Integra Overview
Allan Bussard
Integra
www.integra.sk
allan.bussard@integra.sk
Enterprise solutions to poverty
Poor as actors
 Sustainable businesses
 Sustainable business support infrastructure

Integra Programs:
-
Slovakia
Croatia
Russia
Ukraine
Romania
Bulgaria
Serbia
Kenya
Sudan
1993
1995
1999
1999
2000
2001
2002
2004
2005
Integra Venture
Program Countries
Country/
strategy
Slovakia
Romania
Bulgaria
Russia
Serbia
Ukraine
Croatia
Kenya
Sudan
Social
Enterprise
MED
Livelihoods
Fair Trade
UpStream
Scale
staff
68
Program offices
Resourcing offices
2006 portfolio
12 in 8 countries
US, UK, Canada
$2.14 million
2006 revenues
$1.37 million
2006 net income
$170 884
Hybrid Support Structure
Integra
Foundation
(not for profit)
- training
- business plan
development
- consulting
- social auditing
Strategic
partnership
agreement
Integra Co-op (for
profit)
- due diligence
- loans
- guarantees
- equity
- portfolio
management
Small enterprises with a
Community benefit
Purpose
Integra Venture Governance
Integra Council
meets twice annually
Executive Directors
International advisors
General Secretary
European Leadership Team
Four members
part time
Integra Russia
Board
Integra Slovakia
Board
Integra Romania
Board
Integra Serbia
Board
Integra Bulgaria
Board
Integra Venture USA
Board
Integra Russia
management
Integra Slovakia
management
Integra Romania
managment
Integra Serbia
management
Integra Bulgaria
managment
IVUSA
President
Integra Russia staff
Integra Slovakia staff
Integra Romania staff
Integra Serbia staff
Integra Bulgaria staff
IVUSA
Staff and volunteers
NGO
Foundation
NGO
Association
NGO
Association
Coop
LLC
Coop
Integra owned
businesses
Integra owned
businesses
Integra owned
businesses
External
Investors
Strategic Programs
Social Enterprise
 Microenterprise Development for at-risk
populations
 Livelihood programs for youth at risk
 Fair Trade market access for
disadvantaged producers

Social Enterprise Program:
Process
Scale-up or Exit
Ongoing leadership
development
Initial
business
idea
Feasibility Study
Business Plan
Development,
CSR strategy
Project
Management &
Monitoring
(management
participation)
Investment
package
development
(Equity and debt)
Social Enterprise program:
Purpose

To bring material, social and spiritual renewal to
individuals and communities, by
– promoting justice, truth and integrity in business
– promoting social inclusion through employment for the
vulnerable and excluded
– promoting sustainable development through policies
that protect the environment.
– generating resources for poverty alleviation programs
Social Enterprise program:
Island of Integrity Profile

An ‘Island of Integrity’ social enterprise is a
commercial enterprise that has a social
transformation purpose designed into the
business plan, the operations model, and the
investor expectations.
Social Enterprise program:
Strategy

