By Anna Dirksen, PSI Consultant
This week, US President Barack Obama travels to Kenya for bilateral meetings and to attend the annual Global Entrepreneurship Summit (GES). It’s his first trip as President to his father’s native country and an important moment for both countries.
Kenya has emerged in recent years as the central hub for African innovation and entrepreneurship. Beyond his personal connection to the country, President Obama is also closely connected to the issues being discussed at the GES, having elevated entrepreneurship to the forefront of the United States’ engagement agenda during his historic speech to Muslim communities in Cairo in 2009. This year’s GES will be the sixth consecutive year in which entrepreneurs, business leaders, mentors and high-level government officials meet to help expand entrepreneurship throughout the continent.
One of the key discussions taking place this year will focus on building a “double bottom line,” namely how entrepreneurs, including NGOs, can build successful models that create innovative solutions to some of the world’s greatest challenges while also generating sufficient returns on investments to ensure sustainability.
This approach is at the heart of some of PSI’s most successful programs in the region and our social franchising for health programs are arguably among the most successful and most sustainable of the lot. Just like the franchising of restaurants and retail outlets, PSI’s social franchises apply commercial franchising strategies to improve health in developing countries, helping to guarantee high quality service and affordable pricing no matter the location.
In any franchising situation, there are three key players:
- The Franchisee: In PSI’s case, this is an in-country health provider or business operator that owns and runs a health care franchise.
- The Investors: Individuals or organizations interested in giving or lending money to a health care franchise.
- The Clients: In this case, the local community that is served by the health franchise.
The clinics and health centers in PSI’s network are owned and operated by health care providers who agree to deliver quality health services and products to clients at affordable prices. Franchises must maintain quality standards and are able to increase their clientele through the strength of a recognized and trusted brand.
This approach helps create and strengthen markets for health products and services, increasing access to life-saving products and services for customers while improving the quality of private sector health care delivery. While customers receive more convenient, affordable and higher-quality health care, franchise owners benefit from increased revenue from an expanded clientele and are offered opportunities and training to improve client satisfaction. They also receive access to bulk purchasing rates, which allows them to keep prices competitive and affordable for all. Social franchising also helps relieve the burden on the public health system, freeing up valuable public resources so governments can dedicate funding and personnel to the issues and areas that need them most.
PSI’s partners at the University of California, San Francisco (UCSF) have produced a series of videos to better explain this novel approach to achieving the double bottom line. The videos feature the social franchise created by PSI network member PS Kenya. The Tunza Family Health Network has been operating in Kenya since 2008 and provides quality health care to low-income and vulnerable populations.
The first video in the series follows Robert Nyaroo, a program officer at Tunza as he travels to clinics in Mombasa, Kenya to provide support to the private providers who are part of the network.
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The next video highlights the role community health workers play in reaching out to clients and shows the positive impact on individuals and families in the community.
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PSI is constantly learning and improving in the delivery of its social franchising programs. Obama’s visit this weekend — while no doubt focusing on a wide range of topics — will be an important opportunity to focus on the future of social franchising for health and other sustainable solutions to the world’s greatest challenges. To read more about social franchising, visit PSI’s Franchising for Health page and check out PSI President and CEO Karl Hofmann’s take on the future of social franchising.
Photo credit: Chuck Kennedy, The Official White House Photostream on Flickr