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Institute for Social Entrepreneurship in Asia

Marie Lisa Dacanay, PhDPresident, Institute for Social Entrepreneurship in Asia

3RD NATIONAL SOCIAL ENTERPRISE CONFERENCE IN CAMBODIAOCTOBER 25, 2013

� Introduction

� SE and the Poor: Some Cases from a

Developing Country Context

SE and the Poor: Stakeholder Engagement

Social Enterprises in Developing Countries: Social Enterprises in Developing Countries:

Investing in the Poor as StakeholdersInvesting in the Poor as Stakeholders

� SE and the Poor: Stakeholder Engagement

Models

� Concluding Remarks and Suggested

Workshop Reflection Questions

� Context of many developing countries �

widespread poverty, worsening inequality amidst

economic growth

� Social enterprises

◦ �may be characterized as responses to this

IntroductionIntroduction

◦ �may be characterized as responses to this

development crisis

� People that many social enterprises are most

concerned with: poor and marginalized

� Share results of research involving SEs in the Philippines � effective and ineffective ways on how

social enterprises engage the poor or marginalized

as stakeholders in a developing country context

Poor as suppliers Poor as workers Poor as clients

Alter Trade

**landless beneficiaries of agrarian reform ����

organic sugar farmers

(820)

PWD Fed

**unemployed

persons with

disability

(1,250)

Lamac MPC

**entrepreneurial

poor; upland

farmers; informal

sector & migrant

workers (35,040)

(820) (1,250) sector & migrant

workers (35,040)

Upland Marketing

**small producers of food

(3,000): organic rice,

muscovado sugar, other processed food products

Tahanan

**unemployed

persons with disability (273)

CARD MRI

**landless rural poor;

economically

disadvantaged

women & families

(over 1 million)

Initiation Stage Development

Stage

Renewal Stage

Alter Trade Organized

supplier-partners

in fair trade value

chain

Self-determining

partner producer

organizations

Federated self-

determining

partner producer

organizations

Upland Supplier-partners Supplier-partners Upland

Marketing

Supplier-partners Supplier-partners

in value chain

management

PWD Fed Empowered

worker-owners

Empowered

worker-owners +

Empowered

worker-owners ++

Tahanan Worker-partners in

rehabilitation

Passive worker-

beneficiaries

Worker-partners in

SE management

Lamac MPC

CARD MRI

Client-partners

Client-partners

Client- partners

Empowered

client-owners

Group of SEs engaged in sustainable

agriculture & fair trade

Annual Revenue:

PhP202.8 M Age: 21 years

trade

820 sugar workers-turned Agrarian

Reform Beneficiaries

18 organized supplier groups federated into

Negros Organic Fair Trade Association

Foundation providing producers of processed food access to

Age: 17 yrs Annual Revenue:

PhP32 Maccess to supermarkets

3,000 small producers in upland, lowland, coastal communities

60 Community Based Enterprises

Federation of PWD cooperatives

producing school chairs+ � gov’t as main market

Age: 15 yrsAnnual Revenue:

PhP48 M

main market

1,250 Persons with Disability (PWD)

15 primary coops nationwide�

employment and empowerment of

PWDS

Foundation providing rehab & employment for PWDs� 273 PWD employees, workers

Age: 36 yrs; Annual Revenues: PhP24M

workers

Sheltered workshops: educational toys +

majority of supervisors and managers now

PWDs

Cooperativeproviding poor access to credit, insurance and other services

Age: 17 yrs Annual Revenue: PhP101.4 M

other services

35,040 mostly entrepreneurial

poor

Access to financial and social

protection services

Group of SEs providing

microfinance & social development services to poor

Age: 26 yrs

Loan Portfolio: PhP6.3 B

99% repayment

Assets: PhP14.1 B

Outreach:

>1 million landless rural poor/economically challenged women

>7 million insured

Represented in CARD MRI Boards

35,000+poor women part owners of CARD Bank; CARD MBA fully owned and governed by poor

women

◦ Roles performed by

poor involving

exchange of goods

or services for money

◦ Roles performed by

poor as conscious

agents of change to

improve their quality

of life and that of

their community,

Transactional Transformational

◦ market-driven

services

their community,

sector or society as a

whole

◦ Primary-stakeholder-

driven services

Transactional &Transformational Services Provided by CARDto Economically and Socially Challenged Women & Families

