Annual report 2010
Jan Jongbloed Managing director
Be the change you want to see in the world. IntEnt - Annual report 2010
s t n e t Con From the supervisory board Executive summary 01. IntEnt’s training and coaching in 2010 02. Promoting IntEnt’s mission and activities in 2010 03. Improving IntEnt’s international entrepreneurship programme 04. IntEnt’s supporting partners in programme countries 05. IntEnt’s tendering and implementing projects 06. IntEnt’s organisation in 2010 07. Gender and corporate social responsibility 08. IntEnt’s financial resources in 2010 09. IntEnt’s activities and costs in 2010 10. Balance sheet
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6 8 10 12 14 16 18 23 24 26 29 30
Publication information Annex Annex Annex Annex Annex Annex Annex Annex Annex
1. Details per country 2. General communication activities 3. Training and advisory programme 4. Overview of local organisation activities 5. Overview of projects 6. IntEnt’s employees 7. Performance indicators 8. IntEnt’s Code of Conduct 9. Financial statement
33 70 78 89 102 112 114 116 120
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Preface ry board superviso 2010 was an exceptional year for IntEnt leaving us with mixed feelings. Although we had more migrant entrepreneurs than ever trained and guided, IntEnt faced tough challenges externally and in-house. We had to book a disappointing operating loss at the end of the year. Mainly in relation to the execution of EU projects. The board had to face the departure of 2 respected members of the board. We would like to thank Carmen Breeveld and Dorine Putman Devilee, our treasurer, for their service over the years. In 2011 IntEnt will have to face a double-digit decrease in funding from our main donor as a result of the Dutch government’s considerable reduction to the development cooperation budget in 2011. For IntEnt, 2011 will be the year for reconsideration and balance. We will revise our strategy, markets, funding and organisation to meet the challenges ahead. But most important, keep our training programme fully open for our migrant entrepreneurs. On behalf of the board,
Willem A. Zuidhof Chairman 6
Willem A. Zuidhof Chairman
If you don’t create change, change will create you.
y r a m m u s Executive 2010: More local entrepreneurs than entrepreneurs from the diaspora IntEnt’s mission to support migrants and local entrepreneurs in becoming successful entrepreneurs within IntEnt’s programme countries, bore fruit in 2010. 2010 also saw more entrepreneurs being trained and coached locally (in Morocco, Ghana, Suriname) than in the Netherlands. Many of those entrepreneurs came from a larger number of countries. This trend also reflects the general feeling on cross-border entrepreneurship: the IntEnt programme increasingly aims to help the private sector in our programme countries by reversing the brain-drain of the past and by helping migrants to start a business in a programme country. However this development came at a price. The drive to find more and more people to start their enterprise in developing countries, combined with the shifting focus of our donors towards the way and direction of their sponsoring has lead to a loss in 2010. This will force IntEnt to reorganise its activities in 2011 to make ends meet. IntEnt’s activities in 2010 were structured along the following lines:
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1. IntEnt training and coaching in 2010 A larger number of people were trained in 2010 and more ‘IntEnt entrepreneurs’ started their business in 2010 with new programme countries contributing substantially to the numbers trained and started. 2. Promoting IntEnt’s mission and activities in 2010 A strategy was developed to better align the various communication activities within IntEnt, to combine money and knowledge transfer to our programme countries. 3. Improving IntEnt’s international entrepreneurship programme In 2010 an important step was made to standardise IntEnt’s training programme, facilitating quality control. Our training activities are increasingly focused on trainthe-trainer programmes in programme countries. 4. IntEnt supporting partners in programme countries In 2010 IntEnt partner organisations in Suriname, Morocco and Ghana were fully operational, with a training output larger than that of the Dutch programme. 5. IntEnt tendering and implementing projects The in 2009 completed Aeneas project (capacity-building in Suriname, Ghana and the GeldnaarHuis website) resulted in the release of the Friends and Family Fund.
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nd a g n i n i a r t 01. IntEnt ng in 2010 coachi IntEnt trained and coached more potential entrepreneurs in 2010 than in previous years. This resulted in an all-time high of new enterprises being set up in the programme countries. This is in line with the trend noted in the management summary. When analysing the figures the following has to be considered: 路 The fact that many potential entrepreneurs (coming from the diaspora) took the opportunity to be trained in their country of choice (Morocco and, to a lesser degree, Suriname) instead of in the Netherlands; 路 The uncertain economic climate in the West (people prefer job security) 路 Political changes in many of our programme countries (elections in Suriname and Curacao resulting in a change of power, security situation in Afghanistan); 路 A shift in the focus in the Netherlands on development aid, wherein an open country policy (IntEnt accepts potential entrepreneurs to be trained for any developing country) is not possible anymore in the future. The table presents an overview of the various programmes and the number of participants.
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ANNEX 1 Country details
Number of participants 2009
2010
Total
From the Netherlands
From other countries
Total
1605
1633
622
2255
Intake interviews conducted
714
550
232
782
Enrolled in support course programme
250
197
199
396
In-country market exploratory programme
205
125
11
136
52
35
88
123
Information requests
Started up business
11
t n E t n I g n i t 02. Prommounication com 0 1 0 2 n i s e activiti
ANNEX 2 General communication activities
There are three different objectives to IntEnt’s communication activities: · Information sessions to attract people to start a business in programme countries; · MitS/WeShare project to be actively involved in developing programme countries; · GeldnaarHuis and Friends and Family Fund to be financially active in those countries. Information sessions to attract participants to IntEnt’s programmes are part of IntEnt’s training and coaching activities. In 2010 the following communication and promotional activities were carried out: · Joint promotions with diaspora organisations; · Participation in conferences, fairs (e.g. the emigration fair), festivals, etc.; · The first joint programme with professional education institutes to attract graduates from these institutions to join IntEnt’s programme, such as the InHolland University The Hague.
