1. Background


Entrepreneurship has moved to the forefront of development agendas with entrepreneurship models, such as Educate!, being implemented globally. Educate! currently empowers approximately 8,000 diverse youth across Uganda, incorporating its entrepreneurship curriculum into Uganda’s education system (reaching an additional 25,000 students a year currently) and developing a model that can be replicated across Africa.

Educate! is tailored to 16-20 year old youth within schools in Uganda a practical and relevant model of education, comprised of:

  • A leadership and entrepreneurship course,
  • Interactive teaching methodologies,
  • Intensive mentorship,
  • Experience starting and developing an enterprise
  • Access to out of school networks and resources

The global community recognizes the importance of entrepreneurship in local, national, and international economic development. In June 2010, Cameron Herold, an entrepreneur coach on five continents, gave a TED Talk: Let's Raise Kids to Be Entrepreneurs. At the Clinton Global Initiative 2013, the need for entrepreneurship was re-emphasized as pivotal to global economic development and prosperity.






In Latin America, there is not enough support for entrepreneurship, particularly with marginalized populations.There is a lack of resources and knowledge available for aspiring entrepreneurs. Research identified Cali, Colombia and the favelas of Rio de Janiero, Brazil as two areas in Latin American that are conducive to interactive, multimedia development due to the levels of media penetration in the countries.


INTERNET PENETRATION IN LATIN AMERICA RADIO PENETRATION IN LATIN AMERICA

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Brazil only reaches 49% in radio penetration, while Colombia reaches 75% in radio penetration.


RADIO PENETRATION IN LATIN AMERICA
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Internet rate of penetration in Brazil is the second highest in Latin America. While the rate of internet penetration in Columbia is at its nascent stages with 1 on 2 people having access to the internet.


FREE TV/PAY TV PENETRATION IN LATIN AMERICA

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Free TV penetration remains very high for the country, as 96% of Brazilian have access to TV and watch it regularly. Colombia scores the highest for TV penetration, both free and paid.

With the rapid growth and accessiblity of technology, multimedia approaches to development, such as BBC Janala have seen incredible success. BBC Janala implemented a multi-platform tool for teaching basic English in Bangladesh. The use of shortcodes, a website, digital and print resources, and television shows ensured that English learning was taking place through several omnipresent media. Adapting successful measures from successful multi-platform media projects to each community's technology access and preference, Cali Emprende and Favela Empreende target potential entrepreneurs from low socioeconomic backgrounds in Cali and the favelas of Rio to participate in a culturally-adaptive, integrated platform concentrating knowledge in different media formats. Rio and Cali were selected due to each country's capacity to implement these programs. Cali Emprende and Favela Empreende are both implemented in Latin American countries, because of Columbia and Rio's similarities and differences. Culturally and geographically, these two countries have much in common. Developing areas of Cali and the favelas of Rio, although both developing areas in Latin American countries, they have different levels of media penetration and methods for implementation. Quantifiable results and impact will lead to future implementation in the Latin America and around the globe.

2. Cali, Colombia

Cali is the third largest city in Colombia. It´s strategic geographic location near the Buenaventura port (the largest port in the country), which is located on the country´s pacific coast and the main port of access to this ocean, is crucial to local and multinational businesses looking to export. According to the National Statistics Department, the city has an estimated population of 2.3 million, organized into 22 communes and socio-economic levels 1, 2, and 3, make up 83 percent of the city´s population.

2.1 The New Cali- An Opportunity

Cali is living an unprecedented moment. After years of insecurity and corruption within its governments, and after being dominated by the mafia cartels in the 80s and 90s, Cali has recently started to see the effects of electing a knowledgeable and executing administration. The city has recently seen reduction with regards to levels of extreme poverty, violence, a growing sense of community among civilians, a structured public transportation system and better norms for the city´s transit, and an increasing perception that has been to promote investing in the region.

