Gone Rural

Summary
• Was founded in 1992
• Creates handwoven products to sell to high- end retail outlets in 32
different countries
• Vision/Purpose: To create empowerment for women in rural
communities across Swaziland
• Gone rural employs 750 women from 13 different communities in
Swaziland
• Most of these women are caring for their grandchildren who have
been orphaned by HIV/AIDS
Summary
• 26% of the company’s revenues (as at 2010) provided for 80% of
these women’s sole income. These women’s income has grown by a
factor of 4 since 2006.
• Company also has an NGO, boMake, where it donates 20% of pre-tax
profits. NGO assists the company’s artisans and their communities
with education, health and social needs
• Philipa (MD) has a preference to continue to improve the economic
situation of these 750 women, plans to recruit more women
marginally in future
Production cycle Company
purchases dried
grass gathered by
rural women

Product is labelled,
packaged and Grass is dyed with
shipped to German-made dyes
customers

Grass is distributed
Completed
to female
products are
producers on
checked for quality
market days
Full time staff

2 Senior
managers 20 Women
(R19,000
PM)
27 full
time
25 other
staff 7 Men
staff
(R4,500
PM)
Working capital management
• Significant amount of inventory
• Standard payment terms of 30 – 45 days for large accounts, however
payments are received between 4 to 6 months
• 50% upfront deposit for general customers, none for large accounts
• Company is usually financed by 2.5% shareholder’s loan, was recently
financed by 15% bank loan
• Credit period from company’s vendors is 30 days, however vendors
are demanding tighter terms
What is a social enterprise
• An organization that seeks to solve social problems using an
entrepreneurial approach.
• It is different from a “for profit” entity because it sets its social
agenda higher than its profits.
• It is different from a “not for profit” entity because it operates as a
business that serves a market and generates an income.

Question:
Can social objectives and “for profit” co- exist? If yes, how?
Discussion points
• Can “for profit” and social objectives co-exist? If yes, how
• Are these objectives optimally combined in the case of Gone rural?