective. 立. 政治大. The main objective is to start operations in El Salvador and Honduras in 2015. Among all the. ‧ 國. 學. countries that could be chosen, IMPCT selected these two because the members are well connected thanks to Juan Diego Prudot and Andres Escobar. Two IMPCT team members have. ‧. lived their whole lives there and have a solid network of people ranging from education, lawyers, politicians, entrepreneurs, media and designers. IMPCT will continue to build more. Nat. sit. y. schools in different urban slums in these two countries but at the same time start the. er. io. expansion plan through Central America. Thanks to the IMBA program and these years studying in Taiwan the IMPCT team has good contacts in Nicaragua, Guatemala, Belize,. n. al. Ch. i n U. v. Costa Rica and Panama. Nevertheless, the ultimate goal is to reach Mexico and Brazil where. engchi. there are millions of people who need them. The opportunity in these countries are endless since through the platform the IMPCT team plans to help the less fortunate not only with education but also with healthcare and other services in the future.. 2.3.2. Specific Objectives More specifically IMPCT plans on starting in the capital of El Salvador, San Salvador. The two biggest NGOs in education, FEPADE and FUSAL, have been contacted. A research trip to El Salvador was made in January 2015 and they helped access some of the communities in the urban slums to interview community leaders, mothers and teachers. These partners will save IMPCT years of experience so they can go directly into solving the ECE problem. The way the “IMPCT Educational Daycares” are going to be built is to first go to a carefully. 8.

(18) selected community and talk with the leader. Then meet with him so he can help IMPCT identify potential “edupreneurs” (education entrepreneurs) who would be willing to run and own one “IMPCT Educational Daycare”. Once the edupreneurs agrees, they will be listed on the IMPCT Platform (www.impct.co) with the details of his project. Example of a project listed in IMPCT website: Maria Perez, 36 years old. Needs $14000 dollars to build an IMPCT Educational Daycare in the urban slum “El Ladrillo”. She will have two caregivers working with her (employees or volunteers) and they will receive 20 kids per day.. 政治大 From here, any investor around the world will access the website and decide to invest in 立 Maria. Once her target funding is met, IMPCT will go to the slum “El Ladrillo” and start. ‧ 國. 學. building her Educational Daycare with local labor creating jobs for everyone. While the Educational Daycare is built IMPCT will train Maria and her caregivers with a unique. ‧. curriculum in order for them to provide quality ECE and basic handling of the money generated from low cost tuition.. sit. y. Nat. Key success factors. io. Four key success factors for IMPCT to be successful arose:. n. al. Success Factor 1:. Ch. engchi. er. 2.4.. i n U. v. Make people understand the unique value proposition. It needs to clarify the specific problem IMPCT is solving and quickly explain the compelling reason why the solution is the best one. In fact IMPCT has two target markets to take care of: first, the main service will be the platform so the value proposition to investors around the world has to be stated clearly. Second, the value proposition to the people living in the communities needs to be stated clearly also. They need to understand the value of bringing their kids to IMPCT Educational Daycares and most of all the long term benefits.. 9.

(19) Success Factor 2: Legality. Building in urban slums is more than just a practical challenge, there are often a lot of legal problems as well. Land rights and ownership is a big problem in urban slums all around the world. Without land rights, slum residents live in fear of eviction and will not invest in their houses. This has been an integral part of the "Cities Without Slums" action plan, endorsed by the 150 heads of state and governments attending the UN Millennium Summit in September 2000, and is reflected in the United Nations Millennium Declaration (A/RES/55/2). Thanks to. 政治大 efforts from governments and other institutions, legal and regulatory policies are continuously 立 programs such as UN-Habitat, Cities Alliance, Slum Dwellers International and increasing being updated. By involving NGOs, private sector, and raising awareness of individuals. ‧ 國. 學. around the world, IMPCT becomes a strong voice in favor of slum residents and continuously seek their advocacy with local governments to tenure options.. ‧. Success Factor 3:. sit. y. Nat. Invest in marketing since early stages to clarify our value proposition, message, and. io. n. al. er. defendable points of differentiation with other charities. In fact many investors have the. i n U. v. option to either donate, invest or lend. IMPCT wants to convince them that they are the best option out of the three.. Ch. engchi. In the slums, the best way to market IMPCT is by word of mouth. We are talking about children here and not a product, so the best most effective way to reach more people is with the help of mothers recommending our services. Finally IMPCT will need the help from many volunteers ranging from high schools, universities and team companies. This will be a little bit tricky since not only IMPCT wants quantity but quality, people who really want to help efficiently.. 10.

