Hapinoy speaks of good news once again as it makes the finals of the 2012 Sankalp Awards, the largest Social Enterprise Awards in India. It recognizes some of the most innovative, sustainable and scalable businesses in India and in Southeast Asia.

Hapinoy supports sari-sari storeowners in rural areas through education, personal development programs and other business opportunities. As of 2010, there almost 200 Hapinoy Community Stores and thousands of Suki Stores in Batangas, Bicol, Cavite, Laguna, Quezon, Bondoc Peninsula, Rizal, Bulacan, and Mindoro.

MicroVentures Foundation Chairman and Co-founder Bam Aquino says, “We are so blessed with this international recognition. This nomination will help us bring the Hapinoy Program to the world.”

Last year, the Hapinoy Program was awarded by the United Nations Project Inspire and Schwab Foundation for Social Entrepreneurship.

Hapinoy hopes to add to its roster the Sankalp Award for South East Asia. The Sankalp Awards focuses on 5 high impact sectors in India and South East Asia – Agriculture, Food and Rural Business, Education, Clean Energy, Health, Water & Sanitation and Technology for Development.

Each year, Sankalp receives 100+ nominations from for-profit emerging businesses across the five sectors mentioned. This year, they’ve expanded to South East Asia and Hapinoy is on their list.

“We at Hapinoy are very humbled and honored with this recognition from Sankalp. We look forward to sharing the Hapinoy program as a new way to empower women microentrepreneurs while simultaneously bringing solutions to the base-of-the-pyramid,” explains Mark Ruiz, Managing Director of MicroVentures Inc. and Co-founder of Hapinoy remarks.

Ruiz will be representing Hapinoy during the awarding in Mumbai at the annual Sankalp Summit from April 11-13. The Sankalp Forum is a unique and collaborative platform designed to catalyze impact investments into sustainable and scalable social enterprises globally. Sankalp today is one of the largest gatherings of social entrepreneurs, impact investors, policy makers and other stakeholders.

As the Hapinoy team looks forward with gratitude towards the Sankalp Awards, Hapinoy already shares this achievement to its partners, the Hapinoy nanays and to all Filipinos.

Winners will be announced on April 13, 2012. For more information on Hapinoy, visit www.hapinoy.com

More info here http://blog.sankalpforum.com/wp-content/uploads/2012/02/FINALISTS.pdf

http://www.world-entrepreneurship-forum.com/index.php//News/News/Entrepreneurs-for-the-World-Awards-2011

Four role-models whose entrepreneurial achievements and commitment to society make them for entrepreneurship creating wealth and social justice have been awarded the Entrepreneurs for the World Awards at this year’s World Entrepreneurship Forum held in Singapore.

The Young Entrepreneur Award, a new award category for entrepreneurs below 35, has recognised Ms Reese Fernandez, Co-Founder of Rags2Riches in the Philippines. Her venture has revolutionised women’s business practices and lives by transforming rugs from recycling scrap material into fashion handbags, eyeglasses or wine-bottle holders, sought by high-revenue customers, bringing revenues and self-confidence to employed women.

This year’s winner of the Social Entrepreneur Award is Mr William Drayton, Founder of Ashoka, USA. Mr Drayton was the first person to coin the term “social entrepreneurship” and started Ashoka in 1980. The not-for-profit organisation is established in 70 countries and supports the work of 3,000 Ashoka Fellows, selected for their impact on their social and business environments, in replicating and scaling their ventures so as to have a global impact.

The winner of this year’s Politician Award is Ms Anneli Hulthen, Mayor of Göteborg, Sweden. She is Mayor of an entrepreneurial city that has implemented several initiatives, such as “Expedition Forward”, “Business Emergency Programme” or “Brew House Incubator” widely praised among European cities for their positive impact on entrepreneurs’ ventures and the related creation of jobs.

Finally, this year’s Entrepreneur for the World Award has been given for the first time to a company, FOSUN International. The Shanghai-based conglomerate with a wide array of activities such as pharmaceuticals or healthcare, being present on the global front through its 7.1% stake in Club Med, generates an annual revenue of 4.5 billion euros and has perfectly aligned its strategy to answer Chinese population’s social needs (such as ageing population or new consumption habits).

