Global development overview and the conceptual model for a new incubator to catalyze ventures that will help alleviate extreme poverty.

1. Developmental Entrepreneurship Incubator – Conceptual Design December 2009 Dale Fickett Social Entrepreneur

2. Legal Disclaimer This document has been prepared by Dale S. Fickett, and is being furnished to select individuals for the purpose of conveying the nature of a new business venture model, and to develop partnering relationships with appropriate individuals and entities. It contains confidential information relating to trade secrets and intellectual property, including but not limited to: ideas, concepts, strategies, plans, research, processes, approaches, methods and other proprietary information. Readers are to treat the information herein as confidential. Furthermore, readers may not copy or otherwise reproduce the materials without the express written consent of Dale S. Fickett.

4. The World Bank classification scheme shown above demonstrates the breadth of global development efforts, each project falls along two dimensions –theme and industry sector

6. The report covers 194 countries; and provides comparative measures of life expectancy, literacy, education and standards-of-living

9. Progress has been threatened by the challenges of food crises, the increasing rate of climate change impacts, and the results of the current economic downturn – resulting in capital flow reductions, fewer trade prospects and lower domestic growth

10. Successes – reductions in extreme poverty, enrollment in primary education, infant and maternal mortality

12. Food crises are likely to re-emerge due to population growth and climate change impacts8

13. Inclusive private sector solutions must be fostered within a supportive public policy context9

14. CSR should move from philanthropy to the utilisation of core capabilities to serve higher purposes16

15. Progressive players establish CSR at their core, and from inception17

16. NGOs must improve to collaborate on global issues18

17. Emerging markets provide vast pools of resources, talent and consumers19

18. Local ownership of self-sustaining businesses is critical to poverty relief20

19. Aid dependency distorts incentives, exacerbates corruption, creates debt burdens and weakens indigenous businesses21

20. New positive images of Africa must be used to counter negative stereotypes22

21. Building sustainable livelihoods rectifies inequalities and provides access to choices13

22. Private sector contributes to development, especially indigenous small business 14

23. Social investors use VC methodology and patient capital to spur development outcomes15

24. Tightening of aid budgets due to fiscal constraints10

25. Entrepreneurial solutions offer a tool to build cross-border ties11

26. African governments must be accountable for leading the solutions to eradicate poverty12Positions of Key Stakeholder Groups Embrace a social purpose, and set a meaningful goal from inception Harness patient, competitive capital to scale the businesses Maximise and report the benefit for whole communities Create businesses whose offerings address a pressing need Eradicate poverty by building sustainable livelihoods Core Principles

27. Implementing the Core Principles – Conceptual Model of the Incubator & Fund Our Social Enterprise Portfolio Provide start-up capital Provide deal pipeline The Model Provide portion of returns in donations For Profit Ventures (e.g. Water & Sanitation) Provide an equity stake

28. Bibliography (1 of 4) Endnotes See World Bank (2009a), pp.33, 37, 41, 45, 49 and 53. This categorisation is derived from the World Bank’s method of classifying their lending activity from 2004 to 2009. There is no single agreed-upon definition for ‘Global Development’. I provide this definition, as ‘’sustainable’ refers to the longevity of the required solutions, as well as the requirement to avoid environmental damage. ‘Livelihood’ captures the umbrella concept of providing means of supporting oneself, and it explicitly incorporates the traditional view of the needs of people to generate income. Lastly, it captures the other two metrics of the Human Development Index – ‘health & education’, while last acknowledging the qualitative role of ‘human rights’. Here I extrapolate that the World Bank’s scheme can be extended to describe the activities of other organisations, due to the significant breadth of their lending activity. See UN Development Program (2009), pp. 143-202. Calculations are made from data provided in the Statistical Annex. Map shows various shading for sub-categories within the primary four mentioned. Full map can be obtained at http://en.wikipedia.org/wiki/Human_Development_Index . This model was created by drawing from the UN Financing for Development definitions of global institutional stakeholders, and from the World Bank definitions of civil society. For further details see http://www.un.org/esa/ffd/institutionalstakeholders.htm and http://go.worldbank.org/4CE7W046K0 respectively. It also draws upon other standard classifications of governmental and business participants. Bullet point comments are drawn from earlier work summarised in the “Development Challenges Framework, as listed in the appendix and which can be accessed through my linkedin account at http://ie.linkedin.com/in/dalefickett (slide #2). United Nations (2009), pp.4-5 Financial Crisis (2009); Economic Crisis (2009) Food Crisis May Repeat (2009); Feeding the World (2009, November 21st-27th); Climate Change and Poverty Reduction (2009); Climate Change (2009); World Bank (2009c) OECD (2008), p. 9; OECD (2006), pp. 10-13; Private Sector Development (2009); World Bank (2009b) European Commission (2009), p. 3; Howlin (2009) USAID – Global Engagement on Entrepreneurship (2009) NEPAD (2001), pp. 13-19 Livelihoods (2009); Novogratz (2009), pp. 243-254 Brown & Cloke (2009), pp. 135-143; Karamchandani, Kubzansky and Frandano (2009), pp. 3-7 Trelstrad (2009); Bishop & Green (2008), pp. 116-137 Porter & Kramer (2008), pp. 451-477; Hamel (2009)

