Fostering Social Change through social entrepreneurship

8/19/2019 Fostering Social Change through social entrepreneurship

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DEFINING SOCIAL ENTREPRENEURSHIP

A social enterprise is a hybrid organization that applies commercial

strategies to find solutions for social problems. The main difference

between entrepreneurship in the business sector and social

entrepreneurship lies in the relative priority given to social wealth

creation versus economic wealth creation [1]. Compared to

corporate social responsibility (CSR) whereby social responsibility

is separated from the business, a social enterprise has its social

mission at the core of its activities. For example, a tobacco

company can have a CSR strategy but cannot become a social

enterprise with the production and sale of tobacco related

products. Hence, for an organization to be considered a social

enterprise, a few defining and common characteristics are

evident; (1) the primacy of the social mission and environmental

mission of the enterprise; (2) generating a big part of its income

through trade; (3) reinvesting a big part of its profits in its social

mission, (4) and operating transparently.

From a Belgian perspective, there is no legal definition of social

enterprise, and this is unlikely to change anytime soon.

However, some key elements characterize social enterprises

such as: primary social aim, self-generation of market income,

limits on distribution of profits and assets, independence and

participatory governance. As for the legal form, a category

exists in Belgium for enterprises “with a social purpose”, but it

is not widely used at this moment [2].

DRIVERS AND BARRIERS TO SOCIAL INNOVATION

In their endeavor in solving societal problems, social entrepreneurs

need to come up with new and innovative solutions that extend

beyond the traditional ways of overcoming societal challenges. In

order to be considered a social innovation, the business model

proposed must be more effective, efficient and sustainable then

the current alternative. Generally speaking, three main drivers affect

innovation in social enterprises. The main driver to innovate is to

increase the range and/or quality of their products and services.

Then, social entrepreneurs want to innovate in order to achieve

social goals by increasing and spreading the social impact, and

reducing environmental impact. Finally, social entrepreneurs

innovate to increase the enterprises financial sustainability and

expand its market [3].

Despite programs put in place to support social entrepreneurship,

social entrepreneurs report a set of internal and external barriers

that hinder their development. Internal barriers such as lack of time

available, a degree of reliance on volunteers, and a lack of

qualifications in terms of human capital slow the development of

social enterprises. Often, social enterprises lack the financial

resources to hire qualified and/or enough human capital. Internal

resistance to change is also an internal barrier that hinders social

innovation. However, the most important barrier to social

entrepreneurs is cost-related. Much like commercial enterprises,

social enterprises face problems with the availability of finance and

the high cost of financing their projects. According to Bob Elsen,

co-founder of ViaVia café: ‘‘More and more social entrepreneurs

and projects are seeking external funding, while external funding

resources are not growing as rapidly. This therefore has resulted

in an increased competition for a piece of the same size pie’’.

Social insecurity, welfare, poverty, and development are societal challenges that we

often associate with developing economies. However, these institutional voids and

social opportunities are also at our front door. Belgium, like any other country is facing

societal challenges - recent flows of migrants from the Middle East and Africa, poverty

and social exclusion, the aging of the population and youth unemployment,

environmental issues including air quality control and renewable energy, are just a few

of the challenges that are apparent. Following the 2008 financial crisis, new and

innovative solutions need to be developed to tackle societal challenges, as publicsupport programs and resources are already stretched thin. Social entrepreneurship

can bring such a solution, by pursuing social goals in an entrepreneurial way and

contributing positively to society and its challenges.

Fostering social change through socialentrepreneurship: Challenges and impact

A case study of the ViaVia cafe

“Social entrepreneurs need to come up

with new and innovative solutions that

extend beyond the traditional ways

of overcoming societal challenges.”


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Research@FEB

MEASURING THE SOCIAL IMPACT

One key element that differentiates social enterprises from their

commercial counterparts is the double (even triple) bottom line.

As traditional businesses account for economic performance,

social enterprises need to take into consideration both economic

and social performances. The economic performance is relatively

easy to define and assess, whereby it is either a positive or

negative number with a Euro sign attached to it.

