SOCIAL ENTREPRENEURSHIP AND THE MILLENIUM DEVELOPMENT GOALS

Greg M. PerezInternational Youth Day Celebration August 5, 2009

Millenium Development Goal Statistics atbp.

• 1 in 5 families live on income levels inadequate to meet food requirements• 70% children who enter grade one reach only grade 6• Illiteracy rate of young adults 15 and above is 9.9%• Child mortality 48 deaths per 1,000• Maternal mortality rate is 172 deaths per 1,000• 18% of forest lands are left

.

To respond effectively, we must be innovative and enterprising.

We must come up with solutions that are

Sustainable

Scalable

With a Measurable Social return

Business Non-profit Organization

Mission Profit maximization Primary mission is address a social ill or challenge

Funding Internally generated through product or service

Able to attract resources to the cause. Funding from government, multilateral agencies, corporate foundations

Stakeholders Shareholders, customers, employees

Beneficiaries, funding agencies, staff and volunteers, GOs

Metrics Bottom line, market share, growth rate

Double bottom line – social return on investment

Relationship with other organizations

Competition Networking

IMPACT OF NGOs

Address a social ill or challengeAble to attract resources to the causeNetworking with other organizations, sharing best practicesGreater accountability to stakeholders

ADVANTAGE OF BUSINESS

Improved efficiencySelling, organizing, strategizing, communicating, marketing Improved effectivenessSelf-sufficientUnrestricted funding stream

THE BEST OF BOTH WORLDS

A social enterprise combines the social mission of non-profits with the advantages of a commercial enterprise

The main aim of a social enterprise is to further social and environmental goals.

Social enterprises use blended value business models that combine a revenue-generating business with a social-value-generating structure or component.

A social entrepreneur is someone who recognizes a social problem and uses entrepreneurial principles to organize, create, and manage a venture to make social change.

Dreamer

Passionate

Leader

Doer

Determined

Dedicated

Five Social Enterprises

1.Meds and Foods for Kids, Haiti

2.Fifteen Restaurant, USA

3.ApproTEC, Kenya

4.Dastkhar Andra, India

5.Gifts and Graces Fair Trade Foundation, Philippines

Meds and Foods for Kids, Haiti – video

NextBillion.net at GSBI 2008_ Tom Stehl from Meds and Foods.mp4

                                                         The Fifteen restaurants

• serve food of the highest quality made from the best ingredients  • their profits help fund the programme.

Fifteen’s philosophy: learn within the actual work environment, from experts in the field, surrounded by the produce, equipment and dishes that they will work with and be inspired by.

Levels of responsibility increase with the skills acquired. With this grows their confidence and belief that they can achieve anything they want in their lives despite what setbacks they may already have experienced.

Fifteen Foundation exists to inspire disadvantaged young people – homeless, unemployed, overcoming drug or alcohol problems - to believe that they can create for themselves great careers in the restaurant industry.

ApproTEC Kenya

Mission: To promote sustainable economic growth and employment creation in East Africa and other countries by developing and promoting technologies that can be bought and used by dynamic entrepreneurs to establish and run profitable small-scale enterprises

The Super-MoneyMaker a micro-irrigation pump that looked and operated like a small-use Stairmaster.

With micro-irrigation a Kenyan farmer could grow 3-4 crops a year which could be brought to market in the dry season

600 pcs of equipment sold every month directly created 24,500 active new small enterprises and 25,000 new jobs

Dastkhar Andra, India

Dastkar Andhra promotes rural livelihoods by providing technical training for handloom weavers, and linking rural co-operative institutions to marketing networks in urban India. 

This ensures sustainable livelihoods for handloom weavers who face the threat of large scale migration into urban slums, and helps a generation of weavers to come out of poverty. 

Unlike government programs which treat handloom work as a welfare activity, or intermediaries and traders with unfair practices, Dastkar Andhra sets up equitable, sustainable, production marketing systems which allow weavers to live with self respect and dignity.

Gifts and Graces Fair Trade Foundation

MissionTo improve the quality of life of marginalized members of society, by providing product development, technical training on enterprise management, and global market access to livelihood communities under the Gifts and Graces brand.

Our PartnersFormer prison inmates, former migrant workers to Japan, Urban poor men and women, Streetchildren, Indigenous groups, Persons with disabilities, Special needs individuals

Gifts and Graces Fair Trade Foundation

Gifts and Graces supports livelihood communities in their quest to pursue entrepreneurship as a means to overcome marginalization and poverty.

We provide livelihood communities with sales and marketing opportunities, and equip them with knowledge and skills to empower them.

Cost of goods sold tells us our work resulted in increased income for our partners.