(20) Success Factor 4: Caregivers and teachers: in order to guarantee the quality of the IMPCT education curriculum IMPCT needs to train and empower people in the community to become caregivers. These are adults that care for infants or children who have been trained at least 80 hours by IMPCT employees in one of the city offices. It is crucial to pay detailed attention to this part of the whole process since we are dealing with kids. IMPCT has a tremendous responsibility by taking care of children. Teachers and caregivers are trained to provide age-appropriate engagement tools and how to teach to a child’s rapidly changing level of development. They are co-creators of knowledge along with children. They guide play, ask open-ended question,. 政治大. and lead dramatizations or role playing stories. They also engage in positive interactions with. 立. children to stimulate their developing minds and fuel their curiosity and motivation to learn.. ‧ 國. 學. 2.5.. Brand and service overview. 2.5.1. IMPCT - Bringing the Necessary Capital: Human. ‧. Human capital is the answer to the “who” of urban slum ECE. Who will build and run these. y. Nat. schools and who will be the teachers/caregivers. The field research trip to El Salvador was an. io. sit. eye-opener. Andres Escobar interviewed many mothers who were willing to pay $1-$4 a day. n. al. er. for daycare. These mothers didn’t know how to really educate the kids they looked after but. i n U. v. they sure had the motivation and spirit of an entrepreneur. So the team thought why not make. Ch. engchi. these informal daycares formal. They could run our Educational Daycares and IMPCT could train them.. When Andres asked them why they didn’t upgrade their informal daycares and they all gave similar answer. They didn’t have any kind of training, no time, no space and most importantly no money. So basically the human capital required to run successful Educational Daycares was there, IMPCT just needed to help them out with knowledge and financial capital. IMPCT plans on having field agents hired from these communities to operate as liaisons. They will be in charge of identifying potential edupreneurs. Once these edupreneurs’ projects are up and running, our field agents conduct regular follow-up visits to make sure they have everything they need to succeed.. 11.

(21) 2.5.2. IMPCT - Bringing the Necessary Capital: Knowledge (Building Solution) Building anything in urban slums is very difficult. There are legal problems, acquiring permits can be time consuming or impossible, and even something as simple as accessing the site can be dangerous. The space is very limited in the slums, lots can be as small as 5x4 meters in some of the more crowded communities. IMPCT has worked extremely hard to develop the best solution appropriate to these areas. Architect, Frida Rebeca Cobar, is a working professional with a Masters in Architecture. Her Master’s thesis was on building sustainable low cost slum housing in her native El Salvador.. 政治大. The team worked with her, an experienced Salvadoran civil engineer, and a Latin-American NGO called TECHO, to develop an “incremental building” solution.. 立. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Figure 6 The IMPCT Educational Daycare “Incremental building” is a flexible and affordable method used by people living in urban slums around the world. What IMPCT does is to take an existing one-floor house and build a. 12.

(22) second floor Educational Daycare at a low cost. The full price for an Educational Daycare 5x8m and residence is just over $15,000. In El Salvador, IMPCT will have volunteer labor and construction management by collaborating with local universities. IMPCT also already has offers to subsidize more than 50% of materials for the first 10 projects in that country. IMPCT will continue this while expanding to Latin America and get the average project cost down to $7,500 and much less for residences that only need refurbishing.. 2.5.3. IMPCT - Bringing the Necessary Capital: Knowledge (Curriculum) Having a good curriculum is essential to ensure positive educational outcomes. It prepares the. 政治大. kids for primary school, skills development, and behavioral control for children. The curriculum is influenced by the educational philosophy of Brazilian Paulo Freire.. 立. ‧ 國. 學. Freire has vast experience in Brazilian slums. Kids living in urban slums are often surrounded by an oppressive environment. Therefore IMPCT seeks to inspire children to question their surroundings and develop self-confidence.. ‧. Moreover, mothers will undergo 50 and 100 hours of training to be able to use guided-play,. y. Nat. sit. use stories that pose problems and active learning to instill in children the values of empathy,. n. al. er. io. social justice and collaboration.. i n U. v. Each of the IMPCT Educational Daycares will specialize in an age group, either 0-3 or 3-5. Ch. engchi. years old. Teachers and caregivers are trained to provide age-appropriate content. This way, IMPCT can promote socialization between children of different ages; younger children are inspired to do more advanced work after observing older ones and they, in turn, learn through teaching and helping the younger ones. Application examples Well-chosen stories and picture books will be employed. By using a simple story and the appropriate questions, significant themes like tolerance and equal worth are raised along with children. Instilling these values early in life helps reduce the chance for them to join gangs in the future.. 13.

(23) A practical application of this is reading the children’s book Hair (Kate Petty, 2006) which shows pictures of people from all around the world and descriptions of the way they wear their hair. Afterwards, having children in a circle and asking them to describe their own hair, their parent’s hair and anyone they know that uses the hair in a similar way the people in the picture do. This activity will raise questions about others hair color or style, allowing the teacher to address subject of cultural differences and choices. Teachers can guide children to recognize stereotypes and perceptions of gender. A way this can be done is through images of diverse role models and that regardless of their gender excel at an art, sport or have been presidents. This can spark conversation and questions from. 政治大. children which can be used to promote anti-bias attitudes.. 立. Sample schedules: A typical IMPCT Schedule will look like this.. ‧. ‧ 國. 學. Toddler childcare. Nat. al. n. 9:00-9:10. sit. welcome song. er. io. 8:00-9:00. Arrival, greeting properly and singing. y. 6:30-8:00. Breakfast and brushing teeth. C Group h e nplay gchi. i n U. v. 9:10-10:10. Reading a Story. 10:10-10:45. Building objects with cardboard. 10:45-11:10. Washroom. 11:10-12:10. Lunch and brushing teeth. 12:10-2:10. Rest. 2:10-2:45. Washroom. 2:45-3:15. Snack. 14.

