More About the Clinton Giustra Enterprise Partnership
Established by President Bill Clinton and Canadian philanthropist Frank Giustra, the Clinton Giustra Enterprise Partnership takes the best of non-profit and for-profit organizations to create social enterprises that provide new economic opportunities for underserved communities. By addressing market gaps in developing country supply or distribution chains, these enterprises generate both social impact and financial returns.
Our three market-driven models – Distribution Enterprise, Supply Chain Enterprise, and Training Center Enterprise — increase the economic and social well-being of individuals in the communities where we operate by creating jobs and providing access to new markets and opportunities. Our social enterprises, based on these models, have already been established in emerging economies in multiple countries and can be easily replicated and scaled around the world. Global companies — including Nestlé, Vision Spring, and Procter & Gamble — work with us to deploy these enterprises in multiple regions from which they either wish to source products or labor, or distribute goods.
Certain value chains are particularly suitable for creating enterprises under our model, in particular the agriculture and tourism sectors. These sectors have potential for exponential growth, but are often challenged to secure supply from local communities where there are large numbers of low-income residents and a highly fragmented producer base.
We carry out a diagnostic which identifies buyers’ demand requirements as well as the current state of supply for selected products and/or services with respect to that demand. When gaps between supply and demand are discovered, we approach large market participants or market consortiums to secure buying or labor commitments, which ensure they receive the products or workforce they require that is tailored to their specifications. This is very different to many traditional charitable foundation models which tend to focus on helping smallholder farmers and producers develop products without necessarily considering whether there is sufficient demand for them to be sustainable.
We apply business thinking and models to all of our activities throughout the value chain. We have a team of enterprise development and enterprise investment experts to build the enterprise portfolio and then hire industry experts to manage the created enterprises to ensure that these businesses achieve their financial and social goals.
Because we have an established and creditable brand and methodology, we are able to better form partnerships with many different stakeholders and trusted alliances with thousands of smallholder farmers and producers.
Beneficiary Income Returns
Our enterprises are designed to ensure a high beneficiary income return on investment. This ratio measures the incremental beneficiary income generation in relation to the size of the investment. It is a key performance indicator that helps us assess the financial and social impact of our enterprises.
Use of Financial Returns
Our enterprises generate financial returns, distinguishing us from traditional charitable organizations. We have the ability to re-distribute these funds back into our businesses to scale existing enterprises to their optimal point and develop new enterprises in markets where there is an opportunity to meet demand and reduce poverty.
We have investment vehicles (the Acceso Funds) to provide the necessary seed-capital to create our enterprises with the aim of turning them into viable, self-financing entities which achieves both social and financial returns. We have developed a framework to use when considering an investment opportunity to ensure it has high impact potential.
We often use external resources – knowledge, brand, capital and infrastructure – to help us achieve our goals. For example, we may hire an agricultural service provider or agronomist team to help farmers transition from traditional chemical-intensive production to organic/natural, while at the same time, building their capacity by adopting good agricultural practices. Naturally, highly skilled and efficient suppliers mean improved yields and higher quality end-products, as well as cost savings. Similarly, the productivity of retailers and distributors is key factor for a company to maintain and increase sales.