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Project Resource |
| Transitioning from NGO to business |
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Project Resource |
| Building a governance structure and operating model for Jita |
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In the Facility and IAP portfolios, two start-ups have their roots with NGOs. Jita, a Bangladeshi company, emerged from the Rural Sales Programme of CARE, while Afrinut, a Malawian nut processor, emerged from an idea to scale up nut processing by the farmers association of Malawi, NASFAM, and its commercial arm Nascomex. Other initiatives are currently run by NGOs but looking to set up viable business models, such as for farm advisors (IDE in Mozambique), moringa production and processing (IRDI in Zambia) and marketing vegetables (MicroVentures in Malawi).
In most cases, the newly formed business can be called a 'social enterprise' – one type of inclusive business - because it combines a commercial approach with social objectives. But that should not mask just how great the transition is from an NGO programme.
The shift entails transformation in:
The main shift is in mindset; away from reliance on regular external funding, perhaps supplemented by an element of cost-recovery, and into a business mindset that depends on making a profit to attract investments and to re-invest. Once this shift occurs, the business can survive and indeed scale without reliance on grant funding. This involves a different kind of long-term planning.
Balancing profit, return on investment, and social impact can be done through careful planning, as was done by Jita. See also our know-how page on innovating business planning. |
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Project resource: |
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Building a governance structure and operations model for Jita, Bangladesh.
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Inside Inclusive business: |
| Striking the balance between profit and impacts |
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Project Profile: |
| Jita, Rural Sales Programme, Bangladesh |
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