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Perspectives on Poverty Reduction Through Social Entrepreneurship and the PRESENT Bill

Presentation by Jude Esguerra, National Anti-Poverty Commission

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NAPC Commitment

Provide support for a geographic and sub-sector mapping of the Social Enterprise eco-system in the Philippines.

Develop pilot areas where there can be a multi-stakeholder prototyping of some elements of the PRESENT Bill;

Advocate for an updating of the role and mandate of the Philippine Credit Finance Corporations tasks e.g., new products that can be tapped by Social Enterprises.

Consultations with the PRESENT Coalition about the short- to medium-term objectives and activities of the PDTF.

A Davao Gulf Puzzle

Fourteen of the eighteen towns around Davao gulf that were given significant funds for poverty reduction – 2013 Bottom-up Planning and Budgeting.

While all of the mayors and the grassroots groups there have a deep knowledge that overfishing in the gulf is a major reason for the persistent poverty in the municipalities the funds made available under bottom-up budgeting were not devoted to addressing this central problem.

Report on a visioning exercise at NAPC: poverty reduction for Davao Gulf fisherfolk/coconut farmers

Entrepreneurs as necessary players in local economic development and as possible allies of the state and of the poor

Look for a long-term buyer and validate if there are mature and risk-free production technologies that can be disseminated to communities of smallholders

Validate that farmers can make good money by being long-term contract producers (and possibly majority owners of the firm) , establish a binding contractual arrangement between the buyer, the farmers, the corporative processor (Dasuraicor) and the Bank (One Network Bank)

Organize farmers and create a venture capital firm they will subsequently own (Dasuraicor) that will provide the production technology, set up the long-term contract with the buyer and supply financing for operations and required capital investments;

Bring in equity finance from Government Financial institutions to share the risk of the social venture;

Mapping market-opportunities
Developing business models templates to be customized by stakeholders
Identifying common facilities to be co-financed by BUB and convergent natioal agencies and LGUs
Building grassroots capacities for enterprise set-up and equitable insertion into the value-chains;
??? As GFI agents in corporate and vale-chain governance

Multi-stakeholder territorial alliance

“It is a coordinating organization at regional scale, which articulate local requirements and potentials with the opportunities (actual or possible) given by both the different agencies (governmental, international, cooperation) and the market, in a long run sustainable and integrated vision.
The alliance is responsible, independently of who executes, about implemented projects quality and strategic coherence. In order to fulfill its mission, it must have: a dynamic and integral strategy, an effective coordination system (with documented responsibilities), a process and product monitoring system and, finally, an effective commitment for continuous improvement of the system.
The alliance is a meeting point for different positions. Conflict should be managed in order to equilibrate visions and regulate timing and sequencing. All the above purposes boil down to attaining within the legal framework, sustainable improvements of regional welfare.”

PCFC working with PDTF and DTI?

Participatory value-chain analysis leads to plans for resource mob from various sources for a grassroots social enterprise: i) BUB ii) grassroots capital build-up iii) private sector iv) PDTF and EF for capacity building v) DTI with GFIs for recoverable grants/”mezanine finance”