Having a better government and a returned sense of citizenship among Cali locals, the city is now posed with the challenge of increasing its levels of employment among its vulnerable populations. Many of the people that had to leave the rural areas because of the country´s war with the guerrillas and paramilitaries, ended in the Colombia´s main cities living under extreme levels of poverty and being unable to compete for local jobs. This was clearly the case of Cali, whose level of unemployment in 2005 was at 13 percent [1] mostly affecting people living under socio-economic levels 1 and 2 [2].

The city´s Chamber of Commerce (CCC) is a local institution that behaves as the city´s development entity and focuses primarily on serving local businesses of every size while fostering employment among its population. The project proposal´s main goal is to foster entrepreneurship by teaching people living under socio-economic levels 1 and 2 how to take a business idea and materialize it. Specifically, the project looks to partner with Cali´s Chamber of Commerce to educate people in these segments how to access and navigate the Internet and how to create a business plan that will allow them to better assess the challenges that their ideas can have during its implementation. This concept allows for first-time entrepreneurs to first learn and be able to fail on paper. It also allows for them to strengthen their business idea´s weaknesses along the different stages of the business plan. In order for the project to effectively operate, we must convince the Cali Chamber of Commerce to implement a tool similar to the one used by the Bogotá Chamber of Commerce called Bogotá Emprende.

2.2 Current Tools

There are some tools already in place that are used in different cities around the world to either strengthen the entrepeneurial experience, or to educate people on how to become an entrepreneur. For example, Barcelona Activa is a space created for people in Barcelona, Spain that teaches how to create a business. They do so in an educated and knowledgeable yet interactive way that aids entrepreneurs all along the process until they open up their profitable and sustainable (on paper) business.

If you wish to know more about Barcelona Activa, please click here.

Bogotá Emprende is copied from the Barcelona Activa model and is currently managed by the Bogotá´s Chamber of Commerce in Colombia. Most of what is done is virtual education on the steps and knowledge needed to create a business, an online Business Plan tool that aids entrepreneurs in the process of creating a strong business plan and acquiring strong business skills, and libraries and databases full of useful tools, links, and aids to help entrepreneurs make more accurate business decisions.

If you wish to know more about Bogotá Emprende, please click here or look at



2.3 Localizing the idea to Cali


Because of Cali´s recent history, some considerations such as the target population´s level of computer literacy, connectivity, access to computers and cellphones, internet penetration need to be taken in order to make a succesfull implementation of any entrepreneurial teaching tool.

2.4 Our target audience: Rosa´s Story

Because of Cali´s relatively delayed development, we have designed a scheme that adapts to the environment.



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A scheme that localizes the Bogotá Emprende experience into the Cali context

How we get Rosa to know about the program
Rosa listens to the radio advertisement- People in Cali still listen to the radio via regular channels and this is mostly true for the people immigrating from the rural areas. People living in socio-economic income levels 1 and 2 listen to radio for long hours during a single day while at work.

Rosa´s immediate support network (her neighbor) suggests her to go to the Kiosk. (Word of mouth is very important in a culture where people still have social interactions and meet to talk after work or during weekends.)

How we get Rosa to use the tool
Rosa is trained to use a computer- Rosa dedicates most of her day working at her informal "arepas" business and new media and technological systems are not part of her day to day. Because we acknowledge the importance of introducing this segment of the population to new and more technologically advanced sources of media as a means to increasing the effectiveness of their lives and businesses, we are providing a trainer at each one of Vive Digital Internet Kiosks. The Vive Digital Kiosks will have trainers are available for people to go to and learn how to use computer, how to navigate the internet, how to open and work with the online tool for building the business plan, and how to create an email, facebook, and other accounts that will further allow for them to communicate.

While Rosa learns how to navigate the internet at the Kiosks, she will also have access to relevant information via SMS Short Code and TV Spots. These two ways will facilitate Rosa´s current learning.

How to give Rosa a convenient way of accessing Cali Emprende
Rosa is given an opportunity to purchase a smartphone or computer and pay it through her electrical bill. This will allow for Rosa to continue strengthening her newly acquired knowledge at home. Moreover, in order to get internet access, she can make use of the also subsidized internet access at home.

