
Every social entrepreneur seeks financial sustainability regardless of their mission. In looking to create a bigger demand for green products, Ashoka Fellow S. Rajagopalan figured out how to generate almost half of his organization's annual budget from entrepreneur-commissioned sales. Here's how he did it.
1) Train entrepreneurs
Through his organization, TIDE (Technology Informatics Design Endeavor), Rajagopalan adapts technologies such as stoves, pottery kilns and food processing tools used for production to become more environmentally-friendly and efficient. As an alternative to an expensive centralized sales staff, Rajagopalan trained entrepreneurs for two objectives: firstly, as a sales force that markets the product to their locality, and secondly as technicians that customize the products to meet local demand. Because the entrepreneurs are from the local villages they understand local needs and are able to provide appropriate customization to the products so that they can be quickly adopted.
Some of TIDE’s profit comes from direct sales, but the majority comes from the entrepreneurial middlemen who pay TIDE a 5% commission on each sale, allowing TIDE to simultaneously spread its technology, increase its client base, generate revenue and stimulate environmental entrepreneurialism in new sectors.