“To empower marginalized communities and protect our natural environment by offering business and sustainability training to entrepreneurs developing environmentally conscious businesses that create jobs and stimulate local economies.”
The Sustainable Business Development Program (SBDP) by R.O.L.E. Foundation aims to provide sustainable business consulting and support to local entrepreneurs and businesses. The SBDP will:
- Maintain full-time staff dedicated to business and sustainability training and consulting
- Connect entrepreneurs with a core group of mentors including lawyers, accountants, and engineers
- Promote foreign investment by connecting sustainable businesses with investors
- Collaborate with existing businesses to implement sustainable corporate policies and initiatives
- Remain committed to job creation, fair trade principles, sustainability, and supporting marginalized communities
Indonesia’s GDP rose by 5.02% in 2016, up from a 4.88% increase in 2015. Household consumption provides around 56% of the nation’s GDP, and it increased by 5.01% in 2016. While investments were up 4.48% last year, the country’s modest economic growth is unappealing. Furthermore, these numbers fail to account for the depreciation of the nation’s natural assets, and the economic impact of depleting resources. The World Bank’s “adjusted net savings rate” is a form of so-called “natural capital accounting” that factors in these environmental costs. A positive adjusted net savings rate means the country’s social welfare is increasing, while a negative adjusted net savings rate indicates a decline in wealth and suggests that the country’s economic growth is unsustainable. Unfortunately, Indonesia’s adjusted net savings rate is volatile. In 2011 and 2013, the country saw a negative adjusted net savings rate, and World Bank data suggests only a modest improvement since 2013. Indonesia is a country rich in natural resources, but a deeper look at the environmental impact of the nation’s activities reveals a disturbing forecast.
In light of the economic and environmental situation, ROLE Foundation endeavors to create a resource center for individuals who wish to improve Indonesia. The SBDP on Bali will focus on both economic sustainability and environmental sustainability. By training local entrepreneurs, existing businesses and investors in these two prongs of sustainability, ROLE Foundation aims to empower communities to dictate their own futures. Furthermore, as ROLE Foundation builds upon years of teaching experience with the new SBDP, and expects to create a replicable teaching and incubation model for communities across Indonesia.
The Triple Bottom Line Approach
The traditional measure of a successful business is profitability. While profitability is certainly an important element of any business venture, the SBDP adopts John Elkington’s famous “triple bottom line” approach. In addition to pursuing profitability, all businesses working with the SBDP will also measure and pursue sustainability and social responsibility. Companies that follow the triple bottom line approach look beyond financial considerations and consider global impact. Companies are the building blocks of our civilization, and a sustainable foundation that emphasizes fair trade and human rights is critical to a prosperous future for all.
Business managers are familiar with traditional financial metrics. Our staff at the SBDP will be prepared to train entrepreneurs and local business managers in accounting and basic corporate finance. Sound financials are critical to all successful businesses, and the SBDP will focus on creating lasting and self-sustaining entities.
The SBDP will provide businesses with a framework for measuring their environmental impact. All businesses trained at the SBDP will learn to monitor air and water quality, energy consumption, natural resource use, solid and toxic waste management, and land use. Businesses will be taught to identify the impact of their projects, including: sulfur dioxide concentration, concentration of nitrogen oxides, selected priority pollutants, excessive nutrients, electricity consumption, solid waste management, hazardous waste management, fossil fuel consumption, and more.
The SBDP will endeavor to imbue businesses with a sense of community and a commitment to improve the lives of individuals. Central to the goal of social responsibility is a commitment to fair trade principles, job creation, education and training, employee rights, and overall support for marginalized communities.
Fair Trade Principles
In utilizing the triple bottom line framework, ROLE Foundation is committed to promoting the following fair trade principles as formulated by the World Fair Trade Organization:
- Creating Opportunities for Economically Disadvantaged Producers
- Transparency and Accountability
- Fair Trading Practices
- Payment of a Fair Price
- Ensuring no Child Labor and Forced Labor
- Commitment to Non Discrimination, Gender Equity and Women’s Economic Empowerment, and Freedom of Association
- Ensuring Good Working Conditions
- Providing Capacity Building
- Promoting Fair Trade
- Respect for the Environment
All sustainable businesses working with the SBDP will comply with the above principles, and ROLE Foundation staff will offer consulting to existing businesses on these fair trade principles.
Who Are We Helping?
According to data from The Bali Central Bureau of Statistics, economic growth on the island is increasing due to tourism. Unfortunately, despite this economic growth, poverty runs rampant and the income gap is expanding. Many traditional industries such as seaweed farming have declined dramatically. As these segments of the economy collapse, workers who are not suited for hospitality struggle to find reemployment. As the following tables reveal, poverty in Bali has increased substantially since 2012. The situation is in dire need of improvement, and the SBDP is designed to create well-paying, sustainable jobs and lift marginalized individuals from poverty.
Sustainable Pilot Programs
ROLE Foundation has long seen the potential of sustainable businesses as a means of economic development and support for the environment. The Bukit Women Weavers Association and S.O.A.P. are two programs under ROLE Foundation that exemplify sustainable operations. While these programs are funded by ROLE Foundation, and the Sustainable Business Development Program will work with outside entrepreneurs to establish independent businesses, both programs demonstrate ROLE’s institutional teaching capacity and project management expertise.
The Bukit Women Weavers Association
Small-scale artisans have historically played an essential role in Balinese society, producing specialized cultural items such as textiles, baskets and medicines using only natural ingredients and materials. The Bukit Women Weavers Association employs local women to craft textiles using traditional techniques and environmentally friendly components.