With this new and convenient way to access Cali Emprende, Rosa will be able to work on her business plan and overall business ideas, continue with her education, ask questions, email potential customers, etc. while her children sleep.

Continuation- Creating Networks
Once a month, Cali Emprende will organize an event with Kiosk participants who get the chance to present their business and current stage, get recommendations and suggestions from peers that will strengthen their plan, and get financing from external financial institutions or other independent investors (Shark Tank style).

This networking opportunity will allow for new entrepreneurs to acknowledge the importance of networking for their business and through the Chamber of Commerce´s network, keep taking opportunities and creating new networks to expand their business.

3. Media Penetration

In this study, we are looking to help a specific segment within Cali´s population.
As explained before, Colombia´s population is divided into different socio-economic income levels. This social classification enables the state to classify its population with similar social and economic characteristics, and establish cross-class subsidies to help the lower-classes to pay for basic utilities (including telephony). In this study, we use this stratification to define our target audience, people living under socio-economic levels 1 and 2.

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Analysis:

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4. Rio de Janiero, Brazil

6 percent of the Brazilian population live in slums (favelas), which mean 11.6 million people (Data Favela, 2013). The characteristics of the favelas vary according to the diversity of the country, but they all share some basic characteristics: they are in or close to large urban agglomerations; they have poor access to public services; the economy is largely informal; and there is a large social stigma against favelas and the people that live there. Rio is emblematic for a few reasons:
  • Because of the city's geography, the favelas are everywhere, sometimes bordering some of the most luxurious neighborhoods and touristic spots;
  • In the wealthy Southeastern region of Brazil, the State of Rio de Janeiro is the only one to have more than 10 percent of its population living in favelas. It is estimated that more than 20 percent of the population in the city of Rio de Janeiro live in favelas;
  • In the 1990's and 2000's the favelas were a fertile ground to organized crime and became the territory of drug dealers, contributing to their social stigma and to the deterioration of the life quality of people that lived there. This has become the reality of most favelas in Brazil, and Rio is in the forefront of changing that.

The city and state governments in Rio are regarded as national references for policies that address the issue of the favelas, especially due to their integrated approach to the problem. In 2008 the state government started the deployment of a long term public security policy that involved fighting the drug dealers out of these communities and establishing a permanent presence of the state, by the provision of public services and the acknowledgement of these areas as part of the city. This included a partnership with SEBRAE,
a federal government agency responsible for supporting entrepreneurship.


SEBRAE is divided in state chapters and each of them has some autonomy to develop its own programs according to the local reality. In the city of Rio de Janeiro, SEBRAE-RJ has been operating in the favelas since 1996, and has intensified its actions in these areas after the state government put forward its strategy to reclaim them from drug dealers and gangs, in 2008.
Fostering entrepreneurship has an important role in a broader public security policy for the favelas. As the police forces expel drug dealers that used to rule these communities, it is important that the local populations have access to sources of income that are legal and represent an actual potential for individual development. SEBRAE-RJ has been working with the state government in the reclaimed (pacified) communities to assist entrepreneurs in creating their businesses or formalizing existing ones, which allows them to have access to credit, as well as to access customers that only work with formalized suppliers.
The work of SEBRAE-RJ in the pacified favelas has already produced many success stories, mostly in the services sector, such as hostels, tourism and bars.

Some critics say that, as the communities are being pacified, they are also attracting more businesses from outside, some of them large companies that threaten the existence of flourishing local businesses. With a larger presence of the state in these areas, there’s also more pressure for small family businesses to formalize, which sometimes represents impeditive costs. On top of that, the support services offered by SEBRAE have not been adapted to the reality of the favela, thus deepening rather than bridging the gap between the favela and the city.
Services Provided by SEBRAE
  • Formalization of existing businesses
  • Assistance in the development of a business plan
  • Training and advice

Other Initiatives
Agency of Networks for the Youth (Agência Redes para a Juventude)
This NGO works on the assumption that the youth in the favelas cannot be seen as a deprived population that needs assistance. Instead they should be regarded as agents of change in their own communities, especially due to the transformative power of youth, its creativity and risk-taking ability. The underlying idea behind the Agency’s work is that a larger repertoire of experiences empowers the youth and enables them to better navigate the differences in the urban setting and profit from diversity.


