Micro Supply Chains: Using Mobile Technology to Empower Small Entrepreneurs in Developing Countries
Entrepreneurs and artisans in developing countries face barriers due to lack of infrastructure, systematic burdens, corruption, inefficient government and limited markets. We will change the future for entrepreneurs, especially marginalized people in developing countries, by providing system-changing tools that will improve small entrepreneurs ability to succeed in the global marketplace.
Through innovative use of mobile technology and The Micro Supply Chain business models, we help entrepreneurs in under-served populations create sustainable jobs, expand production, collaborate with partners, and replicate their businesses. Empowering these entrepreneurs will invigorate local economies, inspire competition and innovation, and become a bottom-up catalyst to accelerated development.
About You
About You
First Name
John
Last Name
Berger
Facebook Profile
About Your Organization
Organization Name
Made By Survivors
Organization Website
Organization Phone
800-831-6089
Organization Address
PO Box 3403, St Augustine, FL 32085
Organization Country
United States, FL
Country where this project is creating social impact
India, XX
Is your organization a
Non‐profit/NGO/citizen sector organization
How long has your organization been operating?
More than 5 years
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Innovation
Entry Form title
Micro Supply Chains: Using Mobile Technology to Empower Small Entrepreneurs in Developing Countries
What change do you want to bring to the world?
Entrepreneurs and artisans in developing countries face barriers due to lack of infrastructure, systematic burdens, corruption, inefficient government and limited markets. We will change the future for entrepreneurs, especially marginalized people in developing countries, by providing system-changing tools that will improve small entrepreneurs ability to succeed in the global marketplace.
Through innovative use of mobile technology and The Micro Supply Chain business models, we help entrepreneurs in under-served populations create sustainable jobs, expand production, collaborate with partners, and replicate their businesses. Empowering these entrepreneurs will invigorate local economies, inspire competition and innovation, and become a bottom-up catalyst to accelerated development.
What are the primary activities of your project?
The Micro Supply Chain (MSC) model began as a solution to Made By Survivors’ need to manage dispersed small production units for survivors of slavery and human trafficking. We saw the opportunity to replicate MSCs so we entered into a partnership with MIT’s Center for Transportation and Logistics and Babson College’s Social Innovation Lab to create the Micro Supply Chain Lab.
The Micro Supply Chain Lab is creating a set of technologies and business practices which will enable small businesses, manufacturers, craft collectives, artisans, and NGOs from developing economies to break the barriers which prevent expansion of businesses beyond local markets.
The MSC model uses cellphones linked to a central Enterprise Resource Planning (ERP) system and a network of warehouse, logistics, and distribution and packaging centers, to enable emerging entrepreneurs to operate together. This enables the small entrepreneur to gain the financial benefits of a large scale factory, while also allowing large customers (like Western retailers) to diversify their supply chains. Customers will be able to order from a MSC networked set of customers just like they order from large factories. Our ERP system will manage raw materials, financing, work in progress tracking, inspection, quality control, packaging, and fulfilment.
Made By Survivors is expanding its network of production centers to be a test center for MSC Lab innovations. Each center has the same training and capacity so that orders can easily and efficiently be coordinated with each other for smooth, consistent distribution.
What is innovative about your initiative? How is it a new contribution to the field?
Economic growth and employment in developing countries is impeded by barriers that make it difficult or impossible for small entrepreneurs to grow beyond their local markets. This particularly disadvantages artisans that are already marginalized and impoverished. There are many initiatives that seek to improve the prospects of these entrepreneurs, but no other program takes our system-changing approach.
The MSC is unique in its vision of linking mobile technology to networks of small producers to allow them to operate the same way a large factory does, and thus compete in larger and beyond-local markets while retaining integrity of production and treatment of employees. Nextlab, a leader in using mobile technology, is contributing its software to the MSC Lab. The advantage of MSC is that the MIT/Babson/MBS partnership brings together dozens of leading experts with the resources of their institutions and their personal and corporate relationships to design and implement this path-breaking model.
The MSC Lab includes the development of innovate business models, including many investable models that build wealth in the producers’ communities. It also tackles other social/financial issues like business insurance, as the MSC program can adjust production when disasters hit, and can include premiums as part of the per item production costs.
