Social Entrepreneurship

1
Social Entrepreneurship

• Sustainable Strategies For Building Economic
  Self-reliance

Sponsored by
2
Agenda

• 530 Context
• Social Entrepreneur I
• 600 Mayan Tree
• 630 Introductions
• Break
• 700 Entrepreneurship
• Social Entrepreneur II
• - Support
• - Issues
• - Implementation

3
BYU Center for Economic Self-Reliance

• Create an Economic Self-Reliance Model
• Enhance the Effectiveness of Practitioner
  Organizations
• Recognize Interventions With Best ESR Impacts
• Measure Success At Family Level

Economic Self-Reliance Model
ESR Practitioners
ESR Interventions
Economically Vulnerable Families
4
Social Ventures

• NGOs, nonprofits, governments, multilateral
  groups, churches, etc.
• Microenterprise, direct foreign investment,
  education, business development, etc.
• 2/5th of the World

Economic Self-Reliance Model
ESR Practitioners
ESR Interventions
Economically Vulnerable Families
5
Social Entrepreneurs

• Social entrepreneurs combine the passion of
• A social mission (explicit and central)
• With business-like discipline, innovation, and
  determination

6

• Mayan Tree
• Introductions

7
Entrepreneurs

• The entrepreneur shifts economic resources out of
  an area of lower and into an area of higher
  productivity and greater yield.
• - Jean Bapiste Say (19th Century Economist)
• The function of entrepreneurs is to reform or
  revolutionize the patterns of production . . . By
  exploiting an invention or, more generally, an
  untried technological possibility for producing a
  new commodity or producing an old one in a new
  way, by opening up a new source of supply of
  materials or a new outlet for products, by
  reorganizing an industry and so on.
• Joseph Schumpeter (20th Century Economist)
• The entrepreneur always searches for change,
  responds to it, and exploits it as an
  opportunity.
• - Peter Drucker (Management Guru)

8
Entrepreneurs

• Entrepreneurs are innovative,
• opportunity-oriented, resourceful,
• value-creating change agents.
• - Dees Economy (Enterprising Nonprofits)

9
Entrepreneur 10 Ds (Bygrave)

• Dreamers
• Decisiveness
• Doers
• Determination
• Dedication
• Devotion
• Details
• Destiny
• Dollars
• Distribution

10
Social Entrepreneurship

• Social entrepreneurs play the role of change
  agents in the social sector, by
• Adopting a mission to create and sustain social
  value
• Recognizing and relentlessly pursuing new
  opportunities to serve that mission
• Engaging in a process of continuous innovation,
  adaptation, and learning
• Acting boldly without being limited by resources
  currently in hand
• Exhibiting a heightened sense of accountability
  to the constituencies served and for the outcomes
  created

Social entrepreneurs are not content just to
give a fish, or teach how to fish. They will not
rest until they have revolutionized the fishing
industry. - Bill Drayton (Ashoka)
11
Social Entrepreneur Characteristics

• They are constantly looking for new ways to serve
  their constituencies and to add value to existing
  services.
• They are willing to take reasonable risk on
  behalf of the people that their organization
  serves.
• They understand the difference between needs and
  wants.
• They understand that all resource allocations are
  really stewardship investments.
• They weigh the social and financial return of
  each of these investments.
• They always keep mission first, but know that
  without money, there is no mission output.
• (Peter Brinckerhoff)

12
Social Entrepreneurship

• Social entrepreneurship implies blurring of
  sector boundaries
• Nonprofit organization
• Social purpose business ventures
• Hybrid organizations mixing nonprofit and
  for-profit elements

13

• Philanthropy, Hybrids, Commerce
• Muhammad Yunus
• Grameen Bank
• Another Social Entrepreneur Example

14
Grameen Bank

• Combat Poverty Through Business
• Grameen Bank
• Microenterprise, Infrastructure, Businesses,
  Nonprofits
• 2.4 Million Families in Bangladesh

Economic Self-Reliance Model
ESR Practitioners
ESR Interventions
Economically Vulnerable Families
15
Example Grameen Family Muhammad Yunus

• Grameen For-Profit
• Grameen Bank 1983
• Grameen Textile 1995
• Grameen Cybernet 1996
• Grameen Phone 1996
• Grameen Knitwear 1997
• Grameen Bitek 1998
• Tulip Dairy Food Processing 1999
• Grameen Software 1999
• Grameen IT Park 2000

• Grameen Nonprofit
• Grameen Trust 1989
• Grameen Agriculture Found. 1991
• Grameen Uddog 1994
• Grameen Fund 1994
• Grameen Fisheries Foundation 1994
• Grameen Telecom 1995
• Grameen Shamogreen 1996
• Grameen Shakti (Energy) 1996
• Grameen Kalyan 1996
• Grameen Shikkha (Education) 1997
• Grameen Communications 1997
• Grameen Securities Mgmt 1998

Grameen Phone 35 Grameen Telecom 51 Telenor
Invest AS (Norway) 9.5 Marubeni (Japan) 4.5
Gonophone (New York)
Grameen Bank Loans General 1976 Collective
Enterprise 1982 Housing 1984 Basic
Housing 1987 Capital Recovery 1990 Family
1992 Seasonal 1992 Food Stock
1992 Tube Well 1992 Latrine
1993 Leasing 1993 Supplementary 1994 Cattle
1994 Homestead Purchase 1996 Pre-Basic
Housing 1996 Special General 1997 Seasonal II
1997 Seasonal III 1997 Intermediate
1997 Higher Education - 1997 Savings Group Fund,
Personal, Special, Current, Grameen Pension
Scheme, Fixed Deposit
16
Social Entrepreneur Support

• Books
• How To Change The World, David Bornstein
  (anecdotal)
• Enterprising Nonprofits, Dees, Emerson, Economy
  
• Strategic Tools for Social Entrepreneurs, Dees,
  Emerson, Economy
• Social Entrepreneurship, Peter Brinckerhoff
• Articles
• What is a Social Entrepreneur?
• The Meaning of Social Entrepreneurship
• Social Capitalists
• Five Social Enterprise Myths, Dispelled
• Famous Last Words of Failed Social Entrepreneurs

17
Social Entrepreneurship Support

• Websites
• www.ashoka.org, www.changemakers.net
• www.redf.org/links_general.htm
• www.socialvc.net
• www.skollfoundation.org/socialedge
• www.se-alliance.org
• www.schwabfound.org
• www.echoinggreen.org
• http//faculty.fuqua.duke.edu/centers/case/
• www.hbs.edu/socialenterprise/
• www.aspeninstitute.org
• www.socialent.org
• www.socialenterprisemagazine.org
• Conferences
• National Gathering for Social Entrepreneurs
• Skoll World Forum on Social Entrepreneurship

18
Social Entrepreneurship Issues

• Mission / Vision
• Strategy
• Business Planning
• Accountability / Impact
• Competition
• Opportunities
• Resources
• Innovation

• Financial Management
• Human Resources
• Governance
• Donors / Investors
• Scale
• Organizational Change
• Risk

19
Successful Entrepreneurs

• Founders
• Focused
• Fast
• Flexible
• Forever Innovating
• Flat
• Frugal
• Friendly
• Fun

• 1st Class Team
• Niches, Specialization
• Decisions Implement Quickly
• Open Mind, Respond to Change
• Tireless Innovators
• Few Layers of Management
• Overhead Low, Productivity High
• To Customers, Suppliers, Workers
• Exciting Atmosphere

20
Social Entrepreneurship Implementation

• Mission Diagnostic
• Readiness Checklist
• Competitive Strategy Framework
• Business Plan
• SROI