2013symposium_keynote

A Social Entrepreneur’s Odyssey

beginningmission investmentimpactopportunity

the social

A Social Entrepreneur’s Odyssey

beginning‣concerned parents‣harmless vacation‣recession proof‣cutting edge‣hairy pivotmission investmentimpactopportunity

the social

A Social Entrepreneur’s Odyssey

the social beginning : concerned parents

Is there a path to this career?

A Social Entrepreneur’s Odyssey

beginning‣concerned parents‣harmless vacation‣recession proof‣cutting edge‣hairy pivotmission investmentimpactopportunity

the social

A Social Entrepreneur’s Odyssey

Cambodia. The Kingdom of Wonder.

A Social Entrepreneur’s Odyssey the social beginning : harmless vacation

Appreciating my roots!

A Social Entrepreneur’s Odyssey the social beginning : harmless vacation

beginning‣concerned parents‣harmless vacation‣recession proof‣cutting edge‣hairy pivotmission investmentimpactopportunity

the social

A Social Entrepreneur’s Odyssey

1. A plentiful natural resource2. A product that could be easily manufactured3. A demand that was recession-proof

A Social Entrepreneur’s Odyssey the social beginning : recession proof

The enterprise required three key ingredients:

A Social Entrepreneur’s Odyssey the social beginning : recession proof

Recession-Proof? Vanity!

beginning‣concerned parents‣harmless vacation‣recession proof‣cutting edge‣hairy pivotmission investmentimpactopportunity

the social

A Social Entrepreneur’s Odyssey

A Social Entrepreneur’s Odyssey the social beginning : cutting edge

Would potential donors voluntarily sell their hair?

A Social Entrepreneur’s Odyssey the social beginning : cutting edge

A resounding “yes”!

beginning‣concerned parents‣harmless vacation‣recession proof‣cutting edge‣hairy pivotmission investmentimpactopportunity

the social

A Social Entrepreneur’s Odyssey

A Social Entrepreneur’s Odyssey the social beginning : hairy pivot

Rejected by established retailers, we decided to retail.

beginningmission investmentimpactopportunity

the social

A Social Entrepreneur’s Odyssey

beginningmission‣reverse engineering‣traffic jam‣risk overshadows reward ‣cultural divide‣valuation investmentimpactopportunity

the social

A Social Entrepreneur’s Odyssey

A Social Entrepreneur’s Odyssey the social mission : reverse engineering

Chicken or the egg?

Which concept is developed first? The impact?

Or the enterprise?

A Social Entrepreneur’s Odyssey the social mission : reverse engineering

A competition at this orphanage changed the course of Arjuni.

beginningmission‣reverse engineering‣traffic jam‣risk overshadows reward ‣cultural divide‣valuation investmentimpactopportunity

the social

A Social Entrepreneur’s Odyssey

A Social Entrepreneur’s Odyssey the social mission : traffic jam

No comparison to a traffic jam in Tokyo.

A Social Entrepreneur’s Odyssey the social mission : traffic jam

Prevention and Rehabilitation

Human TraffickingSex Trafficking

Domestic Violence

beginningmission‣reverse engineering‣traffic jam‣risk overshadows reward ‣cultural divide‣valuation investmentimpactopportunity

the social

A Social Entrepreneur’s Odyssey

A Social Entrepreneur’s Odyssey the social mission : risk overshadows reward

I soon realized that we were not equipped to offer rehabilitation alone.

A Social Entrepreneur’s Odyssey the social mission : risk overshadows reward

We needed partners.

1. Psychological rehabilitation2. Peer counseling3. Job preparedness

beginningmission‣reverse engineering‣traffic jam‣risk overshadows reward ‣cultural divide‣valuation investmentimpactopportunity

the social

A Social Entrepreneur’s Odyssey

A Social Entrepreneur’s Odyssey the social mission : cultural divide

Dance is the universal language.

