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Enterprise Growth
Services
Helping entrepreneurs change lives
Case study: Stamp Out Sleeping Sickness, Uganda
Helping entrepreneurs change lives
Enterprise Growth Services (EGS) helps entrepreneurs change lives
in low-income countries. It extends EY’s long-standing commitment
to championing entrepreneurship as a key to sustainable growth
in local economies. As our corporate social enterprise, EGS brings
the best of our people, services and expertise to organizations that
wouldn’t ordinarily be able to work with us.
Our teams help job-creating small businesses and social
entrepreneurs who use the power of the market, to improve
health, education and access to energy in their communities.
We’re building a better working world in areas of real need and
giving our people experiences that last a lifetime.
A market-based solution to sleeping sickness in Uganda?
Trypanosomiasis
kills around
30,000
people a year
Estimated nearly
70 million
US$4 billion
people in Africa are at risk of
contracting the disease
Trypanosomiasis — or African sleeping sickness, to give it its
common name — kills around 30,000 people a year. It’s estimated
that nearly 70 million people in Africa are at risk of contracting
the disease, and its impact on the lives and livelihoods of
communities can be devastating. The disease is transmitted
from some animals, including cattle, to humans via tsetse flies.
Controlling the disease in cattle, particularly in areas where
farming is the basis of the local economy, is therefore critical.
Stamp Out Sleeping Sickness (SOS), a public-private partnership
backed by venture philanthropists IKARE, has been tackling
this challenge in Kampala, Uganda. SOS set up newly qualified
Initial findings and observations
Huge variations in stock
Stamping out sleeping sickness estimates
is lost in cattle production per year
as a result of the disease
vets with shops, stock and equipment in the rural north and east
of the country. The aim was to create a sustainable means of
advising farmers on how best to prevent and treat the disease in
their cattle and thus control its spread.
The problem: lacking business experience, many of the vets’
shops were failing, putting the SOS concept at risk. IKARE
approached EY and asked for help. Could the remaining vets’
businesses be saved? Could they become the start of a truly
market-based solution to the social and economic damage
sleeping sickness causes in the rural communities? An EGS
project was scoped, and a team of two deployed to Uganda.
A structured approach to sustainable business change
1
Business
resilience review
2
Intervention
design
• Assessed all five businesses and vets
• Carried out a digitization of paper records to create an accurate
financial picture of the five shops for the first time
• Identified weaknesses in the supply chain, financial management,
product range, pricing strategy, group cooperation and governance
• Prioritized interventions based on need, deliverability and impact
• Designed a new paper-based bookkeeping system with computerized
management information for the vets who were ready
• Designed a group-purchasing scheme to enable the vets to benefit
from volume discounts
• Conducted an extensive margin analysis and researched new
products
Inconsistent record keeping
3
Intervention
delivery and
sustainment
• Delivered bookkeeping training supplemented with extensive
co-working to familiarize the vets and their shop assistants with the
new process
• Initiated group purchasing and rationalized the supply chain to
achieve 5%–10% discounts