(24) 3:15-4:00. Guided play. 4:00-4:30. Talk about family. 4:30-5:00. Prepare for Departure. Preschool childcare 6:30 – 7:00. Arrival, greeting properly and opening. 政治大 Vocabulary practice routines. 7:00 – 8:00. 立. Cooperative problem solving. 9:30 – 10:30. Fine motor skill exercises. 10:30-11:10. Washroom and prepare for job. Rest. n. al. er. 12:10 – 2:10. io. Lunch and brushing teeth. 2:10-2:45. Ch. sit. Nat. 11:10-12:10. y. ‧. ‧ 國. 學. 8:00 – 9:30. Washroom. engchi. i n U. v. 2:45-3:15. Snack. 3:15-4:00. Use quiet materials individually. 4:00-4:30. Daily reflections. 4:30-5:00. Numbers activities. 2.5.4. IMPCT - Bringing the Necessary Capital Financial: Capital (Microequity) The IMPCT team came up with the revolutionary idea to allow anybody, anywhere the ability to invest in our talented edupreneurs. IMPCT named this concept “microequity”; small amounts of capital invested in projects that yield both social and financial return on. 15.

(25) investment. IMPCT uses microequity to build schools that are community run, but globally owned. Investors contribute 100% of the financial capital to build our schools and in return receive 33% of the microequity in those businesses. They receive a quarterly dividend equivalent to that share of the school’s profits to reinvest in more great projects. The team has spent time and resources working out a legal conception of microequity that doesn’t fall prey to the existing regulatory framework that makes this all but impossible. Regulations around registered investors, reporting requirements and investment solicitation. 政治大 for “microequity”. IMPCT has worked closely with Chris Thomas, lawyer and CEO of 立. were all designed with more traditional equity financed projects in mind but make no sense Eureeca (the world’s largest crowdequity platform) and have a clear path forward to make. ‧ 國. 學. microequity investments on the IMPCT platform completely frictionless for investors everywhere.. ‧. 2.5.5. The IMPCT Platform: A Revolutionary Microequity Platform. y. Nat. sit. The IMPCT platform is completely unique in that it enables people anywhere to make small. er. io. microequity investments in education projects around the world. This platform is essentially. al. offering customers (investors) a better alternative to charitable giving. Investors are able to. n. v i n choose people, projects, and places care about and invest in them. C that h ethey ngchi U. First, IMPCT takes an active approach in building and managing projects, ensuring they realize their full social and financial ROI. Second, because IMPCT distributes ownership amongst the edupreneurs, the investors, and IMPCT the team aligns the interests of all relevant stakeholders in a positive way. IMPCT gives people everywhere a social and financial reason to care about education outcomes in urban slums and the IMPCT platform generates massive awareness about the problems affecting these communities. Third, the lowcost nature of these equity investments ensures that any project will a potentially positive financial ROI can be viably funded. Investors are rewarded with a dual financial and social ROI for their investments.. 16.

(26) The platform has two main goals; enabling impact investments into education and building a community of investors to serve as advocates for important developing world social issues.. 立. 政治大. ‧. ‧ 國. 學 Figure 7 The IMPCT Platform website. sit. y. Nat. io. . al. v i n C h opportunities. All Research potential investment e n g c h i U edupreneurs listed on the platform n. . er. The IMPCT platform core functionality - a positive investment cycle: Create and fund your platform account with a choice of payment options.. will have full biographies and details about their proposed projects. . Choose the investment amount.. . Wait for your project’s target to be hit. Once it is, IMPCT takes that capital and starts. its project development process. . Collect quarterly dividends from projects you’ve successfully funded. These are. credited back to an investor’s platform account. They can choose to retain or re-invest these proceeds. . Receive updates on the school someone co-owns. IMPCT will keep investors up to. date on everything from construction progress, to classroom pictures, to basic financial statements.. 17.

(27) The IMPCT platform secondary functionality - social and mentorship features: . Connect with other like-minded investors using our social features.. . Investment “leaderboards” show off the platform’s top investors while an investor’s platform profile shows off all the powerful investments he has made through IMPCT.. . Find and connect with people around the world based on the causes you care about.. . Share updates with your friends with an on-platform social feeds or directly to. 政治大. followers on Twitter or Facebook.. 立. Logo. 學 ‧. ‧ 國 io. sit. y. Nat. Figure 8 IMPCT logo. n. al. er. 2.6.. Ch. engchi. 18. i n U. v.

(28) 3. Organization structure 3.1.. Legal entity. IMPCT will incorporate as a normal business in Taiwan with a standard ownership structure at least at the beginning. The team believes Taiwan and Asia have a lot of potential investors and there is too much competition in the U.S. and Europe. Taylor, Annung and JD will stay in Taipei looking for investors and Andres will be in charge of operations in Latin America. However there are some legal structures that the team is interested in especially L3C. L3C. 治政 Many social entrepreneurs have been faced with choosing 大between traditional non-profit and 立 of which perfectly fit the myriad their organization’s goals for-profit legal structures, neither ‧ 國. 學. and needs. The L3C has become an increasingly popular legal structure for social entrepreneurs that want to put mission first and profits second. According to Americans for. ‧. Community Development, "the L3C is a new form of limited liability company (LLC) which combines the best features of a for-profit LLC with the socially beneficial aspects of a. Nat. er. io. sit. y. nonprofit. It is the for-profit with a nonprofit soul".. L3Cs are for-profit organizations that pay tax on profits and cannot receive traditional grants. n. al. i n U. v. or tax-deductible charitable contributions. However, L3Cs are designed to receive private. Ch. engchi. foundation support, government funding, and traditional investment capital. This is accomplished by: “The low-profit, limited liability company, or L3C, is a hybrid of a nonprofit and for-profit organization. More specifically, it is a new type of limited liability company (LLC) designed to attract private investments and philanthropic capital in ventures designed to provide a social benefit. Unlike a standard LLC, the L3C has an explicit primary charitable mission and only a secondary profit concern. But unlike a charity, the L3C is free to distribute the profits, after taxes, to owners or investors”. (Americans for Community Development, 2014) Americans for Community Development further explains the structuring benefits of an L3C:. 19.

