ORIGINAL CASE STUDY / CAPACITY BUILDING
A pioneer in the region, started by one man after noticing plenty of socially entrepreneurial ideas but no help for the (social) entrepreneurs, Alterna Impact is building skills and capacity for people in Guatemala, South America.
What if your idea is to create a framework for empowering others? Give them the ability to take their ideas to scale? How does one effect large scale impact by skills transference?
What does it take to start and then run a capacity building organization, to help other social entrepreneurs? What are some typical challenges and roles involved?
We take a deeper look into the South American consultancy Alterna, that, as a social enterprise itself, is working at both capacity building for local social entrepreneurs and promoting the idea of a social enterprise.
In-depth analyses of some areas deemed critical for Alterna's operation and sustenance as a social business itself.
Of Interest to...
Capacity Building Organizations
Social Enterprises, in Guate regions
High volume business
Facilitators
Diverse team creation
quick catchup...
WHAT: A capacity building and social impact consultancy in Quetzaltenango, Guatemala, operating since 2010.
Works with social entrepreneurs in the region to turn their ideas into scalable solutions and existing enterprises into sustainable social businesses, as they work toward societal betterment. Alterna also is a grassroots advocacy outfit, creating awareness of the social enterprise sector in the region and influencing public policy.
The one-line story- Daniel Buchbinder comes to Guatemala to work on the entrepreneurial side of a cookstove project as part of an NGO, sees both the potential and lack of support for social entrepreneurs, starts Alterna.
The one line summary: A stable capacity builder, focused on high-volume, operating in a developing country with high potential for social enterprises
HOW: Alterna invites social entrepreneurs and those interested in wanting to contact them with their idea / problem. Alterna evaluates each applicant on a case-by-case basis and tailor a 'program' to suit the applicants needs and work from there. It works with entrepreneurs at all levels- from idea to post-implementation.
and some more...
Video Courtesy: Alterna Impact. Please note that the audio is in Spanish; English/other language translation/subtitles are not available at the moment.
organizational framework and more...
The graphic below gives a brief yet comprehensive understanding of how Alterna operates- from its funding structure to the challenges it faces. Each box gives a brief summary.
The reader is urged to read through each segment carefully to get an understanding of not just how Alterna works, but how a capacity building consultancy navigates various aspects, challenges and pressure points of a regular consultancy, whilst staying focused on social attainment goals.
Note: Alterna is based in Guatemala, a developing nation. Whilst local context and geography influences a lot of decisions, this case study ekes out several areas that are relevant an relatable to anywhere around the world.
ORIGIN
• Name: Alterna
• Started in: 2010
• Founder: Daniel Buchbinder
• Alterna is a nonprofit; Off shoot of Alterna Foundation, a Berkeley (USA) based 501 c(3) based non-profit.
• Multi-layer approach to funding
• Accepts donations
• Has been supported from the beginning by Argidius, a Swiss foundation focused on SMEs
• Program specific grants cover some projects
• Considering a fee based service in some areas
growth
• Initial staff 3 (2012)
• Current staff: approx. 40 (2017) ; includes FT, PT and unpaid Fellows
• RISK-REWARD MOVE: Choose a high volume business model- work with up to 300 entrepreneurs a year- helps grow the sector and gives Alterna the recognition as a go-to name in social enterprise capacity building in the region
• Now have diversified beyond Guatemala borders; Started an initial pilot program with few other S American countries
ROLES
Alterna has three key roles as most important for its operation:
1. Business Cultivation: Working with the entrepreneurs, helping them develop skills to grow and succeed; business, strategy and investment oriented roles.
2. Business Development : Growing the business; marketing oriented role
3. Monitoring and Evaluation : All about impact assessment and measurement; research oriented role
Alterna looks for a very diverse team in terms of skills to fill these roles.
This is a positive move and classic indicator of organizations ready for innovation.
IMPACT
• 1000+ entrepreneurs and companies benefitted from Alterna’s support.
• More than a third of clients are the underserved- women, rural and indigenous populace
• Over 70% entrepreneurs at idea level launch their enterprise within 2 yrs. of Alterna's intervention
• Nearly quarter million people directly impacted from Alterna’s intervention with over 90 companies just in 2017
CHALLENGES
Alterna’s challenges can be broadly classified into 3 areas:
• Bureaucracy and paperwork – in terms of funding applications, navigating various governmental bodies etc.
• Creating a systematic, streamlined yet personalized methodology
• Tangible feedback- from clients and entrepreneurs they have worked with.
ROLE OF GOVT.
Alterna’s wish-list for the role of government in supporting Social Enterprises and Innovation
• Recognize the social enterprise sector formally
Support private sector to create social innovation.
• Make paperwork easier; provide tax breaks for socially conscious business
• Provide tangible support for capacity builders to maximize impact
While some countries like the UK have formally recognized he Social Enterprise sector, allowing for registering the business that way, many advanced and developing countries are yet to do this.
and finally...
Ines Mazas
Platform Manager
We are very thankful to Ms. Ines Mazas, Platform Manager and long time Alterna team member for sharing her insights on Alterna. Discussions with her were invaluable in developing a deeper understanding of this organization.
We are also grateful to the larger Alterna team for giving us other information and helping fill the dots.
We truly appreciate Ines's vision and dedication in wanting to spread a tangible understanding of how capacity building works in this field of social entrepreneurship.
They take their grassroots advocacy seriously!!