5) Description of health product/service offering: The CE Solutions “Micro-Consignment Last Mile Solution” (“MCLMS”) is a proven, social entrepreneurship execution strategy which is being implemented in the most inaccessible communities of rural Guatemala. This solution does not only address the WHAT but as well the WHO, WHERE, WHEN, WHY and most importantly the HOW. This solution is currently addressing the following priority health care issues in underserved communities:

• Respiratory illnesses • Gastrointestinal illnesses • Malnutrition • Visual Health

Organizations are continually devising innovative products which primarily focus on the WHAT. This is only one part of the solution and thus is oftentimes not a solution at all. The development of a product more often than not never achieves success in the field because the SERVICE aspects are not being addressed and the following questions are never answered:

1. Do people really have a felt need for the product or service? 2. Can it be priced so as to be within reach of low income community members? 3. How will structural obstacles be overcome? 4. How will the product or service reach those who need it the most? 5. Who will promote/sell the product or service?

If any of these practical questions are left unanswered or the answer is “No” or “We don’t know” then the product innovation will remain simply a novelty item. The CE Solutions MCLMS is a proven innovation and implementation mechanism which answers these questions ever day. The MCLMS most importantly establishes access (in all aspects) to health care products and services previously unattainable in these communities by creating high-earning business ventures for motivated and hard working rural entrepreneurs.

CE Solutions solves long-standing rural health issues through the sale of the following products:

• Improved wood burning stoves • Near vision glasses • Health and hygiene posters • Hand soaps • Diversed seeds

6) Description of innovation: CE Solutions has developed the MCLMS model as a truly innovative strategy to both build and finance local social enterprises that solve rural healthcare problems in the most inaccessible rural communities. Following is a brief outline of some of the key aspects/advantages of the MCLMS model which can be replicated in any developing world environment:

• Local entrepreneurs solve local healthcare problems using the appropriate language/dialect • The MCLMS model is quickly and easily scalable using a hub and spoke system • The MCMLS model provides a distribution and logistical solution for “the last mile” of delivering needed products and services to remote communities • Community problems are addressed by local entrepreneurs in an effort to create sustainable enterprises • New businesses and income generating opportunities are created as “first movers” • Entrepreneurs profit within a month of start-up • Entrepreneurs are provided with capital, training and strategic and tactical support • Entrepreneurs are able to “test drive” a business and do not suffer financially if he/she decides the business is not suitable or if leadership sees that the entrepreneur is not providing sufficient initiative and effort to develop the enterprise • Entrepreneurs gain respect in their communities and are therefore looked at to provide further beneficial products and services thus allowing them to expand their offering • A high- quality product/service is assured as the beneficiaries are paying clients who expect their needs to be served • Entrepreneurs with very little education or with limited time can be very successful • A platform and network can be constructed to create national companies owned and run by local entrepreneurs • Low relative start-up and ongoing capital needs • A minimum amount of oversight is required • Micro-credit organizations can work with “micro- consignment” clients as a launching pad to begin providing appropriate credit

7) Operational model: The MCLMS is a holistic healthcare solution whereby low- income men and women with entrepreneurial qualities can start their own business through “sweat equity” and realize profits from inception.

This MCLMS solution always addresses the following questions: Product • Does a product exist or can one be developed to address a community need where there sufficient demand? • Can local entrepreneurs be trained to sell and/or construct the product? • Are there complementary product offerings that can be developed and cross-marketed? Price • Can the product be sold at a price that is accessible and attractive to local clients? o If not ….  Can a credit model be constructed taking into account that clients are most likely to pay when there is an income generation or cost saving component to the product? • Will the price provide a compelling profit margin to local entrepreneurs and create sustainability? Place • Can a logistical structure be built that gets the product to the appropriate point of sale? • Is there sufficient market in the region where the entrepreneur will be working? Promotion • Can local, low- cost promotional means be employed? • Can the entrepreneur create highly targeted village-based promotional campaigns? People • Can entrepreneurs be identified who are willing to dedicate the appropriate amount of effort to make the venture successful? • Can entrepreneurs assume leadership roles as the venture grows?

