Integra Overview Allan Bussard Integra www integra sk

Integra Overview Allan Bussard Integra www. integra. sk allan. bussard@integra. sk

Enterprise solutions to poverty n Poor as actors n Sustainable businesses n Sustainable business support infrastructure

Integra Programs: - Slovakia Croatia Russia Ukraine Romania Bulgaria Serbia Kenya Sudan 1993 1995 1999 2000 2001 2002 2004 2005

Integra Venture Program Countries Country/ strategy Slovakia Romania Bulgaria Russia Serbia Ukraine Croatia Kenya Sudan Social Enterprise MED Livelihoods Fair Trade Up. Stream

Scale staff 68 Program offices Resourcing offices 2006 portfolio 12 in 8 countries US, UK, Canada $2. 14 million 2006 revenues $1. 37 million 2006 net income $170 884

Hybrid Support Structure Integra Foundation (not for profit) - training - business plan development - consulting - social auditing Strategic partnership agreement Integra Co-op (for profit) - due diligence - loans - guarantees - equity - portfolio management Small enterprises with a Community benefit Purpose

Integra Venture Governance

Strategic Programs n Social Enterprise n Microenterprise Development for at-risk populations n Livelihood programs for youth at risk n Fair Trade market access for disadvantaged producers

Social Enterprise Program: Process Scale-up or Exit Ongoing leadership development Initial business idea Feasibility Study Business Plan Development, CSR strategy Project Management & Monitoring (management participation) Investment package development (Equity and debt)

Social Enterprise program: Purpose n To bring material, social and spiritual renewal to individuals and communities, by – promoting justice, truth and integrity in business – promoting social inclusion through employment for the vulnerable and excluded – promoting sustainable development through policies that protect the environment. – generating resources for poverty alleviation programs

Social Enterprise program: Island of Integrity Profile n An ‘Island of Integrity’ social enterprise is a commercial enterprise that has a social transformation purpose designed into the business plan, the operations model, and the investor expectations.

Social Enterprise program: Strategy n n n n n Social venture capital approach, engagement through investment, consulting and vision alignment interventions Small number of intense involvements, seeking long-term partnerships Focus on innovative, “first to market” companies Direct equity investment (both minority and majority stake), supplemented by debt Active involvement in the strategic leadership of companies Thorough due diligence and feasibility studies Identify and invest in scaleable models Impact assessment that monitors financial, ethical, social and environmental impacts Exit strategies, normally management buy-out.

Social Enterprise Cases

OIL PARTNER Scaling-up Social Enterprise in Eastern Europe

Our Mission and Values Oil Partner’s mission is fourfold: 1. To serve clients and their cars with convenient, transparent and highly customer-oriented car maintenance services. 2. To help our employees grow and develop both as professionals and as persons, enabling them to reach their full potential. 3. To serve the community by providing jobs for disadvantaged young people, practicing responsible environmental management and to generate resources for poverty alleviation in Eastern Europe. 4. To practice good stewardship of the resources entrusted to us by our investors and provide a sound return on their investment.

Summary of Pilot Project Successes and Results in Slovakia - Racianska store in Bratislava operational since 2001 AVION / IKEA store in Bratislava opened May, 2007 NITRA store under development 7. 000 customers served per year in one store Financial support $15, 000 provided towards Integra MED program 6 jobs created for young boys from Tomky rehabilitation center for drug addicts - Financial results (2006): • Annual Sales on Racianska store: $ 840. 000 • Return on Assets: 23 % • Return on Shareholders Equity: 57 % “The way how the employees are focused on the work they do and how their communication with clients is on the highest level, is so rare to see in the Central. European context. It was very pleasant to experience that the employees even have joy and fun when performing their tasks…” Quote from Hospodarsky dennik, leading business newspaper

Microenterprise Development for at-risk populations n Women at risk: divorcees, single mothers, widows, refugees, under-skilled, sole wage earner in disfunctional family, ethnic minority n Focus on start-up enterprises in areas of high unemployment n Partner with local government, EU

Vulnerable clients and families Micro Enterprise Development process HR Development -BDS -IT skills -Communication skills -Coaching -Thematic training Financial Services -debt. equity -Other financial services -Public programs Market Access Services -Brand -Consulting -Retail -Wholesale -Business linkages Community building = developing social capital Building trust, community engagement through community groups, mentoring, networking opportunities and counselling. Empowered clients, sustainable small companies, new jobs created.

Outcomes MED Small enterprises 790 Microloans 1407 Jobs created 2847 Women 66% Unemployed at start 51% Cumulative investments $2. 5 million Repayment 92%

Livelihood programs for youth at risk n Integrating orphans into society - Bulgaria – – n School help Job experience Life skills Halfway house Youth apprenticeship - Serbia – Job experience n Children’s Garden - Nairobi – Vocational training for street children

Fair Trade market access for disadvantaged producers www. tensenses. com

Ten Senses Ltd. n Companies in Slovakia and Bulgaria. n retail, wholesale, internet – www. tensenses. com n Pilot projects in Russia, Serbia and Kenya

Strategic Partnerships n Integral Alliance www. integralalliance. org n INAISE www. inaise. org n FEBEA www. febea. org n Shell Foundation www. shellfoundation. org n Citigroup n Transformational Business Network www. tbnetwork. org

Towards Financial Sustainability – – traditional grant income decreasing access to European Union funds increasing growing importance of international development projects increased revenue from own business activity (Integra Slovakia)