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Together with Hivos, IntEnt also runs the MitS (Migrants in the Spotlight) project, which uses communication and the WeShare website to attract migrants (predominantly focusing on young 2nd and 3rd generation migrants) to try to get them actively involved in projects in their country of origin. This project ended on March 1, 2011. A special way of attracting migrants or others to get involved in IntEnt’s programme countries is to get them operationally and/or financially involved with starting entrepreneurs. To do this, IntEnt uses its website ‘www.geldnaarhuis.nl’, which enables migrants to send money home (remittances) in the most cost-efficient way. This website is sponsored by the Ministry of Foreign Affairs. The aim of the Friends and Family Fund is to have friends and family from the entrepreneurs actively invest in enterprises in our programme countries.
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’s t n E t n I g n i 03. Imprronvational entrepree m inte m a r g o r neurship p IntEnt’s training and coaching programme comprises two main activities: a. IntEnt’s cross-border-training programme for migrant entrepreneurs; b. Building local capacity through our train-the-trainer programme for partners in other countries to use IntEnt’s methods and techniques. SUPPORT An overview of the steps within IntEnt’s START cross-border-training programme: ACE 2 · IntEnt Business MISSION ACE 1
BUSINESS CONSULTANTS EDUCATION Intake
INFORMATION & REALISATION · Country background · Work experience and skills · Branch knowledge
· Screening the entrepreneur and business idea
· Textbooks · Entrepreneurship Orientation Workshop · Business Plan Development Workshop
· Personal supervision by a business consultant · Financial insights (IntEnt calculation model) · Online Business Centre
· Entrepreneurship testing · Assessment of the commercial idea and the entrepreneur · Financial assessment
· Market and product information · Country-specific information · Support for local market research · Local networking
· Entrepreneurship testing · AdditB
Clubs · Follow-up supervision
In 2010 part of the IntEnt programme was changed as follows: · IntEnt’s coordinators attended part of the tuition programme themselves to become more familiar with participants and to save on costs; · A standard methodology was introduced to improve how the business plans can be assessed; · A start was made to improve the selection of entrepreneurs and get accreditation for the trainers and business advisors. 14
ANNEX 3 Training and advisory programme
In 2010 we continued building local capacity in the programme countries. The training modules for trainers and business advisors were developed further. The train-the-trainers programme consists of the following modules: ToT OO/OP - Training Trainers OE/BP Training trainers in Orientation Entrepreneurship & Business Plan ToBA Basic - Training Business Advisors - BASIC Basic training for business advisors in the IntEnt approach (new advisors) ToBA Tools - Training Business Advisors - TOOLS Training advisors in how to use IntEnt Tools (MRAP, Finance Model, SBC) ToBA Start - Training Business Advisors - START Training advisors in support during/after start ToACE - Training FAC Training members of the Assessment Committee Entrepreneurs (ACE) (Financial Model & Risk Score Card)
In 2010 the train-the-trainer programmes were carried out in the UK, Germany, Ghana and Ethiopia. For the future we plan to increase our efforts in capacity building abroad, focusing on Suriname, Ghana, Sierra Leone, South Africa and Moldova. 15
s r e n t r a p ting r o p p u s t n 04. IntE gramme countries in pro IntEnt’s programme to train and coach entrepreneurs has now been implemented in several countries. IntEnt Suriname. IntEnt Suriname is fully financed by the Suriname government as part of its plan to improve the private sector there. IntEnt Suriname trains and coaches potential entrepreneurs who apply for the programme in Suriname. In 2010 IntEnt Netherlands trained trainers and coaches from February 21 to February 25. In 2010 there were two start-up missions, each comprising 10 potential entrepreneurs from the Netherlands. IntEnt Maroc. IntEnt Maroc is a Moroccan foundation with its own management and board. The Morocco programme is co-financed by the EU as part of the project FACE Maroc. IntEnt Maroc trains and coaches migrants returning to Morocco to start a business. IntEnt Maroc did extremely well in 2010 by training and coaching migrants returning from Belgium, France, Canada, the Netherlands, USA, Germany, Italy, Spain and the UK, which led to over 50 new enterprises in Morocco. In 2010 the first joint German-Dutch start-up mission was organised with returning migrants, who were selected and trained in Germany or the Netherlands. IntEnt Ghana. IntEnt Ghana is meant to set up a training programme for entrepreneurs in Ghana. IntEnt will cooperate with Empretec, the local partner in the REMADE project. IntEnt Ghana has been approached by the Ghanaian government to start a new project to train and coach local people to become entrepreneurs. This project will be financed by the Ghanaian government as 16
ANNEX 4 Overview of local organisation activities
part of their NYEP programme to combat youth unemployment. IntEnt Ghana trains and coaches Ghanaian residents to become entrepreneurs. In 2010 the first joint British-Dutch start-up mission was organised with 7 potential entrepreneurs from the UK and the Netherlands. 2010 also saw Ghanaian trainers and coaches being trained by IntEnt Netherlands as part of the train-the-trainer programme. Annex 4 provides a more detailed account of the IntEnt programme in Ghana. France and Germany. CIM in Germany and AFD in France are IntEnt partners within the FACE project in Morocco. The programme is fully operational in Germany and Morocco. Germany provides the training programme in Frankfurt. This has resulted in 5 new enterprises in Morocco run by Moroccan migrants in Germany. Although 17 new enterprises have already been set up by Moroccan migrants from France through IntEnt Maroc’s programme, the programme has not fully started yet in France itself. UK. Afford in the UK is an IntEnt partner within the REMADE project in Ghana. Afford trainers and business advisors were trained in 2010 to carry out IntEnt’s programme in the UK. Other countries. In 2010 a MOU was signed with St. Mary’s University College (SMUC) in Ethiopia. In 2011 SMUC will be trained to carry out IntEnt’s programmes in Ethiopia.
