module 1 social enterprises

8/8/2019 Module 1 Social Enterprises

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y Meaning & Concept of social entrepreneurship

y Types of social enterprises

y Qualities of social entrepreneurs

y

Problems as opportunitiesy Importance of problem solving approach and attitude

y Turning an idea into a reality

y Innovative solutions

Module 1

Social Enterprises



What Solutions do we have Today to solve Social Problems?

y Government ² alone is not the answer

y Inefficiencies, slow, bureaucratic, prone to corruption«.

y Nonprofit Orgs. ² inadequate

y dependent on donations (uncertain, demand far exceeds supply)

y ´compassion fatigueµ

y Raising money takes time and energy, which can be spent planninggrowth/expansion

y Multilateral Institutions (World Bank«) - ineffective

y Conservative, slow, under-funded, unreliable

y Success is measured by

a) GDP (might not be helping poor)

b) Volume of loans negotiated ( not measuring im pact)

y Exclusively work with the government

y Corporate Social Responsibility - fundamentally flawed

y´ as long as it can be done without sacrificing PROFITSµ



New kind of Business Social Enterprise

y Creating business models revolving around low -cost products and services

to resolve social problems

y Social business is for ¶more-than-profit· combine revenue-

generating business with a social-value-generating structure



Social Enterprises

y No common definitions

y Social Enterprises are businesses with social objectives

y ´A business with primarily social objectives whose surpluses are

principally reinvested for that purpose in the business or in the

community, rather than being driven by the need to maximize

profit for shareholders and ownersµ

´A social entrepreneur is an individual, group, network,

organization, or alliance of organizations that seeks

sustainable, large-scale change through pattern-breakingideas in what or how governments, nonprofits, and businesses

do to address significant social problems.µ



Social Entrepreneurship

y Social entrepreneurs play the roleof change agents in the socialsector, by:y Adopting a mission to create and

sustain social value

y Recognizing and relentlessly pursuingnew opportunities to serve thatmission

y Engaging in a process of continuousinnovation, adaptation, and learning

y

Acting bold

ly without being limited

by resources currently in hand

y Exhibiting a heightened sense of accountability to the constituenciesserved and for the outcomes created

Social entrepreneurs are not content justto give a fish, or teach how to fish. Theywill not rest until they haverevolutionized the fishing industry.

- Bill Drayton (Ashoka)



How can one do business and serve social goals?

Why is profit-making not conf licting with social objectives?

Profits -

y Promotes R&D, innovation, new technologies

y Increases efficiency

y Enables penetration to new geographical areas and serve deeper layers of low-income

people

y Helps recover costs and pay back investors, thus encourages investments

PMBs (profit max. businesses) vs. SBs (social businesses)Both are same yet different

y Employ workers, create goo

ds & services for consumers

y Must recover full costs

y Profits are important

y YET objective is to create social benefit and not limited to personal gains



Social Enterprises ²

Some Examples

y Banking and finance is the biggest

beneficiary of technology-enabled social

startups

y MuhammadYunus, Grameen Bank

(Nobel Peace Prize 2006) ** not founded in India

y Vikram Akula, SKS Microfinance (Social Entrepreneur of the Year Award

2006)

y Kiva (peer-to-peer micro-lending website) ** not founded in India

y Energy

y

SolarE

lectrification - Harish Hand

e, SELCO

(SocialE

ntrepreneur of the YearAward 2007)



Grameen Bank

y Combat Poverty Through

Business

y Grameen Bank

y Microenterprise, Infrastructure,

Businesses,Nonprofits

y 2.4 Million Families in

Bangladesh

Economically Vulnerable Families

Economic Self-Reliance Model

ESR Practitioners

ESR Interventions



Different Types of Social Enterprises



Six Qualities of Social Entrepreneurs

Social Entrepreneurs demonstrate all the characteristics of thebusiness entrepreneur: Possessed by an innovative idea, theyare driven, focused and unrelenting in their determination toproduce results.

y Willingness to self connect

y Willingness to share credity Willingness to break free of established structuresy Willingness to cross disciplinary boundariesy Willingness to work quietly

y Strong ethical impetus



Role of a Social Entrepreneur

y ´There is one thing stronger than all thearmies in the world, and that is an idea whosetime has come.µ

y Leading social change.

y

A person with vision, d

rive,integrity of purpose, great persuasive powers, and

remarkable stamina.



Potential Benefits of Social Enterprises

y Create job opportunities, especially for the underprivileged groups

y Increase employability of participants

Enhance integration into labor market

Become self-reliant

y Innovation

Meet new needs

y Increasing density of community network and cross-sector

partnerships Promote community inclusion



Turning Problems into Opportunities

&

Importance of problem solving approach and attitudey "Each problem has hidden in it an opportunity so powerful

that it literally dwarfs the problem. The greatest success

stories were created by people who recognized a problem

and turned it into an opportunity." -- Joseph Sugarman

y "In the middle of difficulty," observed Albert Einstein, "lies

opportunity." Some of the best opportunities often originate

from problems

y Example: TATA Swatch Purifier



Turning an idea into a reality

y Irfan Alam ² Samman Foundation already discussed



Innovative solutions

y Narayan Hrudyalaya

module 1 social enterprises

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