00:15 Hello and welcome to Zoom Africa where we get insights on entrepreneurship and innovation in Africa. Zoom Africa is produced by BoP Innovation Center, the one-stop shop for investors, donors and advisors with a clear interest on inclusive business. For more information, please visit www.bopinnovationcenter.org.
00:40 My name is Ken Owino and in this episode we are focusing on the opportunity for inclusive innovation. Is the inclusive business venture you're about to get into even worth it. To get answers to this question, I talked to Keiran Smith, an entrepreneur who has succeeded in finding an opportunity that is profitable, has a positive impact on the environment, and also targets low income groups.
01:08 Keiran's story is best summarized by the almost cliché phrase, one man's trash is another man's gold. So, who is this man who found a way of turning trash into gold and how does he even do that?
01:24 Visionary person. The new way of business is that you do something good socially economic, environmentally while you're creating the bottom line from an economic perspective for your business. And I think that's the end approach.
01:40 Entrepreneurship is something that has been burning in Keiran's heart that saw him take a huge leap, not only from his corporate job in the bank but also to travel over 6,000 kilometres to set up a business.
01:54 What we started in Zurich in 2010 was a business that is more of a convenience product. And the way it works is, we did the segregation but we started accumulating those materials on the balcony. And there was then the question all of a sudden, who's going to bring it to the drop off station? And no one really wanted to bring it.
02:13 And that's how the idea started on let's create a pickup service that comes to your household, where you pay a subscription fee on a monthly basis for that service. And that's how we got involved into recycling
02:25 Not satisfied with the market in Zurich and seeking a bigger challenge, Keiran decided to move to Nairobi. That is how Mr. Green Africa was set up.
02:36 As we moved along as a business, all of a sudden recyclers, like companies, would come and approach us and would ask us if they can buy the materials we collect. And this is how I then realize, wow, the thing that we thought is waste that we just get paid to collect, is also commodity and you can sell it. And so with that background knowledge and my personal interest in African markets as the next frontier, I also started looking at frontier markets, and Kenya was one of them.
03:07 Keiran moved to Kenya with a firm conviction that there was enough market for plastics. He's approach therefore was centered on finding opportunities in collecting and selling plastics at a profit. To succeed in this he had to look at the market as a whole, and not only the plastics as a problem.
03:25 When you dig in deeper, then you start realizing there's already people who recognized that that's an opportunity. So what are the problems that they are facing or that the value chain is facing? The picker is facing the problem of volatile market prices in transparency, not being paid at all the time. Expensive transport problem. Low quality products can only be sold, and so on.
03:50 So as we moved along, we fixed along the value chain the problems that were existing in that value chain. We looked at it as an opportunity and then fixed the inefficiencies that where in that particular value chain.
04:02 One of the challenges of setting up a business in an emerging market is the lack of adequate information with which to base your crucial decisions. To overcome this, Keiran conducted his own market research. To make an entry into the market with minimal problems, Mr. Green fast offered products that were similar to what other players in the market offered.
04:26 We had a product that everyone else had, but then we obviously started just creating more reliability around it and maybe quality, increased the quality wherever we were able to add in more value. Like in our case, we were selling unwashed plastics. Chips that were unwashed, they were still dirty. And then after that, when we started investing into machinery, we were able to start selling washed chips. Because they're so clean you were able to create a better value proposition as a new type of raw material for the local market, for the local plastic industry.
05:05 After gaining an entry in the market, Keiran then had to focus on a marketing strategy that delivers value prepositions to both his suppliers and his customers.
05:15 We have marketing on two fronts. We buy from the picker who's entrenched in that community and we then transport the goods and process it and sell it then back to the manufacturer who needs that commodity.
05:29 It can be a challenge to manage thousands of suppliers. So, Mr. Green uses technology to manage and track his sales.
05:38 We have centers where we buy from them, but we also use technology. So we have an app that allows us to track and trace every transaction that we make with every supplier. So every supplier has a supplied ID, registers with us. So we have the data of the supplier and we know who they are and how much should they supply to us.
06:01 When serving a low income market, lasting impact can only exist in conjunction with profits. Recognizing this fact, Keiran and his company ensures that all offers to the waste pickers are economically viable.
06:16 Whatever we offer them, whatever value proposition we create for them, it has to make economic sense. And then that's why it's ... Because we were working in such low income group, you can not create too much value for the product that you're buying. But there is some value that you can unlock for them as they move and develop as a supplier to yours.
06:38 And that's really what you have to focus on, is that you create an economically scalable value proposition for this base of the pyramid groups versus trying to pump in a lot of money that doesn't have any unit economic or interest in general and economic sense.
06:58 In order to build a good working relationship and increase the output for the waste pickers, and thus secure more income for them, Keiran has set up a loyalty program.