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s t c e j o r p t 05. IntEn
ANNEX 5 Overview of projects
The following overview lists all IntEnt projects in 2010: EU projects together with Hivos Project name
Objective
Partners
Country
MitS (Migrants in the Spotlight)
The MitS project aims to connect the diaspora (also 2nd and 3rd generation) with projects in their country of origin.
Hivos
Ghana, Ethiopia, Suriname, Morocco and Turkey
REMADE (Returning Enterprising Migrants Adding Employment)
To strengthen the link between migration and development by encouraging the diaspora to strengthen ties with their communities of origin, make their remittances more effective and promote circular migration and counter brain drain.
Hivos, Empretec (Ghana), Afford (UK)
Ghana
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Richard Yeboah Coordinator Ghana / REMADE
Other things may change us, but we start and end with family. 22
n o i t a s i n a g or 06. IntEnt 10 in 20
ANNEX 6
ANNEX 7
IntEnt
Performance
employees
indicators
In 2010 the IntEnt organisation was restructured to make managerial processes more transparent and accountable: Supervisory Board General manager Controlling and Finance
Manager Country Programmes
Manager Projects and Development
In 2010 a clearer distinction was made between the team responsible for country programmes and the team responsible for projects and development. Any activities related to training and coaching entrepreneurs (activity 1 and 4) will be done by the former, while the latter team will be responsible for all corporate activities, such as communication (activity 2), vocational programmes (activity 3) and projects (activity 5). Furthermore, Finance and Control management was enhanced to improve reporting and control. See Annex 7. 23
te a r o p r o c d an r e d n e G ity . l i b 07 i s n o p s social re
ANNEX 8 IntEnt’s Code of Conduct
In 2010 the gender distribution of IntEnt participants within the several programme countries was evaluated, providing an overview of the gender distribution in IntEnt programme countries. To a certain extent, this gender distribution reflects IntEnt’s international activities and the interest of participants. There are recommendations within the report on the measures IntEnt could take to achieve a more even distribution between male and female potential entrepreneurs. The following actions will be taken to try to establish a more balanced gender distribution on IntEnt’s programmes: · Give special attention to women attending information sessions; · Broader support for potential female entrepreneurs and the access to capital; · Extending networking during IntEnt’s training and mentorship programme; · More female business advisors. IntEnt’s corporate social responsibility is encapsulated in IntEnt’s Code of Conduct. IntEnt has also developed an option for private donors and private organisations to participate in investing in start-ups through IntEnt.
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Monique Gahadjar Coordinator Assistant
The key to success is often the ability to change.
Annex 1 fghanistan Details A Afghanistan in 2010 The situation did not show any signs of improvements in 2010 with record casualties on all sides of the conflict. Almost 700 foreign troops died in 2010 alone, making it by far the bloodiest year so far. But ordinary Afghans have borne the brunt of the fighting. According to U.N. figures, 1.271 civilians were killed in the first six months of this year, 21% more than in the same period in 2009. Despite ongoing security challenges, the Afghan private sector has enormous potential for development and growth and will be a significant determinant to longterm stability in the country. Private sector development is possible and vital to Afghanistan’s future and it will not present a quick or easy solution to Afghanistan’s woes. It requires a fundamental shift on all fronts that includes assisting Afghan entrepreneurs to help to grow and improve private sector activities. In 2010, two start-up missions were held in Afghanistan during which 9 new entrepreneurs got acquainted with the opportunities for their business in Afghanistan. The start-up mission in February 2010 was the first one in IntEnt history. Through its local partners IntEnt plans to expand its services and activities by establishing an entrepreneurship support infrastructure in Afghanistan. This infrastructure will provide training, business advisory services and coaching to Afghans to become entrepreneurs, some of whom come from the Afghan diaspora, 33
therefore hopefully reversing the brain drain. Easier access for entrepreneurs to financial products and services will be part of this programme. The growing demand from the Afghan diaspora to invest in Afghanistan’s private sector can contribute to accessing this capital. The local Afghanistan economy will benefit from this entrepreneur support programme: establishing new enterprises and revitalising existing businesses. This can reduce unemployment and increase the possibility of economic activities flourishing.
