By Chris West, Director, Shell Foundation. Presented at Transforming T

1. Innovations in Scaling
January 2011
CHRIS WEST

2. SF Mission and Approach
SF is an independent charity that catalyses
scalable & sustainable enterprise-based solutions to
global development challenges.
We work with a We deploy We leverage our
few strategic partners more than money to independent but linked
on a core set of issues pilot, scale-up and relationship with Shell
replicate solutions where appropriate
Governance Mixed Board of Trustees
Funding US$20m/yr (and US$400m endowment)
Principles SF Business Principles

3. Being Catalytic for Scale
Systemic/market failures underpin global sustainable
development challenges:
New “pull” products/services require Market Entry
eg micro-credit, clean cookstoves
New “push” products/services require Market Creation
eg SME finance, sustainable transport solutions
Few existing institutions are fit for global scale-up
Need for catalytic or disruptive change....

4. Vision for Scale
New intermediaries with innovative products/services
Vision from outset to achieve scale
Led by “social entrepreneurs”- business-like approach
SF co-created/co-founded various intermediaries:
Embarq - sustainable transport (2002)
GroFin - specialist SME financier (2002)
Envirofit - clean cookstoves (2006)
CottonConnect – ethical trade (2008)
Global Alliance for Clean Cookstoves (2010)

5. Building for Scale
Unrestricted core funding – build capacity/systems
Business skills support/mentoring
Market linkages, enabling environment
Working in close partnership – more than money
Angel investing – accept high level of start-up risk

6. Financial viability for Scale
Plan to exit subsidy dependency
Measure and track performance
Financial management and planning
Drive for cost efficient structures/processes
Focus on quality
Seek earned income streams
Early adopters not necessarily the most poor

7. Patience for Scale
Takes a long time, fragile and not low cost
- for private sector as well as social enterprise
Patience, persistence, adaption, flexibility
Pricing, marketing, awareness, distribution
Focus on early success
Continual market/customer feedback
Long-term support: smart subsidy + more than money
Build a brand
Social marketing required before reach “tipping point”

8. Some Ideas for further Scale
Create more business-like intermediaries…
- eg create viable pipeline of finance-ready projects
Capture and trade social value
- eg carbon pre-finance; social investment bonds
Create specialised blended social capital funds
Transport and IT linkages - better informed individuals
Policy reform – eg fuel standards