Harvard Case - Barefoot College of Tilonia: Lighting Up Rural Lives
"Barefoot College of Tilonia: Lighting Up Rural Lives" Harvard business case study is written by Sunita Mehta, Surya Kant Sharma, Raavi Radhika. It deals with the challenges in the field of Social Enterprise. The case study is 13 page(s) long and it was first published on : Nov 30, 2016
At Fern Fort University, we recommend that the Barefoot College of Tilonia (BCT) continue to expand its social entrepreneurship model, focusing on sustainable business models and impact investing to achieve long-term financial sustainability and scale its impact. This will involve leveraging social innovation to develop new programs, strengthening strategic alliances with international organizations, and actively seeking venture philanthropy to fund its growth.
2. Background
The Barefoot College of Tilonia is a non-profit organization founded in 1972 in the rural village of Tilonia, Rajasthan, India. It is renowned for its innovative approach to empowering rural communities, particularly women, through education and skill development. The college's signature program, the 'Barefoot Solar Engineer' training, equips women with the skills to install and maintain solar panels, bringing light and clean energy to their villages.
The case study highlights the challenges faced by BCT in scaling its impact while maintaining its core values of empowering women and promoting environmental sustainability. The organization relies heavily on donations and grants, making it vulnerable to funding fluctuations.
3. Analysis of the Case Study
Strategic Framework: The case can be analyzed through the lens of social enterprise and impact investing. BCT's model aligns with the principles of triple bottom line reporting, focusing on social, environmental, and financial performance.
Key Issues:
- Financial Sustainability: BCT's reliance on donations and grants makes it vulnerable to funding fluctuations.
- Scalability: The organization faces challenges in scaling its impact to reach more communities.
- Market Penetration: BCT needs to develop strategies to penetrate new markets and expand its reach.
- Organizational Structure: BCT's organizational structure needs to adapt to its evolving needs and growth.
Opportunities:
- Social Innovation: BCT can leverage its expertise to develop new programs addressing other rural development challenges, such as healthcare, water sanitation, and education.
- Impact Investing: The growing interest in impact investing offers BCT an opportunity to attract new funding sources and scale its impact.
- Strategic Alliances: Partnering with international organizations can provide BCT with access to new markets, resources, and expertise.
- Sustainable Business Models: BCT can develop sustainable business models by leveraging its existing programs and exploring new revenue streams.
4. Recommendations
1. Develop Sustainable Business Models:
- Social Franchising: BCT can franchise its training programs to local organizations, allowing them to replicate its model in other communities.
- Product Sales: BCT can develop and sell solar-powered products, such as lamps and water pumps, generating revenue and expanding its reach.
- Microfinance: BCT can establish a microfinance program to provide loans to women entrepreneurs who want to start solar-related businesses.
2. Seek Impact Investing:
- Social Impact Bonds: BCT can partner with investors to develop social impact bonds that provide funding for its programs based on measurable outcomes.
- Venture Philanthropy: BCT can leverage its strong track record to attract venture philanthropy from foundations and impact investors.
- B Corporations: BCT can consider becoming a B Corporation, demonstrating its commitment to social and environmental impact and attracting investors who value these principles.
3. Strengthen Strategic Alliances:
- International NGOs: BCT can partner with international NGOs working in rural development to expand its reach and leverage their expertise.
- Government Agencies: BCT can collaborate with government agencies to develop and implement rural development programs.
- Corporate Social Responsibility: BCT can engage with corporations interested in corporate social responsibility initiatives to secure funding and partnerships.
4. Enhance Organizational Structure:
- Professional Management: BCT can recruit experienced professionals to manage its growing operations and ensure financial sustainability.
- Data Collection and Analysis: BCT should invest in data collection and analysis systems to measure its impact and inform its decision-making.
- Marketing and Communications: BCT needs to develop a robust marketing and communications strategy to raise awareness of its programs and attract new partners and investors.
5. Basis of Recommendations
These recommendations are based on a thorough analysis of BCT's strengths, weaknesses, opportunities, and threats. They consider the organization's core competencies, its mission to empower women and promote environmental sustainability, and the need to achieve long-term financial sustainability and scale its impact.
- Core Competencies and Consistency with Mission: The recommendations align with BCT's core competencies in education, skill development, and social entrepreneurship. They also support the organization's mission to empower women and promote environmental sustainability.
- External Customers and Internal Clients: The recommendations consider the needs of BCT's external customers, the rural communities it serves, and its internal clients, the women it trains.
- Competitors: The recommendations acknowledge the competitive landscape of the social enterprise sector and aim to differentiate BCT through its unique model and strong track record.
- Attractiveness: The recommendations are based on the potential for impact investing and the growing demand for sustainable business models. They are expected to generate positive social and financial returns.
6. Conclusion
The Barefoot College of Tilonia has a proven track record of success in empowering rural communities through education and skill development. By embracing social entrepreneurship, leveraging impact investing, and strengthening strategic alliances, BCT can achieve long-term financial sustainability and scale its impact to reach more communities. This will ensure that the organization continues to 'light up rural lives' and contribute to a more equitable and sustainable future.
7. Discussion
Alternative Options:
- Focus on Grants and Donations: BCT could continue to rely primarily on grants and donations, but this would make it vulnerable to funding fluctuations and limit its scalability.
- Government Funding: BCT could seek government funding, but this could come with bureaucratic hurdles and potential political influence.
Risks and Key Assumptions:
- Market Demand: The success of the recommendations depends on the demand for BCT's programs and products in new markets.
- Impact Investing: The growth of impact investing is a key assumption, and there is no guarantee that BCT will be able to attract sufficient funding from this source.
- Partnerships: The success of strategic alliances depends on the commitment and resources of BCT's partners.
8. Next Steps
- Develop a Strategic Plan: BCT should develop a comprehensive strategic plan outlining its vision, mission, goals, and strategies for achieving them.
- Establish a Financial Sustainability Plan: BCT should develop a detailed financial sustainability plan outlining its revenue generation strategies, cost management measures, and investment needs.
- Build a Strong Marketing and Communications Team: BCT should invest in building a strong marketing and communications team to raise awareness of its programs and attract new partners and investors.
- Pilot New Programs and Business Models: BCT should pilot new programs and business models before scaling them up to ensure their effectiveness and sustainability.
- Monitor and Evaluate Impact: BCT should develop a robust system for monitoring and evaluating the impact of its programs and initiatives.
By implementing these recommendations and taking a proactive approach to its future, the Barefoot College of Tilonia can continue to be a leading force in empowering rural communities and promoting environmental sustainability for years to come.
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Case Description
In September 2013, Sanjit "Bunker" Roy was honoured with an award for his vision and leadership in addressing global problems through his novel organization, Barefoot College (Barefoot). Barefoot's mission was to improve the lives of impoverished rural residents by upgrading their existing skills with training so the villages and their residents were self-sufficient. When he started the college in the state of Rajasthan, India, in 1972, Roy never dreamed that Barefoot would be able to affect the lives of millions of people in 24 countries. Barefoot's global footprint was spreading at a rapid pace with requests for even more locations. Roy wondered whether he should freeze the organization in its present state or continue to increase its presence with a centralized headquarters. Alternatively, he could replicate the autonomous model on a smaller scale, still adherent to the beliefs, values, and assumptions that were the foundation of Barefoot College. This case won second prize at the ISB-Ivey Global Case Competition 2016 in the overall category.
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