The winners received their trophies, designed by the French jeweler Korloff, at a Gala Dinner graced by Singapore’s Deputy Prime Minister, Mr Teo Chee Hean. The World Entrepreneurship Forum, drawing 130 selected entrepreneurship experts and thought leaders from 60 countries is being held for the first time in Singapore this year, from 2-5 November on the theme “Entrepreneurship – A Driver for Innovation and Technology”. A public gathering in NTU on 4 November morning allowed 450 persons from Singapore Business Community to benefit from the most outstanding entrepreneurial stories of Forum Members.

Dalian, People’s Republic of China, 12 September 2011 – Five social entrepreneurs from Asia will be awarded by the Schwab Foundation for Social Entrepreneurship as Asian Social Entrepreneurs of the Year 2011. Joining a global network of leading social entrepreneurs from over 50 countries, the founders of these organizations will be actively participating in the Annual Meeting of New Champions on 14-16 September in Dalian, People’s Republic of China.

Demonstrating successful impact in Cambodia, Japan, the Philippines and Pakistan, these social enterprises address healthcare access, clean water supply, the distribution of everyday goods in hard to reach areas, and the nutritional imbalance in underserved communities.

“The selection of winners this year reflects an unprecedented diversity of Asian social enterprises whose work has transformative implications both locally and globally,” says Hilde Schwab, Chairperson and Co-Founder of the Schwab Foundation for Social Entrepreneurship. “We see a proliferation of services for low-income consumers such as micro-insurance and micro-enterprise development. We also see a deliberate effort from social enterprises to collaborate more closely with companies to multiply that impact.”

The Schwab Foundation for Social Entrepreneurship is proud to award the following innovators the title of Asia Social Entrepreneur of the Year 2011.

Bam Aquino and Mark Ruiz, Hapinoy (The Philippines)

Hapinoy is improving the viability and efficiency of the more than 10,000 small “mom-and-pop” stores in the Philippines. It provides business coaching, leadership training, and store branding to women small store owners in remote areas. By aggregating demand and delivering supplies directly, Hapinoy benefits store owners with a 5-15% cost savings plus access to a greater variety of goods, including over-the-counter medicines, mosquito nets and pre-paid phone minutes. (http://www.hapinoy.com)

Lo Chay, 1001 fontaines pour demain (Cambodia)

More than 900 million people around the world living in rural areas do not have access to safe drinking water. Using sand filtration and solar-powered water purification technology, 1001 fontaines provides clean, affordable drinking water to over 50,000 people at a price of US $0.01 per litre. To encourage local ownership, village entrepreneurs are trained to sell and distribute the water as well as maintain the water production site. (http://www.1001fontaines.com)

Asher Hasan, Naya Jeevan (Pakistan)

Naya Jeevan partners with companies to roll out emergency health insurance to low-income workers making less than US$ 6 per day. Drivers, cooks, waiters and security guards can be insured at US$ 2.50 per month with a yearly coverage limit of approximately US$ 1,780 – enough for a cardiac bypass surgery. Naya Jeevan also packages the insurance with a variety of services, such as annual medical checks, preventative care workshops, as well as access to a 24-hour medical care and claims assistance hotline. (http://www.njfk.org)

Masa Kogure, Table for Two (TFT) (Japan)

One in seven people suffer from malnutrition, whereas 1.6 billion adults in the world are overweight or have health conditions related to overnutrition. TFT corrects this imbalance by transferring excess calories across the globe from developed countries to developing countries. Corporate cafeterias, university dining halls and public restaurants serve healthy TFT meals, donating US$ 0.20 per meal to purchase free lunches in impoverished primary schools in African villages. (http://www.tablefor2.org)

Notes to Editors

Learn more about the Schwab Foundation at www.schwabfound.org
Follow the Schwab Foundation on Twitter at www.twitter.com/schwabfound
Become a fan of the Schwab Foundation on Facebook at http://www.facebook.com/schwabfound
Read the Schwab Foundation Blog at http://www.forumblog.org/socialentrepreneurs
Watch sessions on demand on YouTube at http://wef.ch/youtube
Follow the Forum on Twitter at http://wef.ch/twitter and http://wef.ch/livetweet
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Read Forum reports on Scribd at http://wef.ch/scribd
Upcoming Forum events at http://wef.ch/events
Subscribe to Forum News Releases at http://wef.ch/news

About the Schwab Foundation

The Schwab Foundation for Social Entrepreneurship was co-founded by Klaus Schwab, Founder and Executive Chairman of the World Economic Forum, and his wife, Hilde. Since its inception in 2000, the Foundation has been identifying the world’s leading social entrepreneurs in over 50 countries around the globe. Social entrepreneurs implement innovative and pragmatic solutions to social problems by tackling the root causes and creating social transformation. Selected social entrepreneurs of the Schwab Foundation network participate in World Economic Forum events, thus providing unique opportunities for them to connect with business, political and media leaders.

http://www.weforum.org/news/asian-social-entrepreneurs-year-2011-awarded-schwab-foundation-social-entrepreneurship

http://hapinoy.com/featured_articles/another_international_win.html

Hapinoy Is An Open Source Model for Low-Income Markets

reposted from NextBillion.net. Original article here

Editor’s Note: The following is the second of two posts on Hapinoy and its microfranchise/distribution model. The first can be found here.