Programme details Afghanistan Number of participants 2009
2010
Total
Female
Male
Total
Information requests
45
Intake interviews conducted
20
23
82
105
3
32
35
Enrolled in support course programme
4
1
10
11
In-country market exploratory programme
3
1
8
9
Started up business
0
0
4
4
34
Riannne Bijleveld Receptionist / secretary
Everyone thinks of changing the world, but no one thinks of changing himself.
es: v i l g n i g n Cha n a t s i n a h g f A
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Mr. Akbari from Kandahar in Afghanistan regularly visits his country of origin and decided last year to launch his business in Kandahar. His business idea to start a small flour factory was not motivated solely by the prospect of commercial gain. He also wanted to tackle the prevalent unhygienic production methods. Common manufacturing processes have caused a string of unpleasant incidents, ranging from food poisoning to products containing glass and other dangerous objects. Mr. Akbari wants to improve the entire production process to ensure consumer safety. Directly after the start-up mission to Kabul, USAID invited Mr. Akbari to discuss financing his company. 37
Annex 1 ape Verde Details C Cape Verde in 2010 The Cape Verdean economy grew steadily (>5 %) in 2010, making it one of the better economies in Africa. Although the country is rather small (500.000 inhabitants) and is made up of an archipelago of 10 islands, it is good to see that many of its large diaspora (>1 million people) show a growing interest in returning to Cape Verde. The government is promoting this return with various tools, which include attracting foreign investment in the tourism, transport and financial services sectors. Cape Verde was added to IntEnt’s programme countries in 2009, with collaboration partners like Bons Negocios!, Avanco and the Chamber of Commerce, all in Rotterdam, the city in the Netherlands where 90% of the Cape Verdean diaspora live. The first start-up mission with 7 entrepreneurs was held in November 2010. In 2010 a total of 3 entrepreneurs were in the process of actually starting their business in Cape Verde. The relationship with our local partner, Instituto das Communidades, was strengthened by working together on this successful mission. In 2011 we plan to increase local capacity building by teaming up with ADEI and Campo, two organisations that are active in awareness and training in the entrepreneurial sector.
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Programme details Cape Verde Number of participants 2009
2010
Total
Female
Male
Total
Information requests
9
Intake interviews conducted
9
23
9
42
16
13
29
Enrolled in support course programme
5
8
6
9
In-country market exploratory programme
4
6
3
9
Started up business
1
2
0
2
39
es: v i l g n i g n Cha e Cape Verd
Lucia Dias is working as a hairdresser in the Netherlands. Together with her mother, who returned to Santiago two years ago, she founded ‘Productos di Terra’, a company that will produce traditional soap and other natural traditional Cape Verdean products to sell to tourists and via an online shop to the diaspora in the USA and Europe. Lucia Dias submitted her business plan into an international contest and won 10.000 euro which will be used to purchase an oil press to start producing soap made of Jatropha oil.
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Annex 1 uracao Details C Curacao in 2010 On October 10, 2010 Curacao became a separate country within the Kingdom of the Netherlands. Curacao’s new status provides more business opportunities with less red tape. With the proposed lower profit tax rate, Curacao will become more attractive to investors. Curacao achieved a sustainable level of public debt (about 34% of its GDP) and the prospects for long-term economic growth and investment in infrastructure and socio-economic projects have improved considerably. The island has lower interest costs, as rates equal to those applicable to similar public debt issues in the Netherlands. The compulsory balanced budget rule and the interest burden rule are in place with the intention of avoiding the unrestrained build-up of public debt in the future. Tourism, petroleum refining and offshore finance are the mainstays of Curacao’s economy, which is closely tied to the outside world. The island enjoys a high per capita income and a well-developed infrastructure compared with other countries in the region. Curacao has an excellent natural harbour that can accommodate large oil tankers. The Venezuelan state oil company leases the single refinery on the island from the government with most of the oil for the refinery being imported from Venezuela and most of the refined products being exported to the US. The government is trying to diversify its industry and trade and has signed an Association Agreement with the EU to expand business there. 42
The IntEnt Curacao programme formally started on July 1, 2005, initially for a period of four years. The Curacao government decided to continue its financial contribution to the IntEnt programme after this period. In 2010, partly due to the new status of Curacao, more of the diaspora and the Dutch have (re)immigrated to the island as new entrepreneurs. This has contributed to the development of the local economy. The IntEnt coordination office on the island, the Curacao Chamber of Commerce, provides local business advisors for the IntEnt programme.
Programme details Curacao Number of participants 2009
2010
Total
Female
Male
Total
Information requests
96
62
79
141
Intake interviews conducted
74
39
43
82
Enrolled in support course programme
41
6
13
19
In-country market exploratory programme
30
6
4
10
6
0
3
3
Started up business
43
es: v i l g n i g n Cha Curacao
In July 2010 Mrs. Bazoer went, together with 6 other entrepreneurs, on a start-up mission to Curacao. Her plan was to start a window cleaning company in 2011. In March 2011 Mrs. Bazoer emigrated to Curacao and in June 2011 she got a bank loan and the cleaning equipment was shipped to Curacao. In July 2011 ‘Responsible Windows Cleaning’ will serve its first customers.
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Annex 1 hiopia Details Et Ethiopia in 2010 In 2010 Ethiopia held elections, which resulted in the current government being re-elected. The economy has grown steadily by 7%, making it one of the fastest growing economies in the world. The domestic private sector is still at an early stage of growth. Although some larger private companies are now run by professional managers and boards of directors, most private businesses are family owned. State presence in the economy still predominates. Most public enterprises are in manufacturing industries such as tanneries, food and beverages, textiles and garments, pharmaceuticals, chemicals and vehicles. It was only in 2009 that IntEnt’s Ethiopian programme was re-launched, with serious efforts made to promote business opportunities in Ethiopia in cooperation with key people in the Ethiopian diaspora in the Netherlands. In February 2010 we held the first start-up mission with 11 entrepreneurs. In 2010 a total of 5 entrepreneurs were in the process of actually starting their business in Ethiopia. The relationship with our local partner St. Mary’s University College was strengthened by working together on this successful mission. In 2011 we plan to increase local capacity.