Added income impacts their health, housing, and children’s education; Families achieve a more dignified standard of living. As important, this income means increased self-esteem for producers and a new hope that spills over to their families and their communities.

Gifts and Graces Fair Trade Foundation

Fair Trade Principles

1. Create opportunities for economically disadvantaged producers

2. Gender equity3. Transparency and accountability4. Capacity building5. Payment of a fair price6. Safe and healthy working conditions7. Environmental Sustainability8. Advocacy and Promotion

Gifts and Graces Recycling for Arts and Crafts

The Post Consumer Recyclable Waste

Gifts and Graces Recycling for Arts and Crafts

Gifts and Graces Products

Getting Started

1.Mission

2.Customers

3.Opportunities

4.Measurement

5.Planning for the social enterprise

Mission

The mission statement is a statement of purpose of why the organization exists

The social enterprise’s mission is its raison d’etre or reason for being

A mission is sharply focused and easily communicated – understood by staff, volunteers, partners, funders, general public

Customers - Who is your customer?

The primary customer is the person whose life is changed by the organization’s work

Understand the customers needs, wants, aspirations

1) define the total available market (all those beneficiaries who could possibly use your product/services),

2) define a market segmentation table which identifies the characteristics of your beneficiaries that are relevant to the beneficiaries’ decision to use your product/services

Segment the market – define your customer based on demographics, behaviour, lifestyle

Customers

Total Available Market: Cataract BlindnessSegment Size NeedsWorldwide 22.5M sight (20/40), safety, accessDeveloping Countries (B.O.P.) 19M sight, safety, access, plus low cost India 14M sight, safety, access, plus low cost 

Cataract is the major cause of blindness in developing countries.

Total Addressable Market IndiaDescription: Masses of poor people in India, who have lost their eyesight due to cataract.Characteristics: Poor people who have lost their eyesight due to cataractsNeeds: Ability to see, regain independence and ability to earn income.How needs met: Free for poor (subsidized by paying

beneficiaries), extra capsular surgery with intraocular lens.

OpportunitiesExamine and assess the range of opportunities to make a positive social impact

1. Mission fit2. Social value potential3. Demand4. Sustainability potential5. Cost to benefit ratio

Measurement•Develop clear metrics•Make sure you are measuring the right things•Double/triple bottom line•Monetize the value you create – direct and indirect

Workshop

1.Grouping

2.Speaking a common language – the problem tree

3.Creating a vision – the objective tree

4.Brainstorm on social enterprises to address one MDG

5.Creative Presentation

1. Mission

2. Target Market

3. Value Proposition

THE PROBLEM TREE

Speaking a common language

1. Brainstorm problems associated with selected MDG. Write on metacards

2. From problems identified select a starter problem

3. Establish a hierarchy of cause and effect4. Review diagram and verify its validity and

completeness

THE OBJECTIVE TREE

Creating a vision

Reformulate negative situations of problems into positive situations that are desirable, realistically achievable

BRAINSTORM 1. Get creative juices flowing2. Blue sky thinking – no idea is too big3. Think of innovative solutions

Innovation - New and improved. - Changes in what you doing, how you are doing it, where you are doing it, with whom you are doing it

CREATIVE PRESENTATION

Choose the idea that best fits opportunity assessment parameters

Present the following 1. Mission2. Target Market3. Value Proposition

Be creative – you may sing, dance, prepare a poster or collage *4 minutes per group

Value Proposition

Define the value that you create for your beneficiaries

Articulate why your customer will “choose to buy” or “consume” your product/ service offering over other alternatives in the market, including non-consumption Template[Name of organization] provides [products/services], which are [statement of key differentiators], for [target beneficiaries], and thereby creates [statement of social value/impact], unlike [competition].

Planning for the social enterprise- Business planning

i. Managementii. Target Market – from program-driven to

market-driven- iii. Marketing plan – promoting your service- iv. Capturing your value proposition- v. Competitive analysis- vi. Critical Success Factors- vi. Financial plan – 3 year plan to

sustainability- vi. Metrics

Strategic planning – direction, mission alignment

Acknowledgements and References

Social return on investment a guide to SROI analysis. Peter Scholten, Jeremy Nicholls, Sara Olsen, Brett Galimidi. 2006. Lenthe Publishers.

Material on Meds and Foods for Kids, ApprTEC Kenya, Dastkhar Andra were provided by the Global Social Benefit Incubator" (GSBI); GSBI is a registered Service Mark of the Santa Clara University Center for Science, Technology, and Society." Enterprising Nonprofits: a toolkit for social entrepreneurs. J. Gregory Dees, Jed Emerson, Peter Economy. 2001. John Wiley and Sons.

Thank you for this opportunity to share with you!

Gifts and Graces Fair Trade Foundation

info@giftsandgraces.com