(29) “[The L3C] also facilitates tranched investing with the PRI usually taking first risk position thereby taking much of the risk out of the venture for other investors in lower tranches. The rest of the investment levels or tranches become more attractive to commercial investment by improving the credit rating and thereby lowering the cost of capital. It is particularly favorable to equity investment. Because the foundations take the highest risk at little or no return, it essentially turns the venture capital model on its head and gives many social enterprises a low enough cost of capital that they are able to be self sustainable.”. 治政大 non-profit bloggers and how popular the concept has become with social entrepreneurs, 立 organizations, some politicians and many attorneys. However, there are a number of cautious However, there are some difficulties. A simple internet search on the L3C will quickly reveal. ‧ 國. 學. voices as well.. ‧. First, attorneys Daniel Kleinberger and J. William point to the failure of L3C lobbyists to convince the federal government to view L3C investments as automatically qualifying as. n. al. er. io. sit. y. Nat. PRIs.. i n U. v. Second, attorneys raise concerns over the “tranched investment” structure of the L3C and note. Ch. engchi. the potential of non-charitable investors receiving non-profit tax exempt privileges if the L3C is not structured carefully.. Third, the authors question the branding capacity of the L3C in light of the first two concerns that the L3C has no legal or market substance. Finally, and most importantly, the authors question how the required L3C language providing that “no significant purpose of the company can be the production of income or the appreciation of property” can work with tranched investing. It is prudent and understandable to be hesitant regarding jumping on the L3C bandwagon just because it is the newest and most exciting legal structure to come along in a decade. However, the momentum behind the L3C movement is such that it has gained substantial lobbying. 20.

(30) power and will be able to continue pressuring the IRS to designate L3C investments as PRIs. As it gains more widespread acceptance, the L3C will likely help social ventures access billions of dollars from private investors looking for social return and foundations looking to invest their five-percent charitable minimum through PRIs. While the L3C is not the right structure for every social venture, it is a powerful and innovative legal solution that will be an important part of social entrepreneurship achieving more rapid growth and widespread recognition.. 3.2.. Governance. 政治大. The team believes a holistic corporate governance needs to fulfill these principles: . 立. Rights and equitable treatment of shareholders: the rights of shareholders will be. ‧ 國. 學. respected. The IMPCT team will help shareholders exercise their rights by openly and effectively communicating information and by encouraging shareholders to participate in general meetings.. ‧. Interests of other stakeholders: it is recognized that IMPCT has legal, contractual,. y. Nat. . sit. social, and market driven obligations to non-shareholder stakeholders, including employees,. er. io. investors, creditors, suppliers, local communities, customers, and policy makers.. al. v i n C h management performance. understanding to review and challenge It also needs adequate size engchi U and appropriate levels of independence and commitment.. Role and responsibilities of the board: The board needs sufficient relevant skills and. . Integrity and ethical behavior: Integrity will be a fundamental requirement in choosing. n. . corporate officers and board members. IMPCT will develop a code of conduct for their directors and executives that promotes ethical and responsible decision making. . Disclosure and transparency: IMPCT will clarify and make publicly known the roles. and responsibilities of board and management to provide stakeholders with a level of accountability. The team will also implement procedures to independently verify and safeguard the integrity of the company's financial reporting. . Responsibilities of the board of directors. 21.

(31) . Board members should be informed and act ethically and in good faith, with due. diligence and care, in the best interest of the company and the shareholders. . Review and guide corporate strategy, objective setting, major plans of action, risk. policy, capital plans, and annual budgets. . Select, compensate, monitor and replace key executives and oversee succession. planning. . Ensure a formal and transparent board member nomination and election process.. . Ensure the integrity of the corporations accounting and financial reporting systems.. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. 22. i n U. v.

(32) 4. People 4.1.. The IMPCT team. The team is composed of four friends from the NCCU Taiwan IMBA program who, sixth months ago, decided to start an incredibly journey to help the world's poorest children. The team believes that experience and cultural diversity are key factors in the success of a social enterprise. With over 20 years of combined relevant experience and four very different backgrounds the team has what it takes.. 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Figure 9 The IMPCT team AN-NUNG CHEN - TAIWAN - 29 Ann was born in Taipei, Taiwan where the rest of the team were lucky enough to meet her. She has multiple degrees, including an MFA from the Academy of Art University in San Francisco. She has years of experience in operations, running one of Taiwan's largest food importers and wholesalers. Ann knows the value of operational efficiency and will help IMPCT implement its low cost resource sharing model.. 23.