Social venture capital approach, engagement through
investment, consulting and vision alignment interventions
 Small number of intense involvements, seeking long-term
partnerships
 Focus on innovative, “first to market” companies
 Direct equity investment (both minority and majority stake),
supplemented by debt
 Active involvement in the strategic leadership of
companies
 Thorough due diligence and feasibility studies
 Identify and invest in scaleable models
 Impact assessment that monitors financial, ethical, social
and environmental impacts
 Exit strategies, normally management buy-out.
Social Enterprise Cases
Company
Pure Health Ltd
Location
Nairobi
Value proposition
Afforda ble health food
for slum dwellers
Size
76 employees
River Jur
Fishery Coop
Rural South
Sudan
Shared resources and
market access
45 members
Oil Partner Ltd.
Bratislava
No appointment, quick
oil change and car
service
22 employees
Ten Senses
Ltd.
Slovaki a,
Bulgaria,
Serbia,
Russia
Kenya
Fair trade market
access for
disadvan taged
producers
Eco-tourism, unique
vacation
230 suppliers
Slovaki a,
Serbia
Supply chain solutions
for ra bbit producers
- food, know-how,
export
45 small farmers
in supply chain
Kasigau Ranch
Ltd.
Rabbi tex Ltd
25 employees,
430 community
shareholders
Poverty impact
- Jobs for slum
dwellers
- reduced health
costs for the poor
-increased food
security
- asset growth
-prefere ntial jobs
for recover ing
drug addicts
- designated
charity womenÕs
MED
- increased
revenue stability
for excluded
producers
- increased local
revenue
- reduced
poaching
revenue stability
through
improve d
methods and
market access
OIL PARTNER
Scaling-up Social Enterprise in
Eastern Europe
Our Mission and Values
Oil Partner’s mission is fourfold:
1. To serve clients and their cars with convenient, transparent and highly
customer-oriented car maintenance services.
2. To help our employees grow and develop both as professionals and as persons,
enabling them to reach their full potential.
3. To serve the community by providing jobs for disadvantaged young people,
practicing responsible environmental management and to generate resources
for poverty alleviation in Eastern Europe.
4. To practice good stewardship of the resources entrusted to us by our investors
and provide a sound return on their investment.
Summary of Pilot Project
Successes and Results in Slovakia
-
Racianska store in Bratislava operational since 2001
AVION / IKEA store in Bratislava opened May, 2007
NITRA store under development
7.000 customers served per year in one store
Financial support $15,000 provided towards Integra MED program
6 jobs created for young boys from Tomky rehabilitation center for drug
addicts
-
Financial results (2006):
•
•
•
Annual Sales on Racianska store: $ 840.000
Return on Assets: 23 %
Return on Shareholders Equity: 57 %
“The way how the employees are focused on the work
they do and how their communication with clients is on
the highest level, is so rare to see in the CentralEuropean context. It was very pleasant to experience
that the employees even have joy and fun when
performing their tasks…”
Quote from Hospodarsky dennik,
leading business newspaper
Microenterprise Development for
at-risk populations
Women at risk: divorcees, single mothers,
widows, refugees, under-skilled, sole wage
earner in disfunctional family, ethnic
minority
 Focus on start-up enterprises in areas of
high unemployment
 Partner with local government, EU

Vulnerable
clients and
families
Micro Enterprise Development
process
HR
Development
-BDS
-IT skills
-Communication
skills
-Coaching
-Thematic
training
Financial
Services
-debt. equity
-Other
financial
services
-Public
programs
Market
Access
Services
-Brand
-Consulting
-Retail
-Wholesale
-Business
linkages
Community building = developing social capital
Building trust, community engagement through community groups,
mentoring, networking opportunities and counselling.
Empowered
clients,
sustainable
small
companies,
new jobs
created.
Outcomes MED
Small enterprises
790
Microloans
1407
Jobs created
2847
Women
66%
Unemployed at start
51%
Cumulative investments
$2.5 million
Repayment
92%
Livelihood programs for
youth at risk

Integrating orphans into society - Bulgaria
–
–
–
–

School help
Job experience
Life skills
Halfway house
Youth apprenticeship - Serbia
– Job experience

Children’s Garden - Nairobi
– Vocational training for street children
Fair Trade market access for
disadvantaged producers
www.tensenses.com
QuickTime™ and a
TIFF (LZW) decompressor
are needed to see this picture.
Ten Senses Ltd.
Companies in Slovakia and Bulgaria.
 retail, wholesale, internet

– www.tensenses.com

Pilot projects in Russia, Serbia and Kenya
Strategic Partnerships
Integral Alliance www.integralalliance.org
 INAISE www.inaise.org
 FEBEA www.febea.org
 Shell Foundation www.shellfoundation.org
 Citigroup
 Transformational Business Network

www.tbnetwork.org
Towards Financial Sustainability
–
–
–
–
traditional grant income decreasing
access to European Union funds increasing
growing importance of international development projects
increased revenue from own business activity
700,000
Portfolio and Business
Revenues
600,000
Local Developm ent
Contracts (EU funds)
(USD)
500,000
400,000
300,000
International Developm ent
Contracts
200,000
Grants and Donations
100,000
Other incom e
0
2004
2005
2007
(Integra
Slovakia)