Professional Documents
Culture Documents
SwitchMed
Regional Activity Centre for Sustainable Consumption and Production (SCP/RAC)
Mediterranean Action PlanUnited Nations Environment Programme
Regional Centre under the Stockholm Convention on Persistent Organic Pollutants
Sant Pau Art Nouveau Site Nostra Senyora de la Merc Pavillion
Carrer Sant Antoni Maria Claret, 167. 08025 Barcelona (Catalunya) Spain
T:. +34 93 553 87 82
F:. +34 93 882 36 37
M: +34 671 512771
E-mail: btuncer@scprac.org
www.switchmed.eu
b a j
SwitchMed Programme is
funded by the European Union
Table of contents
1 INTRODUCTION .................................................................................................................... 4
2 PURPOSE OF THE STUDY................................................................................................... 5
3 SCOPE AND METHODOLOGY............................................................................................. 5
3.1
METHODOLOGY
3.2
GEOGRAPHY
3.3
SELECTION PROCESS
3.4
PROJECTS
3.4.1
3.4.2
3.4.3
4 PANORAMA ........................................................................................................................ 10
4.1
10
4.2
11
4.3
12
13
5.2
PROJECTS FOCUS
15
5.2.1
15
5.2.1.1
5.2.1.2
SWOT.................................................................................................................... 15
Debbo52 (Tunisia)
16
5.2.1.3
5.2.1.4
SWOT.................................................................................................................... 16
5.2.2
17
5.2.2.1
5.2.2.2
SWOT.................................................................................................................... 17
5.2.3
18
5.2.3.1
5.2.3.2
SWOT.................................................................................................................... 18
5.2.4
Karhebtna (Tunisia)
19
5.2.4.1
5.2.4.2
SWOT.................................................................................................................... 19
5.2.5
Kartag (Egypt)
20
5.2.5.1
5.2.5.2
SWOT.................................................................................................................... 20
5.2.6
Carmine (Morocco)
21
5.2.6.1
5.2.6.2
SWOT.................................................................................................................... 21
5.2.7
Sheaply (Morocco)
22
5.2.7.1
5.2.7.2
SWOT.................................................................................................................... 22
5.2.8
23
5.2.8.1
5.2.8.2
SWOT.................................................................................................................... 23
5.2.9
Anou (Morocco)
24
5.2.9.1
5.2.9.2
SWOT.................................................................................................................... 24
5.2.10
Waste (Lebanon)
25
5.2.10.1
5.2.10.2
SWOT ................................................................................................................. 25
5.2.11
El Mensej (Tunisia)
26
5.2.11.1
5.2.11.2
SWOT ................................................................................................................. 26
27
6.1.1
27
6.1.2
Including Gender
28
6.1.3
Addressing sustainability
29
6.1.4
30
6.2
31
REMODELING SPACE
32
7.2
RETHINKING MOBILITY
33
7.3
34
7.4
36
8 APPENDIX ........................................................................................................................... 38
Introduction
The SwitchMed Program aims at facilitating the shift toward Sustainable Consumption
and Production in southern Mediterranean countries: Morocco, Tunisia, Egypt,
Lebanon, Palestine, Jordan, Israel, Algeria and Libya. The programme is about
changing the way goods and services are produced, sold and consumed, so that
human development and satisfaction of human needs is decoupled from
environmental degradation.
OuiShare is an international community of innovators working together on emerging
paradigms such as collaborative economy, open source manufacturing, decentralized
organizations and zero waste societies.
The vision of the SwitchMed program, especially the Green Entrepreneurship and
Civil Society Empowerment activities, has many synergies with the mission of
OuiShare: build and nurture a collaborative society, by connecting people,
organizations and ideas around fairness, openness and trust. We believe that
economic, political and social systems based on these values can solve many of the
complex challenges the world faces, and enable everyone to access to the resources
and opportunities they need to thrive.
OuiShare activities consist of building communities, producing knowledge and
incubating projects around the topics of collaborative practices, as well as offering
support to individuals and organizations through professional services and education.
During the last year, OuiShare has been expanding in the MENA (Middle East And
North Africa) region, with communities growing in Morocco, Lebanon, Syria, Algeria,
Tunisia, Israel, Palestine, and Egypt.
Therefore, OuiShare and SwitchMed decided to get involved in coordinating the
development of actions for sustaining and expanding the pilot activities of the
SwitchMed Initiative, related to collaborative consumption business models and
circular economy business models.
The following study is a first collaboration step, aiming at identifying key leverage
points for scaling-up sustainable collaborative economy and society initiatives and
green entrepreneurship ones, based on 12 case studies selected among the MENA
region.
