Unlocking Communities

Haiti faces some of the worst natural disasters, deforestation, and shortage of resources on the planet. Unlocking Communities takes a different approach to help unemployment, the struggling economy, and lack of resources. We use a social enterprise model that brings sustainability through empowering Haitians. Unlocking Communities’ work is truly led by each community. Each step of our model is meant to have a positive impact on the lives of the communities we work with. The entrepreneurs are trained in business fundamentals, disaster resilience, personal finance, and WaSH (Water, sanitation, and hygiene practices) education. They are then loaned products such a water filtration system to sell to their communities which they receive a commission from. Scaling this model to 40 countries by 2050 would reach 400 million people with access to clean water and economic savings. At scale, this could be achieved at a cost of less than $2 per person. 

With a population of almost 11 million people, Haiti has many challenges that range from vulnerability to natural disasters to water sanitation issues. There are many issues that the Haitian people face, but these are a few of the problems that Unlocking Communities is attempting to address with our program:

• Environment: Haiti is vulnerable to natural disasters, has overpopulated communities, lacks natural resource protection, and is the home to the largest city with no sewer system. 60 % of their energy is produced by burning wood charcoal. 

• Economy: Haiti is the poorest country in the Western Hemisphere with 2/3 of Haitians living in poverty.

• Employment: The average annual income per capita in Haiti is approximately $729 with 13% unemployment and high underemployment.

• Water: 51.1% of Haitians lack access to water and sanitation.

Globally, 1.5 million people die every year from water related diseases. Solutions to prevent these deaths exist, but have failed to reach the people in remote communities who need them at scale. The barriers have included (1) challenging business operating environments; (2) scale of operations to solve the global problem; (3) lifespan of products; and (4) local understanding of the benefits of the products. 

Our model begins when community partners form a community business. Then, local staff train entrepreneurs in business basics, personal finance, disaster resilience and WaSH education which they use to effectively market
products to community members. We then supply entrepreneurs with in-demand, environmentally beneficial products such as water filtration systems and clean burning stoves to sell, with commission the community business then reinvests the repayments in additional inventory, and the cycle begins again. With plans to scale by 150% this year, UC continues to see exponential growth (monthly sales growing by 100% to 150/month) in Haiti and we want to scale this model to achieve global outcomes.

Unlocking Communities works with low to middle income families in rural communities who do not have access to clean water and sanitation. Our country manager, Ernso, is the face of our organization and along with community partners helps us to make connections with the communities. As a Haitian native he best understands how to address the needs of the communities. The outcome of our model is that the businesses are all locally-run and entrepreneurs are selling locally-made products. The entrepreneurs who are trained in water and sanitation practices will then act as trainers themselves and inform their communities about these practices and the health and economic benefits of the water filtration systems. This solution will provide entrepreneurs with the education and tools for entrepreneurs to start their own businesses and communities with the products to have access to clean water and economic savings.

Solutions for these problems exist but they are unable to reach a scale because they aren't done in sustainable ways. Our solution helps get sustainable, locally made products into the hands of hard to reach communities using a hyper-local trust network. We have the potential to scale because we leverage local partners and talent who have established relationships of trust in their communities. This leads to economic prosperity because of the cost savings achieved through the products. At a global scale we could achieve up to $60 billion in savings by not having to buy plastic water bottles or charcoal.

A typical distributor of a product like our water filtration systems would sell them through urban supermarkets, which serve urban customers with disposable income. Unlocking Communities reaches rural communities by using a hyper-local distribution network: our trusted partners identify high potential entrepreneurs to sell our products on low to no-interest loans.

Our core technology is a hybrid between our education delivery method and our products which includes water filtration systems and clean burning stoves. The products are a sustainable and cost-saving alternative to buying plastic bottles of water and charcoal, helping families achieve long-term economic savings. The commission the entrepreneurs make from selling the products in addition to their business trained can be used to start their own business ventures. 