Our weavers use organic cotton and produce natural dyes from local plants such as noni roots (orange and yellow), sappan wood (red), kibatalia arborea wood (chocolate brown), mango leaves (lime green) and indigo leaves (indigo blue). Natural plant-based dyes produce an extraordinary pallet of colors without using any toxic or polluting chemicals. While the project produces environmentally friendly products, it also offers employment to women on the Bukit peninsula. ROLE Foundation will begin offering training in order to replicate the success of The Bukit Women’s Weavers Association across Bali.
S.O.A.P. stands for Sustainable Opportunity Achieving Possibility, and the program has lived up to its name. Each year, hotels in Bali throw away 75 tons of soap. The soap is often used once or twice, but sometimes not at all. S.O.A.P. collects, sanitizes and reprocesses this soap to create fresh bars for local orphanages and other worthy recipients. S.O.A.P. offers skills training and employment for disadvantaged women in the community.
Each month, soap is collected from hotels and villas around Bali and delivered to our small-scale soap re-processing center at the ROLE Foundation campus in Nusa Dua. Based on the number of rooms in the hotel or villa complex, a monthly donation is requested to cover reprocessing, packaging and distribution costs. This money is also used to pay a fair wage to our workers.
Sustainable Business Selection
The SBDP will work with innovative entrepreneurs who are committed to creating businesses that embrace fair trade principles and triple bottom line accounting.
Step 1: Complete and submit an application form. Applications should include a description of the business, including an estimate of economic viability, social impact and environmental footprint.
Step 2: Selected applicants will be asked to submit a more thorough business plan.
Step 3: Applicants with business plans that meet the necessary criteria will be invited for in-person interviews with R.O.L.E. Foundation leadership and the SBDP staff.
How Are We Helping?
The SBDP will work with local entrepreneurs to teach basic business skills and aid in the business startup process. Full time staff will teach and assist all entrepreneurs who are accepted into the program. Services will include:
The SBDP is developing an extensive business training program that will give local entrepreneurs the skills necessary to start a business and navigate the modern economic landscape. ROLE Foundation has years of education experience through the Bali Wise hospitality education program. With the SBDP, ROLE Foundation will put its institutional capacity to work training entrepreneurs in marketing, public relations, accounting, business development, sales, supply chain management, quality control, employee management, leadership and more. In line with the SBDP’s commitment to the triple bottom line approach, all entrepreneurs will also be trained in sustainable business practices and the more nuanced methods of accounting for environmental and social impact.
In addition to training, the SBDP staff will help entrepreneurs with all aspects of their businesses. An emphasis will be placed on developing a viable business plan that follows the triple bottom line framework. Recognizing the necessity for flexibility and adaptability, the staff will be available throughout the startup process as the entrepreneurs experiment with their business plan.
Networking & Development
The SBDP is committed to providing local entrepreneurs with a wider network of support than they would enjoy on their own. The SBDP will offer entrepreneurs access to ROLE Foundation’s databases and contacts. In addition to the SBDP mentor group, the staff will make introductions to potential strategic partners and suppliers.
The SBDP will work to connect entrepreneurs with domestic and foreign investors, and work with entrepreneurs on crowd funding campaigns. While the SBDP does not intend to offer funding at this time, the program may offer seed funding with a debt or equity structure in the future. The SBDP will maintain a contingency fund to help the entrepreneurs in emergency situations.
Indonesian regulations can be daunting for overseas investors. While foreign investors certainly make contributions to large-scale businesses across the archipelago, local businesses do not commonly receive foreign investment. ROLE Foundation recognizes the potential for foreign investment to spur economic growth in local communities, and the Sustainable Business Development Program will work as a liaison for foreign investors and local entrepreneurs. Foreign investors will enjoy introductions to sustainable businesses vetted by the SBDP and support in navigating the Indonesian regulatory framework.
ROLE Foundation has developed the Zero Waste to Ocean Education Center, and launched a campaign to dramatically reduce the amount of waste going to landfills and into the ocean. Through the SBDP, ROLE Foundation will offer its expertise to local businesses interested in sustainable waste management solutions. Many hotels and other businesses in Bali seek environmental certifications. While certifying entities do much to reduce the environmental footprint of these businesses, they often overlook the final destination of waste once it leaves the premises. The SBDP will help businesses take their sustainability efforts a step further by ensuring responsible disposal of their waste. For interested businesses, the SBDP will also offer a full sustainability assessment and broader environmental consulting services.
Staff & Advisors
The SBDP will employ two full time staff members to run the program from the Environmental Education Facility in Nusa Dua. The staff will conduct trainings, maintain office hours, and offer events such as guest lectures in the facility’s amphitheater.
In addition to full time staff members, the SBDP will work with a core group of mentors to lend learned advice to entrepreneurs and businesses working with the center. Overcoming the economic and environmental challenges of today will require expertise in a variety of key areas. Our sustainable businesses will work to conquer engineering challenges, legal hurdles and a host of other issues that face groundbreaking entrepreneurs. We are seeking volunteer mentors who are willing to take on a challenge.
|5 Year Operating Budget (in USD)|
|Revenues||Year 1||Year 2||Year 3||Year 4||Year 5|
|Donations In Kind|
|Staff Member 1 (Full Time)||$3,600||$3,700||$3,800||$3,900||$4,000|
|Staff Member 2 (Full Time)||$3,600||$3,700||$3,800||$3,900||$4,000|
|Misc. Business Assistance||$500||$500||$500||$500||$500|
|Building Maintenance & Repairs||?|
|Office Equipment Maintenance||$100||$200||$300||$400||$500|