Chivas application the community agency

The Community AgencyTraining/ Incubator / Consultancy By and for unprivileged urban communitiesBringing all players together for greater social impact

1The Community Agency

Application made by:

The Community Agency 2

Oi! I’m Alexandra, French/Romanian living in Brazil. I have 10+ years experience in sustainability strategy and communications and running development programs.I’m working with academia, large corporates, social businesses and the third sector.I’ve studied and worked in four continents; speak four languages fluently and two others that need a refresh.LinkedIn

Humana is a network of 50+ Brazilian and international sustainability experts working in partnership to make positive change happen. Our collective expertise includes: urban planning and development, cross-sector partnerships, diagnosis and process planning, sustainability and development strategy, community participation and inclusion, public policy, social innovation, professional training, consultancy, facilitation and change management. Our collective backgrounds range from academia, large multinationals, SMEs, government and start ups.Our site

https://www.linkedin.com/in/alexandra-sturdza-04173a17?trk=nav_responsive_tab_profile

http://www.humanasustentavel.com/

The problems we are solving


Lack of access to professional training for entrepreneurs and young professionals of unprivileged backgrounds (in favelas)Current situation: scattered initiatives unevenly implemented; and financially inaccessible to this public; lack of access to information to sponsored opportunities, limited access to professional education; lack of focus and investment opportunities for professional training and entrepreneurship in unprivileged communities.Root causes: lack of public investment and political will; endemic security, health and poverty issues; lack of access to credit and investment; lack of infrastructure in communities and social/familial insecurity leading to difficulties to access then maintain a full-time job; lack of public incentives for entrepreneurs in Brazil.Our objective: higher value and more stable longer term employability; local social entrepreneurship; local employment and shared value within the community. Lack of professionalism and efficiency of the third sector & social businessesCurrent situation: existing training programs though mostly expensive, inaccessible, time consuming and providing only basic training instead of high quality technical training for third sector professionals.Root causes: scattered initiatives, lack of sharing information and best practice; volunteers and employees of the third sector often less qualified and trained as in the private sector; lack of accountability; lack of time and resources to dedicate to training and efficiency.Our objective: more efficient, better run, higher impact actions on the ground.Lack of knowledge, understanding and talent on the ground of corporations investing in CSR and targeting 'bottom of the pyramid' (BOP) markets Current situation: lack of strategic focus, high positive value and relevant implementation of CSR programs, lack of monitoring on the ground, top/down approach.Root causes: cultural and physical divide, fear, clichés and misunderstandings between those corporates and the unprivileged populations they are investing in and trying to reach.Our objective: more efficient, better run, higher impact CSR investments on the ground; understanding and access to the 'bottom of the pyramid' (BOP) market.

3

The Community Agency


The Community Agency is a carefully crafted ecosystem delivering both social impact and revenue.

Through partnerships, We deliver professional training, social business incubation and consultancyFor Unprivileged professionals and entrepreneurs, third sector professionals, corporates and local authorities.

As the Agency, our job is to bring all players together, so that:Today’s unprivileged get access to the professional training they are asking for and that the market wants,Enable one of the key elements needed to empower people getting themselves out of endemic economic vulnerability,Support the third sector in improving its own efficiency and professionalism,Corporates and local authorities co-created the the products and services aimed for the ‘bottom of the pyramid’ people themselves want, need, design and benefit from.

Executive summary


The Community Agency


Community AgencyHumana

(60+ consultants)

Training providers

Local NGOs

Social incubators

Governmental agencies

Consultancies

Professional training

Social business incubator

Consultancy & Research

Key partners

Brought together &Articulatedby Humana

Acting as a joined task force

Third sector

Unprivileged entrepreneur

s

Local authorities

Corporates

Delivering services for greater social impact for...

Our principles


Our business model:The problems we are solving are our business opportunities;Everyone pays, everyone benefits, everyone takes responsibility;Our products and services feed each other, but can also be delivered in isolationFinancial viability and social impact go hand in hand.

How we work:We don’t impose ready-made solutions; We ask each of our key stakeholder what is most relevant and useful to them;Beneficiaries and clients co-create our product and services together with us

How we behave:We are humble, we know nobody can do it aloneWe don’t re-invent the wheel but built on best practice and best performing playersWe work as a network, everyone focusing on what they do best,She share the load, success and learnings.

Where the idea comes from


Working day to day tackling social challenges, notably in favelas, we identified that there was no lack of initiatives nor funding.

