social business in india
DESCRIPTION
Social Business in India, present and futureTRANSCRIPT
Page 1
Social Entrepreneurship
Page 2
Why?......bcoz India is already
one of the biggest players….
• http://www.openaction.org/aylluinitiative/#
Page 3
• Muhammed Yunus - Social Business.mp4
Page 4
Page 5
Page 6
Page 7
What Is Entrepreneurship?
Process of creating value by bringing
together a unique package of
resources to exploit an opportunity
Page 8
Defining „social entrepreneur‟
– Development change agent working in the
market as an arena
– Innovative, opportunity-seeking,
resourceful person, group or institution
– Leads creation of enterprises, enterprise
systems or enterprise development
programs demonstrating positive
development impact
Page 9
The New Buzzword:
Social Entrepreneurship
So, is social entrepreneurship
basically entrepreneurship
regardless of the context?
Or is “social entrepreneurship”
something truly different?
Page 10
What Is Social
Entrepreneurship?
Nonprofits making money
Page 11
What Is Social
Entrepreneurship?
Nonprofits making money
For-profits doing things to show they
are not evil
Page 12
What Is Social
Entrepreneurship?
Nonprofits making money
For-profits doing things to show they are not evil
Process of creating value by bringing together a unique package of
resources to exploit an opportunity, in pursuit of high social returns
Page 13
The only big difference between
commercial and social entrepreneurship:
Denomination of the returns
Social and commercial
entrepreneurship have most of the same
characteristics
Page 14
Do Social Entrepreneurs “look”
like Any Other Entrepreneur
Social concern, but also:
Innovativeness
Achievement orientation
Independence
Sense of control over destiny
Low aversion to risk
Tolerance for ambiguity
Page 15
Traits of a successful social
entrepreneur
• Willingness to self connect
• Willingness to share credit
• Willingness to break free of established
structures
• Willingness to cross disciplinary
boundaries
• Willingness to work quietly
• Strong ethical impetus
Page 16
The Main Difference: The
Measurement Problem
• What is bottomline? Economic profit?
Or something more?
• How do we count it?
• What is “social return on investment”
for venture philanthropists?
• Can we compare investments?
Page 17
Focusing on Social Impact
Social entrepreneurs are driven by a social mission, implying that:
Success is defined by creating the intended social impact, not simply by Economic value creation for owners, managers, and employees, or Consumption value for customers
Success in achieving this impact is both Hard to measure in timely, reliable, cost-effective ways, and Open to dispute due to value differences
Page 18
• Social Entrepreneurs_ Pioneering Social
Change.mp4
Page 19
So why does social
entrepreneurship matter?
Page 20
What Solutions do we have Today
• Government – alone is not the answer
– Inefficiencies, slow, bureaucratic, prone to corruption….
• Nonprofit Orgs. – inadequate
– dependent on donations (uncertain, demand far exceeds supply)
– “compassion fatigue”
– Raising money takes time and energy, which can be spent
planning growth/expansion
• Multilateral Institutions (World Bank…) - ineffective
– Conservative, slow, under-funded, unreliable
– Success is measured by
a) GDP (might not be helping poor)
b) Volume of loans negotiated (not measuring impact)
– Exclusively work with the government
• Corporate Social Responsibility – still evolving
– “as long as it can be done without sacrificing PROFITS”
Page 21
New kind of Business
Social Business Enterprise
– Creating business models revolving
around low-cost products and
services to resolve social problems
– Social business is for „more-than-
profit’ as it combine revenue
generating business with a social-
value-generating structure
– Have 2 characteristic • Unlimited potential for scalability
• Limited capital requirement
Page 22
How can you do business and serve social goals?
Why is profit-making not conflicting with social objectives?
Profits -
– Promotes R&D, innovation, new technologies
– Increases efficiency
– Enables penetration to new geographical areas and serve
deeper layers of low-income people
– Helps recover costs and pay back investors, thus encourages
investments
PMBs (profit max. businesses) vs. SBs (social businesses)
How they are same yet different
– Employ workers, create goods & services for consumers
– Must recover full costs
– Profits are important
– YET objective is to create social benefit and not limited to
personal gains
Can there be a HYBRID i.e.
60% PMB and 40% SB??
Page 23
Page 24
Page 25
Social Entrepreneurship Is a
National Priority
• Continued prosperity requires private
solutions to social problems and
unmet needs
• Social ventures
• Private support for these venture
Page 26
Contrast with Business
Businesses also create social impacts, both positive and negative, typically
– As unintended side-effects that
– Play a relatively minor role in organizational decision making
Their social benefits result from an “invisible hand,” not by design
Success is commonly defined in terms of private value creation (usually profit)
Market discipline helps to reinforce private value creation
Page 27
Limits of Market Discipline
Social sector customer and capital markets are less effective at ensuring intended social impact as:
Intended beneficiaries frequently do not pay full cost
Payers cannot easily assess the social impact or the efficiency of operations
Comparisons across organizations are inherently problematic
Rewards to resource providers are not reliably correlated with performance
Page 28
Thus, Social Entrepreneurs . . .
Adopt a mission to create sustained positive social impact
Relentlessly pursue opportunities to serve this mission
Continuously innovate, adapt, and learn
Act boldly, not constrained by resources currently in hand, and
Exercise self accountability for cost-
effectively serving the social mission
Page 29
Growing Need for MBA Skills
Used wisely business skills can:
Create more sustained impact
Shift philanthropic resources to more appropriate uses
Leverage those resources
Improve financial strength and capacity of social sector organizations
Enhance efficiency and effectiveness
Page 30
MBAs Can Add Value, but….
It is crucial to
Respect the work of those in your field
Be sensitive to the limits of markets and business methods
Manage potential risks and challenges
Prepare for resistance and skepticism
Learn your chosen field well
Consider blended /hybrid solutions
Follow your passion!
Page 31
Page 32
• TAPMI Leadership Lecture 2011 - Harish
Hande.mp4