SEVEN Fund Awards Student Research Grants
Enterprise Solutions to Poverty Projects Conducted
in Ten Countries

Cambridge, MA – April 26, 2009

The SEVEN Fund is pleased to announce the establishment of the SEVEN Student Research Fund, through the Center for International Development at the Harvard Kennedy School. This research fund enabled students in the Masters of Public Policy and the Masters of Public Administration/International Development programs to conduct field research related to enterprise solutions to poverty. Below is a summary of the projects conducted during Academic Year 2008-2009.

“Should Banco Compartamos Service the US-Mexico Remittance Corridor
Market?” (Tanya Beja, MPP)

Banco Compartamos has around one million clients in virtually every state in Mexico and is the biggest microfinance institution in all of the Americas. Going forward, they have made it a strategic priority to expand their product offerings. A possible path for growth is for Compartamos to enter the remittance market, which is Mexico’s biggest source of income after petroleum, to increase its client base and its cross-selling opportunities. This project examines remittance flows in the US-Mexico corridor to explore this possibility. The central question the project seeks to answer is: Should Banco Compartamos service the US-Mexico remittance corridor market? If so, how?

“Should Ghana Strategically Support the Development of Community-Based Ecotourism Sites to Reduce Poverty?” (Hannah Bowen, MPP)

Ghana’s tourism sector shows great potential as a future driver of economic growth. At the same time, the country’s broader development agenda emphasizes expansion of the economy’s agricultural base into industries and services that foster broad-based growth, while at the same time maintaining the country’s cultural and environmental resources. The government has suggested the budding tourism sector may be able to contribute to this economic growth agenda in a sustainable and equitable manner. One proposed model of tourism linking all of these goals (Community Based Ecotourism) has been initiated on a small scale; at the same time, there appears to be potential for the development of larger-scale “package” tourism. This project will investigate whether, and how, the government of Ghana and its development partners should strategically support the development of community-based ecotourism sites or other tourism models to achieve their poverty reduction, growth, and environmental protection goals.

“How can Malaysia spur High-Technology Entrepreneurship?” (David Ng, MPAID)

Malaysia‘s growth and development succeeded throughout the 1980s and 1990s as a result of its push in the manufacturing sector. The government believes that the way forward is to move up the global value chain. A strategic national vision has been set to transform the country into a knowledge-based, free market economy by growing the high-tech sector. However, past policies and implementations have been largely unsuccessful. A key success factor that has been missing and elusive is high-technology entrepreneurship. There has been a low-level of such creative endeavors in Malaysia. The number of new technological startups, patents and innovations produced annually is small and insignificant. Hence, this project attempts to answer the following: How can we spur high-technology entrepreneurship in Malaysia?

“Enterprise Solutions to Poverty: Field Studies Program in Colombia”
(Leah Sullivan, MPP)

This project focuses on Colombian agribusiness companies through Enterprise Solutions to Poverty (ESP), working with the Ministry of Agriculture and Rural Development on implementing the ESP strategies more broadly in the sector. Launched in 2006, Enterprise Solutions to Poverty mobilizes leading corporations and emerging entrepreneurs to build competitive and inclusive growth strategies that engage millions of low-income people as suppliers, distributors and consumers of asset-building products. Agribusiness is one of four sectors ESP focuses on because of its strong potential to incorporate large numbers of poor people in profitable, inclusive business models. ESP’s goal is to double the income and assets of 50 million low-income people by 2012, and has worked with over 150 large companies and entrepreneurs in India, China, Mexico and Colombia over the past two years. The project will work with three specific firms: Grupo Nacional de Chocolates, Exito, and Nestle Colombia.

“How to Eradicate Poverty in India through Social Enterprise Incubator”
(Diana Zhang, MPP)

TechnoServe is a NGO that develops and implements business solutions to fight rural poverty. In June 2006, TechnoServe started its India office in Mumbai. As it grows, TechnoServe India is conducting due diligence for the launch of its Social Enterprise Incubation Laboratory in December 2008 in Northern Karnataka. The program specifically focuses on the incubation of enterprises with a double-bottom line: social impact driven through profit-based sustainability. TechnoServe India also has invited a Harvard Kennedy School student to work with them on developing deeper theoretical support for its feasibility and strategy.
This project highlights the trend of how public sector and private sector should and could work together to solve some pressing social issues.

“Private Sector Development in Ghana – The Optimal Mix of Technology Innovation and Skills Development” (Marina Dimova, MPAID)

Private sector development has emerged as one of the pillars of sustained economic growth for Ghana. In the 2006 Ghana Poverty Reduction Strategy Paper (GPRS II), the Government of Ghana prioritized the following areas of work: macroeconomic stability, private sector-led growth, human resource development, and good governance and civic responsibility. Nevertheless, the Government of Ghana does not have a comprehensive methodology to promote the growth of the private sector. This analysis will look at the following questions: given the identified binding constraints to the growth of the private sector in Ghana, what is the most effective policy the Government of Ghana should undertake to remove these constraints to the growth of the private sector in the next five to ten years? Why have so few SMEs in Ghana moved away from the traditional natural-resource based production and exports? What specific constraints are preventing SMEs from earning higher returns by diversifying into higher value-added products?

