In her Mukuru home on July 4th, she showed the Nike guest her products and knitting machine. He bought a baby outfit and scarf. Cecilia explained how she almost had enough money to buy a more compact knitting machine for herself. Then she would hire and train another girl to use the current device, thus expanding her business capacity by 100 percent.

It is people like Cecilia who are the hope for Africa, especially African women. Her smile and enthusiasm are contagious. She is a natural leader, organizing her Mukuru YWE alumnae and friends to build better businesses through improved record-keeping, stock purchasing, etc. I fully expect that in 10 years or less, with her entrepreneurial savvy, she will run a very successful business with multiple employees and locations. With her leadership skills, I predict she will someday be a Kenya Member of Parliament.

A woman selling used clothes and other goods at a typical market on the outskirts of Nairobi at this typical “kiosk” which can be seen anywhere outside the main office districts of Nairobi.

Lake Nakuru National Park, located in central Kenya, is home to many thousands of flamingoes which love the plankton that grow extensively in the alkaline Lake Nakuru and similar nearby lakes.

Peponi Hotel is the premier place to stay on the tiny island of Lamu off the coast north of Mombasa, Kenya, known for its mixed Arab-African aka Swahili culture.

The traditional buildings on Lamu Island off the coast north of Mombasa, Kenya, are constructed with “bricks” containing local shells, as seen from the top of one building in Lamu Town.

Along the Kenyan coast and around Lamu Island, a key form of transportation is the “Dhow” boat—viewed from our hotel. Typically used by old Arab traders, they still move most of the island’s goods, local folks, and tourists to and from the mainland.

“Matooke” are starch-bananas (vs. our typical, sweet banana), which are a staple in most of Uganda. TechnoServe Uganda advisors, seen here, work with Matooke farmers to improve their livelihoods by increasing harvests, providing market connections, and helping diversify their crops.

Ugandan smallholder “Matooke” farmers often transport their harvest by bicycle to their local co-op on market day.

Matooke bunches are consolidated at regional co-op sites to be trucked to larger Ugandan markets like Kampala.

Advised by TechnoServe Uganda staff, some Matooke farmers have diversified their crops with other produce like potatoes, seen here with a woman farmer.

Some Matooke farmers, seen in central Uganda, have added dairy cows to supplement their income.

Based on TechnoServe Uganda advisors’ recommendations, some Matooke farmers have diversified their income with goats, for their milk, and chickens, for their meat.

To memorialize the estimated 500,000 to 1 million Tutsis and moderate Hutu tribespeople slaughtered during 100 days in mid-1994, Rwanda constructed a garden and museum for viewing by both Rwandans and foreign visitors.

The Grand Prize Winner of the Young Women in Enterprise (YWE) Business Plan Competition in 2007 was Cecilia Katungwa from the Mukuru slum in Nairobi. Besides a new mobile phone she won the equivalent of several hundred dollars to expand her successful but small knitted-clothes business.

Wendy accompanied her Young Women in Enterprise (YWE) colleagues in giving a tour of the Mukuru slum in Nairobi to the visiting Nike Foundation representative. Entering the slum required crossing over the “river.”

The purpose of touring Nairobi’s Mukuru slum with the Nike Foundation representative (the major program donor) was to visit a few Young Women in Enterprise (YWE) members, requiring us to walk down typical streets there.

One YWE program manager, Esta Kamau, led us toward Cecilia Katungwa’s and other YWE club members’ businesses down a side street through Nairobi’s Mukuru slum, when we were visiting there with the Nike Foundation representative.

One YWE club member’s business in Nairobi’s Mukuru slum was a milk kiosk where the young woman owner provided healthy boiled milk in clean cups to the local residents, like the children seen here.