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Programme details Ethiopia Number of participants 2009 Total
2010 Female
Male
Total
Information requests
32
Intake interviews conducted
26
4
9
136 13
Enrolled in support course programme
13
2
5
7
In-country market exploratory programme
4
5
5
10
Started up business
1
3
1
4
47
es: v i l g n i g n Cha Ethiopia
Ms. Emebet had some experience in running a restaurant in Amsterdam. But now she wanted to set up a factory to produce and distribute re-usable (re-washable) sanitary pads in Ethiopia. At present, Emebet is selling her products via well-known supermarkets in Addis. She is also supplying NGOs and schools with literally thousands of products. The NGOs distribute re-usable sanitary pads, made from Ethiopian cotton, to rural areas. Thanks to her efforts, a lot of young women will be able to go to school and attend other social activities. 49
Annex 1 hana Details G Ghana in 2010 Despite rising tensions in the run-up to the last presidential and parliamentary elections and the shock associated with high oil prices, Ghana generally enjoyed both political stability and economic growth in the period under review. Economic growth in 2010 held firm at around 6%, while inflation continued to be an economic challenge. Positive experiences with the private sector have created a general consensus in today’s political landscape that this strategy should be the way forward and that production/commercial activities should be anchored in the private sector. The current administration appears to place more emphasis on its policy statements on (I) promoting an all-inclusive private sector development with the government playing a pro-active role; (II) creating sustainable jobs; and (III) developing indigenous micro and small enterprises, as well as agriculture and rural areas. With the IntEnt Ghana programme evolving into an all-inclusive entrepreneurship development programme that not only focuses on diaspora communities, but also provides assistance to local entrepreneurs, IntEnt is in line with the government’s policies. 2010 was the second year of the EU-co-founded project REMADE. IntEnt has been able to set up a comprehensive local entrepreneurship development support infrastructure by linking existing business development support providers, 50
trainers and banks, thanks to our partner Empretec. Where needed, we provided capacity building. In 2011 the emphasis will be on enrolling more participants in the programme and fine-tuning the support infrastructure.
Programme details Ghana number of participants 2009
2010
Total
Female
Male
Total
Information requests
70
104
403
507
Intake interviews conducted
31
39
108
147
Enrolled in support course programme
20
19
85
104
In-country market exploratory programme
13
8
16
24
4
0
5
5
Started up business
51
es: v i l g n i g n Cha Ghana
In early 2010 Mr. Emmanuel Adjei came knocking at IntEnt’s door with an ambition to set up a professional company for care of the elderly in Ghana. After intensive preparation and a market research visit to Ghana via the IntEnt start-up mission, he is now in the process of acquiring an additional loan to kick-start his business. At the moment, he is signing deals with potential clients. If all goes well, he will open the doors in early October 2011.
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Annex 1 orocco Details M Morocco in 2010 Morocco’s 2010 growth figures were 4.2% of GDP, which is a slight decrease in its economic growth rate compared to previous years. However, the country remains less affected by the global crisis as the economy continues to be driven by domestic demands. The local government continues to promote objectives to consolidate growth and development. The Vision 2010 mission, a government project in the tourism sector to create 600.000 jobs and attract 10 million tourists by 2010, ended and resulted in the overall development of (northern) Morocco, especially the infrastructure. The Intention for a new Vision 2020 was launched to double the previous results. In 2010 IntEnt continued its strategy of globalisation and internationalisation in and for the programme country Morocco. The country, now ranked as a middleincome country, can no longer benefit from development aid. As a result, new financial resources together with a new approach for the Morocco programme will be inevitable. The three-year project FACE Maroc, co-funded by the EU and partners in France and Germany, reached its halfway mark after implementation in 2009. IntEnt’s first joint start-up mission took place in Morocco in March 2010. Both Dutch (7) and German (4) entrepreneurs participated in a group programme in Casablanca. 54
Other planned activities were cancelled due to the lengthy absence of the coordinator in the Netherlands. However, the head office in the Netherlands continues to work closely with IntEnt Maroc, the local coordination office in Morocco. In addition to assisting Dutch entrepreneurs directly, businesses have been set up through the local programme by entrepreneurs from Belgium, France, Germany, Italy, the United States and Canada.
Programme details Morocco Number of participants 2009
2010
Total
Female
Male
Total
Information requests
476
198
297
495
Intake interviews conducted
270
45
167
212
Enrolled in support course programme
53
17
78
95
In-country market exploratory programme
42
14
45
9 (only NL)
Started up business
22
6
46
52
55
es: v i l g n i g n Cha Morocco
Ellen Langerak came to IntEnt to try to fulfill her dream – to combine her love of handbags and the Moroccan culture. She joined the start-up mission and soon after launched her business. The company, which deals in leather handbags, has an online shop for European clientele and a production centre in the souks of Marrakech that also supports a local project for handicapped women, thereby achieving the multiple goals previously set.
