AGORA PARTNERSHIPSA Better Solution to Nicaraguan Rural Poverty

Agenda:

Nicaraguan povertyThe Agora ModelComparison to other methodsA success storyImprovements

Poverty in Context

1980s: Civil War1985: U.S. Trade Embargo1989: Collapse of the International Coffee Agreement1998: Hurricane Mitch

Destroyed infrastructureEconomic crisis with inflation of 13,000%Depressed coffee prices force farmers into debtOver 500,000 people left homeless

Drivers of Rural Poverty

Drivers of Rural Poverty

Drivers of Rural Poverty

The Missing Middle

The Agora Model: Barriers to Entrepreneurship

Merit-based identification of promising entrepreneurs.Intensive consulting by US-based graduate students.Direct investment in promising ventures that meet strict criteria.Support including: strategic advice, business contacts and financial management.Barriers to EntrepreneurshipAgora Solutions

The Agora Model: Company ProfileClearly defined constraint to growthOperate in sectors where Central America has natural competitive advantageCash flow positiveInnovativeRequire investment of $25K to $250KEco-tourismSustainable agricultureValue-added manufacturingAgricultural processingOrganic foods, etc.Or can be within 18 monthsProvide product or service that is new or reaches new customer base

The Agora Model: Social ImpactAn Agora Entrepreneur must:Be capable of creating a clear and quantifiable social impact through:Job creationProtection of environmentProviding goods/services to the needyAdhere to Agoras social responsibility guidelines by meeting or exceeding:Ethical,Legal,Commercial andPublic Expectations

Support the 10 Principles of the UN Global Compact covering:Human rightsLabor standardsEnvironmentAnti-corruption

BambucasaJan Van Bilsen- successful entrepreneurHarvests and converts bamboo into affordable building materials for housingJan had the business plan, but lacked business management expertiseAgora provided consulting services

TestimonialThe guys in the village next to my farm were making $1 a day, and thats when they could find work. I offered them a consistent salary and trained them in bamboo treatment and construction... I trained them, prepared them, and taught them how to use bamboo as a building material. Now they are a solid, highly motivated team, with good skills, good salaries, and a long-term perspective on how to get out of poverty through training and learning skills... The success of the business is key to all of this. If we can't make the business side work, none of the change we hope for is going to happen. That's why an organization like Agora is essential. Jan Van Bilsen

Ways to ImproveLack of strong quantitative metricsNo effective ways to measure impact of workBest measures of workshop effectiveness currently come from participant surveysNew metrics such as ROI needed to evaluate success of entrepeneurs receiving consulting and funding

Consulting hours provided by MBA consulting teams:over 6,800 Consulting hours from local Agora staff and volunteers:3,000

Ways to ImproveMore extensive and effective communicationNew organization which is not widely knownExpand on website and annual reportRefine website: contains several links which do not work

Profiles of Agoras work in local newspapers, television,and radio: 24

Ways to ImproveIncrease FundingEventually start to increase size and scope Applications to Agora program: 148 Ventures matched with consultants: 32 Consultants matched with ventures: 142 Agora-supported companies receiving investment from the Agora Fund: 3 Agora-supported companies receiving outside investment: 3