As Hapinoy expands, it reaches more of the BoP market. Through its network of suki stores, the company is able to offer other products and services that do not currently reach the BoP.

The founders like to think of Hapinoy as analogous to the iPhone. In the same way that the Apple device is an open-source platform for apps created by outside programmers, Hapinoy is a distribution vehicle for products to the BoP developed by social entrepreneurs. For example, through its stores Hapinoy sells solar lanterns, mosquito nets to combat dengue fever, and, starting in April, eyeglasses.

A few years ago, it created a pharmacy program, selling low-cost over-the-counter medicines. Hapinoy stores also are mobile cash agents for Smart Money and act as a mail acceptance counter for Mail and More. In the future, it will focus on nutrition and water, health and wellness, technology, energy, and livelihood opportunities. Ruiz would like to incorporate local producers into its supply chain network. “One key pillar of the future is to open up the Hapinoy Distribution Platform for the products of community-based microenterprises as well. Product development exists to help microentrepreneurs create BoP products, but many have difficulty in marketing and sales.”

In terms of expansion opportunities, the sky seems to be the limit and the opportunity for scale is enormous. The Philippines offers a unique opportunity to build a strong microfranchise with virtually unlimited potential. Hapinoy builds on top of low-cost existing infrastructure and works with existing independent retailers.  The 600,000+ individual sari-sari stores account for 30-40 percent of total retail sales in the Philippines. To date, it has 160 community stores serving 10,000 suki stores. In the future, it has the lofty, yet achievable goal of serving 100,000 stores. There is no doubt that Hapinoy can increase market penetration by adding new stores. As it grows, its role as a platform for delivering products and services to the BoP will expand.

One of reasons the model has been so successful is because it has been able to leverage the presence of a robust network of existing retail stores selling identical products. In this author’s opinion, the genius of Hapinoy is its mastery of supply chain logistics and ability to transform an unaffiliated network of stores into a distribution platform for the BoP. By managing its own supply chain and coordinating distribution of products to its franchisees, Hapinoy reduces the costs to both the store owners and the consumers, raising incomes across the board. Right now, for example, it is piloting a mobile phone-based ordering system with five of its stores. But it is through its role as a distribution channel for the BoP where it can create systemic transformation in the country.

As readers of this blog can attest, there are countless products designed for the BoP markets. The bottleneck is not in innovation, but rather in distribution. Getting the products from the factory to the BoP can be the biggest challenge faced by companies serving the BoP. Mobile money providers have to overcome the chicken-and-egg problem of simultaneously building a customer base and an agent network. Manufacturers of solar lanterns and cook stoves rely on independent agent networks, which are difficult and costly to manage; and MFIs, which are financial institutions, and not retailers. The problem is that very few global-scale companies (with the exception of Coca-Cola) serve the BoP market. Thanks to Hapinoy, the BoP market in the Philippines is open for business.

Read a transcript of the full interview at Develop Economies.

—–

Note : it’s funny how those familiar with Apple’s iOS has indeed rightfully pointed out that it’s not really an open-source system. Josh explains it in the blog post :

aahilario – thanks for correcting me on my analogy (I must confess, I am not up on the new technologies – I’ve been using the same Nokia non-camera phone for the last year). But you are actually right. Here is what Mark, the co-founder says:

“Apple manufactured the iPhone and got it into the hands of millions of people; And yet equally as important, Apple also developed the distribution mechanism to bring the Apps to the iPhone – the much-venerated iTunes Store.

But if you dig down to it, all the applications that you can buy and install on the iPhone – all of these were developed by independent third party software developers. Which then points to the fact that Apple didn’t have to invest in huge resources and manpower in order to develop all those applications from scratch; It just had to open itself up as a platform, and then relied on an ecosystem of these companies who then developed apps for their device.

The beauty is that it’s a win-win-win situation. iPhone users get more functionality, App developers gain sales from selling their Apps, and Apple derives revenue from every transaction.