A Social Entrepreneur’s Odyssey the social mission : cultural divide

Cultural Divide

Women with a Voice

vs.

Women without a Voice

beginningmission‣reverse engineering‣traffic jam‣risk overshadows reward ‣cultural divide‣valuation investmentimpactopportunity

the social

A Social Entrepreneur’s Odyssey

A Social Entrepreneur’s Odyssey the social mission : valuation

Purpose (American)

To honor the beauty and cultivation of service.

A Social Entrepreneur’s Odyssey the social mission : valuation

Purpose (Khmer)

beginningmission investmentimpactopportunity

the social

A Social Entrepreneur’s Odyssey

beginningmission investment‣seeds of doom‣funding chasm‣balance beam‣rescue missionimpactopportunity

the social

A Social Entrepreneur’s Odyssey

A Social Entrepreneur’s Odyssey the social investment : seeds of doom

World Bank Grant

attractive1. Free money2. Global paradigm prerequisite

not so attractive1. Tiny amount of money2. Heavily burdened administrative process3. Limited use

beginningmission investment‣seeds of doom‣funding chasm‣balance beam‣rescue missionimpactopportunity

the social

A Social Entrepreneur’s Odyssey

A Social Entrepreneur’s Odyssey the social investment : funding chasm

We didn’t need funding. We needed a line of credit.

1. Insatiable demand2. Exceptionally fast inventory turnover

A Social Entrepreneur’s Odyssey the social investment : funding chasm

Unable to secure a line of credit, because:

1. Cambodian banks only offer loans secured with a hard title. 2. Western banks consider Cambodia too high risk for loans.

beginningmission investment‣seeds of doom‣funding chasm‣balance beam‣rescue missionimpactopportunity

the social

A Social Entrepreneur’s Odyssey

A Social Entrepreneur’s Odyssey the social investment : balance beam

Any Takers?

1. Venture capital concerned with absorption and ROI. 2. Social investment concerned with relevance to mission.

beginningmission investment‣seeds of doom‣funding chasm‣balance beam‣rescue missionimpactopportunity

the social

A Social Entrepreneur’s Odyssey

A Social Entrepreneur’s Odyssey the social investment : rescue mission

Enter Arun

1. Assessed our sustainability as an enterprise. 2. Assessed our definition of impact. 3. Assessed our capability of achieving that impact.

beginningmission investmentimpactopportunity

the social

A Social Entrepreneur’s Odyssey

beginningmission investmentimpact‣chance of sunny skies‣secret recipe ‣village stakes (local economy)‣family ties (employment)‣wefts of steel (innovation)‣voice-over (leadership)opportunity

the social

A Social Entrepreneur’s Odyssey

INVESTMENT REVENUES

World Bank : 36,500 USD Grant (Disbursed in 2009, 2011) Personal : 160,000 USD Equity (Disbursed 2009, 2010) Arun : 120,000 USD Convertible debt (Disbursed 2010, 2011. Repaid in full October 2013)

2010 :123,500 USD

2011: 591,000 USD

2012: 707,000 USD

A Social Entrepreneur’s Odyssey the social impact : chance of sunny skies

A Social Entrepreneur’s Odyssey the social impact : chance of sunny skies

Last payment to Arun has been scheduled for this Tuesday!

beginningmission investmentimpact‣chance of sunny skies‣secret recipe‣village stakes (local economy)‣family ties (employment)‣wefts of steel (innovation)‣voice-over (leadership)opportunity

the social

A Social Entrepreneur’s Odyssey

A Social Entrepreneur’s Odyssey the social impact : secret recipe

Secret Recipe = Unique Branding + Scalability

Finding our place in the world.

A Social Entrepreneur’s Odyssey the social impact : secret recipe

Unmatched Reputation

A Social Entrepreneur’s Odyssey the social impact : secret recipe

A Social Entrepreneur’s Odyssey

Our first flash event grossed $45,000 is less than 5 hours!