07:09 You develop it with every month or every quarter that you interact with them, you learn something new and you can incorporate it into your loyalty program scheme and make sure that your interests and their interests are aligned. So you can create a win win situation. So that is one, and then two, obviously it's really just about trust, reliability that they can trust and Mr. Green is there to buy from them.
07:34 For Keiran's company impact will be limited if they do not increase their buyers. To this end, Mr. Green is also keen on making partnerships with other companies.
07:46 There's one real important partnership that we have with Unilever. So we're working with them on trying to settle our high quality plastic recycled plastics back into their value chain, so they can use our plastic to produce the packaging again. And this is the step towards circularity in a commercial context.
08:07 After enjoying rapid success in the Kenyan market, Keiran says the inclusive innovation that he has helped to pioneer should be used as a model that can be implemented to deal with the problem of plastic waste in other parts of the world.
08:23 So I would say roughly we are operating for three years now. This is what we really want to create is the way we interact with informal markets. The way we process plastic waste into its highest valuable stage. I think this can serve to be the framework, the world or the emerging markets will tackle plastic pollution and turn it into an opportunity for both the environmental aspects, but also the social aspects while obviously creating a profit for that sector. Make it economically sustainable.
09:03 For Keiran, running Mr. Green is an entrepreneurial journey that comes with enough challenges. But it is rewarding, especially when it changes people's perception.
09:15 Entrepreneur journey is tough and it can be challenging mentally, physically. But I think the key driver is, create something out of nothing that changes lives, that changes perception, that changes how people think about certain things.
09:32 We have been talking about Keiran's and entrepreneurial journey. From Keiran's story we learn that it is important to do research into the market and see if your idea combines impact and profits. Before embarking on your business venture, pause and ask yourself these questions. One, "Is there a market for my idea?" Two, "How big is the market?" And lastly, "Are consumers willing to pay for this idea?" In order to have an edge over other players already in the market, you should also ensure that your idea has prepositions that addresses gaps or inefficiencies that are in the market.
10:21 Keiran and his team at Mr. Green are doing an amazing job that is worth commendation. However, Keiran insists that they are just doing their part and do not work for recognition. I would like to appreciate Keiran for sharing his story. Till next time, keep innovating. My name is Ken Owino.
00:15 Hello and welcome to Zoom Africa where we get insights on entrepreneurship and innovation in Africa. Zoom Africa is produced by BoP Innovation Center, the one-stop shop for investors, donors and advisors with a clear interest on inclusive business. For more information, please visit www.bopinnovationcenter.org.
00:40 My name is Ken Owino and in this episode we are focusing on the opportunity for inclusive innovation. Is the inclusive business venture you're about to get into even worth it. To get answers to this question, I talked to Keiran Smith, an entrepreneur who has succeeded in finding an opportunity that is profitable, has a positive impact on the environment, and also targets low income groups.
01:08 Keiran's story is best summarized by the almost cliché phrase, one man's trash is another man's gold. So, who is this man who found a way of turning trash into gold and how does he even do that?
01:24 Visionary person. The new way of business is that you do something good socially economic, environmentally while you're creating the bottom line from an economic perspective for your business. And I think that's the end approach.
01:40 Entrepreneurship is something that has been burning in Keiran's heart that saw him take a huge leap, not only from his corporate job in the bank but also to travel over 6,000 kilometres to set up a business.
01:54 What we started in Zurich in 2010 was a business that is more of a convenience product. And the way it works is, we did the segregation but we started accumulating those materials on the balcony. And there was then the question all of a sudden, who's going to bring it to the drop off station? And no one really wanted to bring it.
02:13 And that's how the idea started on let's create a pickup service that comes to your household, where you pay a subscription fee on a monthly basis for that service. And that's how we got involved into recycling
02:25 Not satisfied with the market in Zurich and seeking a bigger challenge, Keiran decided to move to Nairobi. That is how Mr. Green Africa was set up.
02:36 As we moved along as a business, all of a sudden recyclers, like companies, would come and approach us and would ask us if they can buy the materials we collect. And this is how I then realize, wow, the thing that we thought is waste that we just get paid to collect, is also commodity and you can sell it. And so with that background knowledge and my personal interest in African markets as the next frontier, I also started looking at frontier markets, and Kenya was one of them.
03:07 Keiran moved to Kenya with a firm conviction that there was enough market for plastics. He's approach therefore was centered on finding opportunities in collecting and selling plastics at a profit. To succeed in this he had to look at the market as a whole, and not only the plastics as a problem.
03:25 When you dig in deeper, then you start realizing there's already people who recognized that that's an opportunity. So what are the problems that they are facing or that the value chain is facing? The picker is facing the problem of volatile market prices in transparency, not being paid at all the time. Expensive transport problem. Low quality products can only be sold, and so on.
