This was the question that drove me to apply for the 1+1 programme, studying Water Science, Policy and Management for my MSc and continuing to the MBA this year. While there are many facets to unpacking this question, I chose to focus on understanding the financial barriers faced by people living in poverty, particularly Kenya and India.
What have I learned over the past two years? It’s (unsurprisingly) complicated.
There are usually two broad areas of financial barriers to water access.
First are the capital costs of purchasing water infrastructure for the house (such as utility connections, tanks, filters, etc).
The second are the recurring fees to purchase water for that infrastructure. This could be per litre charges from water utilities but may also include purchase of water from vendors, local taps or water kiosks.
I wanted to understand the factors driving the amount of water a household would purchase every day, so focused my research on the recurring expenditure. Using detailed records of all household expenditures from 298 poor Kenyan households over a year (data sourced from FSD’s fantastic Financial Diaries Project), I tried to understand trends in water purchase behaviour, and try to distill broader understanding about water affordability.
This different pattern of purchasing behaviour has implications for how we think about water affordability. We have set affordability thresholds using Western norms – as a percentage of total household expenditure. In Kenya, water expenses are clustered over a few months – while overall water expenditure may be low, this clustered expenditure can represent a large proportion of household income during the dry reason, resulting in acute affordability issues.
Why is this important?
The Millennium Development Goals were instrumental in shaping international policy, particularly how water and sanitation was thought about, measured, and delivered. Water quality, reliability, and affordability were not measured and the majority of the data collected were on what hardware was used to access the water (such as a pump, bucket and rope, or piped water system). This misses all the harder to measure indicators critical in water service delivery, such as if the pump is actually working, if the water is safe to drink or if people can afford to pay for the water. These metrics are now being re-evaluated with the Sustainable Development Goals.
We currently have an opportunity to influence how the international community thinks about water access in developing countries, and ensure that those who were excluded from the MDGs can be included in SDG approaches.
2016-17 Skoll Scholar, Ashley Thomas, has spent her career designing clean water and energy technologies to improve the lives of marginalised communities.
She spent seven years working in East and Southern Africa designing, manufacturing and selling products for bottom-of-the-pyramid customers. During this time she has developed and sold over 200,000 products, providing clean water and energy to over 2 million people in 7 different countries.
Not only does Ashley hold an Oxford MBA, she holds a Bachelor of Science in Mechanical Engineering from MIT, and has completed a MSc in Water Science, Policy and Management, also at the University of Oxford.
Macarena Hernandez de Obeso, is a current Skoll Scholar and is dedicated to economic opportunity and prosperity for deprived communities in Latin America.
She shares the story of starting her new social enterprise that aims to bring together a global community, all the while studying her Oxford MBA!
In September of 2016 I started the most incredible journey of my life so far, an MBA at Oxford. At the beginning, I was sure that I was here to strengthen my business knowledge to be able to combine a sustainable business model with a social mission. However, I wasn’t sure which path I was going to achieve it in the future. I had in mind three options:
1. come back to the social enterprise where I was working before
2. join an international organisation or enterprise focusing on the design of tools and impact metrics to enhance the work of social entrepreneurs
3. start my own venture
Surprisingly, in less than two months, one of these became a reality.
Meeting my Co-Founder
During the first week of my MBA, I met Ana Maria. Being both born in Latin America and having dedicated part of our life to social impact, we realised that we shared a powerful goal; to create opportunities for people in Latin America by embracing their talents and helping them to reach their full potential. She had the idea to fund a charitable project offering Spanish language practice for foreigners through conversations with native speakers within the project’s community. I loved the idea, but not the business model; I thought it should be a social enterprise that could fund itself by creating access to economic opportunities and a flexible way of income for all Spanish native speakers in Latin America.
Launching our social enterprise
In November of 2016, we founded Language Amigo. Today, we are connecting, through video calls, language ’Learners’ who want to practice conversational Spanish, with native speaking ‘Amigos’ from Latin America. For Amigos, Language Amigo is a flexible way of income and for Learners, Language Amigo is a flexible way to practice.
Through Language Amigo, we are not offering Spanish teachers. We are offering to language learners the opportunity to put into practice their foreign language knowledge and have real world conversations with real and friendly people, Amigos. I believe that the main objective to learn a language is to be able to connect with people from another country, culture, and background. Through Language Amigo, you can do that.