There was a lack of a coordinated, synergized and efficient approach to tackling the interlinked issues in this complex environment.

That's the premise of the Community Agency: partnership, focus and efficiency.We know we won't solve everything.What we can do, however, is focus on what we’re good at: bringing people together, and creating an ecosystem for social good.

Through our partnership model, we will achieve: higher value employability, more efficiency in the third sector, and breaking the divide between corporates and the 'Bottom of the Pyramid'.

8

A bit of context (in numbers)


− 250,000 residents in Rocinha (Rio’s biggest favela)− 6,000+ businesses in Rocinha; 5,000 of which

don’t have a business email; 70% of them provide services (20% of which are domestic services);

− 50% of those businesses have only one person;− 30% of the suppliers of those businesses are

within the community, 15% from neighbouring communities;

− 15% of businesses have less than 2 years of existence; 15% 3-5 years and 20% have 6-10 years of existence;

− 92% of businesses in favelas are not officially registered; In Rocinha, only 500 businesses out of 6,000 are registered;Out of these, less than 10% want to officialize their business;

− 25% of entrepreneurs in favelas are less than 30 years old; 50% of business owners in favelas say they started because they lost their jobs and they started their business in a completely different sector;

− 20% of them still have another job on the side;− 80%+ of people in those businesses didn't

received any professional training;

− R$2,400 average family income;− 54% female, 46% male residents average; 56%

male/ 44% female favela entrepreneurs split− 50%+ only have basic school education;− 200,000 residents in Complexo de Alemao;− 800 beauty salons in Complexo de Alemao;− 20% of the population in Brazil is considered

self employed; 12%-20% is unemployed;− 73% of micro-entrepreneurs fail within the first

year;− 3/4th of entrepreneurs in favelas don't use

online management and efficiency tools;− 3m to 10m NGOs and NFPs in the world;− Spending less than 1% spent on training;− $15b spent by Fortune 500 companies on CSR;− On average, broken down as: 70% donations in

kind, 15% employee volunteering, and 15% cash donations;

− The investment of local authorities for social projects is sadly opaque.

Risks & Mitigation


Entering those territories (favelas), win our licence to operate, gain and maintain trust, ensure community participation, buy-in and inclusion, avoid security risks.How we are minimizing and mitigating that risk: Working in full collaboration with established trusted existing projects on the ground, using their local relationships and reputational capital to enter the territory and protect our licence to operate in this very challenging and complex environment.Key team members of this project are personally involved with established NGOs working in favelas, have personal contacts there and benefit from an impeccable reputation on the ground. Monitor community feedback and maintain participation.

Lack of interest from participants, mostly our primary ‘bottom of the pyramid’ beneficiaries. How we are minimizing and mitigating that risk: Working in full collaboration with established trusted existing projects on the ground, using their local relationships and knowledge to map and assess necessities, fears, limitations.There is no point us trying to force content nobody wants and needs, at times that don’t work for people.

10

We are ready to go!


How it works in practice


The Community AgencyTop level offer Professional training Social business incubator Consultancy Research

Products and services delivered

Presencial coursesOnline coursesCurricula

Incubation programsShort to longer term coaching of projects

ConsultancyBOP market researchManagement of CSR portfolios

ResearchLearning and best practiceMapping and diagnosis

Clients and beneficiaries

Local residents Third sector Corporates Local authorities

Local social business projectsLocal third sector projects

Corporates Local authorities

Third sectorCorporatesLocal authoritiesGovernmental agencies

Service providers

Training partnersGovernmental agenciesThe Community Agency

Social incubator partners Social investorsThe Community Agency

Local residents trained Local projectsGovernmental agenciesConsultanciesMarket research agenciesThe Community Agency

Revenue for the agency

Courses deliveredSpeaker and facilitator fees Fundraising Membership/ Admin fees

Courses delivered Speaker and facilitator fees Fundraising Membership/ Admin feesSROI

Relationship and project management feesConsultancy feesBusiness development commissionMembership/ Admin fees

Selling publications and research

Our existing networks


In Brazil:− Accenture− Ernst and Young− Coca Cola Institute− Impact Hub Sao Paulo− Aspen network− Petrobras− Rio+B− Sistema B− Rio Resiliente− Brasil Tomorrow− Projeto Brasil 27− Agencia de redes− Yunus Negocios Sociais− Sitawi− Sebrae− GOMA− Templo− Sikana− Viva Rio− Universidade da Correria− Favela Verde− Perestroika− Schumacher College