The challenge for social enterprises comes from assessing the

social performance and impact. Quantifying and tracking social

impact aims to assess the social value produced by the

activities or operations of the social enterprise. Given the recent

development of this field, new social impact-driven instruments

are being developed, and various initiatives are undertaken to

raise awareness about the value of social impact measurement

amongst social entrepreneurs. However, given the limited

resources available in most social enterprises, such a task is

seen as an extra burden. One way to bypass such challenge is

to have social impact indicators embedded in everyday tasks.

Instead of seeing the measurement of social impact as another

bureaucratic undertaking, it could instead be used to enhance

a social enterprise’s performance. Another challenge, and given

the diversity of sectors in which social enterprises operate, it is

nearly impossible to come out with – one size fits all – social

indicators. Hence comparing social enterprises social performance

is no easy task. Additionally, these projects and initiatives do

not create value over night, but instead require extended

periods of time and experimentation before any results that can

be “quantified” begin to emerge. This push for assessment and

monitoring of social impact will favor those social enterprises

with tangible outcomes which may then translate to more

funding than organizations whose outcome is harder to account

for. ViaVia cafés are a great example.

THE CASE OF VIAVIA CAFÉ [4]

ViaVia cafés are a space of encounter between

local populations and travelers. The hope

was that the sharing of experiences,

food, drinks, music, art, trips, tours, and

cultural and social projects would

bring people and cultures together in

an open-minded spirit based on

mutual respect. There are 16 ViaVias

across Africa, Asia, Europe, and

Central and South America. The idea

was to merge the ViaVia concept with

the local environment and community,

ensuring that each ViaVia was unique.

ViaVia followed a soft franchising strategy. The ViaVia head-

quarters in Belgium developed general guidelines for franchisees

and co-invested with them, but each franchisee was free to

adapt his or her café and activities in response to local needs

and aspirations. Each café offers local and world food that relied

on local availability of ingredients and reflected the taste and

style of the owners and the community. Their emphasis on

sustainable tourism and sustainable businesses before profit

maximization have made the ViaVia cafés renowned social

enterprises. Amongst the ViaVia cafés, ViaVia Jogja in Indonesia

can be considered as the one taking this philosophy of

sustainability the furthest, with its far-reaching support of local

community projects. What started as a small project in 1995,

includes twenty years later:

(a) A café that uses as much local and organic produce as

possible, preferring small local suppliers over larger ones.

(b) An art space for contemporary art exhibitions where young

artists can display their work. (c) In a joint venture with ViaVia

employees who co-invested to become shareholders, Mie and

Ingvild – the ViaVia Jogja Co-founders – set up a guesthouse

with seven rooms and two dormitories. Profits are shared

amongst the team. (d) A fair trade shop provides opportunities

for individuals and small groups to sell their products based on

principles of environmental sustainability, innovation and

creativity, and the economic empowerment of marginal groups.(e) An artisanal bakery using the best bread-making techniques

using sourdough starters. (f) A travel agency offering eco-

friendly alternative tours, including cooking and

traditional crafts courses, as well as

bicycle and walking tours of the city.

(g) A non-profit whose purpose is

to assist the community. For

these activities and the synergies

between them, ViaVia Jogja won

the 2013 Wild Asia Responsible

Tourism Award for the most inspiring

responsible tour operator in Asia.

“The challenge for social enterprises

comes from assessing the social

performance and impact.”

Figure 2 ViaVia Jogja cooking class

Figure 1 ViaVia Jogja team


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While income is generated through the café, the guesthouse,

the fair trade shop, and the local tours, Mie and Ingvild reinvest

part of these revenues in a multitude of social projects. Over

the past 20 years, they have supported or initiated more than

50 projects impacting the whole community. Some of the

projects initiated/supported include: free annual training for

people interested in becoming tour guides; supporting small

projects such as a street festival for street kids, a small

environmental festival, or religious activities for the transgender

community; financing the studies of children through their

dance and art educations; small grants have been provided to

help individuals from vulnerable groups set up sustainable

businesses and social enterprises; to reduce their environmental

footprint, a tree is donated through the ViaVia Jogja travel

department for every tour made by car or for every two

motorbike tours; following the 2006 earthquake, ViaVia Jogja

assisted in the reconstruction of 26 of their staff members’

homes and also contributed and raised funds for a series of

relief and rehabilitation initiatives across the affected area,

including the rehabilitation of a destroyed art studio and akindergarten. Furthermore, they have provided food and non-

food items to 3000 individuals.