29. Bibliography (2 of 4) Bishop & Green (2008), pp. 116-137 Bulloch (2009); pp. 6-7; Wolf Ditkoff & Colby (2009), pp. 108-115 Accenture (2007), pp. 2-3 ; Globality (2009) Yanus (2007), pp. 3-40; NEPAD (2001), pp. 13, 40 and 56 de Soto & Moyo (2009); Moyo (2009), pp. 29-68 Africa Centre (2009) Cambridge Associates (2009), p. 1. The statistic provided is the official performance benchmark of the National Venture Capital Association (U.S.), and shows the twenty year return “End-to-End Pool Mean Net to Limited Partners,” as of June 30, 2009. References Accenture (2007). The Rise of the Multi-Polar World. http://www.accenture.com/Global/Research_and_Insights/Policy_And_Corporate_Affairs/Multi-PolarWorld.htm Africa Centre (2009). Portraying the Developing World Seminar in AfricaCentre.ie. Retrieved on December 4, 2009, from http://www.africacentre.ie/index.php?Calendar_Events:PAST_EVENTS_2009:Portraying_the_Developing_World_Seminar Bishop, Matthew & Green, Michael (2008). Philanthro-capitalism: How the Rich Can Save the World. New York: Bloomsbury Press. http://www.philanthrocapitalism.net/ Brown, Ed & Cloke, Jonathan (2009). Creative Destruction? Energy Poverty and the Double-Edged Role of the Private Sector. Trócaire Development Review / 2009. Dublin: Trócaire. http://www.trocaire.org/sites/trocaire/files/pdfs/tdr/Creative%20Destruction%20Energy%20Poverty%20and% 20the%20Double-edged%20Sword%20of%20the%20Private%20Sector.pdf Bulloch, Gib (2009). Development Collaboration: None of Our Business? London: Accenture. http://www.accenture.com/NR/rdonlyres/71CC6745-A627-4E39-B24E-92FCA24207A2/0/Accenture_Development_Collaboration_none_of_our_Business.pdf Cambridge Associates (2009). U.S. Venture Capital Index and Selected Benchmark Statistics. Boston: Cambridge Associates LLC http://www.nvca.org/index.php?option=com_docman&task=doc_download&gid=503&ItemId=93 Civil Society (2009). In Worldbank.org. Retrieved November 28, 2009, from http://go.worldbank.org/4CE7W046K0 Climate Change (2009). In Worldbank.org. Retrieved November 28, 2009, from http://beta.worldbank.org/climatechange/