It describes the challenges and opportunities for scaling-up, based on the different
projects business models.
This study is based on ground research. The MENA region has been lately witnessing
a lot of creativity and ideas emerging, resulting in a combination of collaborative
economy, social and green entrepreneurship and digital innovation initiatives.
These young innovative projects are building bridges between their local traditional
heritage and creative entrepreneurship concepts. There are different business models
rising, and we are analyzing how the different projects are building and sustaining
them. The overall goal is to identify what they need to scale individually and to
replicate in the region as well.
3
3.1
To conduct this study, we selected some projects among countries well known by
OuiShare and that are representative of the collaborative economy in the MENA area.
We sent them a set of questions1 to gather their data, and conducted one to one
interviews as well. This data was analysed through the collaborative economy
framework developed by OuiShare2.
This process allowed us to assess the projects business models and analyse their
strengths and weaknesses, as well as see the opportunities they have and the threats
they are facing.
We were therefore able to identify some common key challenges3 thanks to the
answers and data from the participants. Our conclusions were based on the interview
questions (Appendix 1), online research and personal analysis. Each project has been
attributed a score on a scale from 1 to 5, depending on how strong it addresses the
challenge in its business model and how far it is included in its strategy. For example,
a project that both recycles materials and promotes low environmental impact
behaviors internally would be ranked 5 on the addressing sustainability challenge.
see Appendix 1
see Sharevolution study developped by OuiShare and the New generation internet foundation in France (FING)
3
see Part 6.1
2
The same methodology has been used to find the key leverage points4. The score
from 1 to 5 was given regarding how each project was performing on the success
tools, and how much it was included in their strategy. For instance a project using a
digital platform and a mobile application with a fluid user experience is more likely to
score 5 on the using disruptive technology leverage point.
3.2
Geography
In all over the world the collaborative economy has helped people solve many of
todays most complex challenges.
The disruptive potential of these models in the Middle East and North Africa (MENA)
region is enormous, but challenges still lie ahead because there is little knowledge
about the collaborative economy ecosystems in the region.
Scope of the study
As we wanted our study to rely on concrete cases and active communities, we have
decided to focus on the countries where OuiShare MENA connectors are strongly
involved, as well as another country were we are building strong communities:
Morocco
Tunisia
Lebanon
Egypt
3.3
Selection process
We selected twelve cases in the four countries mentioned before. We really aimed at
showing a variety of business models among innovative social, sustainable and
collaborative projects.
The selection was also aligned with the scope of the Green Entrepreneurship activities
in the SwitchMed target countries. We tried to seek environmental and social impact
from the start when selecting the projects. Indeed, some of these cases were selected
as Switchers - individuals, enterprises or civil society organizations that have been
able to develop an ecological and social innovative solution, making an impact for
sustainable living within the Mediterranean region, and contributing to the switch to a
sustainable and fair consumption and production pattern. All these projects are
showcased on the Switchers online platform: www.switchers.org.
The cases aim at representing the transformation in three crucial sectors in the MENA
region. These topics are at the same time challenges to solve and great opportunities:
Co-working and alternative places: Remodeling Space
Carpooling and car-sharing: Rethinking Mobility
Circular design and craft: Sustaining Tourism and Crafts
3.4 Projects
3.4.1 Co-working
and
alternative
places:
Remodeling
Space
Debbo52, Tunisia
Coworking space
projects incubator.
and
artistic
Orange
Bleue
Maghreb,
Morocco
Social incubator, permaculture
garden, and maker space.
Sheaply, Morocco
P2P shipping platform, connecting
travellers with package shippers.
Carmine, Morocco
Car-sharing platform.
Karhebtna, Tunisia
Long distance carpooling platform.
Kartag, Egypt
Short distance carpooling platform.
Waste, Lebanon
Collaborative design and craft of
bags, accessories, and furniture
from sustainable and recycled
materials.
Anou, Morocco
Collaborative C2C digital platform
allowing rural craftsmen to sell
handmade local products worldwide.
4
4.1
Panorama
The global collaborative economy trend
Since 2010, OuiShare has been witnessing through its network the rise of new
business models, all over the world, empowered by the Internet and social medias. In
order to analyse them, we have been conducting various studies and analysis trying to
explain and bring together different phenomena into one coherent vision. Together
with other thinkers and thought leaders, we have called this new paradigm the
Collaborative Economy. It has transformed the way we consume, finance, learn and
produce through building organized networks of connected individuals and
communities based on sharing, collaboration and openness. This new paradigm
allows us to design our economic relations differently, in addition to improving
business and market opportunities.
