Land Use Planning and Management
Community Development Through Social Business:
The Case Study of Yunus Social Business Haiti and
Social Development of South Kelantan AgropolitanGroup Members:
Affi Syaffizal Bin Sharif (GS49657)
Asma Adila Binti Jamaluddin (GS 49864)
Ju Hasliza Binti Md. Hussin (GS49676)
Muhammad Shafiq Bin Zulkifli (GS49681)
Salina Binti Alang Abdul Rahman (GS49793)
Lecturer: Prof. Madya Dr. Ahmad Husni Mohd HanifINTRODUCTION
A Social Business is a problem solving business. Social business allows people to focus their creativity on solving human problems with business means rather than maximizing profits. It is a powerful tool to get people out of poverty and close the wealth-gap.
There are seven principles of social business:
Business objective will be to overcome poverty, or one or more problems (such as education, health, technology access, and environment) which threaten people and society, not profit maximization;
Financial and economic sustainability;
Investors get back their investment amount only. No dividend is given beyond investment money;
When investment amount is paid back, company profit stays with the company for expansion and improvement;
Gender sensitive and environmentally conscious;
Workforce gets market wage with better working conditions; and
Do it with joy.
YUNUS SOCIAL BUSINESS
Social businesses are a good way to combine the efficiency of market-based competition with philanthropic goals. Yunus Social Business (YSB) is a social accelerator that incubates and finances local entrepreneurs to build solutions from the ground up.
Unlike traditional business, YSB operates for the benefit of addressing social needs that enable societies to function more efficiently. YSB provides a necessary framework for tackling social issues by combining business know-how with the desire to improve quality of life.
The founder of YSB, Prof. Muhammad Yunus has created many social businesses in Bangladesh, such as Grameen Danone, Grameen Veolia, BASF Grameen, Grameen Shakti, Grameen Intel, Grameen GC Eye Care Hospital, and many more. They have proven their effectiveness in solving pressing problems and have grown and become stronger.
The mission of YSB is to spread this success to other parts of the world, via the innovative “Incubate and Finance” concept. Social businesses will become an attractive option for more and more social business entrepreneurs, existing businesses, fund managers, foundations, bilateral and multilateral development agencies, governments and philanthropic lenders.
Aside from Bangladesh, YSB is active in seven countries (Haiti, India, Colombia, Albania, Brazil, Tunisia and Uganda) where local country teams source, coach and mentor entrepreneurs. YSB subsequently finances the most promising social businesses while also providing post-investment support.
Some of the YSB projects worldwide are providing affordable English language and life skills education in India; economic empowerment for female rice farmers in Northern Uganda; organic chia farming to improve livelihoods of rural East African farmers; promoting sustainable waste management practices benefiting people in poorest conditions in Sao Paulo, Brazil; organic farming in Colombia; education for vulnerable children in Tunisia; quality care for the elderly in Albania; affordable clean energy in Haiti; rehabilitation for victims of conflict in Bosnia; and etcetera.
3.0CASE STUDY: YSB HAITI – ALEXIS CLAUDE’S CHICKEN FARM AND SOCIAL DEVELOPMENT OF SOUTH KELANTAN AGROPOLITAN
3.1YSB Haiti – Alexis Claude’s Chicken Farm
One of the successful YSB projects in Haiti is to develop the chicken farm business on entrepreneurs. When the 2010 Earthquake left 1 million Haitians homeless and more than 600,000 injured or killed, the international community responded en masse. That response has continued over the years, as the effects of the earthquake continue to compound the pre-existing battle with combating poverty, illiteracy, social exclusion and unemployment in Haiti.
Four years after the disastrous earthquake, Haiti’s population has to count on helping hands. Instead of one-time donations, YSB and SAP Business One engaged with a long-term commitment and encourage young entrepreneurs and support them to rebuild their country. Micro-loans for mobilizing small-scale chicken farms are one example of the business-aid model in action that exists to combat poverty in Haiti. The Haitian government is unable to provide adequate schooling for all children, particularly in rural areas. Lacking adequate, steady funding, many of the private schools are forced to lay off teachers and close. On Alexis Claude’s chicken farm, people work together to generate money and finance a primary school in the rural area of Haiti.