(33) TAYLOR JOHN SCOBBIE - CANADA - 28 Taylor is from Calgary, Canada where he studied dual Finance and Philosophy undergraduate degrees. Taylor has experience in strategy, IT, and web marketing consulting. He will be using these skills to effectively scale IMPCT's business throughout the world and build a vibrant community on the IMPCT platform. JUAN DIEGO PRUDOT - HONDURAS - 28 Juan Diego is from Tegucigalpa, Honduras. He is a software engineer by education with 10+. 政治大 in rural areas. JD will be using his deep knowledge to ensure successful development of the 立 revolutionary IMPCT investment platform.. years of experience in IT project implementation for local banks and microfinance institutions. ‧ 國. 學. ANDRES ESCOBAR - EL SALVADOR - 28. ‧. Andres comes from El Salvador and studied business management at Louisiana State. y. Nat. University, USA and Jean Moulin University in Lyon, France. Andres brings incredible field. sit. experience working for major telecoms in urban slums across Latin America and Africa.. er. io. Andres has done all of IMPCT's graphics, videos, and branding. He also has a deep. al. n. v i n C h developed in each ensure IMPCT's schools are responsibly e n g c h i U target community.. appreciation for the necessity of a solution to be culturally appropriate so will be helping. 24.

(34) Key Personnel. ‧. Figure 10 Key personnel in a community. io. sit. y. Nat. Teachers. 學. ‧ 國. 立. 政治大. er. 4.2.. al. n. v i n Ch the government. IMPCT will offer 100-200 i U sessions for a mother to become an e n ghour c htraining. The IMPCT team calls them teachers but they won’t actually have a recognized diploma by IMPCT teacher. Of course there will be requirements to apply for this and tests to pass in order to guarantee the quality of education. Every Educational Daycare will have at least one teacher and 2 to 4 caregivers depending on the size. He will not only be in charge of the educational part but also work with the edupreneur with basic management. The edupreneur could also be the teacher if he desires. Caregivers Like mentioned before, mothers will undergo 50 and 100 hours of training to be able to use guided-play, use stories that pose problems and active learning to instill in children the values of empathy, social justice and collaboration.. 25.

(35) Each of the IMPCT Educational Daycares will specialize in an age group, either 0-3 or 3-5 years old. Caregivers are trained to provide age-appropriate content. This way, IMPCT can promote socialization between children of different ages; younger children are inspired to do more advanced work after observing older ones and they, in turn, learn through teaching and helping the younger ones. Field Agents IMPCT Field agents are the foot soldiers of the model. They will be hired from within the community because they will be known and recognized by the people in this area. This is. 政治大 IMPCT is going to have someone going door by door visiting people and talking to them, they 立 because trust is critical for this kind of job. Mothers are by nature extremely protective so if need to be trustful and preferably a community leader. Their job is going to be to identify. ‧ 國. 學. potential edupreneurs within the community. They will hopefully become the ones running the future IMPCT Educational Daycares.. ‧. Architect. sit. y. Nat. In order to build the Educational Daycares in a city/country IMPCT will need an architect and. io. n. al. er. an optional civil engineer to be in charge of the construction. Even if the building will be. i n U. v. quite simple IMPCT still needs constant supervision and someone to talk with material donors (or people subsidizing them).. Ch. engchi. Head of Education Even if IMPCT wants to empower communities to run their own Educational Daycares, they still need to be guided with the help of professionals. IMPCT plans on working with local universities, especially with educational backgrounds, to help with the curriculum application and monitoring. They will be in charge of training every teacher in the assigned area.. 26.

(36) 4.3.. Mentors. Taipei Angels Taipei's premiere VC group has helped IMPCT since the early stages of IMPCT with mentorship. They allowed the team to pitch for them and have been paying attention to detail with constructive criticism. Also, with their help and network the team was able to have interviews on TV, radio and many newspapers in Taiwan. Professors. 政治大 by Professor Edward Chow in his class of “Case studies in Entrepreneurship”. Classes like 立 Strategic Management, Global Marketing, Management of Information Systems, Financial The IMBA professors were extremely helpful and supportive. The IMPCT team was inspired. ‧ 國. 學. Management, International Business Modeling and other ones have brought tremendous learning opportunities for the team. Many of them also helped with their extensive network to. Nat. sit. y. Crowdfunding expert. ‧. attract more investors and people in general who want to help.. er. io. Based in Dubai, Eureeca, an investment crowdfunding platform (Website: www.eureeca.com),. al. n. v i n C h fully funded. UTotal raised to date stands at over $1 startups – seven of which have become engchi. has been a source of inspiration for us. Since their launch last year Eureeca has posted 14 million. The team talked with the CEO, Chris Thomas, and he gave valuable advice and opened the team’s eyes on the different legal concerns and infrastructure that awaits. Former World Bank Managing Director The team was lucky enough to have a meeting via skype with the former Managing Director of the World Bank, Juan Jose Daboub. He is Salvadoran so he was quickly interested in the project and connected the team with some very influential people in Central America ranging from Government, Construction, Banking and NGOs. This was all thanks to one single call the team had with him. The teams plans to meet with him in September 2015 personally and pitch to him and his team.. 27.

