SOCIAL ENTREPRENEURSHIP

IntroductionProfessor Joanne Lawrence

Hult International Business School

PHOTO??? Rwanda?

Today’s Agenda What is social entrepreneurship?..

Why has it assumed such a high profile?

What are some ways to approach  it?

What are some examples?

 Q+A session

Goal One: End poverty in all its forms everywhere…

Sustainable Development Goals

Despite $2.3 trillion in aid, with $1trillion to Africa alone, there has been little to no decline in poverty, or increase in growth as a result. Why? Why are the poor still poor?

What has triggered so much interest?

Multinational corporations (MNCs: philanthropic efforts (e.g., CSR)

MNCs: “Intrapreneurship’ (mainstream business)

Public-Private Partnerships

Social Entrepreneurship/Enterprises

New models emerging...

Provides ‘enabling’ opportunities

Focuses on poor as consumers and producers

Seeks market oriented and demand-based solutions in the form of affordable new products, services, business models

Creates solutions that are sustainable, empowering, and mutually beneficial.

i.e., A ‘Market Based’ Approach to Poverty – Business as a Solution

Entrepreneurship

What is an entrepreneur?

An Entrepreneur seeks change.. They are dissatisfied with the status quo ; they see

opportunity; They are move forward not by small improvements, but radical changes…

“The entrepreneur always searches for change, responds to it and exploits it as opportunity” Peter Drucker

‘Alertness is the entrepreneur’s most critical ability’ Israel Kirzner

Entrepreneurial CharacteristicsAbility to ‘see’ comes from unique traits:

Inspiration e.g. frustration Creativity e.g. radical solutions Direct Action e.g. ‘just do it’, don’t wait Courage e.g. risk of failure Fortitude e.g. setbacks

Traditional v Social Entrepreneurs Both motivated by relentless pursuit of a

vision – beyond social or financial Both derive reward from seeing the idea

implemented vs. any financial reward Neither ever adequately compensated for

their time, risk, effort, capital

Distinction lies in VALUE PROPOSITION. SOCIAL ENTREPRENEURSHIP ABOUT LARGE, TRANSFORMATIONAL SOCIAL CHANGE

Social entrepreneurs are driven by a passion to make a difference

e.g. Bangladesh’s Waste Concern “Waste is a resource”

Creating Social Value We define social value as the creation of benefits or reductions of costs for society through efforts to address social needs and problems that go beyond private gains and general benefits of market activity.. “

Social innovators create innovations that benefit society as a whole rather than create private value……

ills, Deiglmeier , “Rediscovering Social Innovation” Stanford Innovation Review Fall 2008

….. a social innovation is an idea that works for the public good..

Centre for Social Innovation, Toronto, Canada

What is Social Innovation?

An innovation is NOVEL New to user, application, situation

An innovation is an IMPROVEMENT More effective or efficient than what exists

ADD: An innovation that is SUSTAINABLE + JUST Phills, et al, “Revisiting Social Innovation”

What Determines Innovation?

But to be transformative requires new ways of working, thinking… A deeper understanding and appreciation

for the needs and wants of emerging markets.

An ability to work within constraints such as weak infrastructures, limited natural, human and financial resources.

An aptitude in building trust, collaborating with local constituents and players.

Theory of Change

Systems Thinking

Stakeholder Engagement

Design Thinking

A Way of Thinking

Theory of Change/‘Impact’ Value ChainMapping Backwards “ A tool.. to think about the venture’s ultimate social

outcomes and map out the drivers and levers for achieving optimal impact..”

From The Double Bottom Line Methods Catalogue, Clark, Rosenweig, Long and Olsen and The Rockefeller Foundation,2003

Activities

Outputs Outcomes

Inputs

What is put into the venture

What are venture’s primary

activities

Results that can be

measured

Changes to the social systemMinus what would have happened anyway =

IMPACT

Goal Alignment

“the ability to see the world as a complex system, in which we understand that “you can’t do just one thing” and that “everything is connected to everything else…

- Sternman, in Systems Dynamics Modeling

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Systems Thinking

Stakeholder Management/Engagement : Process Model

Step 6

Step 5

Step 4

Step 3 ANALYZE -- Determine Gaps

Step 2

Step 1 IDENTIFY Stakeholder Identification

General Nature of Stakeholder claims, motivations, and their

implications

PRIORITIZEStakeholder Demands

ACT: DevelopOrganisational Responses

Monitor And ControlRestart

Process

Source: Preble, 2005

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‘Social challenges require systemic solutions that are grounded in a client’s or customers needs..’

“Design thinking ..inherently optimistic, constructive and experiential, address the needs of people who will consume a product or service and the infrastructure that delivers it..Products and services that are human centered………” Brown and Wyatt, “Design Thinking for Social Innovation”, Stanford Social Innovation Review, 2010

Design Thinking

Diagnosis

Design

Development

Systemic Innovation

Scaling, Diffusing, Connecting

Sustaining Innovation - Murray, Mulgan, Caulier Grace

“How to innovate: Tools for Social Innovation”, Working Research Paper

The Process of Social Innovation

Chotukool: India

d.light: Africa

1. Price performance 2. Hybrid solutions 3. Scalable and transportable4. Low resource intensity; Conserve5. Rethink functionality 6. Process innovations as critical7. Deskilling work8. Consumer education9. Products must work in hostile environments10. Research on interfaces11. Methods of distribution12. Focus on platform to enable rapid change

Prahald , Chapter Two

12 Principles of BOP Innovation

Affordability: Creating Consumption Capacity

Access: Distribution

Availability: When…

Awareness: Why they need it..

The Four A’s

Approaching Social Innovation Context: What is the unjust situation, social issue that you are trying to

rectify? Who will it effect and where?

Proposition: What is the opportunity you see? What is your idea/social value proposition? What are your assumptions? Are there any political risks? What structure do you suggest and why?

Implementation: What might be potential drivers, barriers and enablers of your success? What stakeholders do you need to engage and how? Any potential partners? Competitors?

Goal/Impact: What do you hope to achieve with your idea? Over what ideal time frame? What is the potential social, economic impact?

Metrics/Evaluation: What metrics could you put into place to measure your achievement?

Next steps? What do you need to do next to take your idea forward?

Hult Prize Winner 2013: Aspire

Case : HONEYCARE AFRICA

Hult Prize Winner : m.Paani

Public-Private Partnerships’ (PPP) build on complementarities

Nestle, Pepsi, Unilever join forces

on wastein Chile

IKEA and UNICEF, IFC-directed partnerships in Africa

MNCs leverage their skills, resources, and enormous reach

What ripples will you make?

Thank you!

Resources www.socialedge.org www.echoinggreen.org www.ashoka.org www.idealist.org http://www.schwabfound.org/sf/index.htm http://www.gsvc.org/about_gsvc/ http://www.youtube.com/skollfoundation

www.seedinit.org www.changent.com www.endeavor.org www.socialvc.net Books (Inspiration!) The Power of Unreasonable People: How Social Entrepreneurs

Create Markets that Change the World (Elkington and Hartigan) How to Change the World (Bornstein)

http://blogs.worldbnk.org/dmblog

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