And so, applying the same thinking to Hapinoy – in order for the Hapinoy Store to unleash the true potential of the network, then the ecosytem must be opened up as a platform to independent entrepreneurs who want to develop “applications” for sari-sari stores. And these apps can take so many various forms — whether it be new products for the BoP, new services even (such as the Hapinoy+ examples mentioned above), most especially new livelihood opportunities for the BoP.”

Here’s my lengthier explanation which I’m also attaching to my previous post on Why Hapinoy is Like the iPhone :

We initially started with the iPhone metaphor some time back- a bit before Android became a very widespread OS. We used it to explain the following :

1. Hapinoy has a distinct distribution and activation/implementation mechanism (a la iTunes);
2. Hapinoy wants to work with an ecosystem of “app developers” which in this case would be innovators and social entrepreneurs in the BoP space (thousands of developers with 300,000+ apps in the iOS ecosystem, as of last count, i think)
3. the Hapinoy Store Network is a Platform – not just for groceries but a slew of other things (in technology, healthcare, energy, water, nutrition, etc) much in the same way that iPhone reinvented was a Phone can do.

We also used the iPhone metaphor to clarify that “value” is capturable – e.g. revenue, which is important to make the whole thing sustainable. iTunes at the time opened up a lot of benefits to iPhone users, but also generated significant revenue for both Apple and more importantly, the Software Developers who before were contending with massive piracy and were looking for a way to distribute and market their creations.

For us, we essentially look at “apps” – essentially new businesses for Hapinoy Stores – with the following lens :
1. will this benefit the community?
2. will this benefit the Hapinoy Storeowners with increased revenues or differentiation?
3. will this generate revenue for MicroVentures (our social enterprise)?
and of course, 4. will this generate revenue for the “app developer” or social entrepreneur?

That being said, as a Social Enterprise primarily driven by the mission, we also like “free apps” that might not necessarily generate revenue but could very well support a certain cause or advocacy. For example, we’re working with Social Entrepreneurs now who have an environmental advocacy and want to eliminate sachets with refillable bottles. It’s not a revenue generator per se but we do feel it does solve environmental issues so we’re more than happy to open up Hapinoy as a testing ground for their initiative. We also have current pilots on human trafficking awareness and disaster response (relief goods distribution in case there are floods).

In fact, we believe in this Platform strategy so much that we recently just wrapped up our first Open Innovation / Crowdsourcing Grant Competition – the Hapinoy-Fisherman Breakthrough Innovation Grant
http://www.sevenfund.org/breakthrough-innovation-grant-competition/results.php

For “app developers”, we’re  pretty open-source in the sense that we’re very open with sharing information with the social entrepreneur. Using the iTunes metaphor again – we’re working on our “SDK” (software development kit) which we’ll be posting for all possible collaborators, especially if it attracts people who can help us fulfill Hapinoy’s mission of bringing products, services, and opportunities to those who need them the most (the BoP).

Now back to the metaphor – the truth is we’ve now morphed and are probably now closer to Android than we are to iOS. Maybe we can just reposition Hapinoy is the Smartphone?

Awakening a ‘Sleeping Giant,’ Microfranchise as a Distribution Platform

The following is the full transcript of an interview with Mark Ruiz, the co-founder of Hapinoy, a franchise of sari-sari stores in the Philippines.  It is a companion piece to an article published on NextBillion.

Develop Economies: How did Hapinoy start? What, in your opinion, was the problem? Why is Hapinoy the right innovation for solving this problem?

Mark Ruiz: Hapinoy started as a fusion of paradigms, ideas, and people. In terms of paradigms, we wanted to fuse social development with the discipline of business. It started a combination of people from social development and the business sector. We wanted representation from a diverse set of relevant backgrounds, including microfinance, NGO’s, government, as well as corporate experience in distribution/marketing/sales/advertising, and entrepreneurship.

There were three fundamental problems we were looking at:

1. The products and services needed by the bottom of the pyramid (BoP) don’t reach them. The operative word is needed – for example, medicine, water, and electricity.
2. The products and services that do reach the BoP end up becoming more expensive due to distribution inefficiency. The poor end up paying more for noodles and shampoo than those who have money!
3. The BoP doesn’t have access to market opportunities, whether it is sari-sari stores looking for financing, new businesses, etc. or microproducers looking for a distribution/market for their products.

There’s a fundamental gap to the BoP. So we ask ourselves – how do we bridge this gap? How do we enable the last mile and bring products, services, and opportunities to where they’re needed the most?