During the three year start-up phase in Haiti, SAP actively contributed to the overall strategic direction of the initiative and delivered the necessary operational and financial support by using the technology medium. YSB, in turn, provided social business consulting, local knowledge and expertise, and additional donor recruitment. The SAP solution allows YSB and Alexis Claude’s chicken farm to centrally manage the financials; customer relationships; and farming and retail operations from a single system. Running on SAP solutions, the employees can optimize their workflows by sending business report results directly to the central office via the system and the other team can visualize key business information and generate real time reports.
SAP and YSB start-ups are having positive impact throughout Haiti. At the early stage, investing in this project had keep 295 kids in school, and created 27 jobs in a rural area. As this project has expand, it was not only increase food security and income for thousands of families, it also leads to at least 300 full-time jobs through the construction of 75 breeding centres and the training of 200 new Community Animal Health Workers. Aside from that, 1,000 children are now able to go to school and receive reliable and quality education. This creates a new and brighter future for Haitian children.
3.1.1Issues and Challenges
Some of the issues and challenges are as follows:
To rebuild the infrastructure and businesses after the earthquake hit the country;
Not all farmers remain until the business is successful;
Many farmers did not fully understand the credit concept, therefore they spend the income on other needs;
Most farmers do not read or write;
Chicks are expensive and they die quickly;
Good and effective drugs are difficult to find; and
Lack of technicians in chicken productions.3.2South Kelantan Agropolitan Project in Malaysia
Inspired by YSB’s approach to sustainable development, South Kelantan Agropolitan Project is taking an approach to replicate this success in Kelantan.
Since last decades, the Malaysian government has applied a commendable path in transforming its socio-economic landscape and the lives of the locals, in line with its vision to become a developed region by 2020. Therefore, as an effort to eradicate poverty among the rural population in Kelantan, the government implemented a project known as South Kelantan Agropolitan (SKA) project. The SKA project is a social development initiative and as part of a pilot project prior to the implementation of several Agropolitan projects across East Coast Economic Region (ECER).
This SKA project involves the resettlement of hardcore poor participants in a designated location. The targeted participant involved families with household income below RM350. This project aimed to boost positive socio-economic alteration among the hard core poor people through commercial-agriculture related activities. The participants were selected from the poor people data base namely e-Kasih and e-Tegar system.
The SKA project is in line with the Government’s Transformation Programme (GTP) and Economic Transformation Programme (ETP) that aim to create a high-income nation across all levels of the society. To address this issue, Economic Region Development Council (ECERDC) partnered up with South Kelantan Development Authority (KESEDAR) for the implementation of the Agropolitan project in Gua Musang. The ECERDC is a statutory body established to spearhead the socio-economic development of the East Coast Economic Region (ECER). ECERDC plays a lead role in setting directions, formulating policies and developing strategies for the socio-economic development of ECER by promoting and facilitating investments into the Region, while KESEDAR is the main implementing agency for this project.
The project was carried out in Rantau Manis, Gua Musang and was designed to assist up to 625 participants or some 3,000 hard core poor. ECERDC has allocated RM105 million for the development of SKA project as end of 2016. The allocation was directly channelled to KESEDAR and categorized as ECERDC trust fund and a total of RM88 million or 83.35% was spent for the development.
SKA project located at Rantau Manis, Gua Musang and it is situated in the south of Kelantan and is quite separated from the central state administration in Kota Bharu. Gua Musang is an area where most people are from the settler community.
Source: East Coast Economic Region-Agropolitan Project, 2007
3.2.1Development Component of South Kelantan AgropolitanThe development of SKA involved the introduction of new growth centre based on agriculture in rural areas. The project created farming areas which were centrally managed by KESEDAR. The participants have been given homes and land to carry out commercial cultivation. Three (3) core development activities of SKA project in Rantau Manis consists:
Developed a total of 625 houses for the SKA participants, as part of a resettlement scheme. Participants need to move to a designated settlement area.