− Gaia− Escola Design Thinking− FGV− Laje− Amani Institute

International networks:− University of Stellenbosh− MSLS Sweden− Impact Hub network− Ticket for Change− Europe Tomorrow− PwC− Radley Yeldar− Aspen network− Natural Capital Coalition− IUCN− Yunus Negocios Sociais− USC business school− IE Madrid business school− HEC business school− Massive Small− Sikana− Schumacher College− Emzingo− Amani Institute

Social impact, market & KPIs


KPIs and indicators


Social impact & Financial sustainability

Top level offer Professional training Social business incubator Consultancy & Research

Overall objective Higher value and more stable longer term employability

More efficient, better run, higher impact social projects on the ground.

More efficient, better run, higher impact CSR investments on the ground; understanding and access to the 'bottom of the pyramid' (BOP) market.

KPIs Higher value employment (monitored over time); Higher efficiency of social projects run (qualitative feedback run over time); Revenue and re-investment

Number of projects incubated; Number of projects financed; Success of projects incubated in operation (monitored over time) Revenue and re-investment

Number of clients; Average spent per consultancy client; Shift in perception qualitative surveys (monitored over time); Revenue and re-investment

Indicators Number of attendees; Feedback of attendees; Feedback of partners; number of incidents and courses undelivered due to security issues; revenue, re-investment and fundraising; people reached through communications.

Number of attendees; Feedback of attendees; Number of projects incubated; Feedback of partner incubators; Number of projects financed; number of projects in operation (monitored over time); success of projects incubated in operation (% growth); Local employment and supply chain of projects incubated;revenue, re-investment and fundraising; people reached through communications.

Number of clients; revenue from consultancy and research; number of projects financed through the CSR portfolio management offer; feedback from clients; qualitative perception surveys; revenue, re-investment and fundraising; people reached through communications.

Planning


How we’d start and then grow


Improve, expand and growFirst: Piloting in Rocinha, one of Brazil’s biggest favelas (e.g. urban slum, or township), and learn from one of the world’s most challenging and complex environments.We didn’t choose this territory randomly.Key members of this team know this territory well, and have extended networks and knowledge of Rocinha.Second: Taking the revised and improved model from the pilot in Rocinha to another favela of Rio (Complexo de Alemao) where we also have strong networks and local knowledge. At the same time as strengthening our services in Rocinha, where the pilot is taking place.

Third: Adapting, expanding and replicating the model around Brazil.

Forth: Adapting and testing the model in South Africa (initially in a township in Cape Town), because of the systemic similarities between Cape Town and Rio de Janeiro; and more broadly between Brazil and South Africa. Key members of this team as well as close partners have extended networks, operations and knowledge of South Africa.

Fifth: Build an international network of Community Agencies working and learning together globally, at the same time as securing their individual financial sustainability, managing local impact and servicing their local markets.

17

The pilot: learning best from the worst

Top level planning

Phase 1: Participatory diagnosis and mapping in Rocinha for the pilot (months 0 to 2)Mapping of local necessities for key target marketsRecording of initial suggestions and feedbacksMapping of existing players, projects and initiativesSystems mapping of territories, understanding wider implications, dynamics and playersCommunications and fundraising strategy

Phase 2: Prioritize and engage (months 2 to 3)Prioritization of key necessitiesSelection of best performing players and most relevant existing initiativesNegotiate and sign off partnerships for the pilot projectsCommunications and fundraising big push

18

Phase 3: Launch, test and learn (months 3 to 6)Launch the pilot in Rocinha (Rio de Janeiro)Implement first series of training, social incubation and consultancyFeedback, review, improvePredicted loss (depending on fundraising)Communications and fundraising big push continues

Phase 4: Review and improve (months 6 to 12)Consolidate and expand reviewed offerSecond and third series of training, social incubation and consultancyFirst success storiesBreak even/ revenue by the end of year 1 (mostly due to consultancy and fundraising)

Phase 5: Second pilot (months 9 to 18)Review, improve and refine offerPilot in a second favela of Rio de Janeiro

Top level planning continues

Phase 5: Taking stock (month 18)Comprehensive quantitative and qualitative review of both pilots in Rio de JaneiroReview, improve and refine offerDefine next steps

Phase 6: Taking stock (month 18 to end of year 2)Review, improve and refine offerPilot in other cities in Brazil Consolidate partnershipsFundraising and re-investment