The Agency is training 300 people between 15 and 29 years of age to develop social enterprises in their communities, which includes mapping the market and assessing challenges and opportunities. The outcome will be a different perspective of these communities, as seen by the people that live there and are working for their improvement. 30 projects will be awarded a R$10,000 prize (approximately US$4,500) to assist in their implementation.
Observatory of Favelas (Observatório de Favelas)

The Observatory of Favelas is a think tank on urban issues based in Rio. They produce information and knowledge about the favelas, propose policies to address the problems that are specific to these communities and have projects in different areas to foster the development of the favelas. One of their projects, Solos Culturais, has done an extensive study on how the young population of the favelas perceive culture. The project went on to train some 100 people between 15 and 29 year-olds to act as cultural producers and change their environment.

The target population

The reality of the favelas in Brazil has changed over the last ten years. As the country's economy grew and some 40 million people have been brought up to the middle class, the favelas were no exception and also experienced substantive growth and a shift in economic profile. As shown by the recently released report by Data Favela, of the 11.6 million people that live in favelas in Brazil, today 65 percent are considered middle class, compared to 33 percent 10 years ago.

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Source: Data Favela 2013 (Forum Nova Favela Brasileira)

Only 54 percent of the population living in favelas in Brazil are employed. This breaks down as shown in the figure below. It is noteworthy that only 4 percent of the population that has some kind of job is actually employing other people, showing how much room there is to foster entrepreneurial activities in these communities.

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Source: Data Favela 2013 (Forum Nova Favela Brasileira)

The improvement of the economic situation has had an important impact on consumption, including electronics and communication gadgets. Data Favela has just released a study (November 2013) on household consumption showing that 47 percent of the people living in favelas in Brazil have a computer, 21 percent intend to buy a laptop in the next 12 months, and 14 percent intend to purchase a tablet. A study published in 2013 by the Observatório de Favelas sheds light on how this is changing the way the young population of the favelas accesses the internet. The organization conducted a survey with approximately 2,000 men and women between 15 and 29 years of age in five of the largest favelas in Rio, which provides a portrait of this dynamic environment.

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70 percent of respondents say they always go on line to access social networks. Playing online games is not as consensual, with 54 percent doing it always or often, but
36 percent saying they never do it. The proportion of the population surveyed that always or often accesses the internet from home is 81 percent. The use of cell phones is widespread, with 51 percent using it to playgames always or often, and almost 60 percent using it
always or often to access social networks.



In an interview conducted withGilberto Vieira, cultural producer at Observatório de Favelas and executive producer of the Solos Culturais project, we found that the young people in the favelas are not following the traditional path of the chronological development of the technology to access the internet. Instead of going online primarily through a desktop computer, then from a laptop and transitioning to mobile platforms, many of them are starting with the smartphone or tablet. This phenomenon is also observed in other developing countries and regions, and is mainly due to the much lower prices of mobile devices, that usually have their price and maintenance subsidized by the companies that provide phone and data services through them. Gilberto also emphasized the relevance of Facebook, which is highlighted in the report of the focus groups of the Solos Culturais project:

"...it was interested that, when asked 'What do you do when you're not at school, at work or [participating in] the project?' the most common immediate replies were 'stay home' and 'Facebook'. (...)In one of the focus groups, when asked what they did when they were not at school, they all replied in unison 'Facebook'. The following answers were other social networks, such as Tumblr and Instagram."

