Unitus
2007-04-14
Susan Milner: Can non-profits be cloned in other cities?
Filed Under:
Q: Can non profits like Kiva, Unitus, or the Grameen Foundation be cloned in other cities? Can microlending non profits be franchised? Can the model be shared for an accelerated global solution? In this instance the problem being a solution to poverty? Many hands make the task light, so I have heard.
Patrick O'Heffernan responds:
Yes, and some have been. There are many offshoots of the Grameen Foundation around the world. Cloned is not quite the right word - replicated in a way that meets local conditions. For a great condensed lesson doing this, see Michael Gerber's book, "The E-Myth". It goes through the "how" of replication and tells why some don't work and how to fix them.
Franchising is also possible, although it has to be thought through carefully. In a franchise, the franchising company is selling something of value - name, formula, business model, etc. It has equity and it requires an investment. NPO's can also sell something of value and transfer equity, but it has to be carefully valued. The trick is to realize that what is being franchised is the business model, the brand, knowledge. Those must be protected in the franchise agreement or they lose their value. That being said, I would question if franchising is the best model for replicating an NGO/NPO. Training and education programs to transfer the working knowledge, rather than selling it and setting up an agreement, may work better. Again, also look to Gerber's books for strong how to's.
Patrick O'Heffernan responds:
Yes, and some have been. There are many offshoots of the Grameen Foundation around the world. Cloned is not quite the right word - replicated in a way that meets local conditions. For a great condensed lesson doing this, see Michael Gerber's book, "The E-Myth". It goes through the "how" of replication and tells why some don't work and how to fix them.
Franchising is also possible, although it has to be thought through carefully. In a franchise, the franchising company is selling something of value - name, formula, business model, etc. It has equity and it requires an investment. NPO's can also sell something of value and transfer equity, but it has to be carefully valued. The trick is to realize that what is being franchised is the business model, the brand, knowledge. Those must be protected in the franchise agreement or they lose their value. That being said, I would question if franchising is the best model for replicating an NGO/NPO. Training and education programs to transfer the working knowledge, rather than selling it and setting up an agreement, may work better. Again, also look to Gerber's books for strong how to's.