FOCUS 1 Collaborative Economy Categories
THE SHARING ECONOMY OR COLLABORATIVE CONSUMPTION
Collaborative consumption is the seamless circulation of products and services among
individuals through sharing, swapping, trading, renting, borrowing or giving, fostering access
over ownership and reducing waste.
CROWDFUNDING AND PERSON-TO-PERSON BANKING
Crowdfunding and person-to-person banking enable the circulation of capital between
individuals to fund creative, social and entrepreneurial projects.
OPEN KNOWLEDGE
Open knowledge enables anyone to freely use, reuse, and redistribute knowledge such as
content, data, code or designs. This principle is the foundation of commons-based peer
production (such as free software, the creative commons, open science) as well as open
education, open data and open governance.
MAKERS, OPEN DESIGN & MANUFACTURING
Open design and manufacturing democratize the process of designing, producing and
distributing physical goods by combining open knowledge with distributed infrastructures.
They rely on tools, spaces, communities and marketplaces and are fueled by the maker
movement, the culture of hacking and Do-It-Yourself (DIY).
OPEN AND HORIZONTAL GOVERNANCE
Open and horizontal governance are transforming organizations, public services and civic
action. Leading examples include civic engagement platforms, participatory budgeting, open
government initiatives, cooperatives, open value networks, horizontal organizations, swarms,
doocracries and holacracies.
Source: www.ouishare.net
10
4.2
As said above, these new business models and dynamics have scaled in an
exponential way thanks to the use of social media and digital platforms, and Internet in
general.
In the MENA region, the collaborative economy has emerged in a slightly different
form, as the practices and principles of sharing and collaborating are not new. Sharing
of household and consumer goods or rides and cars has been a very common way of
life. The historical values and culture within the whole region have always involved a
collaborative lifestyle, relying on the community. We still find these strong links in rural
areas or within families, where the sense of tribe is dominant. But with economic
development and fast cities growth, the individualistic way of living has gained
strength, and the sharing behavior has lessened in urban life.
Indeed MENA countries are undergoing profound changes, in various areas:
Political Transition: unemployment, inequality, social and territorial disparities call
for economic democratization and direction of the productive system towards
satisfying the needs of people.
Economic Transition: the need to overcome a model of growth and development
that has shown its limits and commit to a sustainable and inclusive model.
Social Transition: the actors of the collaborative economy and society are willing
to contribute to changes taking place in MENA societies by developing modes of
governance and regulation and by experimenting with new responses to the
tensions and imbalances in these countries.
Demographic transition: the emergence of new needs among populations partly
reflects the socio-demographic changes, in particular regarding women, youth and
people over 60 years. Social protection (old age, illness, disability, etc.) and health
are two major priorities MENA is facing today.
The challenges of collaborative economy and society development in the MENA
region are particularly relevant at this time given the socio-economic context and on5
NB: she recently published a new definition of the collaborative economy: Systems that unlock value from underused
assets* by matching needs and haves in ways that bypass traditional intermediaries and distribution channels".
(source: https://medium.com/@rachelbotsman/the-sharing-economy-dictionary-of-commonly-used-termsd1a696691d12#.5wbg644zq)
11
going transitions in the region. In addition, the collaborative economy can prove to be
a promising sector as a vector of mutual relations between the North and South of the
Mediterranean. The role of the collaborative economy is fundamental in providing
innovative answers to social and economic development needs that are poorly or not
met in territories facing multiple changes.
4.3
Consuming differently is the first step of shifting towards a more circular and
collaborative economy. When changing the way we share goods and services, we are
more able to change the whole system by teaching, learning, designing and
producing, and even relate to money differently.
When we talk about collaborative consumption we cover various cooperation models
(around the redistribution of property, functionality, P2P services, local systems) and
various stakeholders. OuiShare drew up a map of the offer, its actors and
ecosystems6. It shows a great diversity of actors (major platforms, smaller players), a
coexistence of merchant models and non-market models, differences of scale (local
vs. global), etc. These new players disrupt established organizations and sectors with
their distributed business models.
Collaborative consumption, the so-called sharing economy also leads to question the
objects and terms of sharing. If it continues to grow, the objects could be designed to
meet the upstream sharing practices; places should be designed to facilitate
circulation, stimulate trade and equip collective projects in the territories.
12
Due to the reinvention of market behaviors and the optimization of underused assets,
collaborative consumption also appears to have a positive influence on the
environment. If it is easy to say at a glance that the sharing economy lowers our
environmental impact, some research have been exploring this question to measure
with data the real impact.