Now tackling this problem could have different approaches. Do you create new infrastructure? Do you set-up new large distribution chains and mechanisms? We thought differently by asking ourselves – is there something that already exists which we can just tap and build upon?

Well, it happens there is something that already exists. Sari-sari stores, the smallest unit of retail in the country due to being such an easy microbusiness to set-up, have literally sprouted in every nook, cranny, and village in the Philippines. In the furthest regions and areas, you’ll find a sari-sari store – in fact there are almost 700,000 of them nationwide. In aggregate, that’s potentially 40% of all retail in the Philippines.

These sari-sari stores have been largely untapped because they’ve mushroomed independently and thus have no unifying system por organization to unleash that inherent power. And so what MicroVentures/Hapinoy is doing is merely awakening a sleeping giant – a human network of microentrepreneurs at the BoP that can band together and realize their strength. And as we organize these sari-sari stores together, we then create a vibrant alternative channel to bridge the gap to the BoP. There is no need for costly set-up of infrastructure. It sounds funny, but the best way to reach the BoP (the people), is actually through the BoP (the sari-sari stores) itself. It’s a distribution platform made up of the poor, in order to help the poor.

So the approach is – if we help the Hapinoy Sari-Sari Stores, then we are able to achieve the goal of reaching the BoP – and thus bring products, services, and opportunities to where they’re needed the most.

For us, it’s the right innovation fundamentally because:

1. It’s sustainable because there’s an inherent business model in distribution, retail, production, marketing, and sales
2. It’s low-cost and modular, and thus scalable. Again, there is no need to add new infrastructure.
3. Most importantly, it’s a collaboration with the BoP to help the BoP, wherein everybody has a social and economic benefit, resulting in greater prosperity for all.

DE: What other organizations – for-profit or not-for-profit – influenced the Hapinoy model? Did you take some cues from the private sector (i.e. Coca-Cola or Wal-Mart, or SM)?

Mark Ruiz: In the beginning, we never saw ourselves as a big box retailer – in fact we were quite on the opposite end of the spectrum and rather than becoming a few-big, we would go into the many-small. (For a lengthier explanation, I blogged about this point as well http://ruizmark.com/2010/03/01/a-heritage-of-smallness-21st-century-bigness/)

There are fundamental lessons that we do take from big box retailers – eventual efficiency in the chain, influencing the right product mix, etc, but our initial inspirations were:

1. Microfinancing organizations (CARD) – especially since we are in strong partnership with them and they have already invested in MicroVentures. Dr. Alip founder of CARD is our vice-chairman; mainly because of the intention for poverty alleviation, the model of creating low-cost infrastructure to serve the poor and provide access to opportunities (through microfinancing)
2. Jollibee (the local McDonald’s) – not so much for food, but the branding. Hapinoy means Happy Filipino and we really wanted – from the very beginning – to create a powerful brand that Filipinos can resonate with, as well as something that sends a very positive message out there
3. Convenience Stores – although we would eventually realize that there are fundamental differences; But the inspiration for operations, systems, of discrete smaller stores that are widely distributed is there

DE: What do you see as Hapinoy’s biggest strengths (i.e. it’s ability to be used as a platform for other services, driving down costs for franchisees, increased income and employment for the poor, etc.)?

Mark Ruiz:

1. The Nanays (mother – storeowners) themselves. Hapinoy is working with them – we call them business partners, not beneficiaries – and it is really their entrepreneurial spirit which will make or break the success of the stores
2. From another perspective, we believe it’s fusing social development with the discipline of business that will poise us for scalability and sustainability
3. The innovation of the model itself – of creating the highways to the BoP (made up of these microentrepreneurs), transforming it into a platform for new businesses, which then allows us to bring products, services, and opportunities to the BoP where they’re needed the most.

DE: Where do you see the organization in a few years? What new innovations are you considering (i.e. healthcare hub, pharmacy program, etc.)?

Mark Ruiz:

1. Nationwide presence – to be in every village in the Philippines which is realizable because CARD, being the leading microfinancing institution in the Philippines with 1.3 million borrower-clients, is already there. That being said, Hapinoy is also an open model in the sense that we do work with other MFI’s, Cooperatives, etc so that they can become part of the program. Consider us the Operating System that can be fused in different hardware/computers – you’ll find Linux in Dell, HP, Acer, Asus computers. We can plug-in to multiple organizations.
2. Product diversification – especially branching out into solutions for the BoP e.g. solar, water, healthcare, health and wellness
3. Format expansion – into technology, nutrition, etc. we start small and simple and then go deeper. for example, for healthcare we wanted to start with Step 1 – distributing and retailing over-the-counter medicine first, and then explore higher-order models such as telemedicine, remote diagnostics etc – which is now our next phase.

