In this presentation, given to attendees of the International Strategic Technology Alliance, I spoke about the opportunity of tech focused social enterprises in China.
- 1.What is a Social Enterprise?
2. Non-Profit Social Enterprise product/ servicerevenue modelCore Characteristics: Exist because an issue of society, environment, oreconomy exists Primary stakeholders include founders, Donors, andProfitSocialImpactbeneficiaries, and government agencies Secondary stakeholders are media Has non-for-profit business model CAN make a profit, but cannot distribute.Event/ grant/ Any profits must plowback into organization fundraising revenue model 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, SunriseLibrary, 1KG 3. For Profit Social Enterprise? product/ servicerevenue model Core Characteristics: Exist because an issue of society, environment, or economy exists Primary stakeholders include founders, investors,ProfitSocialImpact clients and society Clients may be society Secondary stakeholders are partners, government agencies, and mediaEvent/ grant/ Has a for profit business model fundraising revenue model High percentage of profits are traditionally plowed back into organization Founders / Investors CAN take dividendsExamples: Shokay, Wobabybasics, Greenovate, Carbon Seal, Ecodesign fair, Qiangxiu 4. Enterprise With A Conscience product/ servicerevenue modelCore Characteristics: Exist because a market opportunity exists Primary stakeholders include founders, investors,and clientsProfitSocialImpact Secondary stakeholders are partners, governmentagencies, and media Has a for profit business model Profits and assets can be distributedEvent/ grant/ fundraising Firm must create profits to sustain itself revenue model Legal and accounting regulations are clear Tax benefit only enjoyed through external donations Examples: Bambu Home, Shanghai Organics, Naked Retreat, 5. What is a Social Enterprise? 6. Social Entrepreneurship in China Still VERY early days for social entrepreneurship in ChinaLow public awarenessLacking clarity of definitions and modelsNo regulatory / tax supportMaturity 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 7. Social Entrepreneurship in ChinaWho are Chinas Social Entrepreneurs? Young Entrepreneurs Mid-career Professionals 20 25 Years old 35 50 Years old Fresh graduates with 2 years of work Significant work experience experience Searching for way to give back to Highly passionate / Lackingthe world management skills Plans will often be thought out, Seeking to save the worldand often supported financially for Plans are often fluid, with very difficult a safe period startup period 8. Opportunity for Social Enterprises in China 9. SE OpportunitiesWhat are the models that have succeeded? Health / Wellness Organic Farm Elderly care CleantechEducationChildrens products Green products Environment 10. Health & WellnessProblems of health and wellness:1. Lifestyles growing more sedimentary2. Food Quality issues3. Stress4. PollutionTarget 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 11. EnvironmentChinas economic growth has a cost to the environmentWater pollution more than 95% of Chinas water is not drinkableAir Pollution 16 of the worlds 20 cities with the worst air are in ChinaCarbon emissions China is now #1 emitter of carbon dioxideTarget markets: In home water treatment / air purification Organic foods Overseas real estate 12. Elderly35.0% % of Population Over 60 Years Old in China31.1% In 2010, 21% of Shanghais 18 million full30.0%23.4%26.4%27.5%28.7%time residents were over the age of 6025.0%20.0% 16.7%19.6% Multiple districts have more then 25%14.8%15.0% 12.3%10.0% 10.8%10.0% 5.0% By 2050, China will have more than 440 0.0% million people older than 60, 31% of the20002005201020152020202520302035204020452050populationTarget markets: Luxury market Full service retirement facility, organic foods, travel, & lifestyle Middle class Elderly centre, family services, clubs & activities BOP market Affordable healthcare 13. Migration / UrbanizationOver 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/ servicesPotential opportunities for Social Enterprise:1. Provide a product or service that helps migrants integrate into new setting or help maintain ties to old2. Offer critical services (healthcare, education, & finance) to migrants outside the system3. Development of new products targeted towards this improving quality of life for group 14. Technology and SocialEnterprise in China 15. To ensure that the service gap can be filled, thesolution 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 16. Leveraging InfrastructureWith existing physical infrastructure built, and staff who already understand the localneeds, and are already trusted within the communities they serve, street committeesand elderly care facilities will be our primary channel partners Street Committee:Already charged with overseeing the social conditions of its residents, and begin providingservices to elderly (and other needy) in the area, partnering with, and training, streetcommittee employees will be critical to the success of the platform Elderly Care FacilitiesLeveraged by the city to provide services to the location community (medical treatmentand meals on wheels), and knowing that these centers have the highest trained staff inthe industry, we will partner with these facilities to help support our rollout, training, andimplementation 17. Building CapacityUnderstanding and addressing the human capacity gap that exists within thecommunity 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 thepower 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 toreach site (route planning) as well as the time it takes on site (simple menu entry) so thatmore visits per day can be achieved Increasing Service Quality & Impact:Through a single visit, community workers would be able to assess the mental/ physicalstate of clients, allow clients to order services (meals, cleaning, etc) in real time, and putin work orders for other services (maintenance) as needed in a single visit 18. Increase Resource EfficiencyLeveraging the data management functions of the Community Tablet , communitymanagers will be able to better allocate the resources that they have, and thusremove inefficiencies that would otherwise reduce their ability to manage tasks anddeliver a quality level of service Resource AllocationLeveraging the tablet, and the features of the software, community organizations will beable to train and assign staff in a new, more efficient manner. Both before and after thevisit Knowledge gathering:Using the tablet, gathering and reporting critical knowledge to community managers willbe greatly improved through the user menu systems, information sharing capabilities, andtask assignment Worker Data Management:With the tablet, and the supporting databases, workers will be able to better access andmanage data on site (access to historical records) and allocate information to relevantdepartments (social workers, meal providers, etc) to ensure follow up 19. Be ScalableAs an integrated product, with a laser like focus, scalability from a single districtacross Chinas provinces will come exponentially, but without the inefficientprocesses of a similar brick and mortar application Investments in server capacity Local partnership acquisition and training Natural Integration and extension of services 20. Richard Brubakerrich@collectiveresponsibility.org