course manual jindal school of banking & finance rd year

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COURSE MANUAL

Social Entrepreneurship, Social Impact, and Impact Investing

Fall-2020

JINDAL SCHOOL of BANKING & FINANCE

Elective Course (Cross-listed): B.Com-3rd Year

Course credits: 4 (30 sessions of 2 hours each)

Academic Year: 2020-2021

Dr. Deepak Maun (Assistant Professor)

Email: [email protected]

Mobile: +91-8396907470; +91-7600044111

Office: IIHEd, T-1 South Wing, 2nd Floor

mailto:[email protected]

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INTRODUCTION TO THE COURSE

In any society, the elected government is responsible for the welfare of its people. It is expected to make provisions for housing, food, healthcare, education, livelihoods, sanitation etc. Yet, governments across the world have proven inefficient and ineffective in serving all sections of society. Then there is a market economy with limited role for the government as an enabler and a neutral referee and markets responsible to serving needs of society. But markets cater to the needs where individual entrepreneurs see opportunity for generating good profits. The inefficiencies or the inabilities of the governments and markets leave a significant gap which is met by Social Sector Organizations (also called Non Governmental organizations or Civil Society Organizations). These organizations usually work with the most vulnerable sections of society. At the confluence of Social Sector (driven by NGOs) and Markets (driven by entrepreneurs) is the emergent phenomenon of Social Entrepreneurship. Here, the individual entrepreneurs operate with the goal of generating profits from serving sections of society (or sectors of economy) that were hitherto considered unprofitable by markets. By innovating on products and/or business models, they create societal value in a self-sustained manner. Social entrepreneurs now compete for attention of VC or Angel Investors and a whole new field of 'Impact Investing' has developed with a focus on investing in companies that are looking for making social impact through their business. This 4-credit course will look at this phenomenon of social entrepreneurship, the social impact these organizations try to generate, and the ways social enterprises try to fund their ambitions. It will try to achieve this through a mix of classroom discussions, case studies, instructor and guest lectures, readings and student presentations based on their research.

COURSE DESCRIPTION AND INTENDED LEARNING OUTCOMES

What are social enterprises and how do they differ from mainstream corporate enterprises and NGOs? What is the reason and justification for their existence? In what respects are social entrepreneurs different than entrepreneurs in mainstream businesses? What is social about social enterprises? What impact do they try to achieve, and how can their impact be measured? Do the Venture Capitalists, Angel Investors, and other financing institutions look at Social Enterprises differently than a traditional corporation? These are some of the issues that the course is intended to help students understand.

The focus will be on helping students get a good understanding of the needs that social

entrepreneurs serve and how they try to bring social change. By understanding the sector

and its players, participants will be able to appreciate Social Entrepreneurship as a distinct

phenomenon. A further goal will be to sensitize students to the inequities faced by large

sections of society and show how individual action can impact their lives positively. The

guest lectures, case studies, and hands-on assignments will try to give students a peek into

the operations of these enterprises and the challenges they face while trying to accomplish

their goals. Still, it is not a skill development course that will lead to development of a

detailed business plan by working on an idea or piloting of such a plan. Anyone interested in

starting own social enterprise will require more specialized knowledge and hands-on

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training. This could be acquired through self-learning, taking sector-specific elective courses,

and working with Social Enterprises as volunteers or interns. Working closely with JSiE

(Jindal Centre for Social Innovation + Entrepreneurship) could be a good way to gain access

to Social Enterprise networks and mentors. This course will provide participants a solid

grounding to work successfully in social enterprises or start their own social ventures.

By the end of this course, the students will be able to:

1. Have an understanding of what social change means. 2. Distinguish social enterprises from NGOs and traditional corporate organizations. 3. Explain the relationship of Social Enterprises with governments, markets, and NGOs. 4. Understand theory of change and apply it to observe workings of existing social

enterprises 5. Apply social entrepreneurship frameworks to understand and critically analyze

workings of social enterprises. 6. Identify mechanisms for funding Social enterprises 7. Understand the motivations of impact investors and their criteria for evaluating social

enterprises 8. Explain elements of social impact evaluation and impact measurement. 9. Articulate challenges in growing and scaling up social enterprises to achieve social

impact

TEACHING METHOD

This is a 4-credit course with 30 sessions of 2-hours each. A lot of pre-class reading will be

involved to allow classroom time to be utilized for discussion.