Phase 7: Expand (years 3 to 5)Comprehensive quantitative and qualitative review of all projects in BrazilPilot in South Africa with local partners

19

Financial estimates


Market & target market


Social impact & Financial sustainability

Key beneficiaries & clients

Unprivileged populations Third sector & Social businesses Corporates, local authorities and large third sector organization

Market size Millions $100m+ $450m+

Targets 8,000 per year by year 5 in Rio $100,000 by year 520 third sector players in year 1 and extend to 100+ from year 2 online

$4m over 5 yearsR$50,000/100,000 in fundraising from local authorities in year 1

Year 1 estimates (Brazilian reais)Year 1: Pilot in Rocinha

Phase 1: Participatory diagnosis and mapping (months 0 to 2)

Phase 2: Prioritize and engage (months 2 to 3)

Phase 3: Launch, test and learn (months 3 to 6)

Phase 4: Review and Improve(months 6 to 12)

Sub Totals

Core team − Labour cost: 5k− Contracting costs: 5k

− Labour cost: 5k − Labour cost: 5k − Labour cost: 10k − Labour cost: R$25,000− Contracting costs:

R$5,000

Communications− Labour cost: 2k− Contracting costs: 5k

− Labour cost: 2k − Labour cost: 1k − Labour cost: 2k − Labour cost: R$7,000− Contracting costs:

R$5,000

Fundraising − Labour cost: 2k− Direct revenue: zero

− Labour cost: 2k− Estimated funds raised: 30k

− Labour cost: 1k− Estimated funds raised:

30k

− Labour cost: 2k− Estimated funds raised:

50k

− Labour cost: R$7,000− Estimated funds raised:

R$110,000

Training Not started yet Not started yet − Profit: RS9,450 − Profit: R$18,900 − Profit: R$28,350

Incubation Not started yet Not started yet − Profit: R$2,800 − Profit: R$8,000 − Profit: R$10,800

Consultancy & Research

Not started yet Not started yet − Profit: R$58,000 − Profit: R$58,000

TOTALS -R$19,000 +R$21,000 +R$5,250 +R$120,900 +R$128,150

Without fundraising +R$18,150

Years 1 to 3 estimates (Brazilian reais & USD)

Year 1: Start in Rio Year 2: Expand in Rio Year 3 to 5: Launch in South Africa & Consolidate Brazil

Core team − Labour cost: R$25,000− Contracting costs: R$5,000

− Labour cost:R$70,000− Contracting costs: R$15,000

− Labour cost: R$100,000− Contracting costs: R$50,000

Communications − Labour cost: R$7,000− Contracting costs: R$5,000



Fundraising − Labour cost: R$7,000− Estimated funds raised: R$110,000

− Labour cost: R$10,000− Estimated funds raised: R$70,000− Funds re-invested after tax: R$75,000

(using the estimated fundraising scenario; that is taxed in Brazil)

− Labour cost: R$20,000− Estimated funds raised: R$100,000− Funds re-invested after tax: R$120,000

(using the estimated fundraising scenario; that is taxed in Brazil)

Training − Profit: R$28,350 − Profit: R$56,000 − Profit: R$120,000

Incubation − Profit: R$10,800 − Profit: R$25,000 − Profit: R$40,000

Consultancy & Research − Profit: R$58,000 − Profit: R$120,000 − Profit: R$200,000

TOTALS (R$) +R$128,150 +R$239,000 +R$398,000

Without fundraising +R$18,150 +R$169,000 +R$298,000

TOTALS (USD) +40,000 USD +73,800 USD +123,000 USD

Without fundraising +5,600 USD +52,000 USD +92,000 USD

Rates cards & financial estimates


TrainingDiscounted individual courses for unprivileged entrepreneurs− Individual participants pay a reasonable amount for courses &

training (e.g. R$20 per session) to ensure attendance and responsibilization, as well as an obligation for quality on the Agency’s behalf;

− We would allow for exceptions (e.g. unemployed to contribute at a symbolic rate, e.g. R$5 per session);

− 1x course per week, 10 participants, R$20 contribution per person per course, 12 sessions; +R$2,400 revenue per series

− 2 courses per quarter, in 1 territories; 24 sessions for 10 participants paying R$20 per session = +R$4,800 revenue

