an introduction to social entrepreneurship

An IntroductiontoSocial Entrepreneurship

RAF VLUMMENS MFIN CRAENTREPRENEURIAL COACH

(c) Raf Vlumm

ens 2016

An Entrepreneurial Revolution

1 million new ventures a year in U.S.85% of the new jobs in SME’sProduct/service introduction rate

higher than ever beforeRate of wealth creation

explodingAnd it’s a global revolution

(c) Raf Vlumm

ens 2016The New Buzzword:Social Entrepreneurship

(c) Raf Vlumm

ens 2016

Social Entrepreneurship

a social enterprise is an organization that trades for a social purpose.

Sometimes social enterprises are described as 'not for profit' as any profit or surplus generated is used to further the social objectives of the business.

(c) Raf Vlumm

ens 2016

Social Entrepreneurship

The only big difference between commercial and social entrepreneurship:

Attribution of the bottomline

(c) Raf Vlumm

ens 2016

Social Entrepreneurship Traditional Business – one bottom line

Social Enterprise – up to 4 bottom lines

Social: improving the quality of life, access to services, and so on for communities

Environmental: minimising the enterprise’s own negative impacts, making improvements

Economic: increasing employment rates, income levels, business start-ups, etc

Financial: generating income and profits to be invested in the other bottom lines

(c) Raf Vlumm

ens 2016

The Cooperative and Social Entrepreneurship

Ownership

Members of the coop are the owners

ManagementBoard of Directors are Members

(c) Raf Vlumm

ens 2016

The Cooperative and Social Entrepreneurship

the cooperative structure is the

ideal ‘corporate’ structure to realize social objectives

OwnershipManagementAllocation of the bottom line

(c) Raf Vlumm

ens 2016

The Process of Social Entrepreneurship?

1. Find an opportunity2. Develop a business concept3. Figure out what success means

and how to measure it4. Acquire the right resources5. Launch and grow6. Attain goals

(c) Raf Vlumm

ens 2016

Three characteristics of Social Entrepreneurship

Social entrepreneurship meets needs unmet by commercial markets and (usually) the government

Social entrepreneurship is motivated by social benefit

Successful social entrepreneurship usually works with, not against, markets

(c) Raf Vlumm

ens 2016

Other definitions of Social Entrepreneurship

Social Enterprises have social and/or environmental objectives. Social Enterprises are businesses looking for

financial independence.A Social Enterprise cannot be the subsidiary of

a public sector body.Social Enterprises are driven by values – both in their mission and business practices

(c) Raf Vlumm

ens 2016

Social Entrepreneurship

Environmental factors• Social climate conducive to social

entrepreneurship• Political climate that facilitates

social innovation

Availability of financial and nonfinancial resources

Perturbation of the environment• Political change• Cultural change• Economic change

Entrepreneurial personality traits

Preparation to exploit opportunities

• Education• Experience

Social entrepreneurshipprocess begins

External forces

Internal forces

Environmental factors• Social climate conducive to social

entrepreneurship• Political climate that facilitates

social innovation

Availability of financial and nonfinancial resources

Perturbation of the environment• Political change• Cultural change• Economic change

Entrepreneurial personality traits

Preparation to exploit opportunities

• Education• Experience

Social entrepreneurshipprocess begins

External forces

Internal forces

(c) Raf Vlumm

ens 2016

Social Entrepreneurship

Innovativeness

Education and experience

Achievement orientation

Independence

Sense of control over destiny

Low risk aversion

Tolerance for ambiguity

Entrepreneurialorientation

Community awarenessAnd social concern

Socially-entrepreneurialorientation

Innate characteristics

Innovativeness

Education and experience

Achievement orientation

Independence

Sense of control over destiny

Low risk aversion

Tolerance for ambiguity

Entrepreneurialorientation

Community awarenessAnd social concern

Socially-entrepreneurialorientation

Innate characteristics

(c) Raf Vlumm

ens 2016

Social Entrepreneurship

Opportunities for social entrepreneurs look like threats and tragedies to others

(c) Raf Vlumm

ens 2016

Myths about Social Entrepreneurship

Social entrepreneurs are anti-business The difference between commercial and social

entrepreneurship is greed Social entrepreneurs are nonprofit managers Social entrepreneurs are born, not made Social entrepreneurs are misfits Social enterprises usually fail Social entrepreneurs love risk

(c) Raf Vlumm

ens 2016

Social Entrepreneurship and Cooperatives

(c) Raf Vlumm

ens 2016

Social Entrepreneurship and Cooperatives

Grameen Danone Foods Ltda Social Business

in Bangladesh

(c) Raf Vlumm

ens 2016

Social Entrepreneurship and Cooperatives

Grameen – Danone Foods a social business Joint-Venture

Grameen Bank – prof Mohammud YUNUS Danone Foods - France

(c) Raf Vlumm

ens 2016

Social Entrepreneurship and Cooperatives

Grameen – Danone Foods Bangladesh

14 % has an income > 4.1 EURO/day (212 Pesos/day) 11 % has an income between 2.9 and 4.1 EURO/day 16% has an income between 2 and 2.9 EURO/day 37 % has an income between 1 and 2 EURO/day (50-100 Pesos) 22 % has an income < 1 EURO a day

(c) Raf Vlumm

ens 2016

Social Entrepreneurship and Cooperatives

Grameen – Danone Foods : Objectives:

To bring health through nutrition at very affordable price for all Bangladeshi children

To improve living conditions of the poorest of the community by involving them in all stages of the business model (supply, production, sales), creating jobs and improving local competencies

To preserve non-renewable resources as much as possible

To be profitable to ensure economic sustainability

(c) Raf Vlumm

ens 2016

Social Entrepreneurship and Cooperatives

Grameen – Danone Foods : a ‘bumpy’ road….

2826569

2862502

0

500000

1000000

1500000

2000000

2500000

3000000

3500000

Feb-07

Apr-

07

Jun-07

Aug-07

Oct-07

Dec-07

Feb-08

Apr-08

Jun-08

Aug-08

Oct-

08

Dec-08

Feb-09

Apr-

09

Jun-09

Aug-09

Oct-

09

Dec-09

Feb-10

Apr-

10

Jun-10

Aug-10

Oct-10

Dec-10

Feb-11

Apr-11

Jun-11

Aug-11

Oct-

11

Dec-11

Month of sales

Uni

ts so

ld p

er m

onth

(c) Raf Vlumm

ens 2016

Social Entrepreneurship and Cooperatives

Conclusion

(c) Raf Vlumm

ens 2016

Social Entrepreneurship and Cooperatives

0

50

100

150

200

250

300

350

Health Education Religion Socialwelfare

Arts andculture

Subsector

Bill

ions

of 1

997

dolla

rs

197719871997

(c) Raf Vlumm

ens 2016

Social Entrepreneurship and Cooperatives

Main Challenges for the Future

Money Competition Demonstrating effectiveness Technology Trust Human resources Public-sector relations

(c) Raf Vlumm

ens 2016

Social Entrepreneurship and Cooperatives

Main Opportunities for the Future

Demographic shifts New philanthropy Heightened awareness of sector Increased social welfare spending through sector

Entitlement expansion Welfare reform

(c) Raf Vlumm

ens 2016

Social Entrepreneurship

Raf Vlummens Mfin, CRAEntrepreneurial CoachTheBigBelgian@gmail.com