Alashanek ya Balady Association for Sustainable Development (AYB-SD) Defining Social Entrepreneurship
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Alashanek ya Balady
Association for Sustainable
Development (AYB-SD)
Defining Social Entrepreneurship
Written by:
Raghda El Ebrashi, PhD
Founder and Chairperson of AYB-SD
Assistant Professor of Strategic Management
at the German University in Cairo
June 2013
art of a series of case studies on Entrepreneurship and Social Entrepreneurship,
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developed in cooperation between KCC and Aramex, and published by Wamda.
Published by
Executive This case study, written in the first-person, narrates the story of Alashanek ya Balady Association
Summary for Sustainable Development (AYB-SD) since its inception in 2002. AYB-SD presents a unique
model for social entrepreneurship as it offers an innovative economic development model
for the poor while ensuring organizational financial sustainability. The case also presents
AYB-SD’s definition of social entrepreneurship and analyzes relevant unemployment poverty
issues in Egypt.
The Story In 1995, at the age of 12, I encountered a moment that changed my perception of the world
forever. On my first school trip outside Cairo, I went to Bel-bayes, Sharkeya, to visit a home for
the elderly. There I met Om Fathey, an old woman who was occupied with cleaning the place. As
I was not yet very experienced with the realities of poverty in Egypt, I found myself at the time
wondering why she was working with such worn out clothes.
Om Fathey noticed me and approached with a warm smile and gentle words, telling me that
I was in the same age-range as her children. She then invited me over. Touched by the kind
invitation and curious about her family, I followed her and discovered a new world. At her home,
I found myself crammed into an extremely small room that managed to hold a total of seven
children. I felt my shoes drown in the mud beneath me and couldn’t help but feel uncomfortable
in this crowded and hot place. The children, all wearing either the upper half or the under half of
clothes, started trying to figure out where I could sit down.
Om Fathey furnished a part of her “jalabeya” (garment) for me to sit on and asked me why I
looked so uncomfortable. I told her I missed the AC back home. Om Fathey then asked me to list
the items I have at home. I started telling her about all the toys I play with, my clothes, my school
and all that I – at that moment – held important in my life. “Is that all you have?” asked Om Fathey.
“I guess so!” I replied. “Well, then look up,” she demanded. I looked up to find (or rather, not find) a
ceiling. At this young age, I had a single question: “How can someone live without a ceiling above
him/her?” I recalled my father’s insistence that I should work only after finishing university, yet
now I saw that Om Fathey’s children - and other children in Bel-bayes - were working from the
age of seven just to feed their parents! I realized that reality was quite different from what I was
learning in books and felt betrayed as I began to realize the limitations of my education.
It was thus that I began, at that young age, to volunteer in various NGOs. My parents happily
encouraged me. I travelled extensively within Egypt and learned about every village and city. I
saw poverty and illiteracy, but it was those people whom we call ‘illiterate’ who shaped my life
forever. My favorite day ever occurred when I traveled to teach a child in El Menya (Upper Egypt)
some Arabic and math during his break from work.
In 1999, a friend from the U.S. brought me a copy me of a book named How to Change the World,
which was not yet available in Egypt. Reading this book, I discovered Ashoka and the concept
of social entrepreneurship. I was inspired by the words of Ashoka’s founder, Bill Drayton; in place
of the standard proverb, which says, “Give a man a fish, and you feed him once, but teach a man
to fish, and you feed him for a lifetime,” he said, “Social entrepreneurs are not content just to
give a fish or to teach how to fish. They will not rest until they have revolutionized the fishing
industry.” I began to realize that I, too, was just teaching people how to fish. “Why should I aspire
to revolutionize the fishing industry?” I pondered. In 1999, I decided to visit Grameen Bank in
Bangladesh in 1999. That’s where I discovered the answer.
You can train a man to fish, and this man can feed himself and his family. But the fishing industry
might have structural problems that hinder the ability of this fisherman to sell his fish. Maybe
there is a monopoly that keeps prices down. Maybe he doesn’t know how to access the fishing
market or set the right price. Or maybe fishing itself is not safe and fishermen don’t have rights
as workers.Funding I came to understand that teaching children Arabic and math won’t put an end to child labor, and
providing soft skills training to poor youth won’t necessarily guarantee them a decent job in Egypt,
both due to stereotyping and labor issues. If I wanted to solve the problem of unemployment, I
realized, I would have to address the structural problems in the market.
With these goals in mind, I established AYB-SD as a student club at the American University in
Cairo in 2002, when I was 17. I legalized it as an NGO in 2005. Now it operates in ten governorates
in Egypt and has franchised its student-run model in more than 14 universities in Egypt.