DE: What key lessons have you learned about microfranchising? What has been successful, and what has been unsuccessful?

Mark Ruiz: We learned that, in the BoP, we have to change our notion of the term microfranchising. A lot of people consider it as just scaling down franchising models as we know it. But there are huge differences in the model once scaled down.

For example, a 7-11 or McDonald’s will look 100% the same everywhere you go. That is not so in microfranchises – we have to be comfortable that this is not a cut-and-dry business-in-a-box that will be cleanly perfectly executed in each node. Also, the people running the franchise are obviously different. The educational levels vary, which affects the training requirements, what can be implemented (e.g. technology, etc). On the business model, there should be very creative ways to generate revenue.

I’d say that the introduction of franchising in terms of systematization will come progressively, and then cap off at around 50% (as opposed to McDonald’s 100%). say for example, we start with financing systems, then assortment / inventory systems, then supply systems, then merchandising systems, and so and on so forth. there’s a phase-in. it’s actually a lot messier than a traditional franchise, but that’s the reality of working in this sector.

i wish this was for Social Enterprise of the Year – to recognize the HaPeeps, CARD, and of course all the Hapinoy Storeowners

Paolo Benigno Aquino IV
Mark Joaquin Ruiz
President/Managing Director
MicroVentures, Inc.

“Two roads diverged in a wood, and I — I took the one less traveled by, And that has made all the difference.” These often-quoted lines by poet Robert Frost aptly describe the journey of school friends Paolo Benigno “Bam” Aquino IV and Mark Joaquin Ruiz. Years later, their minds would meet and together would embark courageously on the road not taken. They would co-create a revolutionary microenterprise business model to address the economic and social inequity for those marginalized by the status quo — the more than 50% of the total Filipino population who lives on less than $2 a day.

They had gone on different career tracks after graduating with Management Engineering degrees from the Ateneo de Manila. After college, Mr. Aquino established himself in the public service sector, while Mr. Ruiz ventured into the corporate world.

“I always considered myself a social entrepreneur,” Mr. Aquino says, “because I was driven by a strong public service perspective.” As a fresh graduate, he joined the ABS-CBN Foundation’s Special Projects Group and was involved in a rehabilitation center for abused and neglected children, disaster management projects, relief operations and volunteer recruitment. He then spearheaded the National Youth Commission as its commissioner-at-large in 2001 before becoming its chairman and CEO in 2003. “In government, I witnessed programs that had short-term gains but no long-term effects for the people it served. That influenced me to think of something that could make a lasting, transforming difference for Filipinos.”

Mr. Ruiz, on the other hand, joined global company Unilever as customer development executive and merchandising supervisor. There he honed his skills in customer marketing, promotions development and planning. In just six years, he rose to the position of senior customer marketing manager and CMD head. Mr. Ruiz says, “Unlike Bam, I only considered myself an entrepreneur when I resigned from Unilever to collaborate with him. But being in sales and marketing, I always pushed for social development through innovation and entrepreneurship — the intersection of my passions and skills.”

Mr. Ruiz’s experience in marketing fast-moving consumer goods led to the idea of leveraging on the Filipino sari-sari or convenience stores, usually found in lower-income communities, that make up around 40% of total retail sales in the country. Seeing both the problems and the potentials of the sector, they theorized that for the stores to grow and be truly viable, they needed to enter a new phase of microentrepreneurship development.

After exchanging ideas on innovative microfinance development with like-minded individuals — among them Dr. Jaime Aristotle Alip, founder of the Center for Agriculture and Rural Development-Mutually Reinforcing Institutions (CARD-MRI) and with whom they would eventually tie up — Mr. Aquino and Mr. Ruiz concretized their plans and developed a business plan for aggregating microretail outlets, which led to MicroVentures, Inc. (MVI)

MVI started its formal operations in 2007 as a social business enterprise working with CARD-MRI and its borrowers through its flagship project, the “Hapinoy Store Program.” A combination of the words “happy” and “Pinoy,” Hapinoy aims to “make every Filipino happy” by using an ecosystem management approach to improve local microenterprises. Through the program, a borrower who has top credit scores can borrow capital to convert an existing convenience store into a small Hapinoy Store or a larger Hapinoy Community Store, which serves over 50 small stores.

