The MicroConsignment Model Social Entrepreneurs Collage

The Origins
The Problem
The Mission & Goals
Summary Description
Leadership
Beneficiaries
Purchasers
Entrepreneurs
The Social Enterprise
Services & Products
Price
Place
Promotion
Processes & Procedures
Performance Measurement
Positive Impact
Model Comparison
Challenges & Responses
Sustainability & Scaling
Paradoxes
Questions & Responses


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Summary Description

What is the MicroConsigment Model?
How the different stakeholders add and derive value?


What is the MicroConsignment Model?

The focus of Community Enterprise Solutions (CE Solutions), through its unique and innovative MicroConsignment Model (MCM), is to create access to essential products and services in rural developing country villages through sustainable entrepreneurship. The MCM empowers and teaches all involved--the rural poor, rural micro entrepreneurs, NGO’s/social enterprises and donors/investors--how to effectively and efficiently address poverty in a sustainable and scalable way. The MCM delivers essential products, services and information at affordable prices that have a positive economic and health impact.  

Through consignment rather than loans, MCM entrepreneurs can overcome high uncertainty and are trained, equipped and supported. They are a continuous source of new real time market knowledge. They offer a growing number of appropriate solutions that address the real needs, perceived needs and desires of populations at the “base of the pyramid” through village campaigns. The MCM is unique in that it addresses the “what” (essential products and services), the “who” (rural villagers), and the “where” (rural villages) by creating a “how” (a highly scalable local distribution network of entrepreneurs) which acts as an ongoing mechanism to solve myriad healthcare and income/expense obstacles confronting the most vulnerable rural populations.

The MicroConsignment Model intervenes at all levels by creating a symbiotic “ecosystem” whereby needs are diagnosed and solutions are identified. Through the MCM, individuals who lack experience, but possess entrepreneurial qualities can start their own business through “sweat equity” and earn profit within the first month distributing solutions such as near vision glasses, protective glasses, water purification buckets, wood-burning stoves, solar lights and energy efficient light bulbs.  The local entrepreneurs, primarily young women and homemakers, serve rural communities within a designated territory. The model utilizes a rotating capital mechanism with exceedingly low start- up costs that are continually reinvested and can either create the platform for a locally-owned and administered social enterprise or leverage off of existing platforms.

How do the different stakeholders add and derive value?

An  Elegant Delivery Mechanism - All stakeholders both add and derive value

Constituency

Value Added
Value Derived
Donors
Funding
Measurable and cost effective impact

Universities

Outreach to students
and/or funding support
Enhanced prestige, demonstration of good works to alumni, higher quality student experience

Volunteers
(university students and graduates)

Financial capital and support with needs analysis, design, new product launch, field support, evaluation and expansion
Personal impact, more informed career decisions,  development work experience, Spanish language proficiency

Product innovators/manufacturers

Solutions that address needs at the “Base of the Pyramid”
Sales and feedback on pricing and product parameters

Leading organizations (Community Enterprise Solutions and Social Entrepreneur Corps)

Leadership, human resources, funding support
Mission success

National social enterprise (Soluciones Comunitarias, Yachana, etc.)

Administrative and logistical infrastructure
Income, jobs

Village mayors and pastors

Need identification, marketing
Prestige in communities, helping constituents

Local organizations
(Socios Comunitarias)

Efficient delivery mechanism and needs and solutions feedback
Income, prestige in communities,
helping constituents

Women entrepreneurs (Asesoras Comunitarias)

Efficient delivery mechanism and needs and solutions feedback
Income generation, sense of purpose, self-esteem, enhanced community standing and travel

Villagers

Needs and product applicability feedback
Access to solutions for long standing health,
economic and environmental problems

 

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