Photo Credit: Debra Kellner / Clinton Giustra Enterprise Partnership

Clinton Giustra Enterprise Partnership

The Clinton Giustra Enterprise Partnership (CGEP) is pioneering an innovative approach to poverty alleviation. As impact entrepreneurs, CGEP builds social businesses to generate social impact and financial returns by addressing market gaps in developing countries’ supply or distribution chains. CGEP works to provide low-income communities access to livelihood opportunities and markets by incorporating individuals into one of three market-driven models – inclusive distribution, farmer services and aggregation, and vocational training. Through these models, CGEP seeks to help people work themselves out of poverty.

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More About the Clinton Giustra Enterprise Partnership

The Clinton Giustra Enterprise Partnership (CGEP) was co-founded by President Clinton and Frank Giustra in 2007 and is supported by Fundación Carlos Slim in Latin America. CGEP builds, replicates, and manages social businesses that generate social impact and financial returns by addressing market gaps in developing countries' supply or distribution chains. In order to increase their impact and replicate their models, CGEP establishes strategic partnerships with local and multinational companies. CGEP incorporates individuals into one of their three market-driven models – farmer services and aggregation, inclusive distribution, and vocational training. CGEP's farmer services and aggregation businesses provide training, inputs, and financing to smallholder farmers, purchase their produce, and sell to quality buyers. The inclusive distribution businesses empower women as entrepreneurs in rural and peri-urban communities and provide a source of affordable essential consumer products for resale in their communities. Finally, CGEP's vocational training business creates educational and training opportunities for youth and links them to quality jobs. Through these models, CGEP seeks to help people work themselves out of poverty.

 

Market-based Solutions

CGEP conducts market studies and assesses supply chains with respect to their demand. When gaps between supply and demand are discovered, CGEP approaches buyers such as supermarkets, restaurants, and retail stores to secure buying or labor commitments, which ensures they receive the products or workforce they require, tailored to their specifications. This is very different from many traditional charitable models which tend to focus on helping beneficiaries develop products without necessarily considering the value chain as a whole or whether there is sufficient demand for them to be sustainable.

 

Business Expertise

CGEP applies business thinking and approaches to all of its activities throughout the value chain. CGEP has a team of development, logistics, and business experts to build the local businesses. Once built, the businesses are managed by expert local general managers who have deep experience in business management, agriculture, sales, and operations in the countries where we operate. They are supported by local business teams of agronomists, fishery and aquaculture technicians, finance, and operations professionals.

 

Partnerships

CGEP forms partnerships with multinational, regional, and local companies, governments, and nonprofit organizations that share our goal of poverty alleviation. 

 

Beneficiary Income Returns

CGEP’s businesses are designed to increase the incomes of beneficiaries and to provide investors with sustained social impact that maximizes their return on investment. CGEP monitors a ratio that measures the incremental beneficiary income generated in relation to the size of the investment in each business.

 

Use of Financial Returns

CGEP's businesses are designed to generate financial returns in order that they can sustainably impact communities, distinguishing it from traditional charitable organizations. CGEP reinvests profits back into its businesses to scale them to their optimal point and to develop new businesses. 

 

Additional Resources

CGEP also leverages social grant funding that directly supports aspects such as technical assistance and capacity building to increase the number of beneficiaries who can participate in and benefit from the businesses.