"In other groups we realized that the use of the internet and social networks varies according to the interests of these young men and women. For the younger ones, that don't go around the city much and still don't work, Facebook is the privileged space of interaction, either with friends or with people they don't know in person, that may live in other favelas, other neighborhoods in Rio de Janeiro or other states in Brazil. For the older ones, that already work and circulate in different areas of the city, Facebook is a working tool to promote their work (especially for those that work in culture-related activities) and to articulate professional networks. In general, Facebook is also considered a source of information for topics that interest them, from events, concerts and courses to news about armed conflicts [in the favelas] and the situation in other 'pacified' favelas [those reclaimed by the state's security policy]. For instance, during the occupation [by the security forces] of the favela of Manguinhos, the young men and women interviewed reported staying at home for three days, following everything through Facebook - or following nothing, as they said, because the expectations of confrontation and 'war' did not materialize."
The fact that our target population is already internet-literate and mobile-oriented has shaped our strategy in designing a platform that would build on their ease of access and patterns of use of social networks, especially Facebook. Our goal with this project is to bridge the gap between the information and assistance that is available for entrepreneurs and the marginalized population of the favelas. In doing that we expect to reclaim this population's dignity and sense of belonging to the city of Rio, to improve their livelihoods and reduce the social stigma around the favelas and their inhabitants.

4.1 Favela Empreende

Favela Empreende is a multimedia strategy to engage the young population of the favelas (15-29 year-olds) in entrepreneurial activities, and to provide them with information to create successful ventures. The project builds on the extensive knowledge of SEBRAE - the Brazilian Service to Support Micro and Small Enterprises, Observatório de Favelas and Agência de Redes para a Juventude to adapt the existing resources to the vocabulary and the reality of our target population. Our main channel of communication with our audience will be a video game, accessible through Facebook, a mobile application or directly through our website. The online interaction will be complemented with in person meetings with SEBRAE's experts and other participants during events organized in the favelas. The apex of the process will be a business plan competition, where the participant will have the chance to win a cash prize to start his or her venture. To describe how the game would work, we created the following storyline:

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4.1.1 Favela Empreende - Storyline


Introduction: Our Character
Milton is a 18-year-old man who dropped out of school in the first year of high school. He has been working most of the time since he dropped out of school, mainly in the informal market selling souvenirs for tourists at the beach. He realizes this won’t take him far, and he wants to start his own shop to produce small souvenirs because he sees that’s where the money is made. His sister and some friends learned handcraft skills in an NGO project in the favela where they live and he intends to employ them to produce the handcraft that he can sell to some of his friends that work at the beach with him. He knows what tourists like to buy and he thinks he can make some money and improve his family’s livelihood with the new venture.

A friend of his shares on Facebook this new app that has just been launched to assist youth in the favelas to create their own ventures and he decides to sign in to Favela Empreende.

The App
Registration
As he clicks to sign in to Favela Empreende and create an account, the first thing he’s asked to do is to allow the app to have access to his friends and location, and he’s warned that this app account is going to be linked to his Facebook account. He is also given the choice of linking it to a cell phone number[1].
He is then prompted to enter some profile information that will not be shared with other users: name, age, favela in which he lives (may be shared with his consent), years of formal education, income level, previous work experiences, if he has participated in NGO projects in the favela. After that he’s asked some business-literacy information, such as “Have you ever taken courses on how to start your own business?”, “Have you ever worked in the administrative area of a small company?”, “Have you ever started a business?”
The third step is to create an avatar, with different choices of skin color, hairstyle and especially clothing, ranging from shorts, t-shirt and flip-flops to business suit and briefcase.

Instructions
His avatar starts in a shack with a twin bed, an old stove and a desk with his blank business plan on it. Now he’s into the game and can start working on his idea. A brief animated video will explain the rules (he can choose to read them instead): the goal is to create a business plan and the game is going to help you do that. Your avatar is going to walk around the favela and the city looking for content in the virtual world (videos, podcasts, blogs, texts, websites), and will be able to chat with experts and other participants online. You will also participate in lectures and activities in the real world and will be assisted by experts in face-to-face meetings. You will earn points by participating in different activities both online and in person. As you learn, you should start working on your business plan. You can add content in the form of text, audio, video and images to each specific section of the plan.
In December there will be a business plan competition, where you will be able to pitch your idea to a group of judges. There will be cash prizes of US$2,500, US$3,500 and US$5,000. The prize could be multiplied to up to US$7,000 depending on how many points you have earned throughout the learning process, so the more effort you put into learning, the bigger the prize is going to be if you win.