The ViaVia case is a good example of how calculating social

impact can be a challenge. As economic performance is

relatively easy to determine for ViaVia Jogja, the challenge

stems from evaluating social performance. The social mission

is so engrained in ViaVia’s day-to-day operations that it

was difficult for Mie and Ingvild to isolate how much was

(re)invested in social projects. For instance, the choice to work

with small organic farmers meant that the cost of ingredients

went up, but this was not “counted” as a project investment.

In conclusion, while the social benefits are not easily measurable,it is for sure that social enterprises such as ViaVia Jogja, play

a key role in making the society a better place.

References:

[1] Mair, J., & Marti, I. (2006). Social Entrepreneurship Research:

A Source of Explanation, Prediction, and Delight. Journal of

world business, 41(1), 36-44.

[2] Huysentruyt, M., Lardinois, I., & Oers, B. (2014). The State of

Social Entrepreneurship in Belgium. SEFORIS Country Report.

[3] Huysentruyt, M., & Kint, A., Weymiens, S. (2013). Mapping of

social enterprises in Belgium. I-propeller with support of the

King Baudouin Foundation.

[4] Andries, P., & Daou, A. (2016). Teaching Case: ViaVia Yogyakarta:

Choosing the Right Strategy to Maximize Social Impact.

Sustainability , 8(1), 70.

This project has received funding from the European Union’s Seventh

Framework Programme for research, technological development and

demonstration under grant agreement no 613500.

About the author:

Alain Daou, PhD

Research Associate | Seforis.eu

MSI Department | KU Leuven

[email protected]

For more information:

www.seforis.eu

www.mdpi.com/2071-1050/8/1/70/pdfwww.joker.be

www.viaviajogja.com

“Given the diversity of sectors in which

social enterprises operate, it is nearly

impossible to come out with – one size

fits all – social indicators.”

Human Development is about creating an

environment in which people can developtheir full potential and lead productive,

creative lives in accord with their needs and

interests. (United Nations Development

Programme). The booming tourism industry

is such possible environment. By its

leverage on most economic sectors, it is

a motor for increasing prosperity for local

communities, both at the micro level of

involved individuals and their families,

and at the level of the communities in

the region where they live and work.In this environment the ViaVia Traveller

Cafes have taken their significant place.

The ViaVia family belongs to the Joker/ViaVia Network.

From the beginning, the aim has been to set up a global

network that contributes to an open and enjoyable world

where people, planet, profit and pleasure are in harmony, and

that connects people and make them aware of the positive

aspects of difference. The first ViaVia Travelers Cafes opened

in 1995 in Leuven and in Yogyakarta.

Today 16 ViaVia are operating in 12 countries on 4 continents.

They can be found in Belgium (2 in Leuven, Brussels, Antwerp,

Mechelen); Argentina (Buenos Aires); Chile (Valparaiso); China

(Chengdu); Ethiopia (Addis Ababa); Honduras (Copan); Indonesia

(Yogyakarta); Mali (Mopti); Nicaragua (Léon); Peru (Ayacucho);

Senegal (Dakar); Tanzania (Arusha). New ViaVia are on the road.

ViaVia’ s are meeting places between East and West, North and

South, committed to sustainable tourism as a vehicle for socio-

economic development and increased tolerance.

ViaVia cafes from the perspective ofco-founder Bob Elsen (Ekonomika Alumni)


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Thus, locally embedded meeting places are developed where

inhabitants, students, artists, … as well as travelers from around

the world can meet each other in a warm atmosphere. It’s a

relaxing spot for those who are on the road, or, when in your

own country, a window on the world.

ViaVia are based on our Belgian café culture and are:

• places to connect: the dynamics of a global neighbourhood

with an international atmosphere that stimulates enriching

encounters and exchanges, where people feel at ease.