(37) 4.4.. Supporters/partners. FUSAL FUSAL is an El Salvadoran NGO committed to helping social entrepreneurs who have a human development mission. They are IMPCT’s gateway to urban slums in El Salvador and will be working beside the team for every school built there. During the research trip they kindly opened their doors to IMPCT and have helped immensely. They provided IMPCT with a field research team of 3 members and took Andres to the community of San Isidro, 45 minutres away from the capital San Salvador. When Andres got there he talked with. 政治大. community leaders and interviewed 20 mothers and got some valuable insights on their needs and concerns.. ‧ 國. 學. FEPADE. 立. El Salvador’s biggest education NGO, they were the first ones IMPCT contacted and. ‧. provided the team with great feedback on the first business model. It was thanks to them that the team had to reinvent it and improve it greatly. It is great to have four MBA students come. y. Nat. sit. up with an innovative idea but when you talk to people with over 30 years of experience you. er. io. quickly realize you need to make a lot of adjustments. They’ve provided valuable feedback on. al. localizing the unique curriculum to Latin American slum contexts. They also provided. n. v i n IMPCT with a team of 2 peopleCand a pickup so Andres h e n g c h i U could go to a government school named “El Sunza”. Here he saw the big difference between 5 year old kids who were ready for school and the ones that were simply not prepared at all. Here is where the opportunity relies. FEPADE belongs to a vast Latin-American educational network that will be IMPCT’s gateway to expand in several countries. TECHO Latin America’s largest NGO builder. IMPCT is working together to build an updeveloped solution to the challenge of building schools in urban slums. They have an intervention plan. 28.

(38) that is proven to work in different countries. The team is planning on using one of their already established areas to build the first IMPCT Educational Daycare in September 2015.. Organizational chart. 立. 政治大. 學 ‧. ‧ 國. Figure 11 IMPCT organizational chart. io. sit. y. Nat. n. al. er. 4.5.. Ch. engchi. 29. i n U. v.

(39) 5. Marketing Plan 5.1.. Market Analysis. 5.1.1. Current Market Situation Again, this part has to be divided into the Investors market (macro) and the mothers market (micro). First, the current market situation of people helping others (impact investments, donations, lending) is mostly concentrated in donations and lending. Millions of dollars are donated every year to thousands of NGOs around the globe. The same thing can be said with lending: websites like Kiva (Website: www.kiva.org) offer anyone the opportunity to lend money to less fortunate but capable people in developing countries to launch their personal. 政治大. projects. By definition, “Impact investments” are investments made into companies,. 立. organizations, and funds with the intention to generate measurable social and. ‧ 國. 學. environmental impact alongside a financial return.. The amount of funds in impact investing has grown rapidly in the last five years. The Monitor. ‧. Group, a research firm, estimated in 2009 that the impact investing industry could grow from. y. sit. io. er. may. Nat. around US$55 billion in assets to US$600 billion in assets in the next ten years. This capital. be in different forms like debt, equity, working capital lines of credit and loan guarantees.. n. al. Ch. i n U. v. This growth is explained by the many critics of traditional forms of philanthropy and. engchi. international development characterized by the lack of sustainability and only driven by the goals of the corresponding donors. On the other hand, to talk about the current market situation of the micro side of the business plan: parents in urban slums. Unfortunately, data is very limited in El Salvador but some data was provided to IMPCT team.. 30.

(40) 立. 政治大. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. By looking at these two tables and the highlighted data some valuable insights from the capital of San Salvador and the country itself can be obtained. As mentioned before, IMPCT plans on launching the pilot school here. This is for several reasons, one of them being the opportunity in terms of demographics. In fact, 63% of the population is urban, out of this around 10% live in urban slums. Also, 6.3% of homes in San Salvador don’t have a floor, it is. 31.

(41) simply dirt. Moreover, 70% of women depend on their husbands or fathers economically. This means that if their husbands leave them (extremely common in these countries), they have to watch over their kids and try, somehow, to work. However, the most interesting data is the high rate of school attendance level of 85% (country level). This tells us that, given the opportunity, people make an effort to send their kids to school and push them to become better than themselves. Andres knows this because he has lived all of his life in this country and parents would do unimaginable things to send their kids to school and have a better life than them. Therefore, here is IMPCT’s opportunity to bring quality education to these areas.. 政治大. 5.1.2. Target Market: characteristics and needs. On the investors’ side, one might think of wealthy, powerful and influential people, however. 立. IMPCT plans on targeting anyone in the world who wants to make impact investments in. ‧ 國. 學. other people’s educational projects. The team thinks they range from 25 to 70 years old since they need to be old enough to have social conscience but also know how to use a computer. ‧. and the internet to access the IMPCT Platform website. The team had the chance on having some insights on what the stereotype investor would be when the team did the INDIEGOGO. sit. y. Nat. Crowdfunding Campaign in March-May 2015. Surprisingly 78% of donors were female. Women are more compassionate and they identify themselves with the less fortunate mothers. io. n. al. er. once they get informed on their situation. They have to have disposable income and want to. i n U. v. help others by seeing that impact investing is the best way to do it (better than donations and lending).. Ch. engchi. Figure 12 IMPCT C.O.O. Andres Escobar in urban slum “El Sunza” and “San Isidro”, 2015. 32.