After getting the instructions, he’s ready to start playing and building his business plan.

Play!
By clicking in different parts of the business plan, he gets directions for how to get there[2]. As Milton goes to the different parts of the virtual favela, he finds links in shops, local businesses, kiosks etc. that will provide information on how to develop that specific area. After going through each piece of content he has to answer a quick quiz (5-10 questions) and, if he gets most of the answers right, he earns 50 points. He is shown the right answer for those he gets wrong.
He may also find a SEBRAE expert’s office in the city, right out of the favela (still in the virtual environment), where he can chat with an expert about any doubt or concern he may have. He can also interact with other players in the virtual environment, either by meeting up with them or by going to their houses and leaving messages if they are not online.
So our character explores the new environment, reads some introductory blog posts on entrepreneurship, watches a video on how to build a business plan and logs out. The next time he logs in, he will find his shack was connected to the power grid and he now has a refrigerator. A pop up message explains that, as he progresses and earns more points, this reflects in improvements in his house. He can choose to use his points to buy things in the game, such as nice sneakers to his avatar, or he can save the points. Milton decides to buy the cool sneakers, and a pop message explains that, if he does that, he will have less points to be converted to cash in case he wins the business case competition. He realizes it is better to save his points than to spend it on trivial things.

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Getting Real
After a few weeks in the game Milton has learned a lot and he starts to receive invitations to go to a real life lecture by SEBRAE at the community center of the favela where he lives. This will earn him 500 points, which is equivalent to 10 pieces of content online, and will also give him the chance to interact with an expert face-to-face and ask questions, so he registers to a lecture on Basics of Finance. He attends the lecture is surprised by how approachable the instructor is. Milton talks to the instructor after the lecture to let him know he was there, so he can earn the points in the game, and also to take the chance to ask some questions. The instructor suggests they schedule a meeting later on at SEBRAE's office in the city, if more doubts come up and he wants to talk about specific details of his business plan.

Creating the Business Plan
Milton knows his market well because he already works with it, so the Market Research section of the business plan is easy for him. He uploads photos of some of the souvenirs he sells the most, a brief video interview he made with a tourist about what kind of souvenir has more appeal, and some impressions he collected with friends that also sell souvenirs at the beach. Based on the amount of content accessed on this topic and on the number of files uploaded, the app suggests that he schedules a meeting with an expert to discuss it in detail. A meeting will give him 500 points and probably some interesting insights on the work he has been doing, so he decides to do that.
When Milton gets to the meeting, the expert has already seen what he uploaded under the Market Research headline and has a general idea of what he wants to do. She talks to him about market segmentation and competitor analysis, and suggests some material he can access on the game to deepen his understanding of the market.

There are other areas though in which Milton does not have a good performance. He struggles with Marketing Strategy and has been performing poorly in the quizzes about this subject. The app knows his scores in quizzes related to Marketing Strategy are below the average and suggests a list of real world short courses he can take on it at SEBRAE. The flexible schedule of short courses allows our participant to match them with his busy schedule working at the beach and he knows a short course will give him 1,000 points, and a lot more information than he could ever get online, so he signs up for it. At the end of the course he gets the points and a lot more knowledge to work on his Marketing Strategy.