30. Bibliography (3 of 4) Climate Change and Poverty Reduction (2009). In UNDP.org. Retrieved November 28, 2009, from http://www.undp.org/climatechange/pillar_ccpov.shtml de Soto, Hernando & Moyo, Dambisa (2009). Foreign Aid is Bad in MunkDebates.com. Retrieved December 4, 2009, from http://www.munkdebates.com/debates/against.cfm Economic Crisis (2009). In UNDP.org. Retrieved November 28,2009, from http://www.undp.org/economic_crisis/index.shtml European Commission (2009). Directorate General for Humanitarian Aid – ECHO: Operational Strategy 2010. Brussels: European Commission Publications. http://ec.europa.eu/echo/files/policies/strategy/strategy_2010_en.pdf Feeding the World (2009, November 21st-27th). Feeding the World: If Words Were Food, Nobody Would Go Hungry. The Economist, pp. 61-63. http://www.economist.com/world/international/displaystory.cfm?story_id=14926114 (subscription required) Financial Crisis (2009). In Worldbank.org. Retrieved November 28, 2009, from http://www.worldbank.org/financialcrisis/ Food Crisis May Repeat (2009). In Worldbank.org. Retrieved November 28, 2009, from http://go.worldbank.org/HWM0JM6OM0 Globality (2009). In BCG.com. Retrieved November 28, 2009, from www.bcg.com/globality/. The website of Globalityby Sirkin, Hemerling & Bhattacharya. Hamel, Gary (2009). Moon Shots for Management. Harvard Business Review. Boston: Harvard Business School Press. http://hbr.harvardbusiness.org/2009/02/moon-shots-for-management/ar/1 Howlin TD, Brendan, et. al (2009, November 14th). Cuts to Overseas Aid Budget. The Irish Times. http://www.irishtimes.com/newspaper/letters/2009/1114/1224258816280.html Institutional Stakeholders (2009). In Financing for Development. Retrieved November 28, 2009, from http://www.un.org/esa/ffd/institutionalstakeholders.htm Karamchandani, Kubzansky and Frandano (2009). Emerging Markets, Emerging Models: Market-based Solutions to the Challenges of Global Poverty. Cambridge, Massachusetts: Monitor Company Group, L.P. http://www.monitor.com/Portals/0/MonitorContent/documents/Monitor_Emerging_Markets_NEDS_03_25_09.pdf Livelihoods (2009). In Trocaire.org. Retrieved November 28, 2009 from http://www.trocaire.org/whatwedo/livelihoods Moyo, Dambisa (2009). Dead Aid: Why Aid is Not Working and How There is Another Way for Africa. London: Allen Lane. http://www.dambisamoyo.com/deadaid.html NEPAD (2001). The New Partnership for Africa’s Development Framework. Abuja, Nigeria. http://www.nepad.org/framework/lang/en Novogratz, Jacqueline (2009). The Blue Sweater – Bridging the Gap Between Rich and Poor in an Interconnected World. New York: Rodale. http://www.thebluesweater.com/ OECD (2006). Promoting Pro Poor Growth – Key Policy Messages. Paris: OECD Publications. http://www.oecd.org/dataoecd/0/61/37852580.pdf

31. Bibliography (4 of 4) OECD (2008). Financing Development 08: Whose Ownership? (Executive Summary) Paris: OECD Publications. http://www.oecd.org/dataoecd/52/6/40729854.pdf Private Sector Development (2009). In OECD.org. Retrieved November 28, 2009 from http://www.oecd.org/department/0,3355,en_2649_40340912_1_1_1_1_1,00.html Porter, Michael E. & Kramer, Mark R. (2008). On Competition. Boston: Harvard Business School Publishing. http://cb.hbsp.harvard.edu/cb/web/product_detail.seam?R=2696-HBK-ENG&conversationId=1117709&E=11345 Trelstrad, Brian (2009). The Nature and Type of Social Investors. New York: Acumen Fund. http://www.acumenfund.org/uploads/assets/documents/KFP-impact-investing-1_5HgFXhoh.pdf United Nations (2009). The Millennium Development Goals Report 2009. New York: United Nations Department of Economic and Social Affairs (DESA). http://www.un.org/millenniumgoals/pdf/MDG_Report_2009_ENG.pdf UN Development Program (2009). Human Development Report 2009 – Overcoming Barriers Human Mobility and Development. New York: Palgrave Macmillan . http://hdr.undp.org/en/media/HDR_2009_EN_Complete.pdf USAID – Global Engagement on Entrepreneurship (2009). In USAID.gov. Retrieved on November 28, 2009, from http://www.usaid.gov/press/factsheets/2009/fs091116.html Wolf Ditkoff, Susan & Colby, Susan J. (2009) Galvanizing Philanthropy. Harvard Business Review. Boston: Harvard Business School Press. http://hbr.harvardbusiness.org/2009/11/galvanizing-philanthropy/ar/1 The World Bank (2009a). The World Bank Annual Report 2009 – Year in Review. Washington, DC: MacMillan Publishing Solutions http://siteresources.worldbank.org/EXTAR2009/Resources/6223977-1252950831873/AR09_Complete.pdf The World Bank (2009b). Doing Business 2010: Reforming through Difficult Times. Washington, DC: MacMillan Publishing Solutionshttp://publications.worldbank.org/ecommerce/catalog/product?item_id=9305853 The World Bank (2009c). World Development Report 2010: Development and Climate Change. Washington, DC: MacMillan Publishing Solutionshttp://publications.worldbank.org/ecommerce/catalog/product?item_id=9148591 Yanus, Mohammad (2007). Creating a World Without Poverty: Social Business and the Future of Capitalism. New York: PublicAffairs. http://grameenfoundation.wordpress.com/