Microfranchising - social sector franchising by small businesses in the developing world. The primary feature of a microfranchise is its ability to be streamlined and replicated. An example of microfranchising is Tecnologia Apropiada (TecAp) in Nicaragua, which operates microfranchises owned by rural women from fair trade coffee cooperatives. These women possess the basic skills and motivation to promote solar and other appropriate technologies and sell small solar-powered items door-to-door. Microfranchisees are recruited in groups of five to ten women per group. These women are vetted by the management of their coffee cooperative to ensure that they are active community members (which provides natural sales outlets), have experience managing income from a business, and are in good standing financially (since microfranchisees handle hundreds of dollars’ worth of product on a regular basis).
Microconsignment - is a sustainable, replicable means of delivering health-related and economically beneficial goods and services to remote villages utilizing a rotating capital mechanism with low start-up costs that are continually reinvested. Solisyon Kominote Yo is a local Haitian social enterprise that emerged from Ouanaminthe Social Impact and Innovation Consortium (OSIIC) which promotes microconsignment. Microconsignment creates first-time access to life-changing technologies, products, and services for isolated villagers by empowering first-time entrepreneurs as “community advisors.” The community advisors are trained to sell essential technologies in their communities, such as solar technologies, water filters, eyeglasses, and stoves. Entrepreneurs promote technologies via campaigns, door-to-door sales, and word-of-mouth. Technologies generate savings and improve the living standards of buyers. The community advisors receive products in consignment and earn a margin on each sale, thus running a profitable business from day one.