The Pitch
Preparation
Let’s forward to October. In two months we are going to have the business plan competition and Milton is looking forward to pitch his idea, get some feedback and, hopefully, some cash to start his venture. It is time to do a big review of the business plan and look for some counseling, so the app suggests that our participant schedules a meeting sometime in the coming month with an expert in SEBRAE to review the whole business plan and identify improvements that could be made before the pitch. This meeting will earn him 500 points and a good confidence boost in the sprint towards the big day.
As the pitch approaches, our participant starts getting more communications from the organization with hints for the pitch day, the specific rules of the event and who are going to be the judges. Among the judges are banks that could provide credit for his startup, management consultancy companies that could assist him in developing specific skills and seed-money investment funds that could actually invest in his venture and become his business partners.
The Big Day
In the day of the pitch Milton gets there early and wearing informal clothes, as suggested by the organization, which he likes because it makes him feel more comfortable. He is very confident in his business plan because he learned so much and has been working so hard on it. He earned so many points by learning that the virtual shack where he started is looking more like a virtual castle now, with a bathtub, two flat-screen TVs, a barbecue area with a pool table and a swimming pool. And his avatar doesn’t look at a paper business plan any more; he looks at the screen of a MacBook Pro while sitting in an ample living room.
The judges are wearing jeans and shirt, and not the stereotypical business suit he would expect from people that work in what they do. Their feedback to the pitchers is always constructive and they all seem very approachable.
The Result
Even though he worked really hard, Milton acknowledges that some of the ideas presented were simply mind-blowing. He didn’t get any cash prize, but he managed to talk to one of the judges who’s a manager at a seed-money investment fund focusing on social enterprises and is interested in learning more about his idea, and to another one who works at a bank and said he could get some credit to start up his company. He knows that the prize would have been great, but is not the main outcome of the game. The main outcomes are the lessons learned and the contacts that he made, and how he now feels more prepared to change his life and his community.


[1]No e-mail needed!
[2]Only until he familiarizes himself with which areas of the virtual favela refer to each section of the business plan.

4.1.2 Favela Empreende - Assumptions, Challenges and Launching Strategy


The project is based on some assumptions and backed by the evidence shown in previous sessions. The main assumption is that we will have the support and engagement of SEBRAE, our key stakeholder, and of Observatório de Favelas. The fact that both organizations already work on fostering entrepreneurship in the favelas makes us very positive about their possible interest on the project.

Another important assumption is that we will be able to engage the target population in playing the game. Even though the data suggests this will not be a massive challenge, it is important to have the right strategy to launch the project, raise awareness about the initiative and overcome the initial skepticism that may arise. The launching strategy cannot count exclusively on web-based communication. It must take advantage of local community radios in the favelas and be advertised in parties, churches and cultural events, to make participation as cool and trendy as possible. We expect to count on Observatório de Favelas to assist in designing the best communication strategy to engage our target audience.

The main challenge of the project will be to find the adequate language to communicate with the youth in the favelas, the right level of informality that will make content accessible without loosing seriousness. Further research is needed on this regard, and we expect to constantly monitor and improve this and other aspects of the game as we progress.

4.2 Measurements

The success of the project can be divided in two aspects: success in engaging the participants, and success in producing the expected impact on the communities.

4.2.1 Measuring Engagement

To measure how successful the project will be in engaging the participants, we must establish a target number of participants for the first round of implementation and measure our achievement of this goal. We must also measure the proportion of participants that will actually pitch their ideas at the end of the cycle or have continued participation in the support groups.

4.2.2 Measuring Impact

To measure impact, we must first establish a baseline, which can be derived from data already available from governmental sources, or collected from participants at registration. The most relevant aspects to be assessed are:
  • Number of formal businesses in the communities targeted and in other communities that have the same socio-economic profile (revenue, number of employees);
  • Estimate of number of informal businesses in the area;
  • Average household per capita income in the participating communities, compared to national statistics and to communities with a similar socio-economic profile not targeted by the program;
  • Average household per capita income of the participants of the program at registration;
  • Violent crime statistics for the communities targeted, compared to municipal statistics and other communities with a similar socio-economic profile in the city.

There are other informations that are relevant to our goal and are not readily available. These should be collected with the support of local organizations, especially due to their expertise in conducting focus groups with the target population. The aspects to be assessed should include:
  • Perception of the social status of the targeted communities (as opposed to the city) by the youth living there, compared to other communities with a similar socio-economic profile not targeted by the program;
  • How does the youth in the communities targeted perceive entrepreneurial behavior? Compare with other communities with a similar socio-economic profile not targeted by the program.