The next step is to recruit and train motivated rural entrepreneurs. This training and support includes market analysis, work plan development, marketing strategy support and development, and on-going strategic planning and logistical support. This suite of services enables these budding entrepreneurs to create stable enterprises with predictable cash flows while providing health products and services to their communities.

8) Human resources: CE Solutions currently supports over 50 rural entrepreneurs from 10 indigenous groups working in eight departments of Guatemala. Several of these have now risen to become administrators and trainers. The CE Solutions foreign staff includes the following members:

Greg Van Kirk, Co-Founder & President Greg Van Kirk is the co-founder and executive director of Community Enterprise Solutions (“CE Solutions"). Greg began working in rural small business development as a Peace Corps volunteer in 2001 where he he created locally owned and managed tourism businesses in Nebaj, Guatemala that have grossed over $350,000 to date. Greg has served as a consultant for USAID, Chemonics, Scojo Foundation, Soros Foundation, Church World Service and Water4People.

George B. Glickley, Co-Founder & Vice-President George ("Bucky") began his work in rural economic development as a Small Business Development Peace Corps Volunteer in Peten, Guatemala before co founding Community Enterprise Solutions in 2004.

Richard Sawyer, Regional Coordinator

Ruairi Nolan, Regional Coordinator

Conor Powell, Regional Coordinator

Carrie Magnuson, Regional Coordinator

9) Key operational partnerships: CE Solutions (www.cesolutions.org) primarily partners with the following US based organizations and acts as a strategic partner and/or social entreprenuership trainer and execution leader so that they may achieve their goals and objectives.

• Scojo Foundation (www.scojofoundation.org) • Water for People (www.waterforpeople.org) • The US Peace Corps (www.peacecorps.gov) • Partners for Surgery (www.partnersforsurgery.org) • StartingBloc (www.startingbloc.org)

CE Solutions partners with the following Guatemalan orgaizations to help them create outreach and/or entrepreneurial opportunitites whereby their constituents eran Money solving local healthcare problems

• Fundación Solar • Kiej del Bosques • Comenza • Visualiza Eye Clinic • COMANEL Midwives Association • Asociación Maya Weavers Association • Guatemaltecas de Corazón Weavers Association • Momostenango Healthcare Promoters

Finally the entrepreneurs form alliances with the following rural leaders/stakeholders during their village promotional campaigns. • Mayors • Pastors • Priests • Small businesses owners • Radio owners • Healthcare clinics • Associaations

10) Financial Sustainability

          • Fees charged to clients?: Yes

          • How do you assure affordability?: To assure appropriate pricing, CE Solutions works with local entrepreneurs and their constituents to design healthcare products and solutions. In short, the only way that the product will ensure an equitable return for the national company being created and the entrepreneur is if it “works”, in all aspects, for low-income community members. CE Solutions has proven to be successful at creating pricing solutions which address all limitations. For example, CE Solutions has created THE ONLY wood burning stove and rural reading glasses sales businesses within the country of Guatemala. CE Solutions continues to work with local stakeholders to create more and more solutions through the MCLMS model. The model is proven and now it is simply a question of scaling up.

          • Earned incomes as a percentage of operating costs: 50

          • Other funding sources: On an entrepreneurial level the model is currently profitable and 50% of the time is profitable on a regional level. As more entrepreneurs are trained, revenues are increased and profitability should be achieved for the national company that CE Solutions is forming within the next six months. As well, step by step, as local competencies in administration, training and logistics are increased, foreign staff will begin to step back. This has already been achieved in two regions out of five. With regards to funding, CE Solutions currently supports the ventures through donations as well as funding from the likes of Scojo Foundation and Water for People.

