Social Innovation, Entrepreneurship, and Enterprise

Stephen J. Konya IIIJanuary 2013

Government Experience

• Illinois Human Rights Commission, 2006-2008• Agency mission: Adjudicate Violations of the Human Rights Act

• Illinois Department of Commerce and Economic Opportunity (DCEO) 2008-2011• Agency mission: Job Creation, Job Retention

• Illinois Department or Public Health (IDPH) 2011-2013• Agency mission: Prevent, Promote and Protect

2545 West Diversey, Chicago, IL

Acumen Fund

“The entrepreneurs Acumen Fund supports are focused on offering critical services – water, health, housing, and energy – at affordable prices to people earning less than four dollars a day.” – Acumen website

• 72 enterprises funded• $81 million portfolio• 55,000 jobs created and supported• 86 million lives impacted

Agenda

1. How the State’s “Budgeting for Results” initiative aligns government funding with a social agenda.

2. Considerations to expand government contract and partnership opportunities for social enterprises.

3. Public Health benefits from embracing social innovation, entrepreneurship, and enterprise.

Budgeting for Results (BFR)

• Led by Governor’s Office of Management and Budget

• Integrate BFR planning w/ annual budget cycle (FY15/16)

• Target/increase state funding to areas with greatest impact

• Reduce/eliminate funding for programs with little to no measurable impact

BFR(Impact Indicators vs. Outcome Indicators)

• An “impact indicator” - common, well-understood measure of state-level performance such as life expectancy, unemployment rate, school success, etc.  Impact indicators tend to change slowly over time, and are influenced by many forces, including state government.

• An “outcome indicator” is a more specific measure of state government’s effectiveness, and is sometimes referred to as a “leading indicator” because it is a near-term indicator of improvement or decline in the overall impact indicator.

* An “impact indicator” is a common, well-understood measure of state-level performance such as life expectancy, unemployment rate, school success, etc. Impact indicators tend to change slowly over time, and are influenced by many forces, including state government. An “outcome indicator” is a more specific measure of state government’s effectiveness, and is sometimes referred to as a “leading indicator” because it is a near-term indicator of improvement or decline in the overall impact indicator.

BFR – Health Strategy Team

“Invest in programs and public, private, and non-profit partnerships that improve the social environment”

* An “impact indicator” is a common, well-understood measure of state-level performance such as life expectancy, unemployment rate, school success, etc. Impact indicators tend to change slowly over time, and are influenced by many forces, including state government. An “outcome indicator” is a more specific measure of state government’s effectiveness, and is sometimes referred to as a “leading indicator” because it is a near-term indicator of improvement or decline in the overall impact indicator.

Virginia Performs

Budgeting for Results (BFR)

• Led by Governor’s Office of Management and Budget

• Integrate BFR planning w/ annual budget cycle (FY15/16)

• Target/increase state funding to areas with greatest impact

• Reduce/eliminate funding for programs with little to no measurable impact

Government Contract and Partnership Opportunities

The State of Illinois purchases more than…

$10 billion worth of products and services each year to run social service facilities, office buildings, garages, state parks and more.

Business Enterprise Program(BEP) Council

• Established by the IL Business Enterprise for Minorities, Females, and Persons with Disabilities Act (30 ILCS 575/)

• Under this Act, the Business Enterprise Program Council is required to ensure that businesses owned by minorities, females, and persons with disabilities are awarded at least 20% of the total dollar amount of State contracts

• In FY2011, BEP vendors received over $274 million in state contracts or 37.55% of total state funding, subject to goal.

Business Enterprise Program 

Who qualifies for the BEP Program?

• At least 51 percent owned and controlled by persons who are minority, women or designated as disabled

• Must be a United States citizen or resident alien

• Annual gross sales of less than $75 million

• The SBSP promotes the economic development of small Illinois businesses by setting aside millions of dollars worth of contracts exclusively for small businesses. 