57
Annex 1 uriname Details S Suriname in 2010 According to the World Bank report ‘Doing Business 2010’, Suriname ranks 155th (out of 183) with regard to the ease of doing business. The problem areas stated in the report are: starting a business, getting credit, protecting investors, enforcing contracts and closing a business. One positive note is Suriname’s ranking when it comes to paying taxes, 32nd on the list. As regards the private sector, there is development in the booming Suriname tourist industry. Furthermore, the food sector (restaurants) and hotel businesses are also worth noting, as they show economic growth as well. IntEnt Suriname created a bridging programme for small and medium-sized enterprises, which trains and coaches local people. IntEnt supports efforts to set up a business by providing advice and training. Each client is offered a tailor-made programme both in the Netherlands and in Suriname. In 2010 there were two startup missions for entrepreneurs to Suriname, the objective of which was to gather information on setting up a business in Suriname and to do market research. In addition to awareness of IntEnt in general, 2010 also saw a specific focus on awareness of doing business in Suriname. Ads were aired on Suriname radio, three special fairs were held specifically for Suriname and interviews were published in Suriname papers. 58
Number of participants 2009
2010
Total
Female
Male
Total
Information requests
304
243
370
613
Intake interviews conducted
154
100
130
230
Enrolled in support course programme
59
58
74
132
In-country market exploratory programme
56
10
11
21 (only NL)
Started up business
10
21
29
50
59
es: v i l g n i g n Cha Suriname
At the emigration fair a couple was looking into the possibilities of emigrating from the Netherlands. They had not decided yet where to go. After meeting IntEnt at the fair and getting an explanation of the IntEnt programme, they decided to start their business in Suriname. They are now working in Suriname and have a business in outsourcing and offshoring from Suriname to the Netherlands.
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Annex 1 rkey Details Tu Turkey in 2010 Political development in Turkey in 2010 focused mainly on the proposed constitutional changes and the referendum held on this subject. The outcome of the referendum allowed the Turkish government to carry out the proposed changes, which will affect judicial, military and social aspects of Turkish society. The Turkish private sector suffered from the worldwide crisis, but bounced back strongly in 2010. It showed one of the highest growth figures, and expectations are high for the next few years. One effect that this has on private sector development is that Turkish companies are expanding their operations internationally, which will have a major impact on Turkish export volumes. IntEnt continued working with Ecorys Turkey in 2010. Apart from promoting the programme in the Netherlands, a lot of time was spent looking for new financial tools to continue the Turkey programme beyond 2010. Several visits were made to Turkey to meet with government organisations working on SME development, banks, venture capitalists and universities to discuss their cooperation with introducing the IntEnt programme in Turkey, so local people can also benefit from IntEnt methodology. At the end of the year, discussions with several organisations were still in progress and these will continue in 2011. 62
Programme details Turkey Number of participants 2009
2010
Total
Female
Male
Total
Information requests
96
15
51
66
Intake interviews conducted
40
6
14
20
Enrolled in support course programme
6
2
1
3
In-country market exploratory programme
3
1
0
1
Started up business
2
0
1
1
63
es: v i l g n i g n Cha Turkey
Turkey offers great potential to start-ups. Turkey, however, is not an easy market to conquer. One IntEnt client was very close to starting his business in Izmir, and then...! The land that was supposed to be handed over to him so he could build his offices and premises turned out to be destined for another company. This information reached him just before he wanted to start building. Although disappointed by this turn of events, this entrepreneur is determined to start his company in Izmir and is now looking for another piece of land where he can start. 65
Annex 1 her countries Details ot Other countries in 2010 (including Sierra Leone) As the IntEnt tuition programme is open to anyone who wishes to start a business in a developing country, there were many requests from other countries to enter the programme. An overview of where participants are from is provided below:
Programme details other countries
From the (former) Dutch Antilles From the Middle East
Number of people interested
Number of people actually interviewed
10
5
7
2
From Europe (Eastern European and Balkan countries)
12
1
From Sub-Saharan Africa
57
30
From Northern Africa
10
5
9
0
From South East Asia (incl. Indonesia) From South America
66
4
1
Programme details other countries Number of participants 2009
2010
Total Information requests
Female
Male
Total
177
45
105
150
Intake interviews conducted
9
19
40
59
Enrolled in support course programme
9
10
18
28
In-country market exploratory programme
9
2
5
7
Started up business
1
1
1
2
Sierra Leone in 2010
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es: v i l g n i g n Cha Angola
Due to the enormous amount of minerals in Angola, it is a country with a high economic growth rate. However, it is not an easy country to do business in. Nevertheless, you can succeed, as proven by the Angolan entrepreneur who left the Netherlands to start his business there. He wanted to set up a company that sells purified and safe drinking water. As often happens, things didn’t quite work out the way he had planned. In fact, it turned out to be a lot better than expected! He came into contact with a Dutch company that had already developed plans to work on the Angolan water market. Together with this company, he set up an Angolan company, in which he is a 45% shareholder.
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al r e n e G 2 s e i t i v Annex i t c a tion a c i n u m m co Actions to interest people to start a business In order to attract entrepreneurial diaspora (and other potential cross border entrepreneurs) to take an interest in IntEnts’ programme, following activities were accomplished in 2010: · The usual press releases and advertisements; · The annual network mailing was sent out with all new promotional materials; · Three newsletters (digitally via a new software package); · A new ‘client-folder’ was developed with fact sheets for new entrepreneurs in our training-programme; · A beautifully printed annual report; · Participation on the emigration fair; · Several joint-promotional meetings were held in cooperation with our partners; · The first foundation for a new online strategy was designed, this plan will be further elaborated in 2011.