Social Entre- At AYB-SD, we define social entrepreneurship as the process of: 1) discovering opportunities
preneurship to eliminate social and institutional barriers and address market failures related to the
At Ayb-Sd provision of public goods and distributional equity; 2) experimenting with ideas; 3) establishing
innovative social organizations; 4) having clear social outcomes and impact; 5) performing
activities to achieve social outcomes; 6) promoting the growth of social organizations; 7) using
specific indicators to measure the social impact of the organization; and 8) creating financial
sustainability for the organization (El Ebrashi, 2013).
This definition establishes a model for sustainable economic development in poor communities
in Egypt, retaining the central concept that targeting structural issues is the best way to
revolutionize the labor market.
According to the CAPMAS (2005; 2010), around 90% of unemployed people in Egypt are 18-29
years old. In addition, the country’s population with intermediate education represents 55%
of the unemployed. They are 24% of the labor force and; market demand for people with an
intermediate education is only 4%. This means that graduates of vocational and technical
education suffer from persistent unemployment due to lack of skills and unavailability of
employment opportunities. The same goes for above intermediate and university graduates
who represent 25% of the unemployed (18% of the labor force and 30% of market demand).
Most of those who do not join the labor market lack the skills that are tailored to market demand.
In light of this information, AYB’s development model focuses primarily on the unemployed with
an intermediate level of education, due to their extremely large share of unemployment in Egypt
and the low market demand for their contributions to the labor force. We also put a focus on
those with above intermediate and university levels of education, mainly whom have graduated
with a degree that is not in demand in the labor market, or exceeding the market capacity.In order to find and secure decent employment for the underprivileged to guarantee a dignified
and sustainable living, above the poverty line, AYB has gone through an intricate and careful
process which defines our development model and approach. As shown in the diagram, we began
with a thorough market analysis and needs assessment of youth, through which we discovered
the gap between the market requirements and youth qualifications. We then selected the
industries with the highest market demand relative to our target group. These are: mechanics,
carpentry, sales and services, leather, and textiles. We then designed tailored employability
services to train our participants to fill this gap. Our training encompasses career guidance
and coaching, specialized training curricula, and follow-up.
We advertise our program to attract beneficiaries, who must interview and apply for positions.
Once we have processed their applications, they receive training and coaching. The training
usually includes: specialized/technical training (sales, administrative work), life skills
(communication, leadership, business ethics, CV writing and interviews), and vocational training
(leather making, carpentry, sewing, etc). Coaching involves mentorship and career guidance.
After the training and coaching process is complete, our beneficiaries are ready to be employed.
Our model encompasses two types of employment: (1) getting a job in a factory, company, or
workshop, and (2) starting a small business.
1) Getting a job in a factory, company, or workshop
AYB negotiates and advocates with specific factories and companies for suitable job
opportunities with fair wages and fair treatment. It then applies a job matching process in order
to properly match the beneficiary with the appropriate job. We follow up during employment to
offer coaching and labor rights advocacy.
2) Starting a small business
Beneficiaries receive vocational training and training on feasibility study and project
management. As soon as their feasibility studies are approved, they receive a small or micro loan
(ranging from 500-10,000 EGP) with minimal service fees. Businesses include groceries, clothing
shops, hairdressers, carpet making, mobile maintenance, and pottery making. The coaching and
technical assistance continue during business implementation, too.
Since AYB-SD’s mission is to graduate people out of poverty, a regular impact assessment is
conducted to monitor the performance of our development model.
Financial The word ‘sustainable’ in our organization’s name refers not only to our development efforts, but
Sustainability also to our ability to create a viable business model that can generate the needed income for
the organization, decreasing our dependency on donations or grants. The formal employment
model is sustainable; AYB-SD charges the companies and factories that participate. The private
sector pays to get a high quality service that includes training, employment, and coaching of
labor for certain job profiles, a service that is uniquely tailored and developed by AYB-SD. As for
the informal employment model, micro and small entrepreneurs pay back the loans and also pay
for the consulting services they receive based on the profitability of their enterprises.The Way AYB-SD is currently signing contracts to implement the same formal employment model with
Forward the public sector, specifically in the fields of hospitality and vocational training in general.
However, AYB-SD is left with major challenges. While AYB-SD has a powerful advocacy model, the
government could assist by instituting a minimum wage law to prevent any company or factory
not accessed by AYB-SD to offer very low wages. In addition, the public sector itself is inefficient
and is known for its very low salaries. Going into partnership with the public sector is powerful,
but AYB-SD will have very little bargaining power when it comes to advocacy. To achieve its
broadest goals and change the labor law in Egypt, AYB-SD will have to conceive of a viable model
for collective action.
References Central Authority for Public Mobilization and Statistics (CAPMAS) (2005),
Labor Force Sample Surveys
Central Authority for Public Mobilization and Statistics (CAPMAS) Website (2010),
available at www.capmas.gov.eg
El Ebrashi, Raghda (2013). Social Entrepreneurship Theory and Sustainable Social Impact.
Social Responsibility Journal, vol. 9(2)
Alashanek ya Balady Association for Sustainable Development Website (2013),
available at www.ayb-sd.orgYou can also read