• Introduced new higher-margin products and provided the vets with
sales training
• Supported the vets in developing individualized plans to increase
revenue and profit at the shops
2 | Enterprise Growth Services • Case study: Stamp Out Sleeping Sickness, Uganda
Analysis and interventions
Outputs and outcomes
Suppliers by total group spend
Recommended stock and supplier list
10.0% discount
10,000
9,000
Product type
5
7.5% discount
8,000
4
5.5% discount
6,000
3
5,000
4,000
2.5% discount
2
3,000
2,000
1
1,000
0
Nile Services Norbrook
Scope vet
HHS
Vet Centre
Eram
Bookkeeping training
Ever Victory
MSJ
Global Vet
Jose
Developments
0
SKU
Importer
Suppliers
alphacypermethrin
Alfapor 100ml
Nile Services
Nile Services and Scopevet
alphacypermethrin
Alfapor 250ml
Nile Services
Nile Services
Acaricide
cypermethrin
Cypermethrin 100ml
Goodman
MSJ
Acaricide
alphacypermethrin
Cost Price Sales Price Margin /
/ Sh
/ Sh
Sh
6,000
10,000
4,000
14,000
25,000
11,000
5,500
8,000
2,500
Sypertix 20ml
Norbrook
Norbrook and Scopevet
4,000
1,200
Acaricide
deltamethrin
Vectocid 1 litre
MTK
HHS
70,000
85,000
15,000
Acaricide
deltamethrin
Vectocid 100ml
MTK
HHS
10,000
15,000
5,000
Anti Theilerial
parvaquone
Parvakel 50ml
Nile Services
Nile Services
40,000
55,000
15,000
Antibacterial
multi-ingredient
Diseptoprim 1g
Jose Developments Eram
Scopevet
Norbrook
Antibacterial
No of vets
000 UGX
7,000
Active ingedient /
Generic Name
Acaricide
Acaricide
procaine benzylpenicillin
Penand
& strep
dihydrostreptomycin
100ml
Ever victory
2,800
200
800
600
6,900
10,000
3,100
284
700
416
Antibacterial
tylosin
Tylosin 20%(phenix)
Nile Services
Nile Services
12,000
20,000
8,000
Antibiotic
enrofloxacin
Enrosol 100ml
Goodman
BASSAR
6,500
10,000
3,500
Antibiotic
oxytetracycline
Hitet 120 100ml
Vet Centrre
Vet centre
7,500
12,000
4,500
Antibiotic
oxytetracycline
Hitet 120 500ml
33,000
38,000
5,000
Antibacterial
trimethoprim sulfadiazine
Sultri bolus
Evervictory
Antibiotic / antiprotozoa
oxytetracycline
Alamycin 100ml 10%
Norbrook
Norbrook and Scopevet
Antibiotic / antiprotozoa
oxytetracycline
Alamycin 100ml 20%LA
Norbrook
Norbrook
Antibiotic / antiprotozoa
oxytetracycline
Alamycin 100ml 5%
Norbrook
Norbrook
3,000
6,000
2,420
5,000
2,000
20,000
14,000
4,000
1,580
Antibiotic / antiprotozoa
oxytetracycline
Alamycin 250ml 10%
Norbrook
Norbrook
8,050
12,000
3,950
Antibiotic / antiprotozoa
oxytetracycline
Alamycin 500ml 10%
Norbrook
Scopevet
12,000
18,000
6,000
Antibiotic / antiprotozoa
oxytetracycline
Alamycin aerosol 140g
Norbrook
Norbrook
6,600
13,000
6,400
Antibiotic / antiprotozoa
oxytetracycline
Alamycin chick formula 125g
Norbrook
Norbrook
5,000
12,000
7,000
Antibiotic / antiprotozoa
oxytetracycline
Alamycin LA 300 100ml
Norbrook
Norbrook
12,500
17,000
4,500
Antibiotic / antiprotozoa
oxytetracycline
Coopermycin 10% 100ml
MTK
Scopevet
3,200
5,000
1,800
Antibiotic / antiprotozoa
oxytetracycline
Curamycin 100ml 12.5%
Kwewayo
Scopevet and KYEWAYO
7,000
10,000
3,000
8,500
14,000
5,500
300
800
500
3,000
8,000
5,000
Antibiotic / antiprotozoa
trimethoprim sulfadiazine
Norodine 100ml
Norbrook
Scopevet
Antibiotic / antiprotozoa
trimethoprim sulfadiazine
Norodine bolus 1g
Norbrook
Norbrook
Antibiotic / antiprotozoa
oxytetracycline HCl
Evervictory
Ever victory
Oxy (yzoxytetra)20% 100ml
Margin %
40%
44%
31%
30%
18%
33%
27%
75%
31%
59%
40%
35%
38%
13%
40%
70%
40%
33%
33%
49%
58%
26%
36%
30%
39%
63%
63%
Cashbook spreadsheet
When Natalie Bretherick and Alasdair Reid, of UK&I, heard of
a project working to contain the disease, they jumped at the
chance to get involved. Natalie and Alasdair spent seven months
in Kampala working alongside SOS and the five vets.
