92 purchasing, relationships with universities <strong>to</strong> measure impact, and assistance <strong>to</strong> replicate in o<strong>the</strong>r geographies or sell carbon credits on international markets. A portfolio <strong>of</strong> social entrepreneurs that are learning, collaborating, and challenging each o<strong>the</strong>r could result in new and more powerful strategies. It is an especially interesting role <strong>for</strong> MNCs, as social entrepreneurs may have difficulty changing a small, nimble organization in<strong>to</strong> a large, structured one, or may be personally uninspired by <strong>the</strong> prospect <strong>of</strong> running such an institution. 3. Launch a project around a key installation. Corporate social responsibility is employed <strong>to</strong> increase a company’s license <strong>to</strong> operate, <strong>of</strong>ten by donating money <strong>to</strong> build local roads, schools, or clinics. An MNC may focus on <strong>the</strong> area around a key installation in order <strong>to</strong> reduce <strong>the</strong> risk <strong>of</strong> disrupted operations and increase <strong>the</strong> government amenability <strong>to</strong> new concessions. It may also want <strong>to</strong> learn about <strong>the</strong> BOP, and <strong>to</strong> a lesser extent involve staff in <strong>the</strong> local community. While still rein<strong>for</strong>cing a license <strong>to</strong> operate, enterprises could use allocated funds <strong>to</strong> start sustainable access <strong>to</strong> energy enterprises along <strong>the</strong> lines <strong>of</strong> <strong>the</strong> models highlighted in this report. For example, IBEKA convinced a donor that $500,000 given <strong>to</strong> a rural school would run out eventually, but 23 See page 71 in this report <strong>for</strong> more details on IBEKA in Indonesia Figure 22 Slum community in Sao Paulo, Brazil $500,000 invested in a hydro plant attached <strong>to</strong> <strong>the</strong> school would provide revenue <strong>for</strong> school expenses in perpetuity. 23 4. Build a BOP business in a priority segment. The market-based solutions discussed in this report have demonstrated ability <strong>to</strong> solve <strong>the</strong> problem, financial viability, and scalability. MNCs may build a business in one or more <strong>of</strong> <strong>the</strong> segments discussed in Chapter 4. Building a business could fulfill many objectives - it enables <strong>the</strong> company <strong>to</strong> learn about <strong>the</strong> BOP, it involves staff, it increases local acceptability, and it provides a good s<strong>to</strong>ry <strong>to</strong> communicate externally. Most importantly, this strategy contains <strong>the</strong> hope <strong>to</strong> make a pr<strong>of</strong>it. It is also <strong>the</strong> most complex and risky strategy. However, new BOP businesses benefit from <strong>the</strong> decades <strong>of</strong> experience <strong>of</strong> entrepreneurs all around <strong>the</strong> world, many <strong>of</strong> whom are ready <strong>to</strong> help <strong>the</strong> next generation. * * * This report has attempted <strong>to</strong> demonstrate that marketbased solutions <strong>for</strong> access <strong>to</strong> energy are powerful, necessary, and are ready <strong>to</strong> scale up. Entrepreneurs are in urban and rural areas, serving <strong>the</strong> needs <strong>of</strong> low-income people <strong>for</strong> cooking, lighting, communications, and income generation. The analysis and examples included here will assist <strong>the</strong> next round <strong>of</strong> entrepreneurs and <strong>the</strong>ir backers <strong>to</strong> continue <strong>the</strong> endeavour.
6 Appendix