Recognizing that sari-sari stores are usually owned and run by the woman of the household (the mother or nanay), the Hapinoy Program focuses on increasing these Nanays’ profitability. Nanays are given access to business management and marketing knowledge through the “Path to Prosperity,” a four-tiered program designed to assist a fledgling Hapinoy store. Mr. Ruiz says, “We believe that empowering the woman microentrepreneur is a pivotal factor in reducing poverty. Increasing her profitability leads to an improved quality of life for her family and her community as well.”

The Hapinoy Program harnesses the potential of smaller enterprises through microfinancing, aggregation, value chain integration, business model innovation, branding and training. By linking Hapinoy Stores with established manufacturers and microproducers, MVI brings sari-sari stores into an organized supply chain. Moreover, MVI is able to get goods directly and at a lower cost and is able to pass these savings on to Hapinoy Stores. “Our partner companies do very well on their own, but they also see the intrinsic value in helping the community,” Mr. Aquino says.

As marketing and branding consultant, merchandise consolidator and training provider, MVI teaches each Nanay to make her own business more resilient, profitable and sustainable. Through a training program named Sariskwela, members are equipped with best practices on pricing, inventory and credit management, business expansion and goal setting. Veering away from the traditional patronage relationship between an organization and its beneficiary, Hapinoy empowers each Nanay to be a proactive manager accountable for her own business decisions. While the program teaches each Nanay ways to increase her monthly earnings from P3,000 to P18,000 within six to eight months, MVI’s ultimate goal is to improve her entrepreneurial ability and, consequently, her family’s livelihood, self-esteem and dignity.

In this respect, the Hapinoy Program is different from similar microfinancing or social enterprise models in Mexico or India, where the main focus is on raising funds for the organization’s goals. Village stores in Southeast Asia exist but are not consolidated systematically. Mr. Ruiz mentions that international microfinancing organization Grameen Foundation has singled out Hapinoy’s uniqueness — while social in nature, it is run like a real business.

“We envisioned Hapinoy as a flexible and wide-ranging platform, giving us more areas of application such as retail, production, mobile banking, technology and healthcare,” Mr. Aquino adds. In fact, a grant from the Science and Technology Innovations for the Base of the Pyramid in Southeast Asia has enabled MVI to pilot its Hapinoy Health Hub, which makes affordable medicine available in Hapinoy communities.

Currently, there are 150 Hapinoy Communities of around 10,000 stores concentrated in Southern Luzon. MVI hopes to expand operations in North Luzon by next year and, eventually, establish a Hapinoy presence in every town in the country. Groups in other countries have also expressed interest in replicating the program, and both Mr. Aquino and Mr. Ruiz foresee international expansion.

Mr. Ruiz acknowledges, however, that the present business environment is not quite ready for large-scale social enterprises; for example, there is not much “patient” (long-term) capital source available given the developmental aspect, and for-profit organizations cannot accept donations without being taxed. Mr. Aquino sees this as an opportunity for advocacy, saying that, “It’s time more people push for social entrepreneurship. As donations for non-government organizations get scarcer, social enterprises need to take the lead.” Both believe that in the long term, they can help microenterprises integrate into the formal economy and create a system of entrepreneurs helping other entrepreneurs. They dream of changing the world, one happy Pinoy at a time — it is the road they have taken.

The Entrepreneur Of The Year Philippines 2010 is sponsored by SAP Philippines. Official airline is KLM Royal Dutch Airlines, operating on behalf of the Air-France KLM Group in the Philippines. Media sponsors are BusinessWorld and the ABS-CBN News Channel. The winners of the Entrepreneur Of The Year Philippines 2010 will be announced on October 12, 2010 at an awards banquet at the Makati Shangri-La Hotel.

Some time back, Pam Imperial got in touch through the Life’s Direction’s Community (thanks AJ!) about making a special episode of Channel [V]‘s V-Life on Social Entrepreneurs, featuring myself and Reese

Little did we know that it would really be a rather lengthy episode! (Well, the upside is I think we’ll just show this as our wedding AVP on December – just kidding, Reese! :p)

Wedding jokes aside, we gladly agreed to do it because we continuously want to advocate that social entrepreneurship can indeed be a career choice. It’s certainly not a short-term thing or project, it’s a whole life’s choice and path. And yes, it is indeed viable.

