• Getting finance from the traditional banks for social business is quite difficult especially if such business is composed of an innovation like food supplements from Moringa Oleifera which is not well known or generally accepted. Non-Governmental Organisations are well known for grants and do not get loans easily. We therefore resorted to a hybrid company to go through this barrier instead of relying completely on donations. Most of the time, the banks are ready to support initiatives which are widely accepted like vitamin supplements from inorganic sources. The popularity of moringa is without question especially in many developing countries and such is providing the grounds to get various initiatives around it to encourage proper dieting. To equip us well for that, we resorted to small production orders to give boost to our campaign. As interest is generated, we then increased output and the intensity of the campaign. Various venture capitalists, banks, export promotion agencies and social enterprise financiers are being talked to, to encourage them to support us to go large scale.
• Social business may at times involve radical approaches which may challenge existing business models. Perhaps, our biggest hurdle is getting the international bodies like WHO, UNICEF, UN and others to openly endorse the usage of moringa which is being hindered by some big giants in the pharmaceutical and food fortification industries worldwide. We are embarking on a strong advocacy to get research institutions to engage in clinical and research work on moringa to get enough acceptable data for the scientific community to openly endorse moringa. Our recent research activities have led to new moringa fortified food products coming on stream which is helping to gain acceptance of our products nationally and globally. The Mampong Centre for Scientific Research into Plant Medicine in Ghana is helping to test many herbal and plant products for toxicity and acceptance. Our moringa leaf powder has passed the test and is being registered by the Food and Drugs Board. We are therefore in a position to sell the product in governmental hospitals and institutions and to the general public. What we need now is a wide publicity in addition to good packaging and high quality products.
• Lack of sophisticated production machinery is a bane to many social businesses. We equally need modern sophisticated production machinery to ensure that our output match international standards. This makes our funding requirements to be high and automatically becomes more difficult to get assistance for. From indications on the ground now, we may be able to overcome this problem on account of the goodwill and international exposure we are now enjoying as regards the benefits derived from the usage of moringa products.
• Marketability and increased usage of our products, with tangible results following, are paramount to us. We will need to ensure that we have large economies of scale and modern production machinery backed by a strong media campaign to be able to offer cheap well accepted quality and well branded products to compete effectively with the imported chemical supplements. Incentives from the Government by way of tax reliefs for operating in disadvantaged areas, policy initiatives to support the program and other benefits will help to cushion us.
• A large number of insufficiently skilled partners and associates including farmers pose a serious managerial and organizational problem. We need to undertake more training sessions for this large group. By being part of the hybrid system and sharing in the benefits, the partners will be checked by a well defined monitoring system.
• Social businesses are mostly located in places where normally for profit businesses may not consider good enough for their activities. Lack of the requisite infrastructure like electricity, water, good roads, telecommunication and others may be a disincentive but we are able to overcome some of these difficulties by resorting to renewable electricity, treatment of water ourselves through the by-products of our production and other innovative means.
Comments
Dear JOSEPH BRENYAH,
According to your experience what are the main barriers or challenges so that social business model can thrive?
Cheers,
The Changemakers's Team
• Getting finance from the traditional banks for social business is quite difficult especially if such business is composed of an innovation like food supplements from Moringa Oleifera which is not well known or generally accepted. Non-Governmental Organisations are well known for grants and do not get loans easily. We therefore resorted to a hybrid company to go through this barrier instead of relying completely on donations. Most of the time, the banks are ready to support initiatives which are widely accepted like vitamin supplements from inorganic sources. The popularity of moringa is without question especially in many developing countries and such is providing the grounds to get various initiatives around it to encourage proper dieting. To equip us well for that, we resorted to small production orders to give boost to our campaign. As interest is generated, we then increased output and the intensity of the campaign. Various venture capitalists, banks, export promotion agencies and social enterprise financiers are being talked to, to encourage them to support us to go large scale.
• Social business may at times involve radical approaches which may challenge existing business models. Perhaps, our biggest hurdle is getting the international bodies like WHO, UNICEF, UN and others to openly endorse the usage of moringa which is being hindered by some big giants in the pharmaceutical and food fortification industries worldwide. We are embarking on a strong advocacy to get research institutions to engage in clinical and research work on moringa to get enough acceptable data for the scientific community to openly endorse moringa. Our recent research activities have led to new moringa fortified food products coming on stream which is helping to gain acceptance of our products nationally and globally. The Mampong Centre for Scientific Research into Plant Medicine in Ghana is helping to test many herbal and plant products for toxicity and acceptance. Our moringa leaf powder has passed the test and is being registered by the Food and Drugs Board. We are therefore in a position to sell the product in governmental hospitals and institutions and to the general public. What we need now is a wide publicity in addition to good packaging and high quality products.
• Lack of sophisticated production machinery is a bane to many social businesses. We equally need modern sophisticated production machinery to ensure that our output match international standards. This makes our funding requirements to be high and automatically becomes more difficult to get assistance for. From indications on the ground now, we may be able to overcome this problem on account of the goodwill and international exposure we are now enjoying as regards the benefits derived from the usage of moringa products.
• Marketability and increased usage of our products, with tangible results following, are paramount to us. We will need to ensure that we have large economies of scale and modern production machinery backed by a strong media campaign to be able to offer cheap well accepted quality and well branded products to compete effectively with the imported chemical supplements. Incentives from the Government by way of tax reliefs for operating in disadvantaged areas, policy initiatives to support the program and other benefits will help to cushion us.
• A large number of insufficiently skilled partners and associates including farmers pose a serious managerial and organizational problem. We need to undertake more training sessions for this large group. By being part of the hybrid system and sharing in the benefits, the partners will be checked by a well defined monitoring system.
• Social businesses are mostly located in places where normally for profit businesses may not consider good enough for their activities. Lack of the requisite infrastructure like electricity, water, good roads, telecommunication and others may be a disincentive but we are able to overcome some of these difficulties by resorting to renewable electricity, treatment of water ourselves through the by-products of our production and other innovative means.