All the students will be expected to finish compulsory readings before coming to class.

These readings will be shared with the class digitally (via Microsoft Onedrive folder). The

classes will involve lectures, instructor-led student discussions and activities, videos, and

guest lectures. Some detailed case studies will also be discussed in class.

We will be using www.piazza.com for continuing discussions outside the classroom.

Microsoft Teams (www.teams.microsoft.com) will be utilized for managing course

submissions and for clarifying any doubts regarding the course management.

The assignments will not just evaluate the learning but form a critical part of the learning

that will happen during the course. Hence, the students will be expected to devote

significant amount of time to assignments throughout the semester rather than leaving

them for last week before they are due.

Disability Support

‘JGU endeavours to make all its courses accessible to students. All students with a known

disability needing academic accommodations are required to register with the Disability

http://www.piazza.com/

http://www.teams.microsoft.com/

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Support Committee. Our email address for appointments is "Disability Support Committee"

<[email protected]>.

The Committee provides a range of accommodations to the conditions identified by the The

Rights of Persons with Disabilities Act, 2016 and the Mental Health Care Act 2017 and

beyond. We provide support to students with a wide-range of health and learning related

conditions. These conditions include physical and mobility-related difficulties; visual

impairment; hearing impairment; medical conditions; specific learning difficulties, e.g.

dyslexia; dyscalculia, mental health conditions such as anxiety and panic attacks. The

Disability Support Committee maintains strict confidentiality in its discussions. We respect

the privacy of the students.

The registrations for the DSC are open throughout the year. However, the students with

long-standing conditions should register with the Committee at the beginning of the

academic year. The DSC will take at least 14 business days to make arrangements with the

respective departments'.

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GRADING

The evaluation for the course will be continuous and there will be no separate mid-term or

end-term examination.

Evaluation Component# Deadline

Ponder (on www.piazza.com)@ Individual 15%

Class participation* Individual 10%

Assignment-1 (Sectoral Report) Individual 25%

Assignment-2 (Social Enterprise outline) Group + Individual 20% + 15%

Assignment-3 (Case: Social Impact measurement) Group 15%

@Ponder is a way to share own ideas and views on the compulsory class readings. Students will be

asked to reflect on readings for specific sessions and provide 3 short responses (20-30 word each) to

the article. These responses could be their own reaction to the reading or a response to their

classmates’ comments. One elaborate response per article (approx. 100-150 words) will also be

required. Minimum five ponders will be required for grading.

* Class participation will be marked based on contribution to the class discussions during

synchronous online sessions and asynchronous discussions on www.piazza.com.

# Details of all assignments will be shared later.

ATTENDANCE POLICY

As per university rules applicable for the semester.

OFFICE HOURS

There are no specific office hours, but the student can message me on MS Teams to fix an

appointment. I expect the students to briefly write (2-3 lines) about the issue they want to

discuss when seeking appointment. I will be available for discussion immediately after class

also.

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COURSE READINGS & SESSION PLAN1

Session

Theme Key Q Pedagogy Compulsory Optional

1 Introduction to the course

What is the need to study Social Enterprises separately from a business enterprise? What is social about social enterprises? How are social enterprises funded? Should RoI metrics be different for Social enterprises? How can impact of Social Enterprises be measured?

Instructor lecture; Instructor-led discussions; Videos

None

Module-1

2 Introduction to Social Entrepreneurship-Part-1

What gaps do Social Entreprenurs fill? Are Social Entreprises best modes to fill the gap? Whom do Social Entrepreneurs serve, and whom do they leave out?

Instructor-led discussions; Videos; In-session activity

McMullen JS. 2011. Delineating the domain of development entrepreneurship: A market-based approach to facilitating inclusive economic growth. Entrepreneurship Theory and Practice 35(1): 185-193.

The Rise Of The Social Enterprise: A New Paradigm For Business: https://www.forbes.com/sites/joshbersin/2018/04/03/the-rise-of-the-social-enterprise-a-new-paradigm-for-business/#6115ee0f71f0

1 The readings are tentative. Final readings will be shared at least one week in advance for each class.

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3 Introduction to Social Entrepreneurship-Part-2

How are social enterprises defined? What are the contestations around definition of Social Enterprises, and what are its implications for the phenomenon, entrepreneurs, and enterprises? How are social enterprises connected with classical business enterprises, government, and the not-for profit (NGOs) organizations?

