markley.tuesday
TRANSCRIPT
Deborah Markley
NADO Training ConferenceAugust 27, 2013
Building Wealth Using WealthWorks Value Chains
• Learn about the WealthWorks approach to economic and livelihood development through story and discussion
• Understand the fundamental elements of the approach
• Principles• Tools
• Discuss how these principles and tools relate to your own work
Objectives of this Presentation
• Wealth, broadly defined, is the foundation for prosperity.
• Poor places and people will stay poor unless they are connected to larger economies – and they have assets to bring to the table!
• Those assets can be developed and linked to markets in ways that create multiple forms of wealth.
• Structures exist or can be created to cause wealth to stick.
• Wealth that sticks leads to improved livelihoods.
Why focus on Wealth Creation??
#1 WealthWorks is demand driven.
#2 WealthWorks is intentionally inclusive.
#3 Wealth is tied to place by WealthWorks value chains.
#4 Measurement is used as a tool for planning and adaptive management.
#5 Wealth sticks through attention to structures of ownership and control.
#6 The WealthWorks approach is strategically flexible while doing no harm.
WealthWorks Principles
Biofuels in the Arkansas DeltaCamelina: Fuel for Thought
WealthWorks Story
AGEN
Regional/Urban Demand:
• Purpose: Bring new money into rural communities
• Valero needs biofuel to meet blending requirements per EPA RFS2; interested in investing in getting value chain to scale.
• FedEx commitment: 50,000 gallons/day
Local Demand:
• Purpose: Price stabilization for vulnerable budgets
• Municipalities and county governments want stable fuel prices
• School system want to burn cleaner fuel in school buses transporting children
Principle #1: WealthWorks is demand driven.
Discussion Question
In what ways are you connecting to demand in your work?
Share some examples
• Winter crop for soybean and cotton farmers Focus: Minority and small
farmers• New Entrepreneurial Opportunities
Micro-Bio-Refineries Waste Oil Collection Seed Management Seed Crushing Manufacturing of Refineries
Example: Intentional focus on minority farmers by providing technical assistance, help with planting and harvesting.
Principle #2: WealthWorks is intentionally inclusive.
Discussion Question
In what ways are you intentionally including low income individuals – as
consumers, employees, entrepreneurs – in your work?
Share some examples
Principle #3: Wealth is tied to place by WealthWorks value chains.
A WealthWorks value chain is a network of people, businesses,
institutions and non-profits who collaborate to meet market demand
for specific products or services – each advancing individual self-interest
while together creating greater local wealth.
AGEN: Deep Collaborations
• Seeking larger systems change
• A move beyond partnerships focused on specific projects
• Deep collaboration built on each member’s self interest
• Self interest creates momentum!
• Example: Initial conversations with individual members identified their self interest. “What is in it for YOU?”
• Collaboration is problem solving together almost on a weekly basis.
Demand for biofuelLocal municipalities, school districts, farmers, truckers
Regional companies - Valero, FedEx
Local and
State Policy
Support
MSCC Mini Refinery Micro Refinery
Spring-board
Diesel Mfg Dist
Gir Energy
Mfg
Angel Investor
Net workLoan Funds
Waste Vegetable Oil Collection Businesses
Source of WVO: restaurants,
convenience stores, schools,
hospitals,prisons,casinos, etc.
Community Mktg
Strategy Ed/promo materials
Community Recycling Programs
Progressive Community Leadership
Trans-porta-
tion
Camelina Seed Processing Company
Growers of Camelina: Minority, Non-
Minority Farmers
Camelina research
ASU, PCCUA
Camelina Agronomic
Service Business
USDA Support
Programs: NAP, Cover Crops, Crop Insurance
ADTEC RET
Training
Fuel Blender Distributor
Animal FeedComposting
Cosmetic mfg
By Products Meal
Glycerol
Principle #4: Measurement is used for planning and adaptive management.
Intellectualcapital
Socialcapital
Individualcapital
Naturalcapital
Builtcapital
Politicalcapital
Financialcapital
What are we measuring? Seven forms of capital that, together, comprise wealth.
Type of Wealth Interventions in Value Chains
Individual# of farmers growing Camelina Baseline: 0; 3 in Spring 2013# of entrepreneurs who have started micro-refineriesBaseline: 0; Today: 1 entrepreneur preparing to produce by Oct 2013
Social # Number of groups engaged in renewable energy policy work and the strength of their relationships Baseline:1; Today: 5
Intellectual # of requests for renewable energy installations from municipalities, residents, and business. Baseline: 0; Today: 3
Natural # of gallons replaced by biodiesel produced in the Delta Baseline: 0; Today: 1360 gallons
Built# of micro refineries functioning within the value chainBaseline: 0; Today: 1 micro-refinery on campus of MidSouth CC fully operational
Political # co-sponsors on renewable and energy efficiency bill and how far the bill advances in the political process. Baseline: 0; Today: 10 legislators; 4 bills approved by committees
Financial Value of external investment in value chain. Baseline =0. Today 5 local investors committed to invest $1.2 million.
Principle #4: Measurement is used for planning and adaptive management.
Discussion Question
In what ways are you building and measuring outcomes that go beyond
jobs and income?
Share some examples
Value chain meeting in January 2012
focused on ownership structures
Principle #5: Wealth sticks in rural areas through attention to structures of ownership and control.
1. Entrepreneurial Model: Individual/local investors purchase refinery to serve local and regional markets
2. Farm Coop Model: Coop owns refinery and converts farmers’ crop into fuel for on-farm use on a contract basis
3. Municipality owns refinery and leases it to entrepreneur with right to purchase % of output
Intentionality: Focus on micro-refinery that costs $250,000 enabling investors to be local and wealth to stay in local
communities
Principle #6: The WealthWorks approach is strategically flexible while doing no harm.
1. Members introduce new opportunities Solar Bioenergy
2. Problem solving together Financing barrier led to 3 potential models
3. Connectedness Community leaders Market players Political influence
4.Do no harm – how to grow camelina with fewer chemicals
Transformational Benefits of a Value Chain
Intermediary’s role: Maintain values, do no harm
Central Appalachia
Energy efficient housing, energy efficiency, food, forestry
Alabama Black Belt and Mid-South
Renewable energy, investment, forestry, food, community-based tourism
Lower Rio Grande Valley region in Texas
Green housing/neighborhoods, literacy
Where are we working on the ground?
Visit:www.wealthworks.org www.altconsulting.org
Join the Community of Practice:www.ruralwealth.org
Contact:Deborah Markley
Center for Rural Entrepreneurship919-932-7762
For More Information