MSCs are a natural extension to microfinance (MFI) and will expand the work of MFI by leveraging the capital and eliminating barriers that reduced the ability of MFI clients to expand their businesses.
What stage is your project in?
Operating for 1‐5 years
Tell us about the community that you engage? eg. economic conditions, political structures, norms and values, demographic trends, history, and experience with engagement efforts.
Our program addresses two populations. The larger population includes all small entrepreneurs, artisans and craft collectives in developing countries. The population served by Made By Survivors will be the initial group to benefit. MBS serves survivors of slavery and human trafficking, and prevents trafficking by providing employment and education to individuals at a high risk of being trafficked.
According to the UN, there are 27 million slaves in the world today. The members of Made By Survivors programs are survivors of slavery for sexual exploitation, forced labor, or bonded labor in India, Nepal, Thailand, Cambodia, and Uganda.
Lack of jobs and the inability to have a sustainable income is the single largest risk factor and cause of slavery. Slavery and poverty are most commonplace in areas with weak, corrupt or volatile governments. Caste systems and other social barriers limit economic independence leaving people vulnerable to slavery.
One of the most prevalent current engagement efforts to fight against slavery and poverty is microfinance. MFIs provide capital but do not provide the resources necessary to expand past local markets. A long-term sustainable solution like MSCs that generates income to affect a community, rather than just an individual family, is needed. Economic community transformation will protect families and individuals from human trafficking, and the mental and health disadvantages of poverty.
Share the story of the founder and what inspired the founder to start this project
This project was first developed by John Berger, co-founder and CEO of Made By Survivors, to solve internal production needs of the Made By Survivors social enterprise. Prior to Made By Survivors, John worked for 17 years as an investment banker. Through his work on Wall Street and in social enterprise, John is trained to look for innovative solutions to business problems. John also has experience in technology and in economics as a Chartered Financial Analyst.
At Made By Survivors, John worked to develop a system to manage production at the geographically diverse survivor centers in India, Nepal, Thailand, Cambodia, and Uganda with the goal of expanding production capacity and cost structure so that the survivors could sell to larger and more sophisticated customers. As John expanded the survivor-based production centers, he needed to develop all the components of the MSC to open new survivor production centers and to manage manufacture and export of products. John was aware of the work of MIT and others in using mobile technology to improve other aspects of developing markets so while developing the MSC for Made By Survivors, John realized that the models and tools being created could easily be replicated into the work of other NGOs and businesses. John had worked with students and professors at Babson College and knew of their skills in entrepreneurship, and was able to present the idea to MIT, who were working on similar problems. Thus the MSC Labs were created and collaboration between several partners continues to expand and grow the idea of Micro Supply Chains.
Social Impact
This Entry is about (Issues)
Please describe how your project has been successful and how that success is measured
For six years, Made By Survivors (MBS) has been helping survivors of slavery gain economic independence and complete their journey to freedom. MBS has grown to serve over 1,000 survivors and children of survivors in twelve programs in India, Cambodia, Thailand, Nepal and Uganda. We have grown from a small program, bootstrapped by the founders’ savings, to a growing international program funded by leading foundations and a community of thousands of donors, and tens of thousands of customers.
Participants in MBS program show dramatic improvements in self-esteem, life skills, social status, mental and physical health, and awareness of human and women’s rights - all of which help to ‘slavery-proof’ survivors - making them less vulnerable to being trafficked again, or otherwise exploited. Recently, survivors in the MBS production centers have began advancing from artisans to supervisors and trainers. It is expected that many survivors will take on a larger role in management as they, and our programs, mature.
Success for the Micro Supply Chain program will be measured using these indicators:
Number of MSC centers launched
Sustainability and Profit of MSC centers
Number of persons trained and employed
Adoption of the technology/model by other companies/NGOs/groups/entrepreneurs
Flexibility of model to adapt to diverse products/contexts
We will be closely monitoring and measuring the results on all these indices through twice-yearly surveys and research updates.
How many people have been impacted by your project?
1,001- 10,000
How many people could be impacted by your project in the next three years?
More than 10,000
How will your project evolve over the next three years?
