Transcript Self-Sufficient Agricultural School Business Plan May2013

Business Plan
Self-Sufficient Agricultural School
Mission
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To establish a SelfSufficient Agricultural
High School for the
rural poor in Paraguay
that provides practical
and
entrepreneurial
education that enables
graduates to achieve
financial success.
To serve as a Model &
Prototype for potential
replication elsewhere
in Paraguay and other
developing countries
3 Desired Outcomes
(A) Skilled graduates that
(1)
return
to
their
communities to work on the
farm, or
(2) go on to colleges, or
(3) are employed within six
months of graduation.
(B) Phase 1:School is sustainable
by 2007, and covers 60% of
operating costs in 2005.
(C) Phase 2:Prototype-Model is
Disseminated
to
other
countries through:
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•
•
Increased Awareness
Replication of certain aspects
of model
Action:
other
schools
embarking
in
the
selfsufficiency road
Generate
revenues
from
Service Fees
A new way to address
Rural Poverty
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Rural Poverty is a consequence of
lack of agricultural know-how,
entrepreneurial skills and access
to financing.
Land Reform, traditional charity &
aid, equipment and subsidies have
not worked
Existing strategies have not been
able to address the problem of
farmer inefficiency.
Rural
schools
teach
general
education courses disconnected
with students’ realities
Teaching
agricultural
and
entrepreneurial skills to young
farmers in an revenue-generating
farm
school
and
providing
microfinance to graduates is a
viable alternative.
Our Value Proposition
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For underprivileged Paraguayan rural youth
Who are structurally unemployed
Fundacion Paraguaya ’ s Agricultural High School is an innovative
educational institution
Which offers a high quality technical-entrepreneurial training and
post-graduation follow/up.
Unlike traditional schools that do not promote usable skills for
immediate placement in agribusiness, college, or the family farm
Our Agricultural School teaches not only marketable skills but also
entrepreneurial and business skills as well as practical hands-on
experience and provides loans upon graduation when needed for
business ventures.
Value Creation
(1)
(2)
(3)
Taking in poor rural students and providing them with
entrepreneurial skills and loans in addition to agricultural
education. Graduates are qualified for higher education,
employment in agribusiness or to return to productive
farming
Converting a deficit-ridden school into profit-making
institution by using lessons learned in Microfinances and
Junior Achievement
Measure of Success: Graduates’ performance translates into
School ’ s reputation which translates into more students,
faculty and resources
Clients & Beneficiaries
(1)
Those who attend our School: young rural farmers who come from chronically
unemployed families and poor communities
(2)
Those who employ our Graduates: private sector and business community
benefit from qualified middle-level human resources or Colleges.
(3)
Those who buy our products and services: consumers, schools, and general
public
(4)
Those who adopt a new educational model: policy makers and international
donor agencies
Potential Obstacles & Risks
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It is yet to be proven that
educators will accept this
“Learning By Doing” model
There is a bias against
business in school & moneymaking faculty and students
Lack of resources
Ability to attract faculty and
supporting
workforce
because of lower salaries
than private sector
Misunderstanding regarding
the value of work-study
Government impositions of
different
curriculum
(theoretical vs. practical)
General
economic
environment
may
force
students to stay home
Strategy to Serve the Market
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Fundacion Paraguaya is
a
28-year-old
NonProfit Organization
Experience in attaining
Self-Sufficiency in its
Microfinance
&
Entrepreneurial
Education
Subsidize Agricultural
School until it reaches
self-sufficiency
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Take lessons learned in
Microfinance and apply
them
to
Agricultural
Education:
• Poor want to develop
• Poor are willing to pay
• Need to use Appropriate
Methodology and scale
• Self-sufficiency is possible
• Work dignifies
How will the school become selfsustaining?
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Multiple sources of revenue,
including
• Sale of products produced at
school
• Providing
services
to
agricultural community
• Renting facilities
• Nominal tuition and workstudy scholarships
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Public
funding
is
not
considered desirable because
of
political
constraints
attached to that funding
School has the full financial
support
of
Fundacion
Paraguaya
and
has
the
Management
Team
&
Organization
School has Income Streams from
17 Products & Services
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Livestock
• Milk & Cheese
• Steers for Beef
• Pigs
• Chicken, Broilers & Eggs
• Goats
• Rabbits
• Honey
Agriculture
• Vegetable Garden
• Crops & Fruit
Community Training Center
• Housing
• Food & Lodging
• Conference Rooms
• Guided Tours
• Special Events for Business
Community
Store
• Goods produced at the school
• Food produced
• Grocery store products
Sustainable Advantage
Ability to recruit and select students
that are “likely winners” from a big
pool of candidates
Ability to produce a continuous flow
of qualified high school graduates
who either go on to college, get a
good job, or return to their
communities to run their family
farms.
Business Approach and practical
training which ensures permanent
innovation as well as costcontrols.
Valued as a important resource in the
agricultural community. It is a
magnet for business interests who
come to it in search of its excellent
faculty and qualified graduates
Produces superior quality goods
because it has trained faculty and
staff managing production.
Does not depend on government
subsidies and is removed from
politics
School’s reputation: biggest asset
Fundacion Paraguaya Team &
Organization
Board of Directors &
CEO w/experience
$400.000/yr surplus
330 Employees
Microfinances
$500.000/yr
28 Regional Offices
54.000 clients/yr
Entrepreneurial
Education
(Breaks-Even)
30.000 students/yr
4 Agricultural
High School
Agricultural School Team &
Organization
School Director
Experienced in
Academics
& Business
Production Chief
Experience in
Academics &
Farming
Academic Director
Experienced and
Junior Achievement
Background
Finance &
Administration
Staff: Experienced
Revenue and Business Model
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This Model School will
produce self sustaining
revenues by the sale of
agricultural
goods
and
multiple services.
The level of sales revenues
(turnover) that is hoped to
be achieve is US$175.000
a year by 2007.
Revenues reflect market
realities
and
School
competes in the market.
Distribution of Revenues
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Nominal Tuition: 5%
Road-Side Store: 10%
Vegetable Garden,
Crops & Fruits: 20%
Livestock & Small
Animals: 25%
Community Training
Center: 40%
Phase 2: Dissemination of
Model-Prototype School to other
Schools in Paraguay and other
Developing countries
• Raise Awareness in
1000 schools
• Promote Replication
of certain aspects
of model in 50
schools
• Action: 10 schools
embarking in the
self-sufficiency road
Basis on which to “sell” Model
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On its educational merits
– stressing the academic
success of graduates
On its income increasing
benefits
As a means of ensuring
institutional
independence
As a fresh paradigm – but
one which they can work
towards at their own
pace
As a support package
that can be implemented
in modules
As a support network for
technical assistance, and
funding
A call to Action:
Stakeholders role in Expansion
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We need to address
rural
poverty
and
develop a new breed of
rural entrepreneurs
Stakeholders need to
take action
• future employers,
ranchers and the
agricultural business
community
• Donors, foundations and
international development
agencies (World Bank)
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A Village School for US$
500.000
The time has come:
We have a Roadmap
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The People
The Opportunity
The Context
Risk and Reward
Reward
• Develop a true
“Social Innovation”
• To turn upside-down
the way we think
about education
• to Make Poverty
History