Integra Overview

Allan Bussard

Integrawww.integra.sk

allan.bussard@integra.sk

Enterprise solutions to poverty

Poor as actors Sustainable businesses Sustainable business support infrastructure

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

Integra VentureProgram Countries

Country/

strategy

Social Enterprise

MED Livelihoods Fair Trade UpStream

Slovakia

Romania

Bulgaria

Russia

Serbia

Ukraine

Croatia

Kenya

Sudan

Scale

staff 68

Program offices

Resourcing offices

12 in 8 countries

US, UK, Canada

2006 portfolio $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

Integra Co-op (for profit)- due diligence- loans - guarantees - equity - portfolio management

Small enterprises with a Community benefit

Purpose

Strategic partnership agreement

ExternalInvestors

European Leadership TeamFour members

part time

Integra Russia staff

Integra Russiamanagement

Integra RussiaBoard

NGOFoundation

Coop

Integra ownedbusinesses

Integra Slovakia staff

Integra Slovakiamanagement

Integra SlovakiaBoard

NGOAssociation

LLC

Integra ownedbusinesses

Integra Romania staff

Integra Romaniamanagment

Integra RomaniaBoard

Integra Serbia staff

Integra Serbiamanagement

Integra SerbiaBoard

NGOAssociation

Coop

Integra ownedbusinesses

Integra Bulgaria staff

Integra Bulgariamanagment

Integra BulgariaBoard

IVUSAStaff and volunteers

IVUSAPresident

Integra Venture USABoard

General Secretary

Integra Councilmeets twice annuallyExecutive Directors

International advisors

Integra Venture Governance

Strategic Programs

Social Enterprise Microenterprise Development for at-risk

populations Livelihood programs for youth at risk Fair Trade market access for

disadvantaged producers

Social Enterprise Program: Process

Feasibility Study Business Plan Development, CSR strategy

Initial business

idea

Project Management & Monitoring

(management participation)

Scale-up or Exit

Ongoing leadership development

Investment package

development (Equity and debt)

Social Enterprise program: Purpose

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

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

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 CasesCompany Location Value proposition Size Poverty impact Pure Health Ltd Nairobi Affordable health food

for slum dwellers 76 employees - Jobs for slum

dwellers - reduced health costs for the poor

River Jur Fishery Coop

Rural South Sudan

Shared resources and market access

45 members -increased food security - asset growth

Oil Partner Ltd. Bratislava No appointment, quick oil change and car service

22 employees -preferential jobs for recovering drug addicts - designated charity womenÕs MED

Ten Senses Ltd.

Slovakia, Bulgaria, Serbia, Russia

Fair trade market access for disadvantaged producers

230 suppliers - increased revenue stability for excluded producers

Kasigau Ranch Ltd.

Kenya Eco-tourism, unique vacation

25 employees, 430 community shareholders

- increased local revenue - reduced poaching

Rabbitex Ltd Slovakia, Serbia

Supply chain solutions for rabbit producers - food, know-how, export

45 small farmers in supply chain

revenue stability through improved methods and market access

OIL PARTNERScaling-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

“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 Women at risk: divorcees, single mothers,

widows, refugees, under-skilled, sole wage earner in disfunctional family, ethnic minority

Focus on start-up enterprises in areas of high unemployment

Partner with local government, EU

Community building = developing social capital Building trust, community engagement through community groups,

mentoring, networking opportunities and counselling.

Vulnerable clients and

families

Vulnerable clients and

families

Micro Enterprise Development processMicro Enterprise Development process

Empowered clients,

sustainable small

companies, new jobs created.

Empowered clients,

sustainable small

companies, new jobs created.

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

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 Integrating orphans into society - Bulgaria

– School help– Job experience– Life skills– Halfway house

Youth apprenticeship - Serbia – Job experience

Children’s Garden - Nairobi– Vocational training for street children

Fair Trade market access for disadvantaged producers

www.tensenses.com

QuickTime™ and aTIFF (LZW) decompressor

are needed to see this picture.

Ten Senses Ltd.

Companies in Slovakia and Bulgaria. retail, wholesale, internet

– www.tensenses.com

Pilot projects in Russia, Serbia and Kenya

Strategic Partnerships

Integral Alliance www.integralalliance.org

INAISE www.inaise.org

FEBEA www.febea.org

Shell Foundation www.shellfoundation.org

Citigroup 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

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2004 2005 2007

(USD

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Portfolio and BusinessRevenues

Local DevelopmentContracts (EU funds)

International DevelopmentContracts

Grants and Donations

Other income

(IntegraSlovakia)