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Camilla Gerding-Tonen Communication Advisor
Things do not change, we change.
al r e n e G 2 s e i t i v Annex i t c a tion a c i n u m m co We share activities The MitS project (Migrants in the Spotlight) aims to raise migrant’s awareness for sustainable development in their countries of origin. The project that started in 2008 reached it’s peak in 2010. IntEnt worked hard to meet the last goals towards the project ending in March 2011. With dozens of activities and a multimedial campaign in 10 European countries we were able to have millions of young migrants confront the question: ‘what can I do to support my mother country of origin?’ Dutch campaign Under the flag of the We Share-campaign we joined in several large scale events to discuss the topic with young migrants with roots in Morocco, Suriname, Ethiopia, Ghana and Turkey. IntEnt also facilitated a lot of debates and other activities that were initiated by the target group. IntEnt supported them financially and presented them with role models that shared their experiences and results. The number of initiatives shows that we have been able to set the agenda on this matter. European out roll The project was rolled out in 9 other European countries like Spain, Rumania, the UK and Sweden. We found our partners through a strategic partnership with the European Microfinance Network in France and through IntEnt’s own network. Again we used an approach of strengthening and facilitating events initiated by 72
the migrant groups themselves. Different to the Dutch approach IntEnt focused on migrant organisations and key persons in the communities to stir up the debate. IntEnt supported for example a competition for migrant transnational entrepreneurs, several debates, a publication describing real life contributions by role models and a training of German migrants planning to start a business in Morocco. Transfer of methodology The cooperation with especially European partners functioned as a knowledge sharing platform through the distribution of the project-newsletter. Dozens of organisations have followed our progress, lessons learnt and methodologies used. In the close contact with the European partners our strategies, knowledge and thoughts were shared. Especially for this target group IntEnt’s founder Klaas Molenaar - delivered a handbook for (semi-)professionals sharing 15 years experience on entrepreneurship development. It is especially the knowledge sharing that will help organisations to take the debate to another level in their respective countries in future, even after the project ending.
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Jane Martie Chatlein Coordinator Curacao
Change involves risk, stepping from the known to the unknown.
Activities on financial products GeldnaarHuis The comparison website www.geldnaarhuis.nl (sendmoneyhome) was developed in 2006 and since then managed by Stichting IntEnt. After the re-launch in 2009, 2010 was a year of maintenance and evaluating. Maastricht Graduate School of Governance carried out an evaluation about user-friendliness, effectiveness and financial sustainability in order to process the decisions for the website’s future. The evaluations general conclusion was that the degree to which the ‘GeldnaarHuis’ website has been meeting its objectives. From discussions with migrants and financial service providers, it was clear that the ‘GeldnaarHuis’ website has great potential to bring transparency to the Dutch remittance market. The website’s business model should become financially sustainable and linkage with other financial initiatives and campaigns. Most suggestions were already part of IntEnts vision on the website’s future or were already in process. The plan IntEnt developed for GeldnaarHuis at the end of 2010 therefore includes all suggestions in concrete steps. The Ministry shall provide feedback in 2011. Friends and Family fund IntEnt has introduced the Friends and Family Fund (FFF) in 2009. In 2010 this fund proved to be a success: many potential entrepreneurs applied to partake in this financing scheme. The FFF is a fund that is being managed by IntEnt Netherlands. An investment of up to € 50.000 will be granted to starting entrepreneurs, provided that: 75
· Their friends and family will give a guarantee of half of the investment to the fund; · The entrepreneur will have an approval from the assessment comity in regard to his (financial) plan; · The entrepreneur will accept guidance during the first or second year of his business. The logistics of carrying out the FFF is done by local banks. So the investment will be in the form of an irrevocable bank guarantee given to the entrepreneur as a kind of voucher. Based on this and in negotiation with local banks, the loan will 100% certain been given out. The local bank handles the logistics. Originally the funding for the FFF is done by IntEnt. But IntEnt is looking for a local partner to share the risk taking in the friends and family fund. Benefits of the FFF fund in regards to ‘normal’ venturing: 1. Easy accessible venture fund for Start-ups, directed by the local society; 2. Conversion of remittances (the friends and families) from consumption to investment; 3. To trigger a savings attitude; 4. A high morale in handling the investment and payback by entrepreneurs because of the risk of friends and family; 5. Introduction in local societies of risk money and financial instruments; 6. Incorporation of local banks; 7. Investments will be transparent. In 2010, 7 new investments were accepted by IntEnt.
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Iwan Zunder Coordinator Ethiopia / Training BAS
Just because everything is different doesn’t mean anything has changed.
local f o w e i v r ve roc a M Annex 4 O s e i t i v n acti o i t a s i n a g or IntEnt Maroc In recent years, Morocco has made significant progress in terms of economic modernisation in order to create further wealth and reduce unemployment. GDP per capita has doubled in the last six years. Of the five countries in North Africa, Morocco has taken the lion’s share of foreign investment, underlining the fact that the reforms currently underway will enhance Morocco’s position even more. Given the international economic situation, it is possible that investor numbers arriving in the country will increase. The Moroccan financial system has remained protected against international downturns. In 2010, the IntEnt Maroc association elected a new board and in October 2010 IntEnt Maroc moved to its own office. Until May 2010, IntEnt Maroc only had two staff members (one full-time director and one part-time coordinator) due to a lack of finance. A consultant started working within IntEnt Maroc on a full-time basis in June 2010. In December 2010 the IntEnt director agreed on pre-financing IntEnt Maroc. In December 2010 a full-time secretary and a full-time consultant joined the IntEnt Maroc team.
