Fair Trade StoreStudent Cooperative Supporting Fair Trade

Practices Worldwide

Fred Sconberg, Presenting to:Global Center for Social EntrepreneurshipUniversity of the PacificStockton, California

July 25, 2010

Business Plan

Mission• Help small-scale artisans and food producers from developing countries earn an income, which is above the poverty line, by marketing their goods in Fair Trade Stores on college campuses across the United States.

•Provide income for college students and their student organizations through the sale of Fair Trade products.

•Educate a generation of American College Students on the Value of Fair Trade Principles

Desired Outcomes•Increase annual income by $375,000 to 500 ethnic crafters and 500 fair-trade producing farmers. This represents an increase of $375 annually to each producer. •Increase annual income to 165 students by $375,000, $2,250 per student, which amounts to $250 per month for 9 months. •Generate $62,500 per year in student controlled community development funds.

Innovation•College students’ owned consumer cooperative•Purchase and sell ethnic crafts, garments and food• Produced in developing countries by people living below the poverty level •The direct purchase removes the importer and wholesaler • Increase income to the poor producer•College student’s need additional income •College students have been the leaders in the fair trade movement •Educating the students on fair trade principles, having them promote fair trade on campus and in their communities and learning entrepreneurial skills

Fair Trade Principles1. Create Opportunities for Economically and

Socially Marginalized Producers – 2. Development Transparent and Accountable

Relationships – 3. Build Capacity – 4. Promote Fair Trade –5. Pay Promptly and Fairly – 6. Support Safe and Empowering Working

Conditions – 7. Ensure the Rights of Children –8. Cultivate Environmental Stewardship –.9. Respect Cultural Identity

Value Proposition 

•Small-scale ethnic crafters, garment workers and farmers •Struggled to earn an income through their hard work•Market of U.S. consumers •Earn money to buy food, water, clothing, healthcare and education for their children and themselves •With these enhancements to their lives they can live a life of dignity

Value Creation•Dignified life for the small-scale artisans and farmers•Capacity to buy water, food, clothing, sanitation, healthcare, and education • Students will have college jobs

•Steady source of income for community development

•The future of treating people and the land with dignity and respect will be well served by a generation of educated, compassionate leaders

Clients and Beneficiaries

Beneficiaries Poor Producers in Developing Countries

College Students Recipient of Community Development Funds

 

CustomersCollege StudentsLocal Business

Retailers Individuals

The University

Environmental Enablers

Lack of MoneyLimited Choices to Sell Products

Export ExpenseLow Per-Piece Rate

Not OrganizedFair Trade Principles

Potential Obstacles and Risks

•Operational Risks

•Managerial Risks

•Financial Risks

Strategy to Serve Market

•Operating Fair Trade Stores on College and University campuses in the United States.

•Owned and Operated Cooperative • The ethnic crafts and food purchased from producer in

developing countries •Producers earn their way out of poverty

•U. S. students earn income•Educate a generation of future leaders on the value of entrepreneurship and the power of the consumer dollar in eradicating poverty and sustaining our environment.

Becoming SustainableThe direct action is purchasing ethnic crafts, garments

and food

Price high enough for the producer to earn her / his way out of poverty

The systems-changing social impact will come with scaling the organization.

As the Fair Trade Stores grow they will be able to purchase and sell more products, in turn increasing the

income of more poor producers

Higher price per-piece College students earns an income

Sustainable Advantage•Millions of Small-scale Artisans and Farmers

•4300 Colleges and Universities in United States

•18.2 Million Students

•Principles of Fair Trade benefit all people and the environment

Cooperative Structure

Management Structure

Projected Income Statement

Year 2011 Year 2012 Year 2013

Sales 404,286 932,800 1,278,000

Gross Profit 162,000 373,114 511,143

Operating Expense

253,000 332,000 393,865

Net Profit/Loss <131,000> 41,115 117,300

Distribution of Income

Year 2011 Year 2012 Year 2013

Producer Income

121,000 280,000 383,000

Student Income

121,000 280,000 383,000

Sustainability Fund

20,000 46,000 64,000

Community Development

20,000 46,000 64,000

Scalability / Future Growth

Selection of Management Staff Aug 15 – Oct 15, 2010Selection of Initial College Campus November 1, 2010Selection of Initial 100 producers December 1, 2010Develop Initial Store Design December 1, 2010Locate and Train Students Nov 1 – Dec 31, 2010Open First Fair Trade Store January 1, 2011

Goal to Have 10 Stores Open Dec 31, 2013

Selling the ModelSource of Income for College Students

Source of Income for Campus Organizations

Education model for Teaching the Principles of Fair Trade

Education Model for Teaching social Enterprise and Social Entrepreneurial

Skills

Conclusion

Fair Trade Stores on college campuses would provide market opportunities, less complicated import-export mechanisms, and less expensive market access for

producers of ethnic crafts and fair trade food products.

A Call to Action

Fair Trade Stores on 10 College Campuses

requires an investment of $200,000

Fair Trade Stores will repay the investment within 5 years

2% interest

Fair Trade StoreStudent Cooperative Supporting Fair Trade

Practices Worldwide

Fred SconbergGlobal Center for Social EntrepreneurshipUniversity of the PacificStockton, California

July 25, 2010