TRANSACTIONAL TRANSFORMATIONAL

Marketing

Agricultural

Trading Program

Value chain

financing

Business

Credit with

Education Program

Balik Eskwela si

Nanay (Mothers’

Back to School

Program)

Scholarship

Program

Group/center

organizing and

Value chain

development

Trading Program

Loan products

Savings products

Business

Development

SupportMicro-insurance

(life and non-life)

Health Protection

Program

Lakbay Aral (Study

Visits)

Organizing and

leadership

development for

participation in

CARD MRIs

Program

Asset and capacity

building to

lead/own

community

development

enterprises

organizing and

development

◦Control

◦Collaboration

◦ Empowerment◦ Empowerment

� Differentiating Elements

◦ Managerial orientation towards poor

◦ Key engagement processes

◦ Nature of roles and capabilities developed among ◦ Nature of roles and capabilities developed among

poor

◦ Nature of programs/services and delivery systems

involving the poor

◦ Impact on poor

Model/Dimension

Control Collaboration Empowerment

Orientation towards poor

Poor as passive beneficiary

Poor as transactional partner

Poor as transformational partner

Impact on poor Limited to negative

Increased incomes, access to services ����social inclusion

Significant outcomes in overcoming capability deprivation & income poverty

Model/Dimension

Control Model Collaboration Model

Empowerment Model

Nature of roles and capabilities developed among poor

Passive workers, suppliers or clients

Pro-active workers, suppliers or clients; nominal

Empowered workers, suppliers, clients; full-fledged owners engaged among poor clients clients; nominal

owners

Partners in social enterprise management or value chain management

owners engaged in social enterprise governance

Organized partners in poverty reduction and community, sector and/or societal transformation

Model/Dimension

Control Model

Collaboration Model Empowerment Model

Nature of programs/services and structures/delivery systems

Limited to fee-based transactional services

Transactional services include capacity building to ensure performance of transactional roles (fee-based and non-fee based)

+Dedicated programs to enable poor’s performance of transactional and transformational roles

systems involving poor

based)

Delivery system of transactional services integrated into operating systems

Transformational services directed at promising individuals

+Distinct delivery system for transformational services directed at poor as organized groups

+Distinct structures and systems set up to enable poor’s performance of transformational roles

◦On empowerment model:� Poor as transformational partners

� tend to have significant qualitative impact on

poverty reduction.

◦On collaboration model:◦On collaboration model:� Poor as transactional partners

� tend to reach bigger number of poor with less

qualitative impact on their poverty situation

� best with poor’s participation as partners in

social enterprise or value chain management

◦ managers & programs oriented towards poor as

transformational partners

◦ dedicated structures & systems to deliver ◦ dedicated structures & systems to deliver

transformational services

◦ dedicated structures and systems as venues for

performance of transformational roles

� Poor as passive beneficiary

� tendency to foster subservience

and dependency leading to

negative social inclusion or negative social inclusion or

hardening of social exclusion

� associated with mission drift

�may be unintended

� Entails a combination of

TRANSACTIONAL AND TRANSFORMATIONAL SERVICES

for poor to effectively play

TRANSACTIONAL ROLES ���� as effective workers, suppliers, clients

Concluding Remarks: Investing in the Poor as Concluding Remarks: Investing in the Poor as

Stakeholders of Social Enterprises in Stakeholders of Social Enterprises in

Developing CountriesDeveloping Countries

���� as effective workers, suppliers, clients

and TRANSFORMATIONAL ROLES ���� as full fledged owners and decision makers in SEs;

as partners and actors in their own development

and the development of their communities, sector &

society as a whole

� Are these findings on transactional/transformational

roles and services as well as stakeholder

engagement models relevant to social enterprises

in Cambodia? Why or why not?

� If relevant:

Suggested Workshop Suggested Workshop

Reflection QuestionsReflection Questions

◦ What are the implications of these findings for social

enterprise practitioners, supporters, resource institutions and

scholars in Cambodia?

◦ How would these findings improve or enhance your

perspectives and practice of social enterprise development

in Cambodia?

THANK YOU!THANK YOU!

www.iseawww.isea--group.netgroup.netldacanay@isealdacanay@isea--group.netgroup.net