At the MSC Lab, students and professors from Babson College and MIT will develop the technology and business models. All technology will be added to the open source mircofinance code library. Made By Survivors, has a network of productions centers produce fine silver jewelry and utilize the same training and equipment that will be the test and development platform for the MSC Lab.
India’s Government is working with our partner Women’s Interlink Foundation (WIF) to design model rural production centers to include the use of MFI tools. This will expand the MSC model to unlimited of products, co-ops and new businesses throughout India. All the work is open source, so the future of MSC programs will likely include multiple other paths of development built on this common platform.
Sustainability
What barriers might hinder the success of your project and how do you plan to overcome them?
A significant barrier to any new project is funding. Funding is needed to support the participation of MIT and Babson College, to create and test the technology, to set up the regional distribution centers, and to develop the business and legal models for the MSC Lab. MBS is aggressively pursuing foundations and corporate giving arms to provide the necessary financial resources to continue to develop and expand the MSC Labs and production centers. Monies will also be obtained through sales of product currently manufactured by MBS production centers. MBS generates sales through its website, events, and as a wholesaler to retail stores. A marketing strategy is in place to increase the sales of goods.
Creation of distribution centers is necessary to manage raw materials, as well as the inspection, packaging, and fulfilment of finished product orders. Problems in these centers could impact the entire network, so the centers will be designed with redundancy. There will be periods of experimentation and testing of the technology, the distribution centers, and the business process as the MSC model is developed. Continuous testing and revamping will be necessary in the early stages. Communication between partners will be paramount. By using the MBS production centers as a pilot model for the MSC Labs, problems and the intricacies of distribution, legalities, and logistics can be ironed out before replication with other NGOs, co-ops, and small-scale producers.
Tell us about your partnerships
The Micro Supply Chain Lab is a program of Made By Survivors, MIT’s Center for Transportation and Logistics, and Babson College’s Social Innovation Lab.
The MIT Center for Transportation & Logistics (CTL) is a dynamic solutions-oriented environment where students, faculty, and industry leaders pool their knowledge and experience to advance supply chain education and research. CTL: Coordinates more than 100 supply chain research efforts across the MIT campus and around the world, Generates innovative research in the areas of transportation, logistics and supply chain operations, Helps organizations increase productivity and economic value while decreasing their environmental impact
Babson College has been ranked the #1 program in entrepreneurship by US News and World Report for 15 consecutive years, making it an obvious site for innovation in enterprise. The Babson Social Innovation Lab is designed to seed an incubator for social and entrepreneurial activity and to bring students, faculty, and social sector partners together to create better solutions to existing social or environmental challenges.
Through Women’s Interlink Foundation, MBS is working with the Government of India’s National Skill Development Corporation on their program to expand training and employment to the poor. WIF is setting up a network of rural production shops where the trainees can set up business, and MBS is working with WIF to design these centers so that they can have access to the MFI programs.
Current annual budget of project, in US dollars
$500,001‐1 million
Explain your selections
Made By Survivors is currently funded by a network of foundations and individuals. Humanity United is our largest funder. Depending on the number of students and projects the MSC Lab is working on,the total Lab budget will be from $500,000 - $1.5mm a year. MBS, and our university partners, are seeking funding from foundations and corporate partners. The target foundations have a history of supporting international development programs or microfinance. Over 100 foundations are targeted for the initial round of funding for the MSC model.
MBS and the university partners are also seeking corporate partners. The ideal corporate partner will have the same social goals as the MSC program, and a financial interest in expanding their ability to supply to or source from developing markets. For example, corporate partners being targeted for funding include international logistics and shipping companies because expansion of the MSC plan will result in significant growth in logistics and carrier business in developing countries.
How do you plan to strengthen your project in the next three years?
ll the technology from the MSC model will be released as open source. It is expected and encouraged that others will partner with or compete against MSC Labs to develop the program. As it grows, the MSC backbone will need to expand to accommodate a wide variety of product and customer types. Expansion and the increasing needs of the customers will provide a market-based feedback system that will continuously strengthen the MSC tools and business models.
