Short: Modern management coaching and financing for start-ups in poor countries.
True: In 140 countries
Thinker: Michael McCausland
Impact: 2500 startups
Michael McCausland is a busy man. He manages the personnel management of the nuclear plant in his home town of Denver and flies to developing countries in Asia, Africa and the Middle East to help local communities in setting up sustainable self-reliant projects. His project Sustainable Communities, however, he had to stop.
SCW had built up a service record in 13 years. With 8 million dollars, more than 2,500 companies have been set up in 140 countries. The companies differ from street vendors to babysitting services. His approach, emphasized McCausland, differed from the way in which NGOs usually work. He saw that aid workers with good intentions rather harmed the local community than did well. By bringing solutions, they took the initiative off the hands of local populations. In Yemen, for example, McCausland helped an NGO in 2004 to set up a local cement factory. The workers worked hard, things went well and the cement factory soon became buried under orders. ‘Our task is over’, high-level health care workers meet each other when they leave. However, when McCausland returned a few months later, the cement plant no longer existed. “The stones were gone,” the workers said, “we thought you would send new ones.”
McCausland therefore asked local leaders for their own initiative. As soon as they came up with solutions, they also addressed the situation. “They took control and were no longer dependent on us. We only did the coaching. “
For example, SCW trained novice entrepreneurs in developing countries. According to McCausland, 73 percent of the start-ups he coached grew to become well-run companies. What was McCausland’s success formula? “Before we went into the sea with someone we did a thorough check. We listen to his story and view his skills. The key question: does this person want to earn money fast, or is he an entrepreneur? “McCausland realized that his selection procedure is tough:” Only one in five comes through our screening. Those who enjoy our trust must collect their starting capital themselves, make a market analysis and present plans for cash flow. “Once they got started, SCW received theoretical training and practical guidance each month for a year.
McCausland therefore asked local leaders for their own initiative. As soon as they came up with solutions, they also addressed the situation. “They took control and were no longer dependent on us. We only did the coaching. “
For example, SCW trained novice entrepreneurs in developing countries. According to McCausland, 73 percent of the start-ups he coached grew to become well-run companies. What was McCausland’s success formula? “Before we went into the sea with someone we did a thorough check. We listen to his story and view his skills. The key question: does this person want to earn money fast, or is he an entrepreneur? “McCausland realized that his selection procedure is tough:” Only one in five comes through our screening. Those who enjoy our trust must collect their starting capital themselves, make a market analysis and present plans for cash flow. “Once they got started, SCW received theoretical training and practical guidance each month for a year.
What worked at micro level also applied to entire communities. “In 2005 we went to tsunami area in the Philippines. Here we worked with rebels. They were badly hit, needed medical help, but could not go to a government hospital. Our doctors took bullets out of their bodies and won their trust. “Once on good terms with the local leaders, McCausland gave them a $ 10,000 loan. The bank came into the hands of the village council. Aided by this starting capital, the rebels deposited their weapons and proceeded to grow chili peppers. Within a year they had repaid the loan through cooperation, their bank. Now they were ready for the next challenge. They built infrastructure, installed water pumps, installed electricity and in the meantime the role of women in their village grew. It was not long before other villages came by and asked if they could get a loan. “We are now ten years away and our loan of 10,000 dollars has been repaid more than 70 times.”
The story fit perfectly with the vision of McCausland. “Our mission is to empower local leaders so that they use the capacity of their own sources to be independent from outside assistance.”
