The 1$ challenge: building a trust-based ecosystem
by Carina Langehttp://www.starthubafrica.org/
Personality, practice and funding are key to built a business. Our community-based fund combines all three: - 6 weeks of personality-centered entrepreneurship training - 2 weeks of practical design challenge with 1 $ per person provided as seed money Experience shows that most participants can at least quadruple that $. Learning, earning and personal & business growth are combined. Local partnerships anchor the business & provide further funding opportunities for the most successful startups.
What's the business opportunity for host and refugee community
* Members from both communities are equally invited to all activities * Design challenge is based on an intense exchange with potential clients = people from both communities get in touch *$ is provided by local businesses, the profit is shared, hence identification with and support of projects is high = community growth *trust-based investment, proximity of “investors” and “entrepreneurs” from both communities = ties bonds & strengthens the whole entrepreneurial ecosystem
How has it been implemented and what impact it had
We cooperate with local organizations for logistics. Entrepreneurial trainings, tested in Togo (GIZ) and Uganda (StartHub) are combined and adapted to the context. Similar seed-funds have been tested in Pakistan (YES Network), with a payback rate of more than 90% and a profound social& economic impact. Motivation& dedication of entrepreneurs and the community are at the heart of our solution, driver for change, and encouraged and rewarded: e.g. 5 $ raised are topped with 5 $ interest-free loan.
Our Skills and Experience
As a diverse team -a displaced social worker, a physicist, a GIZadvisor & IT nerds- we do think differently & create sth new. We draw on lessons learnt (Uganda: universities, refugee camps, Togo: craftsmen) and are keen to adapt them to other challenges. Our evidence-based approach is based on latest research. All methods we use are developed with locals & are submitted to early, comprehensive feedback Embracing fail-fast ourselves encourages entrepreneurs we work with to take risks & be bold!