Language Amigo’s first Learner-Amigo call
Language Amigo’s first Learner-Amigo call
I was very happy working on my new venture, but with every new path comes its challenges and scepticism. In February 2017, I was delivering a presentation about Language Amigo, to my communication skills’ group at the Oxford Language Centre. I explained that to generate income, Language Amigo keeps a percentage of the cost of the calls conducted between Amigos and Learners. The first question that I received after this presentation, from a Chilean student, was: “are you exploiting Latin American youngsters to create a business?” I couldn’t believe what I was hearing. I wasn’t sure what feeling this question had caused me. Anger? Deception? Surprise? Indignation? I realised that it is not obvious to everyone that a collaborative economy business model, such as Language Amigo, is creating economic inclusion for people who did not have an economic opportunity before. I was conscious that industries threatened by collaborative economy models, such as hospitality and logistics, have been raising critique against successful platforms and putting pressure into regulatory institutions. Nonetheless, the fact that an Oxford student from Latin American believes that we were exploiting our Amigos, completely shocked me.
But, we continue to grow
I believe that Language Amigo is creating value not only for Amigos but also for Learners. We are developing the means to create social and economic transactions between them. We are aggregating and connecting supply with demand that otherwise would never connect. We are constantly looking for potential customers to grow the economic opportunities for Amigos. We are constantly updating the Amigos’ training and generating support resources to improve the experience for the Learners.
Why is the value of creating a network and the means to include people into the economy undervalued? What is harder: to produce and deliver the product or service, or to find the market and attract it to generate demand for the product or service?
Currently, we are looking for institutions such as language centres, schools, universities, and enterprises that already have Spanish students to become our partners. We would like to be able to offer Language Amigo to their students and to co-create the best tool for them, their students, and the Amigos. Together we will be able to demonstrate that it is possible to create fair opportunities through the power of language.
Language Amigo Co-founders: Ana Maria (Left) Macarena (Right)
Skoll Scholar and design enthusiast, Ahmed Abu Bakr, shares his experience of an average Oxford MBA classroom. But it wasn’t the subject matter that he found captivating, it was the leadership of its professor that truly inspired him.
In my first week of the MBA programme, I was introduced to the idea that we can all be classified into one of four categories: activists, theorists, reflectors, and pragmatists. Now of course, that was a clear oversimplification – we’re obviously not one or the other, but a mix of each in varying quantities. Nonetheless, the exercise forced me to explicitly recognise my inclination towards reflection.
And so, as my year at Oxford comes to an untimely close, I find myself taking stock of my time spent here. So what am I taking away with me? Well, a great many things: new skills, new friends, great memories, and an expanded perspective. But most importantly, I’m taking back inspiration. And today, I want to share one such story of inspiration from my time here.
I met him in the first week of our first term, on a Friday afternoon. Half of us were feeling the post-lunch drowsiness seeping in, while the other half really just wanted to get started with the weekend. There was nothing particularly remarkable about him at first glance. The most I could have said about him back then was that he seemed decent- kind, soft spoken, and as we eventually learned, modest to a fault. And he was teaching us statistics.
But over the course of eight weeks, I found in him a real life John Keating (ref: Dead Poet’s Society– be sure to watch it if you haven’t already!). Never have I had the privilege of seeing someone so very passionately and creatively impart knowledge – and let’s face it, statistics isn’t the most exciting subject out there- and win the heart of each and every student in the room. His name is Siddharth Arora, and his love and passion for the statistics was unmistakeable from his very first class. But what was truly remarkable was how he took on the full onus of helping us discover beauty in his subject.
Far too often have I seen teachers crush the spirit of learning in their students. Growing up, I have personally witnessed teachers ruin mathematics, physics, language, and a myriad of other disciplines for many of my fellow classmates. I have seen teachers teach through their authority, arrogantly, complacently, trying to stuff knowledge into the minds of students, and leaving no room for wisdom. Too often have I seen teachers forget that they must earn the attention that we chose to pay.
But Siddharth understood that. He cared enough to truly engage us. He showed us the presence of statistics in breath taking videos of the flight patterns of starlings, in the disturbing reality of climate change, and in the quotes of Rumi. He cared enough to go out of his way to make things like regression and conditional probabilities interesting, relevant and engaging for us all. He cared enough to voluntarily stay back on weekends and help us when we were struggling and he cared enough to provide us with snacks as we waited our turn to discuss our issues with him. And because he cared, we cared back.
It was particularly evident on the last day of his class. Incidentally, this was also the last class of term for all of us- a much needed study break was just waiting to begin. The clock struck five and he let us know that we were free to leave, but that he still had about 20 more minutes of content to cover. The weekend had begun, the term had ended, and everyone chose to stay back to finish a statistics class.