The ceramic filters sold through Unlocking Communities’ Community Entrepreneurs impacts health and development in the following ways:

• Households using the filters avoid waterborne diseases, improving health, earnings and school attendance

  • By early 2020, 750 water filters had been sold providing over 4000 people with clean drinking water

  • Direct costs saved from clay water filters: $150 per year (USD)
    

  • This will reduce incidences of waterborne disease, preventing sick days and lost wages

  • Children who miss fewer days of school due to illness are more likely to stay in school. Each additional year of schooling results in a lifetime increase in wages every year

• Households may be able to access supplies of water which are closer to home, even if they are dirtier, knowing the water will be filtered, thereby saving especially women and girls from hours of water-fetching drudgery per week

  • If a woman saves more hours per week in fetching water, she can use that time for work, household production or leisure

  • If a girl saves more hours per week in fetching water, she can use that time to study and is less likely to suffer bone deformities from carrying heavy loads

We believe our model proving rural communities will invest in products that save lives can be transcribed globally by tapping into community trust networks.

Summary of intended outcomes: 

• Improved Health: By 2022: 50,000 rural Haitians will have access to clean water. Long-term we have the potential to eliminate 1.5 million deaths from water-related diseases each year when we scale globally. 

• Wealth Creation:  By 2022: UC will have generated $55,000 in commissions by 1200 entrepreneurs in 60 communities. Increasing income by upwards of 100% for some entrepreneurs. Long-term our commissions paid could top $440 million. 

• Environment: UC’s impact on the environment will result in over 35,000+ trees being saved over the first 5 years of the filter's life in Haiti alone.

• Cost Reduction: UC will have saved communities $7.5 million dollars in recurring costs that include purchased water, healthcare costs, etc. This number can double as we sell other products like clean-burning stoves.

Currently: In 13 communities Unlocking Communities has trained over 150 entrepreneurs and has enabled  access to clean water for nearly 5,000 people.

In One Year: Through the end of 2021, Unlocking Communities will enter 40 additional communities, will have trained an additional 200 entrepreneurs, and enabled access to clean water for nearly 25,000 additional people.

In Five Years: By the end of 2026, we will impact 750,000 people in three countries leading to $112 million in economic savings. Over 5,000 entrepreneurs will be trained. Nearly 530,000 adult trees will be saved through reduced CO2 emissions.

Next Year: Through the end of 2021, Unlocking Communities will enter 40 additional communities for total operations in 60 communities across Haiti. This year we will sell 5,000 water filtration systems for a total of 7,000 systems sold since Unlocking Communities began.

Internationally, through the end of 2021, Unlocking Communities will enter one new country in collaboration with partner organizations. This year the partner organization will enter five communities outside of Haiti. Additionally, the partner organization will sell 600 water filtration systems.

Strategic Goals for 2021

• Opening a water filtration system factory in Haiti with one full-time staff and one part-time staff.

• Moving the US staff to two full-time staff or one full-time staff and three part-time staff.

• Moving the Haitian staff to one full-time staff and one part-time staff who transitions to full time by the end of the year.  

• Improve Filter Technology: 100% of Haitians in the communities we worked in told us they urgently needed a filter, but couldn’t afford it. We estimate we can drop the manufacturing cost of the filter to $8 (~80% reduction). By the end of 2021 years we will have a researched, tested and updated filter design to use as we scale globally.
  

Next Five Years:

• Factories open in three countries. 
• 500+ community businesses open with in-country staff in-place in each country. 
• Implementation of logistics management software. 
• Expand pilots of additional products such as solar powered lights and stoves. 

Unlocking Communities faces a number of challenges, both in changing the mindset of the Haitian people and logistics. 

People in Haiti do not budget because they are living day to day and a significant number struggle to do math without the help of their phone. This makes it hard for them to understand how much money is spent each year on bottled water. Lending to this issue is the fact that other nonprofits distribute products for free in some communities. Because these products are handed out for free, recipients do not value them the same way one values a product they have purchased and thus, they do not last. 