“Strategies for Fostering Business Incubation in High-Tech in the Dominican Republic” (Daniel Lansberg and Alexis Geaneotes, MPP)

The Dominican Republic has already announced its intent to establish itself as a leader in sectors, such as computer and telecommunications software, agri-products, pharmaceuticals and biotechnology. As put forth in the objectives of CIACT (2004), it is necessary to foment collaboration between academics, government and business to increase domestic incubation in technology. As such, the Dominican Republic has already taken several steps to leverage the role of its academic system, such as the partnering of PCUMM (2005) with a foreign technical institute to create centers of excellence in research and education. Notwithstanding, much work remains if the DR is to position itself as a regional driver in technical innovation. The objectives of our research are to: Define the optimal conditions (i.e. regulatory, business, institutional, and academic) for fostering business incubation in the high-tech sector of the Dominican Republic; Develop a baseline assessment of the DR’s current capabilities and constraints vis-à-vis these conditions, focusing on the role of academic institutions in fostering entrepreneurship in the technology sector; Determine and prioritize policy actions for strengthening Dominican capacity for technological innovation

“Framework for the Swaziland Investment Promotion Agency” (Sara Nadel, MPAID)

This analysis develops a framework for the Swaziland Investment Promotion Agency (SIPA) to assess requests for concessions by potential new industries in Swaziland. The project analyzes resolution of coordination failures, movement within the product-space towards more high-value exports, and some basic financial analysis of business elasticity to taxes and opportunity cost of funding. The methodology employed includes analysis of macroeconomic characteristics, as well as qualitative interviews with officials and business owners in Swaziland. The client, SIPA, is a part of the government, and the recommendations consider the interests of the country as a whole, taking into consideration that the government manages a number of objectives.

"Harnessing the Potential of Microfinance Institutions (MFIs): Models for Identifying, Developing and Nurturing Women Micro-Entrepreneurs" (Prerna Srivastava, MPP)

The confluence of four critical factors has led to what Click Diagnostics believes is a global health mandate – 1) a severe scarcity of doctors in rural areas; 2) the relative abundance of medical expertise in urban areas; 3) the presence of trainable community health workers and local-level women micro-entrepreneurs; and 4) the rapid penetration of relatively inexpensive mobile technology into the markets of developing countries. In order to address this need, Click Diagnostics has developed a mobile tele-health model to connect locally-trained community health workers with a remote, web-based network of medical specialists. Through the integration of inexpensive technology, locally-trained community health workers, and remote medical expertise, Click Diagnostics aims to provide a sophisticated end-to-end healthcare service delivery chain for remote diagnosis and consultation, health risks screening, early warning systems, and health data analysis. The objective of this project is twofold, with a particular emphasis on micro-entrepreneurship - 1) to construct replicable models for building synergistic networks with microfinance institutions (MFIs) and women's organizations that serve the purpose of identifying, developing, and nurturing women micro-entrepreneurs; and 2) to enhance the public value of the Click implementation model through the provision of micro-products and services in collaboration with MFIs. Particular emphasis will be placed on developing internationally scalable strategies for leveraging and mobilizing the social capital of MFIs and women's organizations through micro-entrepreneurship.

“Strategic Expansion of a Weather Index Micro-insurance Pilot Program in Ethiopia” (Kate Kennedy and Nora Ferm, MPP)

Ethiopia is highly prone to droughts and famine. Given that 85% of the population is dependent on smallholder, rain-fed agriculture, droughts severely impact large numbers of people. Oxfam America, an international relief and development organization, is working to develop a low-cost innovative form of weather insurance that can reach populations - like the Ethiopian smallholder farmers - that are currently underserved by mainstream insurance companies. Micro-insurance has the potential to increase farmers’ ability to respond to increased climatic risks, so that future droughts do not drive them deeper into poverty. This research is aimed at designing a strategy for Oxfam America to use in expanding their pilot project beyond the single town in which it was implemented in 2008. The project will focus on: a) interviewing key stakeholders to determine primary goals for the expansion phase; b) identifying villages to recommend as sites for project expansion; and c) examining the feasibility of project implementation in those sites, including factors like cost differentials, accessibility, logistics, and opportunities for collaboration with local partners.

“Charging Up Rwanda: A Technology Adaptation Approach for Leapfrogging to a Zero-Emissions Transportation System" (David Shlachter, MPAID)

Rwanda's annual oil bill is approaching the value of its cumulative annual exports. Almost every vehicle in Rwanda is powered by oil derivatives, and 60% of imported oil is allocated to the transportation sector. There are private-sector initiatives to build nationwide infrastructure to support the mass deployment of electric, zero-emissions vehicles in OECD countries. However, these initiatives offer a consumer value proposition that may not succeed in the economic environment of many developing countries. This project seeks to answer the question, "How can existing OECD oriented electric vehicle systems be adapted for successful implementation in Rwanda, considering issues of technical correctness, political feasibility and administrative implementation?"