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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 creates new enterprises to generate both social impact and financial returns by addressing existing market gaps in developing countries’ supply or distribution chains. CGEP works to provide underserved communities access to markets, jobs, and training by incorporating individuals into one of three market-driven models – Distribution Enterprises, Supply Chain Enterprises, and Training Center Enterprises. 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 currently funded by Frank Giustra and Fundación Carlos Slim in Latin America. CGEP creates, replicates, and oversees social enterprises that generate both social impact and financial returns by addressing existing market gaps in developing countries' supply or distribution chains. In order to increase their impact and quickly replicate their models, CGEP establishes strategic partnerships with large corporations. CGEP incorporates underserved individuals into one of their three market-driven models – Distribution Enterprises, Supply Chain Enterprises, and Training Center Enterprises. CGEP's Supply Chain Enterprises provide training, inputs, and working capital to smallholder farmers, procure their produce, and sell to quality buyers. The Distribution Enterprises empower women as entrepreneurs in rural and peri-urban communities and provide a source of affordable consumer- and community- focused goods for resale. Finally, CGEP's Training Center Enterprises create educational and training opportunities for youth and place them in quality jobs. Through these models, CGEP seeks to achieve their ultimate goal of helping people work themselves out of poverty.

 

Market-based Solutions

CGEP conducts studies to identify buyers’ requirements as well as to assess the current state of supply chains for selected products and/or services with respect to their demand. When gaps between supply and demand are discovered, CGEP approaches large market participants or market consortiums to secure buying or labor commitments, which ensure 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 models to all of its activities throughout the value chain. CGEP has a team of development and 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.

 

Partnerships

Because CGEP has an established and credible model and methodology, it is able to better form partnerships with many different stakeholders and trusted alliances with thousands of smallholder farmers and producers.

 

Beneficiary Income Returns

CGEP’s enterprises are designed to ensure increased income for beneficiaries and social return on investment. CGEP monitors a ratio that measures the incremental beneficiary income generation in relation to the size of the investment in each enterprise, and tracks this as a key performance indicator that helps assess the financial and social impact of its enterprises.

 

Use of Financial Returns

The goal of CGEP's enterprises is to generate financial returns, distinguishing it from traditional charitable organizations. When returns are achieved, CGEP reinvests these funds back into its enterprises 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. CGEP targets for each of its enterprises to reach profitability within four years.

 

Additional Resources

CGEP often uses external resources – knowledge, experience, capital and infrastructure – to help achieve its goals. For example, CGEP may hire an agricultural service provider or agronomy 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. 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 a key factor for a company to maintain and increase sales. CGEP also leverages social grant funding that directly supports training and capacity building to amplify the number of beneficiaries who can participate in and benefit from the enterprises.