2008 2nd Place

E+Co Vision 2020: Breaking New Grounds Sagar | Catherine | Kelvin | Esther

Increase Entrepreneurs Outreach Programs- Quarterly Regional Workshops Past Successes Community Heroes Past Program Beneficiaries Provide Information on Local market demand for clean energy ideas Possible clean energy ventures Toolkit Usage Business Plan creation tips Introduction | Entrepreneurs |Funding| New Markets | New Sector | Timeline | Financials

Increase Entrepreneurs Collaboration with Microfinance Institutions Why? MFIs have access to an existing pool of entrepreneurs Local expertise and knowledge How? MFIs guide borrowers to E+Co Low-end Business needs High-end Business needs MFI funds E+Co funds Introduction | Entrepreneurs |Funding| New Markets | New Sector | Timeline | Financials

Increase Entrepreneurs Collaboration with Microfinance Institutions Introduction | Entrepreneurs |Funding| New Markets | New Sector | Timeline | Financials Which MFIs? India - SKS Microfinance; Share Microfin Brazil - Fininvest Mexico - Financiera Compartamos South Africa – Microloan Foundation Uganda – Microfinance Union What’s in it for the MFIs? Option of partial (smaller proportion) funding of the new high-end business continued interest income

Increase Funding Funding & Affiliates (Partners) 1) Local Banks Provide seed funding & growth capital Why? Lesser default risk with E+Co supporting the venture Diversifies banks’ credit portfolio 2) International Banks Engage them in closing mega funds Similar to Triodos Partnership Potential partner: HSBC Introduction |Entrepreneurs | Funding | New Markets | New Sector | Timeline | Financials

Increase Funding Funding & Affiliates (Partners) Introduction |Entrepreneurs | Funding | New Markets | New Sector | Timeline | Financials 3) CSR-Conscious Corporations Pitch E+Co’s capabilities of making significant social impact Potential for huge source of funding with rising number of CSR-conscious companies 4) Partnership with other like-minded organizations Maintain existing partnerships like Bill & Melinda Gates Foundation Further establishing new partnerships, especially with local foundations

Increase Funding Introduction |Entrepreneurs | Funding | New Markets | New Sector | Timeline | Financials Individuals invest to companies (Kiva Model) Online portal linked to GMS to provide comprehensive borrower information Should provide an avenue for individuals to reduce their carbon footprints High quality carbon offsets

Expansion Introduction |Entrepreneurs |Funding| New Markets | New Sector | Timeline | Financials Why? High growth potential A new set of entrepreneurs tapped into Plenty of business opportunities for clean energy entrepreneurs In line with past strategy of entering into new markets across continents Spread socio-economic and environmental benefits to newer regions

Water sector Why Water? Complementary to energy sector Business Model replicable Significant demand for water management in developing world Plenty of international organizations for support WHO, SEAWUN (South East Asia Water Utilities Network) Introduction |Entrepreneurs |Funding| New Markets | New Sector | Timeline | Financials Encourage entrepreneurs with ideas of Water provision Water purification Water conservation

Slides for Further Analysis 1)Type of organization 15) Incremental Income Stat. 2)E+Co’s Strategy and Culture 16) Meeting entrepreneur target 3)Direct Investing 17) Meeting Customer target 4)Selection of New Markets 18) NPV 5)Number of markets 6)Education Programmes 7)MFI collaboration 8)Kyoto Protocol 9)Cost of Carbon Certification 10)Differentiating for online individual investors 11) Water & Energy 12) CSR conscious companies 13)Tipping Point 14)Pitch for Carbon Fund 15) Benefits of workshop Start Entrepreneurs Funding Expansion Water Time + Financials

Type of Organization 3 Levels of Org Non-profit, Not-for-profit, For-profit According to E+Co’s audited financial statement, E+Co is a not-for-profit. They aim to develop business AND make money for sustainability

E+Co’s Strategy and Culture Two-headline strategy: Tradition of Experimentation will Continue Funds and Affiliates Approach Adopted to Tap Growth Potential Culture: Flexible, creative and open

Why involve in high risk direct investing? Necessary to achieve the targets because Increases local presence Better able to adapt local needs Allows for Width investing and pave way for depth investing subsequently

Selection of new markets South Africa used as a reasonable benchmark Population statistics from UN ESA year 2005 GNP figures dated 1998 from World Bank 5,861 4,180 7,450 740 2,407 11,728 GNP per capita (PPP$) 44 946 Columbia 27 274 Peru 104 266 Mexico 141 356 Nigeria 226 063 Indonesia 38 747 Argentina Population (thousands) Country

Why only few new markets targeted? Penetrate in existing markets Depth investing Targeted markets allow for maximum developing world coverage China, India, Brazil, Indonesia, Argentina, Bangladesh, Nigeria Political or economic instability eliminates a lot of markets Resource limitations

Education/training programme Partner entrepreneur schools to get people to start up a business Target people with entrepreneur spirit, want to make money with any business. Encourage them to clean energy business. Channel their entrepreneurial spirit into clean energy business and give them funding. Field work team will have training and talks on clean energy business Toolkit self-select. They have ideas already. Now we can reach people who don’t know what they want to do.