The vets were chosen for their technical ability and
entrepreneurialism, the five vets were expected to work together,
but, without leadership, the group was falling apart. Without
a proper bookkeeping system, they were also struggling to
manage their cash flow. As a result, they weren’t able to save
enough money to buy drugs in bulk, and every 10 days or so,
they would have to travel a day and a half to and from Kampala
to restock. This was taking them away from their shops and
seriously impacting their success.
Natalie and Alasdair wanted to give the vets the tools and
knowledge they needed to manage their cash and profit properly, to
diversify their product range, and to promote the most profitable
and effective drugs. They ran training sessions in Kampala and
spent weeks on the road visiting the vets at their shops.
Despite some improvements, the vets still weren’t working
together, and Natalie and Alasdair knew that progress was
unlikely to be sustained once they’d left. So as well as helping
the vets individually, they encouraged one of them to step up
and lead the group. Patrick — the most successful and profitable
of the five — was the obvious candidate, and they worked to
increase his self-confidence.
Under Patrick’s leadership, the group has gone from strength to
strength, forming a new company together. Having consolidated
their purchasing power, they’re getting up to 15% discounts
from suppliers. They’ve won a couple of local government
contracts. And they are planning to bid for pilot work under the
UK’s first Development Impact Bond, which will use a paymentby-results mechanism to encourage private investors to fund the
elimination of sleeping sickness from Uganda.
So it’s fair to declare the project a real success. That’s certainly
the view of the vets themselves, one of whom, Joy, emailed SOS
as follows: “Natalie and Alasdair have been of GREAT help to us.
I cannot say it all, but I can sum it up in this statement: I will never
be the same again; I am fully set for a successful business. Please
help and thank them for us, as we did not thank them enough.”
EGS is a heavily subsidized and sustainable extension
of EY’s core business — working at accessible rates
for smaller, socially impactful clients.
EGS’s corporate social enterprise model means
it is scalable and prevents costs from falling
disproportionately on the local teams that
contribute participants.
• EY absorbs the costs of the program’s
management team and participants’ overheads.
• EGS participants from mature markets voluntarily
reduce their salaries to emerging market levels
during their time on EGS.
• EGS clients pay fees which are a small fraction of
our normal commercial rates in both mature and
emerging markets.
Enterprise Growth Services • Case study: Stamp Out Sleeping Sickness, Uganda | 3
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Experiences that last a lifetime
Natalie and Alasdair — each made a 50% salary sacrifice in order
to work through EGS and make their services affordable to the
client. Alasdair reflects on his experience:
“I never viewed it as a sacrifice. For me, building a better working
world isn’t just a tagline. I wholeheartedly believe that’s what
we’re here to do, and now I’ve seen that with my own eyes.
“I’ve learned an awful lot, too,” he adds. “Seeing Patrick grow into
his leadership role has reinforced my view that you don’t have
to be loud, gregarious or domineering to be a great leader. You
can be quiet and thoughtful and lead others by showing that
you believe in their capabilities, and by creating an environment
in which great people can thrive. I certainly feel I’ve developed
as a leader by taking part in EGS. The challenge of taking
responsibility for the planning and delivery of a seven-month
engagement was really rewarding.”
For more information on Enterprise Growth Services,
please contact:
Jon Shepard
[email protected]
+ 44 7919 691 916
Abi Smith
[email protected]
+ 44 7768 733 693
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This material has been prepared for general informational purposes only and is not
intended to be relied upon as accounting, tax or other professional advice. Please refer
to your advisors for specific advice.
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