03:50 So as we moved along, we fixed along the value chain the problems that were existing in that value chain. We looked at it as an opportunity and then fixed the inefficiencies that where in that particular value chain.
04:02 One of the challenges of setting up a business in an emerging market is the lack of adequate information with which to base your crucial decisions. To overcome this, Keiran conducted his own market research. To make an entry into the market with minimal problems, Mr. Green fast offered products that were similar to what other players in the market offered.
04:26 We had a product that everyone else had, but then we obviously started just creating more reliability around it and maybe quality, increased the quality wherever we were able to add in more value. Like in our case, we were selling unwashed plastics. Chips that were unwashed, they were still dirty. And then after that, when we started investing into machinery, we were able to start selling washed chips. Because they're so clean you were able to create a better value proposition as a new type of raw material for the local market, for the local plastic industry.
05:05 After gaining an entry in the market, Keiran then had to focus on a marketing strategy that delivers value prepositions to both his suppliers and his customers.
05:15 We have marketing on two fronts. We buy from the picker who's entrenched in that community and we then transport the goods and process it and sell it then back to the manufacturer who needs that commodity.
05:29 It can be a challenge to manage thousands of suppliers. So, Mr. Green uses technology to manage and track his sales.
05:38 We have centers where we buy from them, but we also use technology. So we have an app that allows us to track and trace every transaction that we make with every supplier. So every supplier has a supplied ID, registers with us. So we have the data of the supplier and we know who they are and how much should they supply to us.
06:01 When serving a low income market, lasting impact can only exist in conjunction with profits. Recognizing this fact, Keiran and his company ensures that all offers to the waste pickers are economically viable.
06:16 Whatever we offer them, whatever value proposition we create for them, it has to make economic sense. And then that's why it's ... Because we were working in such low income group, you can not create too much value for the product that you're buying. But there is some value that you can unlock for them as they move and develop as a supplier to yours.
06:38 And that's really what you have to focus on, is that you create an economically scalable value proposition for this base of the pyramid groups versus trying to pump in a lot of money that doesn't have any unit economic or interest in general and economic sense.
06:58 In order to build a good working relationship and increase the output for the waste pickers, and thus secure more income for them, Keiran has set up a loyalty program.
07:09 You develop it with every month or every quarter that you interact with them, you learn something new and you can incorporate it into your loyalty program scheme and make sure that your interests and their interests are aligned. So you can create a win win situation. So that is one, and then two, obviously it's really just about trust, reliability that they can trust and Mr. Green is there to buy from them.
07:34 For Keiran's company impact will be limited if they do not increase their buyers. To this end, Mr. Green is also keen on making partnerships with other companies.
07:46 There's one real important partnership that we have with Unilever. So we're working with them on trying to settle our high quality plastic recycled plastics back into their value chain, so they can use our plastic to produce the packaging again. And this is the step towards circularity in a commercial context.
08:07 After enjoying rapid success in the Kenyan market, Keiran says the inclusive innovation that he has helped to pioneer should be used as a model that can be implemented to deal with the problem of plastic waste in other parts of the world.
08:23 So I would say roughly we are operating for three years now. This is what we really want to create is the way we interact with informal markets. The way we process plastic waste into its highest valuable stage. I think this can serve to be the framework, the world or the emerging markets will tackle plastic pollution and turn it into an opportunity for both the environmental aspects, but also the social aspects while obviously creating a profit for that sector. Make it economically sustainable.
09:03 For Keiran, running Mr. Green is an entrepreneurial journey that comes with enough challenges. But it is rewarding, especially when it changes people's perception.
09:15 Entrepreneur journey is tough and it can be challenging mentally, physically. But I think the key driver is, create something out of nothing that changes lives, that changes perception, that changes how people think about certain things.
09:32 We have been talking about Keiran's and entrepreneurial journey. From Keiran's story we learn that it is important to do research into the market and see if your idea combines impact and profits. Before embarking on your business venture, pause and ask yourself these questions. One, "Is there a market for my idea?" Two, "How big is the market?" And lastly, "Are consumers willing to pay for this idea?" In order to have an edge over other players already in the market, you should also ensure that your idea has prepositions that addresses gaps or inefficiencies that are in the market.
10:21 Keiran and his team at Mr. Green are doing an amazing job that is worth commendation. However, Keiran insists that they are just doing their part and do not work for recognition. I would like to appreciate Keiran for sharing his story. Till next time, keep innovating. My name is Ken Owino.
Listen to the story of Keiran Smith, founder…
It is an exciting time for Inclusive Innovation in the Southern African Development Community (SADC). As international awareness grows on the inclusion of low-income groups in the development of products and services, new business opportunities arise for entrepreneurs that want to combine profit with social impact.
The SAIS Inclusive Innovation training provides you with…
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