A study from the Iddri7, a French research center has recently stated that
sustainability, as a long-term social behaviour is a necessary condition for a positive
environmental impact: Sharing practices open new areas of innovation for ecological
transition through distinguishing the users of the object by reassessing more or less
radically property. In addition, if the sharing initially seems a matter of quantity of
goods, the quality of shared property appears as a key condition for the reduction of
the environmental impact of sharing models.
At the end, of the opportunities available, it seems that collaborative consumption
could contribute to meeting social and environmental challenges, but also challenges
faced by certain populations, such as youth, especially in the MENA region. This last
point is particularly true regarding the initiatives that we will analyse here. The
collaborative consumption initiatives in the MENA region are often including a social
and sustainable component.
5
5.1
Case Studies
Overview of the projects business models
see Figure 2
source: http://magazine.ouishare.net/2015/04/sharevolution-is-now-available-in-english/
13
When referring to the Sharevolution framework above, we can see that our twelve
projects are built on different business models. We we will analyse them in detail
further in the study.
Figure 3: Analysis of the projects business models through the sharing economy framework
Source: Authors analysis
14
Strengths
Collaboration between designers and
mentors in one space
Fab Lab: tools for prototyping fast
Weaknesses
Little revenue
Difficulty to implement other services
for digital fabrication and electronics
Incubator
support
Threats
and
trainings
for
more
Opportunities
15
Debbo52 (Tunisia)
Debbo 52 is an interdisciplinary space and incubator of artistic projects at the center of
Tunis. Its an open co-working and maker space where artists meet and collaborate,
along with mentors. It is located in an industrial and working class area.
The project aims at improving the local environment and residents quality of life. Its
mission is to encourage the culture of risk taking and artistic innovation, production
and distribution in the arts through mentoring young independent artists to achieve
their artistic projects, and opening a space for sharing, designed for musicians,
photographers, designers, journalists, activists, designers, programmers, NGOs, etc.
Activities
Mentoring and incubations of artistic projects: music, digital arts, visual arts,
theater, cinema, etc.;
Good and services bartering;
Art classes for children;
Music concerts.
5.2.1.3 Business Model
Team: 6 people;
Initial funding: cultural resources, Friedrich Ebert foundation, self- financing;
Revenue: bartering, time bank. No money flow despite fundraising;
Governance: Association Taabir.
5.2.1.4 SWOT
Strengths
Weaknesses
Opportunities
16
Weaknesses
fashion
Lack of financing
Training and
incubator
Threats
kick-starting
in
an
Opportunities
17
Strengths
Weaknesses
Multi-countries
network
Morocco, Burkina Faso)
No revenue
(France,
Promotion
of
permaculture,
sustainable agriculture and eco-living
Instability of the Sahel region
Threats
Opportunities
18
Weaknesses
Lack of a clear marketing strategy
No data available to clearly assess the
environmental impact performance of
ride sharing
Threats
Developing a communication
following a good strategy
plan
Opportunities
19
Weaknesses
Network
of
gaining
Opportunities
20
Weaknesses
Car-sharing technology
and software)
(Hardware
Administrative
limitations:
Preauthorized payments are not available
Customized
operations
circumstances.
Financing: Lack of
investors to financing
early
stage
to
local
Threats
Opportunities
21
Weaknesses
No legal advisor or sharing economy
lawyer to help anticipate regulations
issues
Cultural issue: lack of familiarity with
new technologies and online payment
Opportunities
22
Weaknesses
Social innovation
Threats
23
Weaknesses
Difficulty for an artisan community to
stand out against the organizations
who are trying to help them
Scaling in Morocco
Improve
marketing
and
communication strategy, insisting on
positive sustainable aspects
Opportunities
24
Weaknesses
Company staff
Marketing
Branding
Communication
on
Opportunities
25
Weaknesses
No legal structure yet
No revenue / income
Difficult
access
customers
market
and
Opportunities
26
Overall Synthesis
platform or any collaborative project. This principle explains why all projects rank so
high on this topic. They all understood the need to build trust with their customer and
their external community and take care of their internal community (staff) at the same
time.
For instance projects like Anou or Sheaply score around 5 as they take into account both
levels: they pay particular attention to their internal team -for Sheaply- and artisans
community -for Anou-, engaging them fairly in the project; and they work at building a
strong customer peer-to-peer online community on their platform.
28
Most of the projects tackle the gender issue, some even putting it at the heart of their
concept and strategy. Women are therefore either involved in the core of the project or
in making their offer relevant to the public.