Instructor lecture; Instructor-led discussions; Videos

Martin RL, Osberg S. 2007. Social entrepreneurship: The case for definition. Stanford Social Innovation Review 5(2): 28-39.

Dees, J.G. & Anderson, B.B. (2003). For Profit Social Ventures. In M.L. Kourilsky & W.B. Walstad (Eds.), Social Entrepreneurship. Senate Hall Academic Publishing.

4 Need for Social Enterpreneurship (including NGOs and cooperatives)

Sustainable Development Goals: Where do we stand? Understanding policy failures, unequal life chances, and differential access to resources.

In-class video; Instructor-led discussions

Mohammad Yunus (2006): Social Business Entrepreneurs are the solution: https://www.grameen-info.org/social-business-entrepreneurs-are-the-solution/

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5 Need for Social Enterpreneurship (including NGOs and cooperatives)

Can social enterprises play a role in providing solutions? What are the ways in which social enterprises create value for the customer?

Instructor-led case discussions; In-class video;

Mirage at the bottom of the pyramid (Aneel Karnani, 2013): https://www.business-standard.com/article/opinion/aneel-karnani-mirage-at-the-bottom-of-the-pyramid-106092201109_1.html Battilana J, Lee M, Walker J, Dorsey C. 2012. In search of the hybrid ideal. Stanford Social Innovation Review 10(3): 50-55.

Mair J, Marti I. 2009. Entrepreneurship in and around institutional voids: A case study from Bangladesh. Journal of Business Venturing 24(5): 419-435.

6 Examples from the mainstream and the margins: Social Enterprises, Social Entrepreneurs, and their journeys

Case Study discussions Larance, L. (1998). Building social capital from the center: A village-level investigation of Bangladesh’s Grameen Bank (CSD Working Paper No. 98-4). St. Louis, MO: Washington University, Center for Social Development.

Module-2

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8 What is a Theory of Change? What is its relevance? What is social value creation?

What is theory of change? What is the need for identifying own theory of change? What are some theories of change adopted by social enterprises? Practice creating own theory of change, and question the assumptions inherent therein What is social value creation? How do social entrepreneurs create social value?

Instructor lecture; in-class Activity

Organizational Research Services (2004). Theory of Change - A Practical Tool for Action, Results and Learning. Retrieved July 8, 2020 from https://www.aecf.org/resources/theory-of-change/ Mulgan, G. (2010). Measuring social value. SSIR.

Montgomery AW, Dacin PA, Dacin MT. Collective social entrepreneurship: Collaboratively shaping social good. Journal of Business Ethics 111: 375-388.

9 Social Innovation for social problems: Case Studies

What is social innovation? Why are social innovations relevant for social entrepreneurs? How do Social Innovations scale social impact? Identification of theory of change for given cases.

Instructor-led discussions; Case Study

TBD

Module-3

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10 Student presentations

Presentations on themes chosen by students: Defining the problem; Identifying the root causes; Identifying the current status of different interventions and players; Possible intervention possibilities from SE perspective

Student presentations

11 Leadership for Social Enterprises

What are the key qualities of a social entrepreneur? Are the skills, attitudes, and behaviors required for SE different than traditional companies?

Instructor-led discussions Barendsen, L., & Gardner, H. (2004). Is the social entrepreneur a new type of leader? Leader to Leader, 2004(34), 43. Six Qualities of Successful Social Entrepreneurs: https://rohanpotdar.com/6-qualities-of-successful-social-entrepreneurs-a-takeaway-from-how-to-change-the-world-by-david-bornstein/

Zahra SA, Gedajlovic E, Neubaum DO, Shulman JM. 2009. A typology of social entrepreneurs: Motives, search processes and ethical challenges. Journal of Business Venturing 24(5): 519- 532.

12 Guest Lecture Discussion with Guest Speaker(s); Student questions

Shunya; DeHaat; Hydrogreens

Module-4

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13 Understanding Impact

What is social value creation? How is social value created measured? The Cost-Benefit analysis (Economic, social, and ecological): Who gains? Who loses?