Corporate, government, community and academic partners will continuously be added to strengthen the project. The business models that are part of the project will likely face competition and the market- based innovation driven by competition will strengthen the project. Most importantly, the entrepreneurs and businesses that become MSC producers, and the customers that purchase from MSC networks, will innovate and experiment, strengthening the project through the power of competitive markets.
Challenges
Which barriers to employment does your innovation address?
Please select up to three in order of relevancy to your project.
PRIMARY
Restricted access to new markets
SECONDARY
Lack of efficiency
TERTIARY
Lack of access to information and networks
Please describe how your innovation specifically tackles the barriers listed above.
The MSC model is specifically designed to increase previously restricted access to new markets by using readily available mobile technology and new business models. Skills training is core to the program, but more than just skill training, it is training that is customized and standardized to make the geographically dispersed programs replicable and expandable. In order to combine production across multiple centers the members must be trained to use the same techniques, materials, and tools.
The MSC model addresses lack of information and access to networks by using readily available mobile technology. Cell phones are becoming ubiquitous in emerging markets, and smart phones used as part of the MSC model will create new information and business networks.
Are you trying to scale your organization or initiative?
If yes, please check up to three potential pathways in order of relevancy to you.
PRIMARY
Leveraged technology
SECONDARY
Influenced other organizations and institutions through the spread of best practices
TERTIARY
Grown geographic reach: Global
Please describe which of your growth activities are current or planned for the immediate future.
All of the aspects of the Micro Supply Chain program as developed for use in Made By Survivors’ production programs are for current and near-term use. The software developed by the MSC Lab and the MIT/Babson partnership is open source and available for anyone to use. This software will open a new field for development and experimentation and will result in more longer-term benefits and activities that can be predicted.
As this program evolves over the coming two years, Made By Survivors will be setting up additional jewelry production centers in diverse locations in India and Nepal, in order to be able to test the MSC technology and model, and also to help more survivors find sustainable freedom and independence while the MSC model is being developed.
Do you collaborate with any of the following: (Check all that apply)
Government, Technology providers, NGOs/Nonprofits, For profit companies, Academia/universities.
If yes, how have these collaborations helped your innovation to succeed?
Made By Survivors is collaborating with MIT and Babson College in the creation of the Micro Supply Chain program. MBS also partners with nonprofits that run shelter programs for survivors. Rescue Foundation and Women Interlink Foundation are the first partners to host the jewelry programs that are the foundation for Micro Supply Chain model. We are seeking corporate partners, and would especially like to partner with technology and international shipping/logistics companies.
Through Women’s Interlink Foundation, Made By Survivors is working on a program sponsored by the Government of India that has the goal of training 500 million Indians in higher skill jobs. The Micro Supply Chain model and other existing survivor training programs will become part of this government plan.
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 | 46 weeks agoLisa Heydlauff said: Very much hope your enterprise is going well – you have identified a very worthy target group, and a clear gap in the market. I ... about this Competition Entry. - read more > |
| 48 weeks agoCynthia Kastner-Fioretti said: Technology and the use of this business model will continue to empower the women survivors and will give Made by Survivors great reach ... about this Competition Entry. - read more > |
| 49 weeks agoJohn McDonagh said: The MSC initiative constitutes an incredibly well thought out concept for expanding otherwise limited and localized free market ... about this Competition Entry. - read more > |
| 49 weeks agoGina Morro said: Made by Survivors is a great program and the use of mobile technology and this business model will certainly help these women and the ... about this Competition Entry. - read more > |
| 49 weeks agoPaul Suit said: I've been very impressed with the impact of Made By Survivor's projects and programs. I've seen first hand how the work they do makes a ... about this Competition Entry. - read more > |
| 49 weeks agoJeff Restel said: The work Made by Survivors does and the amazing girls that flourish within their programs are truly inspirational! about this Competition Entry. - read more > |
| 49 weeks agoHannelore Bernecker Goldberg said: Wow, love the idea. I've been so happy with all the programs Made by Survivors and the Emancipation Network have started. Can't wait ... about this Competition Entry. - read more > |
| 49 weeks agoJohn Berger updated this Competition Entry. |
| 49 weeks agoJohn Berger updated this Competition Entry. |
| 50 weeks agoJohn Berger updated this Competition Entry. |
