Options Evaluation Report

September 2013

Contents

Introduction

Evaluation of Current Program

Analysis of Options

Recommendations

Appendices

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Executive Summary

Sauder Africa Initiative (SAI) is a three-week workshop SE101 held in Nairobi, Kenya to teach entrepreneurship skills to youth living in two slum communities: Kibera and Mathare. The mission of this program is to uplift the lives of Kenyan youth through entrepreneurship training. The intention of the program is that participants will uplift their lives by starting small businesses. We have undertaken a thorough evaluation of SAI’s intended and actual impact on all stakeholders. A change in leadership at the program level and school level has rendered such an evaluation appropriate and desirable. Our focus has been on the following questions: •  What are the objectives of the program and the Sauder School of Business? •  Is this program impactful and effective? •  How could the program be improved? Through discussions with stakeholders and non-profit organizations in both Canada and Kenya, we have developed three possible options for the future of this program that will further Sauder’s goal to be involved in Africa. These options are as follows: 1.  Expand current approach to offer a year-round, holistic approach to fostering

entrepreneurship (local base, links to mentors, financing) with a physical centre in Nairobi; 2.  Apply SAI resources to ARC Initiative and work to accelerate existing businesses (no attempt

to launch new businesses); 3.  Work with longstanding NGOs in Africa through high-profile partnerships to benefit Sauder,

students, and NGOs. Ultimately, we believe a hybrid of all three options will provide the greatest impact for all involved.

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Contents

Introduction

Evaluation of Current Program

Analysis of Options

Recommendations

Appendices

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Objectives for Sauder’s Engagement in Africa

Sauder School of Business •  Commit to the greatest 21st century challenge – Africa – through engaging in a spirit of reciprocity

and mutuality to result in a net positive social, environmental, and economical footprint •  Continue development into a truly global business school and contribute to accreditation and

rankings through increased global presence and exposure •  Formalize agreements for inter-university partnerships and develop research partnerships amongst

North American and African faculty •  Increase brand awareness in Africa to increase recruitment from the region

Sauder Students •  Provide Sauder students with global experiential learning opportunities and create global citizens out

of Sauder students •  Enhance the employability of Sauder students •  Develop mutually beneficial connections with companies working in Africa that may provide

internships or post-graduation employment for Sauder students

Sauder Alumni / Community •  Generate a sustainable positive net impact as a result of Sauder’s involvement in Africa (on people,

the environment, and society as a whole) •  Connect our alumni and partner agencies in Canada to the work UBC is doing in Africa and provide

a bigger reach and better network for alumni DRAFT

Value of UBC & Sauder

UBC has a number of distinct strengths: •  a non-commercial brand known for world-class research •  a public institution that can go beyond borders in ways other organizations cannot •  a desire to contribute to the public good •  an institution that generates and seeks out new knowledge •  a powerful and extensive network Sauder can offer value in emerging markets: •  build capacity in management education and business research •  engage MBAs, PhDs, and faculty in a research capacity through inter-university

partnerships and projects

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Kenyan Development Issues

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Designers and volunteers involved in development programs typically have limited understanding of

the local context

Kenyan youth do not find entrepreneurship

desirable and would prefer access to formal employment (but are unable to attain jobs)

Youth in slums already receive attention from

many NGOs better able to address skills essential for entrepreneurship (i.e. life

skills)

Ongoing presence and commitment on the part of NGOs is required to gain

the trust of slum youth and engage in impactful

development

Lack of access to financing is a significant

impediment to slum youth successfully engaging in

entrepreneurship

Nairobi has numerous, overlapping local NGOs and innovation hubs in

operation (market is saturated)

Contents

Introduction

Evaluation of Current Program

Analysis of Options

Recommendations

Appendices

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Challenges with Existing Program

• Limited control over recruitment process, resulting in a wide range in participant skills and preparedness Recruitment

• No funding or access to financing provided for participants, limiting the number of businesses that can be launched Financing

• Limited control over post-program to ensure completion of business plans and launch and growth of businesses Follow-up

• Program is unable to develop / maintain partnerships with a local presence for only one month out of the year Local Presence

• Sauder students have limited understanding of local context, exacerbated by annual turnover of team members Local Context

• SAI has only one small-scale partnership in each location, but Nairobi has many organizations doing similar work Partnerships

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Evaluation of Existing Program

Sauder’s Objectives

for Engaging in Africa

Challenges of Current Program

Impactful Program

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Contents

Introduction

Evaluation of Current Program

Analysis of Options

Recommendations

Appendices

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Options Overview

•  Expand current approach to a year-round, holistic approach to fostering entrepreneurship (local base and context, strong recruitment process, follow up with mentors and financing)

Option 1 – Improve Current Program

•  Apply SAI resources to ARC Initiative program and focus on growth of existing businesses only (no attempt to launch new businesses)

Option 2 – Shift to ARC Model

•  Work with longstanding NGOs in Africa through high-profile partnerships to benefit Sauder, students, participants, and NGOs

Option 3 – Establish Partnerships

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Preferred Situation

Min. Financial Requirements

Max. Sustainability /

Scalability M

ax. S

tude

nt

Impa

ct M

ax. Participant

Impact

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Initial Hypothesis

Option Scalability / Sustainability

Internal Impact

External Impact

Financial Requirements*

Total Score

I 2.5 3 2.5 2 10

II 1.5 4 3 3 11.5

III 4 3 4 3 14

Scale: 5 = Best 1 = Worst

* Financial ranking based on a fixed cost (FC) + variable cost (VC) estimation. High FC = low score

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Analysis – Option 1 Improve Current Program

