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In this presentation, given to attendees of the International Strategic Technology Alliance, I spoke about the opportunity of tech focused social enterprises in China.
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What is a Social Enterprise?
product/ service revenue model
Event/ grant/ fundraising
revenue model
Social Impact
Profit
Core Characteristics:• Exist because an issue of society, environment, or
economy exists
• Primary stakeholders include founders, Donors, and
beneficiaries, and government agencies
• Secondary stakeholders are media
• Has non-for-profit business model
• CAN make a profit, but cannot distribute.
• Any profits must plowback into organization
• Founders / Investors CANNOT take dividends
• All assets are societies, and cannot be re-distributed
Examples:• China Red Cross , Poverty Alleviation Foundation,
YMCA, HandsOn Shanghai, Huadan, Sunrise
Library, 1KG
Non-Profit Social Enterprise
product/ service revenue model
Event/ grant/ fundraising
revenue model
Social Impact
Profit
Core Characteristics:• Exist because an issue of society, environment, or
economy exists
• Primary stakeholders include founders, investors,
clients and society
• Clients may be society
• Secondary stakeholders are partners, government
agencies, and media
• Has a for profit business model
• High percentage of profits are traditionally plowed
back into organization
• Founders / Investors CAN take dividends
Examples:• Shokay, Wobabybasics, Greenovate, Carbon Seal,
Ecodesign fair, Qiangxiu
For Profit Social Enterprise?
product/ service revenue model
Event/ grant/ fundraising
revenue model
Social Impact
Profit
Core Characteristics:
• Exist because a market opportunity exists
• Primary stakeholders include founders, investors,
and clients
• Secondary stakeholders are partners, government
agencies, and media
• Has a for profit business model
• Profits and assets can be distributed
• Firm must create profits to sustain itself
• Legal and accounting regulations are clear
• Tax benefit only enjoyed through external
donations
Examples:• Bambu Home, Shanghai Organics, Naked Retreat,
Enterprise With A Conscience
What is a Social Enterprise?
Social Entrepreneurship in China
• Still VERY early days for social entrepreneurship in China•Low public awareness
•Lacking clarity of definitions and models
•No regulatory / tax support
•Maturity of services very low
• BUT.. Passion is HIGH!.. And growing•University team competitions see active participation
•Foundation/ Corporate competitions are increasing
•Increased attention by media
Social Entrepreneurship in China
Who are China’s Social Entrepreneurs?
• Young Entrepreneurs
• 20 – 25 Years old
• Fresh graduates with 2 years of work
experience
• Highly passionate / Lacking
management skills
• Seeking to “save the world”
• Plans are often fluid, with very difficult
startup period
• Mid-career Professionals
• 35 – 50 Years old
• Significant work experience
• Searching for way to give back to
the world
• Plans will often be thought out,
and often supported financially for
a “safe” period
Opportunity for Social Enterprises in China
What are the models that have succeeded?
Elderly care
Green products
Organic Farm
Children’s products
Health / Wellness
Education Environment
Cleantech
SE Opportunities
Health & Wellness
Problems of health and wellness:
1. Lifestyles growing more sedimentary
2. Food Quality issues
3. Stress
4. Pollution
Target markets:
• Luxury market - ecotravel, organic clothing, and retreats
• Middle class – Elderly centre, organic foods and fat camps
• BOP market – HIV/ Aids Training, nutritional biscuits and
affordable eye care for rural students
Environment
China’s economic growth has a cost to the environment
• Water pollution – more than 95% of China’s water is not drinkable
• Air Pollution – 16 of the world’s 20 cities with the worst air are in China
• Carbon emissions – China is now #1 emitter of carbon dioxide
Target markets:
• In home water treatment / air purification
• Organic foods
• Overseas real estate
Elderly
% of Population Over 60 Years Old in China
10.0% 10.8%12.3%
14.8%16.7%
19.6%
23.4%
26.4% 27.5%28.7%
31.1%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050
• In 2010, 21% of Shanghai’s 18 million full time residents were over the age of 60• Multiple districts have more then 25%
• By 2050, China will have more than 440 million people older than 60, 31% of the population
Target markets:
• Luxury market – Full service retirement facility, organic foods, travel, & lifestyle
• Middle class – Elderly centre, family services, clubs & activities
• BOP market – Affordable healthcare
Migration / Urbanization
Over 400m people have moved to city in last 20 years, & another 400m will move• When moving from rural parts of China, to urban, traditional communities are being lost.
• Migrant children need to be educated
• Migrants experience discrimination and locked out of economies/ services
Potential opportunities for Social Enterprise:
1. Provide a product or service that helps migrants integrate into new setting or help maintain ties to old
2. Offer critical services (healthcare, education, & finance) to migrants outside the system
3. Development of new products targeted towards this improving quality of life for group
Technology and Social Enterprise in China
To ensure that the service gap can be filled, the solution must possess the following traits:
1. Enable Improved Quality of Services
2. Build Capacity within Local Community Workers
3. Increase Resource Efficiency
4. Be Scalable
Leveraging Infrastructure
• Street Committee: Already charged with overseeing the social conditions of its residents, and begin providing services to elderly (and other needy) in the area, partnering with, and training, street committee employees will be critical to the success of the platform
• Elderly Care FacilitiesLeveraged by the city to provide services to the location community (medical treatment and meals on wheels), and knowing that these centers have the highest trained staff in the industry, we will partner with these facilities to help support our rollout, training, and implementation
With existing physical infrastructure built, and staff who already understand the local needs, and are already trusted within the communities they serve, street committees and elderly care facilities will be our primary channel partners
Building Capacity
Understanding and addressing the human capacity gap that exists within the community service arena, this product would overcome inconsistencies by:
• Increasing Quality of Workers: As users of the tablet, community workers will receive training in using the technology, but in areas of community building and management necessary to fully maximize the power of the tablet, that would otherwise be unavailable to them.
• Improving Reach of serviceWith the tablet, community workers will be able to reduce the amount of time it takes to reach site (route planning) as well as the time it takes on site (simple menu entry) so that more visits per day can be achieved
• Increasing Service Quality & Impact: Through a single visit, community workers would be able to assess the mental/ physical state of clients, allow clients to order services (meals, cleaning, etc) in real time, and put in work orders for other services (maintenance) as needed in a single visit
Increase Resource Efficiency
Leveraging the data management functions of the Community Tablet , community managers will be able to better allocate the resources that they have, and thus remove inefficiencies that would otherwise reduce their ability to manage tasks and deliver a quality level of service
• Resource AllocationLeveraging the tablet, and the features of the software, community organizations will be able to train and assign staff in a new, more efficient manner. Both before and after the visit
• Knowledge gathering: Using the tablet, gathering and reporting critical knowledge to community managers will be greatly improved through the user menu systems, information sharing capabilities, and task assignment
• Worker Data Management: With the tablet, and the supporting databases, workers will be able to better access and manage data on site (access to historical records) and allocate information to relevant departments (social workers, meal providers, etc) to ensure follow up
Be Scalable
As an integrated product, with a laser like focus, scalability from a single district across China’s provinces will come exponentially, but without the inefficient processes of a similar brick and mortar application
• Investments in server capacity• Local partnership acquisition and training• Natural Integration and extension of services
