Overview

Following the tsunami that occurred on 26th December 2004, the problem of youth unemployment was even worsened in the country. To propose solutions to solve this social issue, the Building A Future Foundation was created in 2006 with the objective to train underprivileged youth in specific areas that has a potential of economic development in the region. To generate employment opportunities for youth, BAF has created 3 commercial spin offs, the Mirissa Water Sports (www.mirissawatersports.com) - BAF Polymech Pvt Ltd and Solar Impulse Pvt Ltd under the form of social businesses and one non-profit organization, the Ruhunu Sailing Association.
 

Social business

The commercial spin offs were created on the model of the social business, a concept introduced by Professor Muhammad Yunus, Founder of the Grameen Bank in Bangladesh.
 
Whereas a traditional company merely has financial objectives, a social business is created with social motives. The profit that is made can be used to support or expand its activities or to give a certain amount to people in need. Apart from the investor’s objectives, a social business functions the same way as a traditional business and competes in the free market. In a traditional company investors are expecting to maximize their return on investment or a dividend. Investors in a social business really aim at supporting the social objective and only expect to maximally receive the money they have invested in return, but no profit whatsoever.
 
Performance of the social businesses are measured in term of the impact it has on the local communities (in our case increase youth employment) as well as in profit and return.
 

Incubation period

During an incubation period of 2 to 3 years, BAF Foundation assists the newly created company in terms of management, accounting, marketing, human resources... The objective is that after this period, each company becomes profitable, autonomous and fully independent from the Building A Future Foundation.
 

A sustainable way of financing BAFF

From the beginning of its activities, the Building A Future Foundation was supported by various public and private organisations to finance the infrastructure (setting of a boatyard, a sail making & mast making unit, the mechanical & electrical engineering workshops …) and youth training.
 
The idea came to develop in parallel another way of financing BAF activities in a sustainable manner: a percentage of the profit made by the social businesses finances social projects implemented by the Building A Future Foundation (ie training of new batch of trainees,...).