Managing Budgets and Donors

As with many companies and non-profit organizations, in TechnoServe, fall is the time for planning and budgeting for the upcoming year. In every organization, matching expenses with revenues is a challenge. There are always too many good ways to spend money to improve performance than can be justified by existing or planned revenues. Hopeful managers who submit prospective budgets are almost always disappointed as their superiors are forced to cut back their anticipated expenses. Although I had gone through this many times in the commercial sector, I had to learn some new twists common to nonprofit development organizations. As with most other similar organizations, TechnoServe’s revenues come primarily from project awards. Government agencies, such as USAID, corporations, and large foundations provide TechnoServe with a fixed amount of money for a particular period of time to accomplish specific goals. For example, USAID might provide TechnoServe with a three-year grant to increase the incomes of cashew farmers in a particular area by 50 percent. Since most projects last several years, the majority of the next year’s funding is already committed when the annual budget has to be created. However, the abrupt starts and stops of project funding make it very difficult to create a consistent level of funding and a smooth budget.

The idea of programs with fixed budgets, specific objectives, and limited timeframes is a good one for accountability; but it generates challenges for the organizations receiving the grants. As anyone who has worked in a project-based organization knows, there is always a challenge of matching resources (primarily people) to a changing workload as projects come and go. It was a particularly challenging year for the Kenya office since a big project was ending, meaning that a lot of people would be available but would not immediately have work. We had proposed a number of new projects but hadn’t heard back yet from the potential donors. For some organizations, this would not have been a problem because they hire people to do a specific project and immediately let them go when the project finishes. TechnoServe believes that it can produce a greater impact by having a longer-term commitment to its employees and continuity in its ongoing development operations in the countries where it has its offices. They try to maintain a portfolio of development projects and balance resources to meet the requirements.

Usually TechnoServe was able to maintain a core of highly experienced employees in all of the country offices, but there were fluctuations in employment levels as programs came and went. Some practices in the donor community make this situation harder for all development organizations. First is the project orientation of nearly all donors. This is a manageable challenge when the projects are long enough (minimum three years) and the donors’ priorities don’t change too radically over time. Some donors are very good about establishing and maintaining their direction; others jump around to the “cause du jour,” making it difficult for their grantees to have any continuity in their programs. Another challenge is that donors want their recipients to spend exactly what they have been granted, no more and no less. In the private sector, it is usually good to come in under budget on projects. In the development community, donors want you to spend all of the money they gave you to do exactly what you said you would do. They don’t want you to shift their money to other programs or to give it back to them. And of course, they are not willing to pay for overruns. Under-budget projects are usually handled through “no cost extensions” that allow the projects to continue a little longer than planned and help a few more people.

A third challenge to nonprofit organizations is donors’ previously mentioned aversion to anything called overhead or administration. Donors justifiably want as much money as possible to be spent directly on the intended beneficiaries in the field and not on people doing administration in offices. However, someone has to answer the phone and greet people at the office door; someone has to keep track of the money being spent and someone has to be developing a proposal for the next project. Donors recognize the necessity for all of these; they just don’t want to pay for them. They want these expenses to be paid from some other source of funds. One of the consequences of all of these practices is that organizations like TechnoServe cannot afford to have employees without immediate project assignments. That is the reason we were so concerned as we prepared our budgets.

Along with the budgets, Fred had a number of people in the office preparing concept papers for potential new projects. A concept paper is a three-to-five-page document describing a potential project, its costs, and its benefits. These are used to begin a discussion with a donor who may be interested in funding the project. If a donor is interested, a detailed proposal is developed. Wendy and I became the reviewers and editors for all of the concept papers. Although we had no experience as English teachers or professional editors, our skills in English and mine in finance were critical.