You see, over those eight weeks, Siddharth did so much more than simply teach us. He inspired us, shared his passion, gave us pearls of wisdom for life in general, and was there for us when we had needed him. He showed us genuine care, and got us to care back, and in doing so he demonstrated tremendous leadership within the classroom. And through it all, he personified humility and grace.
Section C, MBA class of 2017 with Siddharth Arora (more than 45 minutes after the end of class)
For me personally, he inspired a vision of the sort of person and the sort of leader I would like to be. Someone who doesn’t let authority, position, and credentials eat away at the intent to try harder, to be better, and to give more. Someone who empathises, and someone who cares. Someone who wins hearts through deliberate and protracted effort. And is humble and genuine throughout it all.
Forging Common Ground – Series of Oxford Student Insights to the Skoll World Forum 2017.
Skoll Scholar and Oxford MBA Candidate 2016-17, Ashley Thomas, draws on this year’s Skoll World Forum theme in relation to social impact business models.
There is a fault line between models of international development financing. On one side, there is the traditional donor and philanthropic capital that utilises grant money to support projects. On the other side is the social enterprise space that seeks to create sustainable impact through revenue generation. There has been a lot of excitement in utilising grant funding for social enterprises to build and tweak their business model, but to date there has been little appetite for true hybrid models of ongoing subsidies for social enterprises.
This is a conversation that I had in numerous sessions and coffees throughout Skoll World Forum. It was also one of the key themes from the session hosted by Mercy Corps and USAID on sharing the learnings from their investments in the Innovation Investment Alliance. There is a common ground emerging; these conversations are hinting at the start of innovative new business models that allow for hybrid grant and revenue streams.
Social enterprises are addressing market failures. They bring products or services to underserved markets, often at low margins, and often at high costs. However, market failures exist for a reason; many companies are realising that even at scale, high volume low margin products are not able to generate the revenues that are necessary to be sustainable. However, social enterprises often sell themselves on this vision- that with initial capital to pilot and build systems, they will be financially sustainable at scale.
Philanthropic capital- which does not require financial returns, can help bridge this fault line, and maximise the potential impact of social enterprises. This does not mean we should revert to the large scale unsustainable development models of the 1990’s, but use philanthropic capital as way of targeting the market failure and allowing social enterprises to maintain their focus on their mission and outcomes. This hybrid model is being utilised in the FundiFix hand pump repair service designed by Dr. Rob Hope out of the University of Oxford. The model uses monthly user subscription payments to pool capital to finance prompt hand pump repairs. However, the willingness to pay only accounts for 2/3 of the cost of the service, and the remaining cost is subsidised through grant funding. This is also used in much larger social enterprises. Ella Gudwin from Vision Spring spoke about how their model has shifted from seeking to maintain cost recovery- and retailing glasses at increasingly higher prices, to minimising the “philanthropy per pair” and serving their target customer. They were able to do this under a scaling innovation grant from USAID and Mercy Corps, demonstrating that donors are also recognising the need for the pivot into these hybrid models.
It is increasingly clear that there is not one single model for social enterprise, and a single-minded focus on achieving commercial sustainability may limit the impact. Innovative hybrid models that use the social enterprise ethos of cost effectiveness in combination with smart grant funding that can subsidise the product can address the market failures preventing social enterprises achieving impact at scale. There is immense opportunity to achieve scale and impact through creating this common ground.
Forging Common Ground – Series of Oxford Student Insights to the Skoll World Forum 2017.
Skoll Scholar and Oxford MBA Candidate 2016-17, Alex Shapland-Howes, gives his perspective on the Skoll World Forum session “Mobalizing a Movement: More in Common”.
How many articles have you read over the last year about the rise of populist politicians? How Brexit and Trump were caused by a great divide within our societies? How xenophobia so easily becomes the go-to response?
Almost all the articles end with something like “…and we must start acting now to fix this”.
But perhaps the thing that’s been most alarming is the lack of ideas as to how we should go about tackling these issues. Lamenting their existence is an important start – few of us had appreciated the scale of the problem until recently – yet of course without deliberate, concrete actions, it’s hard to see the situation changing.
This week at Skoll World Forum, I heard from an amazing group of people who are founding a new organisation to stimulate the changes they want to see. Led by Gemma Mortensen, Tim Dixon and Brendan Cox, More in Common will focus on five key areas:
Public opinion research
It’s easy to make assumptions about the views of individuals or groups across society, but to make deliberative change successfully, we need to listen very carefully to each other. We often hear, for example, that there’s a divide between liberal cosmopolitans and what could be termed ‘angry nationalists’ in our societies. More In Common’s detailed research has found that whilst that divide very much does exist, roughly half the population have mixed views and don’t fall into either camp.