For example, we can notice two different approaches in the same country, Tunisia:
Tilli Tanit is a cooperative aiming at supporting women crafts; it is using an
inclusive gender approach in its own governance and structure.
Karhebtna is also addressing the gender issue, but from a customer perspective.
They integrated gender in their marketing strategy to create a new offer dedicated
to women. We can easily see this idea replicated in the region for other similar
projects.
This statement is not very surprising at the end since we were keen on selecting
green collaborative projects, aiming to become Switchers. As a reminder, SwitchMed
Initiative considers that a project is fully sustainable when he addresses both green
entrepreneurship and civil society component:
Eco-innovation as a new business and/or organizational strategy to enhance
sustainable performance from a long-term sustainability perspective, in terms of
process, product or system.
29
In addition to the classical financing problem in the region, the main issue when
looking for funding for these collaborative projects is their innovative business models
resulting in a hybrid positioning.
On one hand investors are very picky and bounded to ROI criteria when it comes to
social innovation projects like the ones in our study. Even some projects very Silicon
Valley oriented, such as Sheaply, mainly complain about the lack of seed funding and
banking facilities, a pretty common difficulty for digital and tech projects in the region.
10
see https://www.globalreporting.org/information/news-and-press-center/Pages/New-GRI-booklet-gives-SMEs-ahelping-hand.aspx
30
But at least they answer more or less the investors selection criteria and have
sometimes access to available funding in the region.
On the other hand most of our portfolios projects are social businesses. They have
trouble accessing both type of financing they could pretend to: investment or
patronage and grants. If investors can be very risk averse when the return on
investment is too low, social organizations giving grants and patronage can also be
very restrictive in their selection criteria. They would fund only association or nonprofit, ignoring social businesses. The latters find themselves in a sort of no-mans
land of fundraising.
This stream deserves to be analysed in a whole new study to assess how both
OuiShare and SwitchMed can help them and must think of how to solve this
challenge.
6.2
All of these projects can be considered as social innovations. We found out that most
of them are using similar tools to address their local problems. Using the same
process than for the challenges, we have identified four key success factors common
to all projects:
Leveraging on Social Media and Digital
Managing People and Talent
Using disruptive technology
Using an inclusive governance
31
If the projects all leverage on social media and digital platforms for their
communication they dont all use a disruptive technology. The combination for
success relies on an equivalent focus on all four areas identified.
For instance, Anou is the project with the best overall ranking on the leverage points.
This project is a great example of the use of a disruptive technology, easy to use by
the artisans. It is an Etsy-like platform for selling goods to the foreign market, with very
inclusive governance, as it is the first national cooperative in Morocco. The will of
including the artisans who produce the value in all the product life cycle is an essential
key to success. It is the best way to empower local people by letting them share their
skills and do peer-to-peer learning trainings, as well a a great opportunity to scale and
spread without the need of an intermediary to recruit workforce.
32
Figure 10: Overview of the ranking on challenges and leverage points for coworking and
alternatives spaces projects
Source: Authors analysis
33
Figure 11: Overview of the ranking on challenges and leverage points for carpooling and
cars haring projects.
Source: Authors analysis
34
Figure 12: Overview of the ranking on challenges and leverage points for circular design
and crafts projects
Source: Authors analysis
35
https://agenda.weforum.org/2015/08/have-we-got-sharing-economy-wrong/
See Focus 3 int the following page
36
the next years to help these entrepreneurs and projects thrive, connect them and give
them the tools they need to build a more sustainable future.
For further information, please download the presentation and session summary from the SwitchMed Connect online
platform: http://www.switchmed.eu/en/switchmed-connect/switchmed-connect-2015
37
8 Appendix
8.1 Questions sent to the projects
Profile
Start date / Years of existence
Your profile & team (number of people working with you?
How was the project financed (money, time)?
Business model
What is your main audience & target?
Who benefits from your project?
What is you marketing strategy (if you have one!)?
Data & Figures
Number of: users / visitors
Number of active members
Number of transactions
Evolution of the transaction
Evolution of users
Project dynamics (depending on you/ your organization):
What are the best assets of your project?
Do you see any weaknesses or limits you would like to improve?
External influences and impact (linked to your environment)?
What would it take to scale your project? Where do you see the best chances?
What challenges do you face? Do you think they are specific to your country or
region?
38
Figure 13: Overview of the projects maturity (months of existence as for September 2015)
39
Figure 15: The Pentagrowth model developed Ideas for Change and Javi Creus (OuiShare
advisor)
40