− 24 sessions costing R$750 per session: -R$18,000− Loss: -R$13,200

Compensated by courses for better-off entrepreneurs and individuals investing in their personal learnings and careers:− Individual participants pay a market price that also compensates for

the loss occurred in training unprivileged individuals below cost: R$140 per course (R$80 breaking even + R$60 loss from discounted rates);

− 1x course per week, 10 participants, R$140per person per course, 12 sessions; +R$16,800 revenue per series

− 2 courses per quarter, in 1 territories; 24 sessions for 10 participants paying R$140 per session = +R$33,600 revenue

− 24 sessions costing R$750 per session: -R$18,000− Profit: +R$15,600

Third sector, discounts & compensations:− Small NGOs pay a reasonable R$40 per session;− Large NGOs pay a compensating R$120 per session (R$80 to break

even + R$40 to compensate discounts for smaller NGOs);− 1x course every 2 week, 10 participants at R$40 per person per

course, 6 sessions per course (+R$2,400 revenue) + simultaneous course at R$120 (+R$7,200 revenue);

− 2 courses at 2 rates in 1 territories, 12 sessions: +R$9,600 revenue− 12 sessions costing R$750 per session: -R$9,000− Profit: +R$600

Local authorities & Governmental agencies:− 1x course every 2 week, 10 participants at R$120 per person per

course; 6 sessions; +R$7,200 revenue per series− 2 series over 1 territory per quarter, 12 sessions: +R$14,400 revenue− 12 sessions costing R$750 per session: -R$9,000− Profit: +R$5,400

− Corporate:− 1x course every 2 week, 10 participants at R$250 per person per

course; 6 sessions; +R$15,,000 revenue per series− 6 sessions costing R$750 per session: -R$4,500− Profit: +R$10,500

Average cost per session of 10 participants: Materials: R$150; Facilitators: R$500; use of the building, communications & expenses: R$100;Total cost of R$750 per session


IncubatorPhase 3 ‘Launch’ quarterly estimate (in Brazilian Reais) in two territories

Discount rates:− 3x intense full days over the first month,

followed by 1x half day session every two weeks over the next 2 months; 10 participants, R$40 contribution per person per session, 7 sessions: +R$2,800 revenue

− 7 sessions costing R$750 per session: -R$5,250− Loss: -R$2,450

Full rates:− 3x intense full days over the first month,

followed by 1x half day session every two weeks over the next 2 months; 10 participants, R$150 contribution per person per session, 7 sessions: +R$10,500 revenue

− 7 sessions costing R$750 per session: -R$5,250− Benefit: +R$5, 250

Average cost per session of 10 participants: Materials: R$150; Facilitators: R$500; use of the building, communications & expenses: R$100;Total cost of R$750 per session


ConsultancyPhase 3 ‘Launch’ quarterly estimate (in Brazilian Reais)

Consultancy day rates:− Large NGO: R$800 consultant day rate− Local authorities and governmental agencies: R$950 day

rate− Large SME: R$1,250 day rate− Multinational corporation: R$2,200 day rate + 10%

donation: R$2,420 day rate− Consultants paid on a R$500 day rate in year 1, R$750

per day from year 2

Services & estimates over 9 months in year 1‘Bottom of the pyramid’ (BOP) market research:− 1x project: +R$38,000 revenue; R$8,000 labour cost:

+R$30,000 revenue

BOP product & Service testing:− 2x projects: +R$27,000 revenue; R$15,000 labour cost:

+R$12,000 revenue

Consultancy for corporates, local authorities & NGOs:− 2x projects: +R$27,000 revenue; R$15,000 labour cost:

+R$12,000 revenue

Management of corporate CSR portfolio and investment, communications & reporting:− 1x project: +R$72,600 revenue; R$15,000 labour cost:

+R$57,600 revenue

Inspiration immersion experiences:− 2x projects: +R$10,000 revenue; R$6,000 labour cost:

+R$4,000 revenue


Why choosing this project


Why we need you


What I have is an idea, a network, and people already engaged around the project.

I am now looking forward to being challenged, pushed and supported to make the Community Agency ever more relevant and impactful. Hopefully, the concept will evolve over time, adapt, learn from its mistakes, and hopefully improve.

Ultimately, this project is about employability, longer term higher value employment, more efficient social initiatives, and breaking down the divide between the so-called 'top' and 'bottom'.

That's what's really at stake.

There is no ego in my approach.

So please challenge me to find the best solution to tackle those challenges together.

29

Thank You!Alexandra [email protected]


Small Business & Entrepreneurship

Chivas application the community agency