Communications strategy for key influencers
Getting the messages right is critical to winning this battle. Brendan Cox told the audience that what we often call populism is actually just bigotry and hatred. A huge amount of work is needed to get the balance right between appeasing the dangerous views of some and genuinely listening, acting on the valid concerns of others.
Convening and building broader coalitions
This work is inherently political but to succeed, it has to bring people with it across the normal divides. Organisations that normally wouldn’t take a political stance might do so if everybody was part of it. If More In Common can show that the most hate-filled views aren’t part of the same continuum – that they’re another, far more malevolent force – then they will try to get businesses, civil society, the media and more to stand up against it.
Partnerships will also play a key role. We heard the example of how the Jo Cox Foundation has organised The Great Get Together in partnership with everyone from Oxfam and the Women’s Institute to the Premier League and The Sun. Across the UK, 10 million people are expected to get gather with neighbours on 17-18 June to “be part of a national celebration of what we have in common”. Amazing!
We all know the power of social media. We heard less about this but there are plans to mobilise a ‘base’ of supporters to lead a movement from the bottom up too.
More In Common is new. There was little push back from anyone in the room at Skoll World Forum, few in the room who disagreed and this is arguably the biggest challenge of our lifetimes.
But the group running it are incredible. I was sold.
They are thinking, they seem to be listening and they have concrete plans for what to do next.
Forging Common Ground – Series of Oxford Student Insights to the Skoll World Forum 2017.
Macarena Hernandez, Skoll Scholar and Oxford MBA Candidate 2016-17 at the Saïd Business School, gives her perspective on the Skoll World Forum session “Building Bridges: Partnerships in Responsible Supply Chains”.
The task to build bridges to trigger the development of responsible supply chains is not only a task for “bridges builders”, it is a common task. We need to forge common bridges together.
The session kicked off with a “pop-quiz” leading by the session’s moderator, Daniel Viederman, Managing Director at Humanity United. “How many cocoa farmers are around the world?”… After guesses and approximations, the right answer was 5 million.
Could you imagine the investment that is needed to audit all of these cocoa farmers have the responsible practices? How many more products a single food industry company have? As Viederman mention, we are not talking about a lineal supply chain, we are talking about a supply web.
The complexity of this supply web has meant that no one takes the responsibility to ensure fair labour conditions within the web. The private sector thought that labour issues needed to be solved by the public sector. Governments have been establishing regulations that encourage big industry players to start solving these issues.
Despite this complexity, companies such as Target and Mars Inc. are taking responsibility and action. In 2015, Target started a partnership with GoodWeave in support of their mission to end child labour in the rug industry. Mars Inc. is partnering with Verité to design simple solution for their suppliers to meet their responsible sourcing standards.
Building Bridges – Partnerships in Responsible Supply Chains panel
These leading efforts are transforming the unfair labour practices across industries. However, these partnerships and projects are not easily scalable for the various products across different industries. As Marika McCauley Sine, Mars’ Human Rights Director, said, ‘the situation is complex; we need to make it easy. We need to be specific and clear. Make it as simple as possible.’
For me, this simple and scalable solution is called: trust. If enterprises trust in other stakeholders, especially suppliers and suppliers of suppliers, there would be no need for huge investments to develop detailed audits or localised projects throughout the supply chain.
Although, building trust is not easy. How can we trust in others? Transparency, openness, collaboration, accountability, and information flow is needed. Who is creating trust through stakeholders? Talking and listening during the forum, two potential solutions came into my mind. After the panel, I had the opportunity to talk with Charmian Love, Co-Chair and Co-founder of B Lab UK. I realised that the B-Corporation Certification is identifying responsible players around the world. Listening to the session “Data-Driven Models for Change”, I discovered that Provenance is developing digital tools to trace products’ journeys.
Both trust’s mechanisms, mentioned above, include characteristics such as collaboration, data sharing, and transparency. This openness creates and distributes value along all stakeholders. Which make me reflect: Are the main industry players and competitors ready to collaborate between them? Are the innovators ready to share best practices? Are businesses ready to share value, despite the fact that these actions will reduce barriers to entry, increase the number of competitors, and increase consumer power?
I hope they are! In the long term, collaboration will be the key for value creation. My favourite value at Prospera, the Mexican social enterprise where I was working before coming to Oxford, states: “El que comparte, prospera. Siempre.” Translated to English: “The one who shares, thrives. Always.”