Another assessment should be done to evaluate the impact of our project, within one to two years of the end of the first cycle. Most information is available through government sources, but some of it would require contacting the participants or conducting new focus groups. This assessment should include:

  • Number of formal businesses created by the participants of the program, compared to the change in number of formal businesses in the area and in other communities with a similar socio-economic profile (revenue, number of employees);
  • Number of informal businesses created by the participants in the program, compared to the estimate change in the number of informal businesses in the communities targeted and in other communities with a similar socio-economic profile not targeted by the program;
  • Variation in average household per capita income in the participating communities, compared to national statistics and to other communities with a similar socio-economic profile not targeted by the program, one and two years after the end of the first cycle;
  • Variation in average household per capita income of the participants of the program one and two years after the end of the first cycle;
  • Violent crime statistics for the communities targeted, compared to municipal statistics and other communities with a similar socio-economic profile in the city;
  • How does the youth that did not participate in the program but lives in the targeted community perceives entrepreneurial behavior, compared to how the program participants perceive it after the program and compared to the youth residing in communities with a similar socio-economic profile not targeted by the program;
  • Perception of the social status of the targeted communities (as opposed to the city) by the youth that did not participate in the program but live in the communities targeted, compared to the youth that did not participate in the program and live in communities with a similar socio-economic profile not targeted by the program, and compared to the youth that participated in the program.

5. Future


It is important to understand this project in the context of the economic and social development of the target regions. Fostering entrepreneurship can be divided in different phases, which could be roughly described as:
  • Fostering entrepreneurial behavior
  • From the idea to the business plan
  • Assistance for the first steps
  • Expanding your business
If we think about these steps in the wider context of business administration, the list can go as far as "internationalization strategy" and "how to build a truly global company". Each of these stages deserve a specific set of actions and a different approach by the government or whatever institution intends to support it. We decided to focus on the second step, "from the idea to the business plan", because we understand that this is where most entrepreneurs stumble, especially in the Latin American context. With vast experience in the two countries we are working with, we know that they are not short of potential entrepreneurs that could achieve a lot with the right support.

Setting our project in this framework leaves no doubt of what are the next steps. A similar platform could be develop to assist newly-born companies in their early path, to reduce the "infant mortality rate of companies" - SEBRAE's words to describe the fact that in Brazil most companies shut their doors before five years of opening up. In order to do that we would build on the knowledge gained by implementing this project, and continue to partner with existing organizations to maximize the profits of the entire network by producing more long-lived companies. Going up the business-development ladder outlined above, there are endless opportunities to create new ways of approaching companies in different stages and assisting them in taking the next step.

The platform that we are proposing, Cali Emprende/Favela Empreende, should be modified to adapt according to what is learned during its implementation, but should not be discontinued. This is not the kind of policy that has a time limit or an exit strategy, because vibrant entrepreneurs will always need access to information and will always profit from the network developed during the proposed learning cycle. We expect to see a change in the regions that we are targeting, with a decrease in the social stigma and improvements in economic and social indicators. This should mean a reframing of the platform, perhaps to be extended to other areas of the city or to non-marginalized populations, but not its closure. In the future, it should be managed by the local institutions responsible for promoting entrepreneurship and local economic development. Opportunities are also clear for expanding it to other cities and regions of both Brazil and Colombia, but also to other countries in Latin America, always respecting local habits and infrastructure constrains, like we did for Cali and Rio.

6. References

Socioeconomic levels in Latin America. http://www.zonalatina.com/Zldata200.htm
Internet, Radio, and TV penetration in Latin America. http://latinlink.usmediaconsulting.com/2013/08/media-penetration-in-latin-america/
Janala http://www.bbc.co.uk/mediaaction/where_we_work/asia/bangladesh/bbcjanala.html
OBSERVATÓRIO DE FAVELAS, Solos Culturais, http://solosculturais.org.br/wp-content/uploads/2013/06/SolosCulturais_ISSUU-1.pdf
http://www.territoriosemrede.com.br/empreendedorismo-nas-comunidades-pacificadas/atuacao-do-sebraerj-e-o-empreendedorismo-jovem-nas-comunidades-pacificadas/
http://www.sebrae.com.br/uf/rio-de-janeiro/atuacao-e-setores/empreend_nas_comunidades_pacificadas
http://colombiatic.mintic.gov.co/602/articles-3853_archivo_pdf.pdf
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