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In 2010 the organisation implemented the second year of the FACE Maroc project together with its partners IntEnt, CIM (Germany) and AFD (France). Its European partners recruit, train and assist Moroccan migrants. These individuals are referred to IntEnt Maroc for assistance in Morocco for such things as market study, finalising the business plan, starting up the business and following up after starting up. IntEnt Maroc can offer Moroccan migrants across Europe assistance with founding their own SME in Morocco. These individuals contact IntEnt Maroc directly for support. The services offered to this group include providing assistance for such things as developing business plans, starting the business and after the business has been set up. IntEnt Maroc does not offer workshops. If a client has no experience with running a business, IntEnt Maroc staff provide an individual tailor-made training programme. Most clients are from France, Germany, Belgium, the Netherlands and the United Kingdom. In 2010 IntEnt Maroc organised two missions with its partners IntEnt and CIM. The first mission was held in March (7 participants from the Netherlands and 2 from Germany) and the second was held in November (0 participants from the Netherlands and 16 from Germany). Unlike the other IntEnt programme countries the start-up mission is not a valuable tool, as people prefer to follow the programme independently. 90
es: v i l g n i g n Cha Maroc In 2009 this entrepreneur started his own business in the Netherlands as an international open source distributor of enterprise class open source products. The business provides high-quality open source products, which are an alternative to the expensive proprietary products. After a very successful first year, the entrepreneur decided to expand his activities to North Africa using Casablanca, Morocco, as his regional head office. By the end of 2010 many Moroccan organisations had used the services of AmaziqSource.
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local f o w e i v r ve ana h G Annex 4 O s e i t i v n acti o i t a s i n a g or IntEnt Ghana Since the end of 2010, Ghana has been classified as a low-to-middle income country because of stable political environment and the significant progress in economic reform. The fact that Ghana started producing oil at the end of 2010 is another main economic factor. Together with Nigeria and Angola, this makes Ghana the third oil and gas producing country in the region. Foreign investment has increased as a result of further reforms to administrative procedures and the anticipated growth of the oil and gas sector. Together with our local partner Empretec we actually started the REMADE project when we acquired our new office and training facilities in East Legon, Accra. Together we gave several training sessions and around 40 candidates are working out their (draft) business plans. We had our first Independent Assessment Committee meetings in December 2010. Overall, the project is behind schedule, but we will catch up in 2011.
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The year 2010 was mainly a year for focusing on the sustainability of IntEnt Ghana and the execution of the REMADE project. We managed to develop an entrepreneurial programme for the Ghanaian government called ‘Ghana Enterprising Support Programme (GESP)’. It will focus on creating 20.000 sustainable jobs by setting up 1.500 (youth) enterprises in the next five years. This programme will be financed with funds from the World Bank. At this moment, we are waiting for these funds to be released.
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IntEnt Ghana results 2009
2010
Total
Female
Male
Total
Information requests
70
69
88
157
Intake interviews conducted
31
34
39
73
Assistance developing business plan
13
12
24
36
Businesses created
4
0
4
4
es: v i l g n i g n Cha Ghana “Akwaaba” welcome to Ghana! The natural and cultural characteristics of Ghana attracted one of the IntEnt entrepreneurs who started a business in the tourist industry. The activities on offer consist of Cultural & Heritage Tours, Nature and Wildlife Tours and Coast Trips. The entrepreneur states: “IntEnt’s support and resources, coupled with its understanding of the international business culture, has helped me tremendously in setting up my travel & tours business”. 97
local f o w e i v r ve me a n i r u S Annex 4 O s tivitie c a n o i t a s i organ IntEnt Suriname There is clearly an interest in the local population in Suriname to achieve their own economic goals, by starting up businesses of their own. IntEnt Suriname played a part in this in 2010 both in terms of market positioning and also the number of clients who used its services. In 2010, 183 people enrolled to take part in the IntEnt programme. Between January and December 2010 an intake discussion was held with 134 people, and they took a so-called entrepreneur’s test. Of these 134 people, 85 completed the training. 11 of these entrepreneurs submitted in 2010 their business plan to the ACE (Assessment Committee Entrepreneurs) for assessment, and of these 4 have now started their business. 7 participants started their business without completing their business plan. In addition, 29 entrepreneurs can be categorised as being re-starters to SME level. They were already micro-entrepreneurs. If these re-starters are included, that results in 40 businesses that have started, with the ambition of being/becoming a SME. Also, in 2010 7 entrepreneurs from the Netherlands established their business in Suriname.
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IntEnt Suriname has been able to make a direct contribution to the development of the local economy. Its programme, makes it possible that new businesses did indeed start up and micro-entrepreneurs took a step towards growing to SME level. However, if only the businesses that were actually new are taken into account, then the result remains far behind the targets that were initially set, namely 40 new businesses per year. In 2010 as well a great deal was invested in recruiting participants in the IntEnt Suriname programme.
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Annex 6 IntEnt staff
Laudra Archangel
Urwin Babb
GeldnaarHuis
Controller
Rianne Bijleveld Receptionist / Secretary
Caroline de Greeff
Farid Hadi
Camilla Monique Gajadhar
Gerding – Tonen
Coordinator Assistant
Communication Advisor
Projectmanager & Fundraiser
Coordinator Afghanistan
Ben Nienhuis
Noureddine Oulhani
Nico Rongen
Miranda Maassen Coordinator Eastern Europe / DT&V 112
Programme coordinator Cape Verde
Head of Financial Administration
Controller
Eugene Cecilia
Jane Martie Chatlein
Peter Coelewij
Web and Content Assistant
Coordinator Curacao
Coordinator Turkey & Manager Coordinators
Asmae Idrissy
Angela Craig Coordinator Maroc / FACE
Bianca Jamanika
Jan Jongbloed
Director IntEnt Maroc
Manager Communications / MitS
Managing Director
Helen Karg
Sharda Somer
Richard Yeboah
Mohamed Zarrou
Iwan Zunder
Coordinator Suriname
Coordinator Ghana / REMADE
Assistant Financial Administration
Coordinator Ethiopia / Training BAS
Office Manager
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Jan Jongbloed Managing director
Annual report 2010