The ‘Business in Development (BiD) Challenge’ is an international business plan competition which calls for entrepreneurs world wide to create a business plan that generates profit and reduces poverty in developing countries. The BiD Challenge is an initiative of the BiD Network, an international online platform of thousands of entrepreneurs, experts and investors from all over the world, who have one communal goal: to stimulate entrepreneurship and to improve the live standard in developing countries. The initiative of the international contest originates in The Netherlands and is supported by the Dutch Department of Foreign Affairs, the NCDO and the top of Dutch business life.
WHAT DOES THE BID CHALLENGE HAVE TO OFFER?
Entrepreneurs: the BiD Challenge offers entrepreneurs world wide a platform to develop business plans for a profitable enterprise and the reduction of poverty. They receive professional feedback and support by coaches from the top of Dutch business life. Entrepreneurs will apply for the price money that serves as a starting capital and all have access to an extensive network of enterprises, investors, NGO’s and other organisations.
Enterprises / NGO’s: the BiD Challenge offers enterprises, foundations and NGO’s a tangible tool to contribute to poverty reduction in developing countries by allowing access to their expertise, knowledge and network. 27 Dutch top enterprises cooperate with the BiD Challenge, such as NCDO, ICCO, Department of Foreign Affairs, KMPG, ING, Rabobank and Nuon. Proposals from preceding years can be consulted at:
www.bidnetwork.org. .
Professionals: the Bid Challenge offers professionals the opportunity to directly contribute to entrepreneurship and poverty reduction in developing countries. Professionals act as coaches to support the entrepreneurs and to review business plan content or they act as jury member to select the eventual winners.
BACKGROUND AND RESULTS
In the past two years an online community has been created, nowadays with over 6.000 members. In 2006 more than 1.600 business plans have entered and the BiD Challenge was supported by 350 BiD Challenge professionals from enterprises and NGO’s. Furthermore 40 new enterprises were erected in developing countries, which contributed to poverty reduction and created employment opportunities for the local people. In 2006 price money totalled at 150.000 euro and an amount of 750.000 euro has been raised through external funds. In 2007 a total of 240.000 euro in price money is available. Over 2.5 million people are reached every year with the message poverty reduction and entrepreneurship can march together.
BID CHALLENGE 2007:
· will attract more established enterprises;
· provides the unrolling of the Bid Challenge to seven developing countries to enable local screening, judging, follow-ups and (co)financing;
· will research the possibility to unroll to other European countries;
· will not only distribute price money, but also intermediate loans and funding;
· will facilitate business development services in addition to financing;
· will create an online facility to enable direct investment in local small and medium enterprises;
· will act as an intermediary to directly match the best business plans to investors.
Further the competition will gain in international character and new partners will be approached who share the vision of the BiD Challenge and are willing to co-invest in this cost effective and innovative way of stimulating entrepreneurship.
FIRST PRICE WINNERS BID CHALLENGE 2006
AFRICAN SKIN by René Malcorps
‘Afrikan Skin’ is a unique concept to develop products like clothing and bags from Ugandan tree bark and therewith supporting local community as well as the environment. The tradition to bury their deceased has kept alive the technique of peeling tries throughout the centuries. Seven years ago René Malcorps decided to produce products from the bark in Uganda, based upon a project at in the Design Academy in Eindhoven. It stimulates Ugandans not only to plant trees and take good care of them, but also the women who harvest and process the product are being paid fair and receive training.
The jury of the BiD Challenge rewarded this business plan with a price of 15.000 euro.
SHOKAY by Marie So and Carol Wong Sung Chyau
‘Style with a touch of humanity’ is the slogan with which Marie So and Carol Wong Sung Chyau attracted the attention of fashion houses and furniture factories. The idea to spin wool from the hairs of a yak and investing half the profit in projects on behalf of the shepherds enrolled at Harvard, where both winners studied. In Tibet over thirteen million yaks are living and almost each family owns at least one. Goal of this project is to offer families a fair price for the wool of the yak and process these among others in clothing and textile for furniture.
The jury of the BiD Challenge rewarded this business plan with a price of 15.000 euro.
FAIRMAIL by Janneke Smeulders
‘Made in Peru’: beautiful, warm and colourful postcards have been made by underprivileged youth who photograph each other and their surroundings. Thanks to the project Fair Mail from Janneke Smeulders these teenagers can build a future by means of education and a paid job. As a result they are able to escape the tough life on the streets and junkyard of Trujullo. Special about Fair Mail is that the postcards are not made by professionals, but by youngsters who show the world as looked upon by a Peru teenager. This way they are stimulated to develop their talents and creativity. They are also trained in photography and half the profit is deposited in an education fund so the teenagers can enter continuation schooling.
The jury of the BiD Challenge rewarded this business plan with a price of 12.000 euro.
BAREFOOT POWER by Stewart Craine and Harry Andrews
Over one and a half billion people in the world are not connected to an electricity circuit. For lights they are designated to highly inflammable kerosene lamps. Through a save and micro credit system, these people will get access to cheap, sustainable and clean energy. In stead of starting with building electricity plants and finishing by hanging lamps in houses, with Barefoot Power it is the other way around. People are given the opportunity to save for a cheap and ecological lamp which they can charge at a central point in their village. Taking it from there they can buy more lamps and batteries and by saving jointly they save enough to build a small energy plant working on sun energy or another sustainable source within two years.
The jury of the BiD Challenge rewarded this business plan with a price of 12.000 euro.
KENZA WORLD CLOTHING by Mariel Beemster
Goal of this project is to enable Gambian tailors to produce children’s clothing for the Dutch market. With the price money won during the BiD Challenge Mariel Beemster initiated a workshop in Gambia where tailors can make colourful children’s clothing in exchange for fair wages and schooling.
The jury of the BiD Challenge rewarded this business plan with a price of 7.500 euro.
Sheep CHEESE IN NORTH-EAST BRAZIL by Ana Ferreira
On the dry ground in the north east of Brazil one cannot grow a lot, but one can shepherd sheep. A lot of small farmers do this, mostly to sell the meat. The milk was not used for anything. With the aid of the Dutch foundation Strohalm and the price money Ana Ferreira won during the BiD Challenge, Ferreira processes farmer sheep cheese with the poverty enduring Brazil farmers. The cheese is meant for the upper class of the Brazilian market.
The jury of the BiD Challenge rewarded this business plan with a price of 6.000 euro.
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