          • Strategy for long-term sustainability: Long term profitability is achieved through scale. The model is proven and works. The MCLMS integrates an innovative financing mechanism which ensures cash flow to the local company being formed and the entrepreneur. The MCLMS creates a stream of “rotating capital” thus reducing the up-front and ongoing needs. Start-up costs are initially born by CE Solutions and the entrepreneur pays these costs as products and services are sold. The income from these sales then covers these on going product and training costs. One such enterprise is a rural wood burning stove business where entrepreneurs have sold over 500 stoves three years. As well, to date, CE Solutions has trained over 100 rural entrepreneurs who have sold over 4000 pairs of glasses in over 200 rural communities.

11) Current and Future Impact

          • Total number of clients: Over 7500

          • Clients in the past year: 5000

          • Percentage of low-income clients: 100

          • Impact: The greatest impact apart from healthcare is an economic no doubt an economic one. For example, a family saves roughly $13 a month when the purchase a wood burning stove. This is equal to the monthly payments for the stoves. Thus, during the payback period the stove pays for itself. Upon completion of payment the family saves over $150 a year (more than one months’ earnings). Women weavers suffering from presbyopia (90% of people over 40) can weave again. Assuming only two additional days of productivity monthly, February clients' aggregate earnings should increase by $1,300 a month.

These area all economic benefits of the clients of healthcare services. This analysis includes neither the community nor the entrepreneurial impact.

          • Overall "market": The demand is unfortunately seemingly endless. Under the MCLMS model we have been addressing to date the needs in only certain regions of Guatemala. The important aspect here is that the model/products are being profitably sold to low income villagers. This can be replicated not only in any region of Guatemala but we believe any developing country environment. We have created a very low cost, efficient, profitable and client driven mechanism that can be implemented throughout the world to help millions of people and create thousands upon thousands of well paying part and full time employment opportunities. How many families still cook campfire style? The stove product may be different from region to region but the mechanism works. How many people over 40 do not have access to near vision glasses in the world? How many people do not have access to clean water, soap, low cost seeds etc etc? The MCLMS model is a platform to achieve real progress and change and create sustainability rapidly. Local people can solve local problems over the long term using this model.

12) Scaling up strategy

          • Stage of the initiative: Scaling Up stage.

          • Expansion plan: We will continue to scale up and propose to have triple the number of entrepreneurs serving triple the number of communities offering myrirad more products and services.

Although current products include:

• Improved wood burning stoves • Reading glasses and related visual health products • Health and hygiene posters and games • Hand soaps • Diversed vegetable seeds

New products that are currently being researched and that will soon be added to this “pipeline” include:

• Water purification systems • Eye droppers to facilitate appropriate chlorination • Dry latrines

All of these ventures working with the MCLMS have been highly successful and have required a relatively small amount of start-up capital to reach thousands of beneficiaries through creating profitable, local entrepreneurial ventures. Presently a national company is being formed which will be owned by local constituents and manage the operations of these ventures. It is projected that this company will be profitable within six months

13) Policy change: The most difficult aspect of creating entrepreneurial opportunities in Guatemala is the high cost of starting and running a fully legalized business. The government could ease the burden on entrepreneurs through refining the application, taxation and accounting systems within the country so that people can move out of the informal economy and begin paying taxes. This will increase entrepreneurship as well as the tax base which will enable more and better healthcare services to be provided in rural areas.

14) Origin of the initiative: This initiative was first started by Greg Van Kirk in search of a way to transform development and relief projects into local businesses. Greg Van Kirk is the co-founder and executive director of Community Enterprise Solutions (“CE Solutions"). Greg began working in rural small business development as a Peace Corps volunteer in 2001. As a volunteer he created locally owned and managed tourism businesses in Nebaj, Guatemala that have grossed over $350,000 to date. Greg has served as a consultant for USAID, Chemonics, Scojo Foundation, Soros Foundation, Church World Service and Water4People. Previous to beginning a career in economic development Greg worked in investment banking where he closed structured finance deals for clients totaling over $3.5 billion and led two transactions that were awarded "Deal of the Year" by "International Structured Finance" magazine.

Contact Information:
Gregory  Van Kirk
Chairman and Executive Director
Community Enterprise Solutions
(NGO)
38 Lake Trail West
Guatemala
Tel: 9734250114
Email: gregvankirk@cesolutions.org
Website: www.cesolutions.org