• places to enjoy world flavours: a laidback, humorous,

contemporary blend of restaurant and bar, where hospitality,kindness and service take a central spot.

• places to explore: a window to the world by creating a bridge

between people and cultures. ViaVia organizes alternative

city tours, day trips, exhibitions, cooking, music and dance

classes, ….

ViaVia are a value driven community built on the principle of

unity in diversity: each ViaVia is unique, each one is different.

They are based on an organic growth, starting from a

Joker/ViaVia philosophy based on 4 values: open-mind, respect,

dialogue and amazement.

Contribution to a sustainable society plays a key role in the ViaVia

organisation. Social innovation focuses attention on more effective,

efficient and sustainable ideas and solutions that primarily create

added value for society as a whole, rather than for private

individuals or organisations. The themes that are boosted

concentrate on ViaVia’ s longstanding priorities: strengthening

entrepreneurship, local job creation, community empowerment,

inclusive society and sound financial management.

Already In 2000 the Joker/ViaVia Network received the Belgian

bi-annual Award ‘International Partnership for Sustainable

Development’ by the Federation of Enterprises in Belgium (FEB).

Criterion was that the ViaVia/local community partnership was

based on the principles of fairness, transparency and mutual

cooperation. Meanwhile, the ViaVia Traveler Cafés increasingly

received requests from local people for advice and training to

get a firmer grip on the growing tourism sector. In order to give

an adequate answer, the Joker/ViaVia Network founded in 2001

the non-profit organization Living Stone Dialoog.

In 2005, as an response to globalization Living Stone Centre for

Intercultural Entrepreneurship is founded as a spin-off of Leuven

Research & Development (KU Leuven). In 2012 Living Stone

Dialoog and Living Stone Centre join their forces and evolves to

ViaVia Tourism Academy (VVTA). The Joker /ViaVia Network

relies on ViaVia Tourism Academy for the coordination of the

global network of ViaVia. Individually the ViaVia may count on

VVTA for training support, expertise and advice in the fields of

sustainable tourism, entrepreneurial capacity building and

intercultural competence development. Fundamental is the

strengthening of the human competences and capabilities of

the members and local stakeholders.

To achieve this, the VVTA builds on a dynamic ‘Knowledge –

Experience - Sharing’ triangle:

• Translate state-of-the art knowledge and field experience into

hands-on tools for Vocational Education & Training. This in

cooperation with KU Leuven, UCLL, Thomas More, …

• Apply the learned in-house to strengthen the development of

Joker, ViaVia Traveler Cafés, Joker Project Fund, …,

• Share the applied knowledge and tools to private and public

beneficiaries in South and North regions. (Vocational training

for tourism professions , existing and start up’s SME’s, tour

guides, front desk staff, product developers .., in Belgium,

Malawi, Mozambique, South Africa, Vietnam, Peru, China,….; Active member of Innoguide Consortium, a European

Leonardo project in the lifelong learning program; Coordinator

of the Learning Network Sustainable Tourism in Higher

Tourism Education in Flanders)

In 2015 ViaVia Tourism Academy, together with the city of

Mechelen, is rewarded by European Commissioner Marianne

Thijssen and Flemish minister Philippe Muyters the title of

ESF Ambassador for their transnational project "Café Herman.

A warm town full of diversity”. Café Herman put ethnic

entrepreneurs on track to find the right services for their

enterprise or shop. This results in more stability, in a better

integration in the urban economic environment, and in a moresustainable growth of their business.

More info: www.viaviacafe.com

www.viaviatourismacademy.com

Two members of Ekonomika Alumni have been involved

with ViaVia from the early beginning, in 1995. Bob Elsen

is co-founder and CEO of the Joker/ViaVia network.

Arlet Wils is the creative chef who is in charge of the culinary

delights of ViaVia in Leuven. You are more than welcome to

join her in ViaVia Leuven, Parkstraat 146 (tel) from Monday

til Friday (10am til 11pm) and on Saturday evenings.

ViaVia combines tasty food with a cosy atmosphere.

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Fostering Social Change through social entrepreneurship