Maragua Division, Kenya
My community continues to benefit from the purchase of the mill to grind cassava to make food staples. The enthusiasm for the project in my community continues to grow. I am happy to report on the latest news.
Our community participated in the World Food Day Celebrations by holding a public forum on cassava on 16th, October 2012 at Kigumo Divisional headquarters. During the event, hundreds were taught on the benefits of the highly nutritious and drought resistant Cassava as a food, fodder and cash crop. The community members also utilized the opportunity to sell various cassava products including doughnuts, porridge, chips, and crisps. In the photos, are people buying and enjoying cassava dishes.
I am glad to inform you that our milling operation is modeled on the concept of a social business put forth by Muhammad Yunus. We charge only Ksh. 10 per 5 Kgs instead of Ksh. 30 that the rest of the millers ask. This is to encourage consumption of cassava, as the villagers can now mill their dried cassava chips much more cheaply. This obviously encourages cassava cultivation. The little income accruing almost entirely goes into the running of the business through payment of its recurrent costs.
However, I am of the opinion that social enterprises experience some key challenges. They have to compete in the commercial market dominated by conventional businesses. This is in addition to facing the same operational challenges and risks as all other businesses. To overcome this challenge, the social enterprise should be of a relatively large size so that it can break even and manage to settle its recurrent expenditure. In Economics, this is referred to as "Economies of Scale." Social enterprises also lag behind in embracing technology. This is due to their low level of profits as opposed to what conventional businesses make. The competitors would easily manage to run more efficiently as they can utilize their comparatively large profit streams towards technological advancement and cost reduction. This kind of competition may lead to failure of social enterprises, if they are not large and mature enough. If I get an opportunity to study for a Masters in Development Economics, I will focus on the role of social enterprises and Non- Governmental Organisations in poverty alleviation and economic development. I believe very little effort has been channeled towards realizing their potential as engines of economic development.
Thank you for your belief in our social business. You are changing lives for the better.
Project Reports on GlobalGiving are posted directly to globalgiving.org by Project Leaders as they are completed, generally every 3-4 months. To protect the integrity of these documents, GlobalGiving does not alter them; therefore you may find some language or formatting issues.
If you donate to this project or have donated to this project, you will get an e-mail when this project posts a report. You can also subscribe for reports via e-mail without donating or by subscribing to this project's RSS feed.
PATHWAYS Leadership for Progress