A Social Entrepreneur’s Odyssey the social impact : secret recipe

Our online boutique is just the beginning. . .

A Social Entrepreneur’s Odyssey the social impact : secret recipe

A Social Entrepreneur’s Odyssey the social impact : secret recipe

Executed our distributor agreement worth

$200,000.

beginningmission investmentimpact‣chance of sunny skies ‣secret recipe ‣village stakes (local economy)‣family ties (employment)‣wefts of steel (innovation)‣voice-over (leadership)opportunity

the social

A Social Entrepreneur’s Odyssey

A Social Entrepreneur’s Odyssey the social impact : village stakes

Microfinance. Without the draconian interest.

1. Women earn 3 - 6 months equivalent salary and invest in their families.

2. To date, we’ve purchased from an estimated 7000 hair donors.

beginningmission investmentimpact‣chance of sunny skies ‣secret recipe‣village stakes (local economy)‣family ties (employment)‣wefts of steel (innovation)‣voice-over (leadership)opportunity

the social

A Social Entrepreneur’s Odyssey

A Social Entrepreneur’s Odyssey the social impact : family ties

A business that plays together. . .

A Social Entrepreneur’s Odyssey the social impact : family ties

Is not just a business.

PARTNER ORGANIZATIONS TOTAL HIRED

AFESIP Hagar Kamonohashi Project Mothers’ Heart Mercy Team International Life and Hope Association Sunshine Center Women Development Center

OTHER COMPANY CONTRIBUTIONS

Khmer-American Cultural Exchange Professional Development Personal Development Volunteering Donating

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A Social Entrepreneur’s Odyssey the social impact : family ties

beginningmission investmentimpact‣chance of sunny skies‣secret recipe ‣village stakes (local economy)‣family ties (employment)‣wefts of steel (innovation)‣voice-over (leadership)opportunity

the social

A Social Entrepreneur’s Odyssey

A Social Entrepreneur’s Odyssey the social impact : wefts of steel

The best in the industry. . .

A Social Entrepreneur’s Odyssey the social impact : wefts of steel

And it’s all due to these women.

beginningmission investmentimpact‣chance of sunny skies‣secret recipe ‣village stakes (local economy)‣family ties (employment)‣wefts of steel (innovation)‣voice-over (leadership)opportunity

the social

A Social Entrepreneur’s Odyssey

A Social Entrepreneur’s Odyssey the social impact : voice-over (leadership)

Blank Slide

To fully appreciate this impact, a visit to our shophouse is required.And you are most welcome.

beginningmission investmentimpactopportunity

the social

A Social Entrepreneur’s Odyssey

A Social Entrepreneur’s Odyssey the social opportunity

I wouldn’t be an entrepreneur if I didn’t ask for money.

Seeking Opportunity

500K

USD

Hair care industry : 9 billion USD in 2012 Hair salon industry : 61 billion USD in 2012

Hair supply and manufacturing : 2 billion USD (documented) in

2011, boasting a three year growth rate of 21%

Use of Proceeds Assets Inventory purchases (440 thousand USD)

Capital expenditures for website development (40 thousand USD).

Dedicated advertising and public relations campaign (10 thousand USD).

Team expansion by employing and supporting an additional 40 women previously involved in traumatic circumstances. (10 thousand USD)

Supply Established nation-wide network

Operations Solidified and able to scale

Demand 707K in 2012 in online sales without advertising

A Social Entrepreneur’s Odyssey the social opportunity

If you’ve seen enough and would like to invest immediately :

ACLEDA (Arjuni International Ltd.) Swift Code :

ACLBKHPPAccount # : 0001 01 018612 17

Or, if you need a bit more information :

Executive summary, historical financials and pro forma are happily provided upon request.

janice@arjuni.com

A Social Entrepreneur’s Odyssey the social opportunity

A Social Entrepreneur’s Odyssey

Thank you!