Although all of our office colleagues spoke English very well, we discovered that for most of them, it was their third language. Typically, their first language had been the local tribal language for the area where they were born. Their second language had usually been Swahili. Finally, at some point in school, they had begun to learn English, and they developed their proficiency throughout their further education and business careers. English was the language of business, but most people in Nairobi felt more comfortable speaking Swahili in social settings. On top of this, most of our colleagues were skilled in consulting with smallholder farmers or small business owners. Their skills were not in proposal writing or cost-benefit analysis. For a while, Wendy and I felt like teachers correcting compositions. Although many of the ideas for new projects were good, they were often not well presented in a well-structured and logical manner. And some were not financially justifiable. We reviewed, edited, and commented on the papers and then returned them to their authors for rewriting and more review. After several rounds, we got a number of concept papers into very good shape and sent them on to headquarters for donor discussions.

Finals of the Business Plan Competition

Kenya’s business plan competition (Believe, Begin, Become—BBB) had progressed through several phases as contestants’ business ideas were turned into business plans while the contestants advanced through several rounds of competition. After the first judging, the remaining contestants got training in business concepts and the necessary components of a business plan. As they reached the finals, contestants received individual mentoring to refine their business plans for presentation to judges selected from the local business community. The top prizes were cash grants to establish or grow a business. Secondary prizes consisted of further professional coaching on establishing a business.

Although TechnoServe had previously run these competitions in numerous countries, the participation and competition in Kenya was at a level we had never seen before. The Kenya BBB got nearly six thousand entries. The TechnoServe BBB team had carefully developed the logistics and recruited volunteers from the United States, Europe, and Korea to handle the anticipated large number of entries, but it was still a huge challenge. It was also very exciting, both inside and outside of TechnoServe, to watch the contestants make progress as they were narrowed down. Wendy and I were excited and booked our return flight to the United States so that we could watch the final awards presentation.

The final ceremony was held in the Jomo Kenyatta Convention Center in downtown Nairobi, an impressive venue that stands out on the Nairobi skyline. The main hall is arranged as a circular amphitheater with tiered seating, somewhat like a smaller version of the UN General Assembly Hall. The atmosphere was charged as well-dressed finalists and their supporters arrived from provinces throughout Kenya. Bright lights glared as sponsors and government officials were interviewed and videotaped. The proceedings began with speeches praising the contestants as well as extolling the importance of the competition and its value to the Kenyan economy. Attendees listened politely, but everyone was waiting for the announcement of the prizes.

As the various prizes were awarded, there were cheers from the supporters of the winners, but these winners also knew that they had not won the grand prize. This was to be the last announcement. When the grand prize winner was announced, the applause was thunderous. Many of the other contestants, sponsors, and TechnoServe employees had met the winner and knew her fantastic story.

Two weeks prior to the awards ceremony, the final judging process had occurred. All of the final contestants had been taken to a one-week offsite retreat. Early in the week, the contestants had been given training in presentation skills and coaching on turning their business plans into presentations to be judged. Later in the week, the contestants made their presentations to the judges and the winners were chosen but not announced. Unfortunately, on the second night, a young woman contestant, Jacqui, was taken to the hospital with acute appendicitis and had her appendix removed. Like the successful entrepreneurs I had observed in Silicon Valley, Jacqui was not going to be held back by this misfortune. She knew that the BBB was a great opportunity so she left the hospital two days later, and somewhat weak, with her mother and sister providing support, made her business presentation to the judges. I don’t know if her determination had a major influence on the judges because she had a very thoughtful plan for the business that she had already started and was already demonstrating excellent growth. We had heard this amazing story and cheered loudly with the rest of the crowd when her name was announced as the grand prize winner.

It was an inspiring end to our time in Africa, and we felt good. We hadn’t changed the world overnight, but we had helped to get some people out of poverty and on the road to more productive and satisfying lives. We had been able to utilize our business skills and experience and provide unique capabilities to help solve a variety of diverse challenges. On the personal side, we made amazing connections with our colleagues who came from entirely different backgrounds but were committed to the same goals, and many of them remain our friends. We also had a wonderful adventure exploring places, cultures, and environments very different from our typical routine in the United States. We were ready to go home, but our time in Africa had been a wonderful experience.