Why would E+Co want to implement the training workshop? E+Co Target Audience Convert E+Co Programme Attendees Convert Field Work Workshop

Will target segment of MFI be in line with target of E+Co? MFIs target segment Low-end borrowers = not E+Co’s target Higher-end borrowers = E+Co comes in When MFI borrowers big enough to step up to higher-end businesses E+Co provides Funding Training & Service Support E+Co acts as a subsitute for local bank lending

Expire of Kyoto Protocol in 2012? Trend likely to continue as countries increase efforts to battle global warming Market is rather established thus likely to further grow Ratification of protocol by Australia (check)

Why is it costly and administratively demanding for certification of carbon credit? Require independent verification by third party according to ISO/ IEC Guide 17030 and get Letter of Approval from government

How E+Co differentiate from the other online investing businesses? E+Co provides high quality carbon offsets (additionality principle that are highly regarded for carbon-conscious consumers.)

Will water initiative cannibalize the energy initiative? Pool of entrepreneurs big enough There are entrepreneur-wannabes who are interested in the area of water Increase pool of entrepreneurs through field work

Why would CSR conscious companies choose E+Co? Differentiating factors Unique and proven business model Able to achieve sustainable social development Achieve triple bottom line performance

Reach tipping point sooner? Wouldn’t reach tipping point by 2020 Too many developing countries Too many opportunities Energy alternatives will take time to develop scale If tipping point reached Exposure to other sectors would help Eg. Water, Disease control

What is the sales pitch to convince institutional investors for carbon fund? CSR conscious firms Environmental friendly institutions Government funding

Incremental Revenue 1,082,140 689,074 464,340 325,518 TOTAL grow at 1% per year 2,823 2,713 2,607 2,505 248,017 Other income Growth of 27% (approximation from energy market of 30%) 337,585 129,768 49,883 - Interest income water sector First 2 year grow at 10% and subsequently 15% until last 2 years at 10% 325,588 203,464 116,331 66,513 604,660 Interest Income Program revenue grow at 10% 130,065 88,836 60,676 41,443 376,753 Program Revenue grow at 5% per year for 5 years and drop 1% each year after to reach a rate of 2% each year F&A 286,080 264,293 234,843 215,058 4,096,342 Contributions Growth rate Initiative 2020 2016 2012 2008 Average Revenue and Support Projected

Incremental Expense $1,897,532 NPV 7% Cost of capital 595,453 309,138 168,173 93,820 (3,922,725) Increase in Net Assets 486,687 379,936 296,168 231,698 3,922,725 TOTAL 20,000 25,000 50,000 - - Costs of entering water sector 1,299,403 70,527 40,324 - - Costs of entering new markets 597,975 575,975 553,975 542,975 - Initiative to increase entrepreneurs conservative est to grow expense at 5% 22,465 18,482 15,205 12,510 238,278 Other conservative est at a high rate of 12% to 10% F&A & Carbon Mkt 146,492 100,056 65,910 42,264 314,467 Grant Procurement Increases at 5% due to inflation 62,970 51,806 42,621 35,064 667,892 Management and General Increases at 5% due to inflation 254,760 209,591 172,431 141,860 2,702,089 Program Service Expenses

25,000 Market Research 8000 10000 20,000 40% Marketing 6000 7500 15,000 30% Employing new staff 6000 7500 15,000 30% Setting up office 20,000 25,000 50,000 4. New Business 519,761 28,211 16,130 40% Employing new staff 779,642 42,316 24,194 60% Setting up office 1,299,403 70,527 40,324 667892 3. New Markets 98,693 67,409 46,041 31,447 314,467 2. Grant Procurement Value for maintaining toolkit 2500 2500 2500 2500 The Entrepreneur Toolkit $500 quarterly for outreach 70,000 62,000 54,000 50,000 Outreach Programs (4 times a year) $50 Retaining costs per entrepreneur 402,975 402,975 402,975 402,975 Retaining $3500 yearly on marketing 122,500 108,500 94,500 87,500 Tap into MFIs 597,975 575,975 553,975 542,975 1. Increase entrepreneurs 2020 2016 2012 2008 Historical Average INCREMENTAL EXPENSES

2008 2nd Place

More Related Content

What's hot (18)

Viewers also liked (19)

Similar to 2008 2nd Place (20)

More from McGill Management International Case Competition (20)

Recently uploaded (20)

2008 2nd Place