When it comes to running the Unlocking Communities, we are still struggling with Community Entrepreneur retention due to paying them enough commission to keep them engaged while knowing that every dollar more you pay a commission you price some people out of the market that needs one. This factor also leads to an ongoing struggle to find the price point for the products we are offering where we can be sustainable and the Community Entrepreneurs are making enough and are still providing the business enough operating capital. 

One of the ways that Unlocking Communities overcomes these barriers is providing a product that is desirable and by working to make it affordable:

• Cost → Providing microloans to individuals buying our product and give roughly 6 months to repay the filter or the stove

• Availability → We commission water filtration systems and clean burning stoves to be made on the island with low transportation costs and increase in jobs. These are the longest-lasting solutions that these communities have ever seen

• Education → We provide training to our entrepreneurs who then educate their community on the need and ROI of these products

• Sustainability → By not giving away these products for free, we create Haitian jobs while ensuring longevity that will allow us to impact a limitless percent of the population

• UC Team → The UC team consists of a diverse network of talent who are experts in their fields. These professionals include a civil engineer/economist with water expertise, a global health practitioner, an international regulatory attorney with decades of experience across the developing world, logistics and manufacturing industry leaders,, education professionals, a University dean whose interests intersect business and ethics, and large-scale non profit leaders. The UC leadership has convened this group of committed employees and volunteers to achieve  global outcomes and their experiences increase the probability of success.

We have two full-time staff members, one part-time member, 15 volunteers, and 13 board members.

This team is uniquely positioned to solve the global water crisis because our team is composed of experts from diverse fields. Founder and CEO Josh has led the marketing and development division and his early exposure of the struggles in Haiti gives him a unique perspective. His passion and ability to think creatively gives him the ability to find the best talent network to share his vision for expanding Unlocking Communities globally. Ernso Sylvian, Country Manager, is a successful entrepreneur who has already scaled a farm turning a 40% profit and founded the only English institute in the region. As a Haitian native, Ernso is best equipped to make connections and build relationships with the communities. He has single-handedly motivated a team of 150 entrepreneurs to grow Unlocking Communities' impact. The Unlocking Communities team consists of a diverse network of talent who are experts in their fields. These professionals include a civil engineer/economist with water expertise, a global health practitioner,an international regulatory attorney with decades of experience across the developing world, logistics and manufacturing industry leaders,, education professionals, a University dean whose interests intersect business and ethics, and large-scale non profit leaders. Unlocking Communities leadership has convened this group of committed employees and volunteers to achieve  global outcomes and their experiences increase the probability of success.

Partnerships are essential to the work of Unlocking Communities. Our partners range from local churches and community groups in each community we are present in to larger partnerships with international nonprofits who are interested in our grassroots approach and bring connections to all the communities they are present in. We have the honor to be a partner of the Clinton Global Initiative which provides us access to a network of vetted partners in Haiti. 

Much of our funding to date has come through small organizations and churches based in the US that are currently working in Haiti and partner with us to deliver the program in the communities they are affiliated with. 

We also currently partner with Wine to Water who produces the filtration systems for us until we are able to move production into Haiti. D&E Green Enterprises is our other supplier partner who supplies the clean-burning stoves we sell. We have an additional 10-15 partnerships in various stages of formalization with organizations like the Red Cross and Heifer International to name two of the largest. 

When we reach scale our model is as follows: Each system will sell for ~$22 which is spent as follows: $8 cost of the filter, $5 commission, $6 to cover in-country staff and operations, $.50 toward a fund for defaults resulting in profit of $1.5 per filter to cover US operations and loan repayments.

Our revenue model will come from a hybrid of a social business selling the filtration systems and clean burning stoves. We are currently fronting the start-up costs with foundation and individual support. Long-term we might take on debt to scale. 

We are applying to SOLVE to raise the profile of our work and to gain additional capital to scale. We look forward to sourcing talent from the SOLVE network.