Anyway, here’s the episode which first aired on May 18 -

Part 1 :

Part 2 :

Part 3 :

Part 4 :

While this is most certainly an award for my fiance’ (!) , it’s also a glowing testament of the work that Rags2Riches is doing. In fact, as Reese is the first to always mention – this award truly belongs to Rags2Riches, our Communities, our Nanays, our Partners, our Designers, our C0-Advocates, and of course – our country, the Philippines

With the award, Reese and Rags2Riches will be putting up RISE – the Rags2Riches Innovation and Social Enterprise Center (although other auxiliary names are being explored for it :p) which will be the livelab that will further scale our work in Eco-Ethical Style.

More details of this endeavor in the months to come – but suffice to say that 2010 continues to be an exciting year for this Social Business Enterprise.

Congratulations, Reese!!! We’re all very proud of you

ROLEX ANNOUNCES FIRST WINNERS OF YOUNG LAUREATE AWARDS

Five Pioneers Poised to Change the World

Geneva, 15 April 2010 – Five visionaries aged under 30 from Ethiopia, India, Nigeria, the Philippines and the United States have been selected as the Young Laureates in the inaugural Rolex Awards for Enterprise: Young Laureates Programme, Rolex announced today at a press conference in Geneva.

Chosen from a pool of nearly 200 candidates worldwide by an international jury of experts, these outstanding social entrepreneurs impressed the judging panel with their passion and conviction to overcome challenges in the areas of science and health, applied technology, exploration, the environment and cultural preservation.

The Rolex Young Laureates are:

Jacob COLKER, 26, United States – is changing the way people get involved in community service. His internet-based programme allows volunteers to use their smartphones to donate spare

minutes to charitable and scientific organizations.

Reese FERNANDEZ, 25, Philippines – is committed to alleviating poverty by training people to become social entrepreneurs. Her Rags2Riches enterprise has already empowered hundreds of women to earn a living by turning scrap materials into elegant fashion accessories.

Nnaemeka IKEGWUONU, 27, Nigeria – intends to boost the living standards of millions of Nigerian farmers through his interactive, mobile radio network. Hundreds of thousands of rural listeners are already receiving and exchanging information on sustainable farming practices and health issues.

Piyush TEWARI, 29, India – has set up a foundation to train a network of police officers and volunteers to respond quickly to road accidents and administer rapid medical care. By providing immediate assistance to victims, he hopes to stem the thousands of fatalities that occur on Indian roads each year.

Bruktawit TIGABU, 28, Ethiopia – is building on the success of a television programme on health that she and her husband are producing for preschool children and their parents.

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“Rolex is delighted to support these exceptional young men and women who represent the best of their generation,” said Rebecca Irvin, director of philanthropy at Rolex. “In tackling the problems that face humanity, they do not think in traditional ways or stick to old ideas. Their innovative projects have begun to have a profound effect on their own communities, and potentially could improve the lives of millions of people.”

An expansion of the long-standing Rolex Awards for Enterprise, the Young Laureates Programme honours men and women between the ages of 18 and 30 with inventive ideas. Each Young

Laureate will receive US$50,000 over the course of two years. During the first year, funding of

$25,000 each will give the recipients time to focus on their pioneering projects, while the second instalment will help them move forward in implementing them. The Rolex Awards international network of innovators, comprised mainly of former Laureates, is available for guidance and to help the winners take the projects to another stage.

“In this sound-bite world of ours, Rolex is giving a message to these motivated young people to take time to think things through and do their projects right,” said American ecologist Margaret

D. Lowman, one of the 10 jury members who chose the winners. “The younger generation really gets it when it comes to the planet and how the machinery of the earth works. We only need to empower them to act and Rolex is doing this by providing the gift of time.”

Another jury member, Singaporean explorer Khoo Swee Chiow, agreed: “Rolex is giving the Young Laureates time to mature. I think preparation is important. That is why, I guess, it took me

ten years before I finally climbed Everest.”

On 11 November 2010, Rolex will mark the accomplishments of the Young Laureates at an event at the recently launched Rolex Learning Center, a hub for educational exchange, at a highly respected Swiss university, the Ecole Polytechnique Fédérale de Lausanne (EPFL). Experts from

related fields, including some former Laureates, will join the celebration.

For further information, visit: young.rolexawards.com, or contact:

Mary O’ Mahony
Head of the Rolex Awards Young Laureates Programme
The Rolex Awards for Enterprise, P.O. Box 1311, 1211 Geneva 26 Switzerland
Tel. +41 22 302 2179, Fax +41 22 302 2585