Pros

•  Year-round presence will increase understanding of the Kenyan context as well as increase Sauder brand awareness

Sustainability

Financial External

Internal •  UBC students find

the program a rewarding and transformational experience

•  Extends UBC’s reach in the developing world

•  Minimum facility costs

•  Travel costs are incurred by students

•  Donors expressed willingness to fund program if success can be tracked

•  Targeting a neglected group that is in need of business education

•  Program increases participant knowledge and self worth

Cons

•  Year-round presence will require major managerial effort

•  Many resources, both capital and human, will be required to scale the program

Sustainability

Financial External

Internal •  Does not use UBC’s

core competencies •  Students are

required to develop skills (teaching) that may not be relevant to professional careers

•  Costly program with high start-up costs

•  Long-term commitment, with high exit barriers

•  Fixed costs are a major expense

•  Reaching few people with limited lasting results

•  Successes create minimal impact (sole proprietorships with limited likelihood of growth)

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Conclusions – Option 1 Improve Current Program

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To achieve the desired scale of impact, the program requires a holistic model, based on year-round presence of UBC staff in Kenya and partnerships with organizations that are able to offer financing and mentoring.

Sauder students may have skill development in areas that are less aligned with the core competencies of the business school, but will be exposed to a unique global experiential learning opportunity.

Improved recruitment and strong post-program support (i.e. mentorship and financing) are key to increasing social impact and thus justifying investment in the program.

Analysis – Option 2 Shift to ARC Model*

Pros

•  Participants’ success can be tracked and recorded

•  Sauder is involved with many different businesses and alumni

Sustainability

Financial External

Internal

•  Students are able to apply relevant skills learned at Sauder to solve business problems (consulting vs. teaching)

•  Use the program to elevate career

•  Low fixed costs, highest cost is student travel to different locations

•  Scaling an existing business has higher success rate than initiating a new venture

•  Knowledge transfer between businesses and Sauder students

Cons

•  Sauder is not connected to any foreign academic institutions

•  No clear succession plan

Sustainability

Financial External

Internal

•  Only a few students can participate in the program each year

•  Cost to travel and duration of time away may be barriers to some students

•  Relies heavily on volunteers (paying their own way) to teach and consult with businesses

•  Volunteers also commit to funding program costs

•  Impact is restricted to the city in which ARC is located

DRAFT *This analysis assumes ARC is successful in achieving its goals on internal and external fronts

Conclusions – Option 2 Shift to ARC Model

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The ARC Initiative’s model is more closely aligned with Sauder’s core competencies and provides students with strong global experiential learning

The program is currently sustainable but is heavily reliant on specific volunteers for both human and financial resources

Analysis – Option 3 Establish Partnerships

Pros

•  Potential for media coverage of projects

•  Association with high-profile organizations

•  Access to partners’ networks

Sustainability

Financial External

Internal

•  Potential for student involvement in different projects that develop useful skills

•  Exposure to international issues

•  Potential future employment

•  Any investment would be shared with other organizations / institutions

•  Minimal fixed costs required

•  Partner organizations working on large-scale projects with strong local know-how

Cons

•  Brand awareness is shared and may be diluted (or at risk)

•  Loss of control over strategic direction and future plans or growth

Sustainability

Financial External

Internal

•  Working for an NGO may not be as impactful or life-changing for Sauder students as working directly with local participants

•  Type and extent of potential required investment is completely unknown

•  May be limited in choice of projects

•  May not reach Sauder’s intended target participants

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Conclusions – Option 3 Establish Partnerships

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NG

O P

rese

nce Effective

oversight of partnerships requires presence within the vibrant and well-populated Kenyan NGO community

Impa

ct

Will complicate SAI operations, but some form of partnership is required if Sauder is to increase the impact of the SAI program

Cha

lleng

es

Previous attempts at securing suitable partnerships have been unsuccessful due to lack of perceived commitment or misaligned strategies

Contents

Introduction

Evaluation of Current Program

Analysis of Options

Recommendations

Appendices

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Next Steps for SAI

Identify long-term goals: where do we want to be?

Explain what preconditions are necessary to those goals and why (backwards mapping)

Identify basic assumptions about the context

Identify the interventions our initiative will perform to create the desired change

Develop indicators to measure our outcomes to assess the initiative’s performance

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Apply “Theory of Change” to the preferred alternative

define goals and

describe desired outcomes

Recommendation – SAI 1.5 (Hybrid Model)

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Sauder can focus on its core competencies in education, while maximizing social impact by ensuring participants receive the necessary support to succeed

Existing SAI Program SAI 1.5 Hybrid Program

Recruitment of aspiring business owners Recruitment of existing business owners

Presence in Nairobi one month out of twelve Presence in Nairobi year-round

No mentorship or access to financing provided in post-program

Mentorship and access to financing provided through partnerships

Focus on teaching entrepreneurship skills for business start-up

Focus on providing business consulting services and teaching to grow existing

businesses

Combining Options 1, 2, and 3 will best address the challenges associated with development in Kenya and provide a strategic direction for engagement in Africa

High-level Implementation Plan

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Short Term (2014) Establish local presence Move program to improved, more central site Target recruitment on current business owners Establish two key partnerships to provide local knowledge and context and connections to financing

Mid Term (2015) Establish links with the Ministry of Youth and officially license the program Revisit program structure and conduct a feasibility study to examine the costs/benefits of extending the program to 3 months with ample time implementation time between workshops

Long Term (2016) Establish partnerships with local corporations to sponsor the program Analyze data collected n 2014, 2015 and 2016 to evaluate effectiveness of program and identify areas for further improvement

Asante  Sana!  

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