Instructor-led discussions; In-class activity

Kroeger A, Weber, C. 2014. Developing a conceptual framework for comparing social value creation. Academy of Management Review 39(4): 513-540.

14 Measuring impact-1

Different methods to measure impact: Quantitative and Qualitative


Behn RD. 2003. Why measure performance? Different purposes require different measures. Public Administration Review 63(5), 586-606.

15 Measuring impact-2

Randomized Control Trials as Gold Standard of impact measurement


Michael Kremers' study on Kenya Schools and deworming; Natural Experiments; Multilevel modelling

16 Ecosystem for developing Social Business

What are Incubators, Accelerators, and Social Networks for Social Entrepreneurs? What role do these entities play in growth of social enterprises and social entrepreneurs?

Instructor-led discussions; Videos;

TBD

17 Guest Lecture Theme: Impact measurement Discussion with Guest Speaker(s); Student questions

Avanti Learning Centres: Akshay Saxena; Central Square Foundation: Manisha Kukreja;

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Rocket Learning: Utsav Kheria

18 Student Presentations-1

Analysis of Case Studies of Social Enterprises


19 Student Presentations-2

Analysis of Case Studies of Social Enterprises


Module-5

20 Financing for impact: Impact investment introduction

What is Impact investing? What is Social Stock Exchange? Why is impact investing a separate field than regular VC/Angel investing? What benefits do SE get by engaging with Impact Investors?

Instructor lecture Hlady‐Rispal M, Servantie V. 2018. Deconstructing the way in which value is created in the context of social entrepreneurship. International Journal of Management Reviews 20(1): 62-80. https://ssir.org/podcasts/entry/how_venture_philanthropy_works_and_its_role_in_effective_charity

GIVING WITH IMPACT PODCAST: https://ssir.org/podcasts/category/giving_with_impact

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21 Criteria for making investment

How do investors decide the sectors and organizations in which to make investment? How do investors analyze potential candidates for investment? How do they measure the returns on their investments (RoI)? What is the Impact Investment continuum?


Case Studies of a few impact investors and videos of their logics for making these investments

22 Framework for making investment: Guest Lecture

Discussion with Guest Speaker(s); Student questions

Omnivore: Subhadeep Sanyal

Maximizing outcomes in impact investing: https://knowledge.insead.edu/strategy/maximising-outcomes-in-impact-investing-13636

23 Current Status of Impact Investment in India and impact achieved

What are the major organizations and networks of impact investors within India? What is the quantum and nature of investments they are making? What is the impact that is being achieved through these investments? Crowdsourcing investments for impact


TBD Crowdfunding for impact: https://knowledge.insead.edu/responsibility/crowdfunding-for-impact-12456

https://knowledge.insead.edu/strategy/maximising-outcomes-in-impact-investing-13636





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24 Current Status of Impact Investment globally and impact achieved

What are the major organizations and networks of impact investors globallu? What is the quantum and nature of investments they are making? What is the impact that is being achieved through these investments? Crowdsourcing investments for impact


TBD

25 Sustaining impact

Can organizational models be aligned with creating impact? How can revenue and cost structures be used to drive enterprise sustainability? How can operational sustainability (including talent, resources, and systems) be configured to drive organizational sustainability?


Ormiston J, Seymour R. 2011. Understanding value creation in social entrepreneurship: the importance of aligning mission, strategy and impact measurement. Journal of Social Entrepreneurship 2(2): 125-150.

26 Getting ambitious: Scaling up for impact

What are the various routes to scale up? What could be the impact of scaling up on existing operations?


https://faithandleadership.com/paul-bloom-scale-triathlete https://communitywealth.com/scaling-who-what-when/ https://www.socialchangeinnovators.com/topic.php?t=23

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27 Challenges in scaling up

What are the challenges to scalling up? Lessons from Successful scale-up stories


Kistruck GM, Webb JW, Sutter CJ, Ireland RD. 2011. Microfranchising in base-of-the-pyramid markets: Institutional challenges and adaptations to the franchise model. Entrepreneurship Theory and Practice 35(3): 503-531.

28 Final Student Presentations-1


29 Final Student Presentations-2


30 Conclusion Instructor-lecture

course manual jindal school of banking & finance rd year

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