• The SBSP allows for the Chief Procurement Officer (CPO) of the State of Illinois to allocate a portion of contracts so that small Illinois businesses only can compete for them.

• Further legislation significantly increased the number of small Illinois firms eligible to compete for these contracts. The number of categories of goods and services set-aside for small businesses is now up 44%, providing even more opportunities.

Small Business Set-Aside Program (SBSP)

Small Business Set-Aside Program (SBSP)

• Last year, nearly $57 million awarded to small Illinois firms through the SBSP.

• 65 supply/service classifications set-aside

• All awards under $50,000 set-aside for certified small businesses

• All State procurements considered for set-aside program

Small Business Set-Aside Program (SBSP)

Who qualifies for the SBSP?

• Must be an Illinois business

• Annual gross sales must be: • Retail/Service - less than $6 million • Wholesale - less than $10 million • Construction - less than $10 million • Manufacturing - less than $10 million and less than 250 employees

Veteran-owned Businesses

• Through the Veterans Business Program (VBP), state agencies and universities are encouraged to spend at least 3% of their procurement budgets with certified Veteran-owned businesses.

• Who qualifies? - Illinois businesses with annual gross sales under $75 million that are 51% owned by one or more qualified service-disabled veterans or qualified veterans living in Illinois.

Direct SupportRecommendations

• Introduce “Set Aside” state legislation related to Social Enterprises• establish qualifying criteria• option #1 - individual goal category• option #2 – cross cutting category for “extra credit”

• Amend IL Procurement Code to mirror legislation• Encourage SE set aside goals for small purchases• Seek social enterprise inclusion in grant requirements• Rulemaking (agencies submit to JCAR)

Indirect Support - Partnerships

• Establish guidelines for agencies to pursue public/private partnerships

• Specifically encourage all agencies to engage with the entrepreneurial community in IL

• Government commitment to the Open Data Movement

What is Public Health???

Source: American Public Health Association (APHA)

#1 Health Surveillance and Analysis

#2 Health Regulation

#3 Health Promotion and Awareness

Public Health Benefits

Social Enterprises often address social determinants of health:

• Environment (both natural and built)• Poverty• Employment• Education• Access to quality healthcare

Public Health Benefits

• Multiplier effect of investing in Social Enterprises• Increased innovations in Health IT platforms/solutions• Increased access to local health services• Safer and cleaner environment• Lower cost of “quality of life” solutions for those in

poverty

Purple Binder

A one-stop shop• Search a database of social services in Chicago, with entries from real people in the

field. Collaborate with colleagues

• Organize community programs and notes into binders. Share with your teammates so that everyone's on the same page.

Build relationships• Talk to other social workers with our secure messaging system. Make new

connections and strengthen old ones. Programs that fit your client

• Use Purple Binder's eligibility search to find the programs that best suit your client's needs.

Connect Food

• A community-based, Farm-to-Fork knowledge exchange platform and learning destination for local food safety, processing, and manufacturing.

Code For America

“Cities are under greater pressure than ever, struggling with budget cuts and outdated technology. Code for America believes that instead of cutting services or raising taxes, cities can leverage the power of the web to become more open and efficient. And we want to help them do it.” - CFA website

• Recruits talented web developers, designers, and entrepreneurs into a year of public service• Recruits both the development teams and the participating cities through competitive application

processes• 11-month development cycle for IT web solutions.• Code for America built applications include the following characteristics:

1) Web applications2) Enable cities to connect with their constituents in ways that reduce administrative costs and

engage citizens more effectively3) Support the move toward transparency and collaboration4) Shareable – which means that an application built for one city can be used by any other city

Social Responsibility

“Social responsibility is… an obligation to act to benefit society at large. Social responsibility is a duty every individual or organization has to perform so as to maintain a balance between the economy and the ecosystem… It pertains not only to business organizations but also to everyone whose any action impacts the environment.” - Wikipedia

Civil Rights

Environmentalists

Clean Energy

Healthcare Reform

Affordable Care Act