(42) On the micro side, the IMPCT Educational Daycares’ target market will be people living in urban slums all around the world who understand the importance and long term benefits of ECE. IMPCT needs to target parents and mostly mothers since they are the ones paying for the tuition and bringing their kids. Even if IMPCT is targeting the lower level of the pyramid they still need to have some income in order to afford the tuition. Unfortunately some people will be left out but IMPCT encourages them on bringing their kids so the teachers can take care of them while they have free time to work and earn some extra money.. 5.2.. Marketing Strategy. 治政 What IMPCT offers to investors around the world is the大 ability to make impact investments in 立projects. IMPCT offers them the ability to log into the website, capable people’s educational. 5.2.1. Product (service). ‧ 國. 學. get informed on the different projects they can invest in and choose the one(s) they like. They will be able to invest a minimum of US$20 on any project. So they basically become co-. ‧. owners of the Educational Daycare they invest in. Once this Daycare starts to earn revenue, coming from the small tuition fees the parents pay, they will receive a part of the profit so. Nat. sit. y. they can re-invest it in other deserving projects. The IMPCT website’s secondary functionality. n. al. er. io. is more social and mentorship features:. i n U. v. . Connect with other like-minded investors using the social features.. . Investment “leaderboards” show off the platform’s top investors while your platform. Ch. engchi. profile shows off all the powerful investments the investor has made through IMPCT. . Find and connect with people around the world based on the causes they care about.. . Share updates with friends with the on-platform social feeds or directly to the followers on Twitter or Facebook.. What IMPCT offers in the slums to parents is the ability to enroll their kids in any of the Educational Daycares near them. They will bring their kids either in the morning or in the afternoon but not the whole day since IMPCT strongly believes that they need to interact with their parents. Once in a daycare, kids will engage in daily activities that the teachers and caregivers will provide following the educational plan and schedule. Activities vary with age. 33.

(43) but to mention a few there are: games, drawing, story-telling, dancing, music, values/manners class, health, etc. On top of that IMPCT plans on giving these kids one (or two) small meals per day, all in a safe and clean environment.. 5.3.. Pricing. Once Investors start using the platform they will have to pay a really small management fee. Besides that there won’t be any extra expenses from their part. For people in the slums, they will need to pay between $1 to $2 per day (depending on the slum area) for their kids’ tuition. This includes the quality education and 1-2 meals per day.. 政治大. The model still needs to be tested to see the purchasing power of these communities and also. 立. how much subsidy IMPCT will be getting from the government, private companies and. ‧ 國. 學. NGOs.. 5.3.1. Placement. ‧. The location where IMPCT will build the Educational Daycares is key for attendance.. y. Nat. Accessibility is a big issue in urban slums where most of the time there are no roads, no water. sit. and electricity. Plus, as mentioned before, legality is going to be another issue that the teams. er. io. needs to deal with in every slum. Ceteris paribus, the ideal location of one daycare needs to. al. v i n Curban and other dangerous factors. Since are so different from each other IMPCT needs U h e nslums i h gc n. be in the most accessible part of the community but also a safe and calm part, free of violence. to adapt every time the team wants to penetrate one. A slum in Brazil is completely different from a slum in India or Kenya. There is also the possibility to build something inside or next to an existing school or community center. But again, it needs to be evaluated individually.. During this month of June and July 2015 IMPCT will begin to contact the Ministry of Education in El Salvador and also three NGOs so they can help to identify the ideal location of the first Educational Daycare. In the future a daycare could be located in an area like this one called “Cristo Redentor” community in the capital San Salvador. This community is very accessible and relatively safe. 34.

(44) with access to water and electricity. The up-development construction solution would work perfectly here.. 立. 政治大. ‧ 國. 學. Figure 13 Map of San Salvador, El Salvador. ‧. n. er. io. sit. y. Nat. al. Ch. engchi. 35. i n U. v.

(45) 立. 政治大. ‧ 國. 學 sit. y. Nat. 5.3.2. Promotion. ‧. Figure 14 Map of potential Educational Daycare location in “Cristo Redentor”, 2015. er. io. The team will get creative to promote the platform since it is a web service and not a product. So far, IMPCT has had great success with a crowdfunding campaign made last month.. n. al. Ch. i n U. v. Besides the basic promotion techniques IMPCT plans on using newer forms of advertising:. engchi. YouTube, for example, can donate millions of free banner ads to IMPCT. Google Inc. can do the same with free AdWords, the company’s flagship advertising product. Yahoo Inc. likewise can donate search marketing keywords, as well as employee volunteers. Microsoft Corp., Intel Corp., Starbucks Corp., Facebook Inc., and LinkedIn, among many others, likewise could donate goods and services to the organization. These brands are mentioned because the team has been reading a lot about these new ways for big corporations to help and engage in social corporate responsibility. In the slums however, the story is completely different. The single most effective way will be word of mouth. Word-of-mouth advertising is key for our business, as each satisfied customer can bring more. It is one of the most credible forms of advertising in the way that a person. 36.