The primary economic activity for SKA participants is oil palm plantation, whereby a total of 1,500 hectares of land have been earmarked for this purpose. Each of the participants engaged in oil palm plantation.
½ acre plot for housing and cocoa farm
Each settler is given 1/2 acre plot consist a house and cocoa farm at the backyard of the house. Malaysia Cocoa Board (MCB) with ECERDC and KESEDAR has opened 160 hectares of land for cocoa farm for this project. The cocoa farms are the secondary crops and as part of the economic initiative to the housewives for them to generate additional income for the families from their backyards.
Layout Plan of new settlements area at Rantau Manis – (Modelled of 1 acre plot for house and mix farming)
Source: East Coast Economic Region-Agropolitan Project, 2007
Entrance to Taman Agropolitan Rantau ManisCocoa farm at the backyard of the participant’s house
Taman Agropolitan Rantau ManisView of SKA Rantau Manis from satellite image
Typical Modelled of 1 acre plot for housing and fix farm
3.2.2South Kelantan Agropolitan Programme
The main economic activity at SKA is the plantation of oil palm. While secondary economic activity is cocoa plant. All participants involved are given a house, land and holdings or shares in the development of SKA project. Each participant is given the responsibility to managed 2.5 hectares of oil palm plantation as well as to replant the trees. The families’ member is also given the responsibility to cultivate and manage 300 cocoa trees (1/2 acres land) at the house backyard. In the first three years of planting (before the trees mature), each settler received an advanced livelihood wage of RM750 monthly (RM30 per day) to managed palm oil and RM250 to plant cocoa. In sum they get a monthly income of RM1,000 each participant.
Once the planting reaches the fourth year, the trees would have matured enough to start producing fruits, and this translates to an increase in the settler’s wages to between RM1,200 to RM1,400 (RM35 per day).
The migration of the settlers from the original villages to the land schemes has changed their lives from that of poor villagers to that of settlers who obtain higher incomes. The SKA project has created a significant impact in transforming the better life to the participants, as well as their families. Previously, they were earning less RM350 a month, but now, they are having a stable job and steady income, earning an average of RM1,200 per month by working at oil palm plantation as their primary source of income.
3.2.3Issues and Challenges
The issues and challenges can be categorized according to pre, during and after project implementation are as below:
Unavailability of new land for this projects
Involves allocation of huge amount of cost to start and run the project
Unavailability of manpower from the implementing agency side
Unsuitability of soil condition
High infrastructure and development cost due to remoteness of location
Suitability of the identified projects are not in accordance with site conditions
Constraints in identifying the right participants. Most of the participants have low interest in agriculture and they are just interested to get a house. These create issues and problems faced by the agencies involved in the SKA project. Among the problems are:
Participants are less concerned to work hard
Participants are not skilled in carrying the agriculture activities.
Illegal settlers who dare to invade the site of agropolitan project
Some of participants do not afford to work, faced health problems, and other. Thus, they are willing to hire another person for the job. Due to that agricultural outputs are less productive, thus resulting to participants receiving smaller income.
Hardcore poverty people are normally at the end of working age.
Lack of skill, knowledge and ageing of participants
Social business and social development can provide a range of benefits to societies and organisations. Social businesses tend to operate with a purpose of creating value for the society and generate income; while social development is about improving the well-being of every individual in society so they can reach their full potential. Social business and development are beneficial to the poor, generally by providing them with a means of livelihood. Social business will move us one step closer to bringing all people into prosperity, and one step closer to a world without poverty. There is strong evidence that entrepreneurial and social business activity like Yunus Social Business Haiti and South Kelantan Agropolitan Project create economic value by creating jobs. Social business also creates economic value by reducing the burden on government for service delivery. As most of social development projects in Malaysia are government-funded, therefore we suggest that the approach to be revised similar to YSB model where the organisations, NGOs, companies and individuals are playing the vital role to provide funds and business skills, with the support of the government. A social business should be sustainable, profitable and just. It requires the society’s participation and social business model offers possibility that after a period of incentives and encouragement, government or donor support, it would be possible to be sustainable by itself.
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