(46) puts their own reputation on the line every time they make a recommendation. In a slum community everyone knows everyone. Therefore it will take less than a week for all the mothers to be aware of the new IMPCT Educational Daycare in their community and especially the benefits it provides. This will create a network effect. The real challenge will be to retain those customers.. 5.4.. Crowdfunding Campaign. 5.4.1. Indiegogo Crowdfunding is the practice of funding a project or venture by raising monetary. 治政大 a product, project, company or groups of people combining their economic power to support 立 in. organization they like and believe contributions from a large number of people, typically via the internet. It is like having large. ‧ 國. 學. It works like this: the project starter proposes the idea to be funded, then individuals support the idea with a moderator (platform) that brings the parties together to launch the idea.. ‧. er. io. sit. $7.4 billion worldwide (European Management Review, 2014).. y. Nat. To have an idea of how popular this is, in 2013, the crowdfunding industry grew to be over. There are different platforms to launch a crowdfunding campaign. The two most popular ones. n. al. Ch. i n U. v. are Kickstarter and Indiegogo. IMPCT chose to use Indiegogo where someone can basically. engchi. create a campaign page, add a PayPal account, make a list of gifts or perks to give away depending on the amount of the investment and finally create a marketing promotion campaign to attract donors. The site earns a 4% fee for successful campaigns. For campaigns that fail to raise their target amount, users have the option of either refunding all money to their contributors at no charge or keeping all money raised minus a 9% fee. Unlike similar sites such as Kickstarter, Indiegogo disburses the funds immediately, when the contributions are collected through the user's PayPal accounts. Indiegogo also offers direct credit card payment acceptance through their own portal. Those funds are disbursed up to two weeks after the conclusion of a campaign. According to “The Wall Street Journal”, as of January 2014 over 200,000 campaigns have been launched, raising "millions of dollars" to people running crowdfunding campaigns in 70 to 100 countries every week.. 37.

(47) 5.4.2. Strategy IMPCT wanted to raise money to build the first Educational Daycare pilot school and created a very complete Indiegogo Campaign for this. It was a big challenge because the team needed to have many different things for it to be successful. First, the team needed to make a video. This is 80% of it all. You need to make a good video explaining your idea clearly, transmitting the passion, communicating the need by moving the viewers’ feelings in less than 3 minutes. This is super hard if you don’t know how to do it or what you want exactly. Fortunately one of Andres’ hobbies is to make and edit videos since he was a teenager so this was a huge advantage. It took him 47 hours to make a 3 minute video. It was worth it though in the end.. 政治大. Besides a good video you need, of course, a good idea and perks. Taylor, Ann and JD were in. 立. charge of this and it was also a great success. Our goal was US$25 000 in one month.. ‧ 國. 學. A crowdfunding campaign is not about just making a nice page and a nice video. People think that once you do this everything will come to you and money will rain. It is a tremendous. ‧. amount of work because you need to use a push strategy to get to people. IMPCT learned. y. Nat. some valuable lessons the first week. It is not about posting something on Facebook and just. sit. wait for donations. You will get 100 likes on a post but you won’t get a penny. The secret is to. er. io. make it personal. You need to convince people one by one. It takes so much time and out of. al. n. v i n C h and try to convince target people with money and influence e n g c h i U them in less than 10 minutes.. three people that we talked to personally, one donated. There was no better strategy than just Another good lesson is that for a campaign to be successful you need to be able to fund at least 30% of it in the first day. So IMPCT created expectation the two previous weeks and made it. Social media was key to communicate with followers and tell them what IMPCT was up to. This way, the team was able to make them feel the excitement and make them feel IMPCT was also their own project. IMPCT has a very nice website, Facebook page, twitter account, Instagram account and YouTube channel. Bloggers also helped by sharing the message and the video with thousands of followers. A contest was created in partnership with a hip backpack company called “Herschel Supply. 38.

(48) Co”. IMPCT received hundreds of entries mostly from Philippines. There were two winners and they got backpacks as prizes. The team pitched anywhere they could. From EMBA to IMBA students or alumni. IMPCT was invited by several professors not only from NCCU but also from NTU and other universities to share the experience. Something that really worked were the selling of t-shirts in the streets of NCCU. The team had 20 volunteers and fellow classmates who helped sell 250 t-shirts on campus. This not only gave funds but also publicity. Every day at NCCU you see someone wearing an IMPCT shirt.. 立. 政治大. Finally the last two weeks, thanks to the help of professors, angel investors and the IMBA. ‧ 國. 學. office IMPCT was able to appear in radio shows and TV shows reaching not thousands but millions. Our representatives in El Salvador and Honduras also did the same thing and. ‧. appeared in TV and radio. It was overwhelming to see how many reporters wanted to interview the team. IMPCT appeared in every newspaper in Taiwan and every newspaper in. y. sit er. io. a l The Indiegogo campaign isi vnow closed after raising almost n Ch U e nThisg crepresents $57,000. h i a 228% of the original goal. This. n. 5.4.3. Results. Nat. El Salvador.. success is the culmination of thousands of hours sitting in a tiny room at National Chengchi University’s; building the best idea the team possibly could and evangelizing the cause to anybody and everyone who would listen. Being based in Taipei but having a strong network across the world allowed IMPCT to have a truly global campaign reach. In some ways this Indiegogo campaign was a way to test whether the concept truly resonates with people; as a proof of concept for the draw of a microequity platform like the team is proposing. Here are some highlights from this campaign:. 39.

(49) 立. 政治大. Figure 15 Summary Statistics Indiegogo campaign. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. Ch. engchi. i n U. v. Figure 16 Amount raised vs. time. 40.

(50) 政治大. Figure 17 Contributions vs. time. 立. ‧. ‧ 國. 學. n. er. io. sit. y. Nat. al. v. Figure 18 Countries by contribution. Ch. engchi. 41. i n U.