Social Entrepreneurship: Challenges and Promises for the Next Decade Mirjam Schöning, Schwab Foundation for Social Entrepreneurship “Social Innovation”

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  • Slide 1
  • Social Entrepreneurship: Challenges and Promises for the Next Decade Mirjam Schning, Schwab Foundation for Social Entrepreneurship Social Innovation Conference Rome, 7-8 October 2009
  • Slide 2
  • The Schwab Foundation Objectives 1.To be the foremost organization for identifying, selecting and highlighting accomplished social entrepreneurs at the national, regional and global levels. 2.To be an effective conduit between its community of social entrepreneurs and companies as well as governments. 3.To build a global community of outstanding social entrepreneurs and others interested in promoting social entrepreneurship, leveraging successes of social entrepreneurs to achieve wider impact for the public good. Activities Selection: 20-25 social entrepreneurs p.a Regional selection in Africa, Latin America, Europe, South-East Asia, South Asia Social Entrepreneur of the Year and respective media partnerships established in 15 key countries Events / Connecting Annual Meeting Davos / Dalian 6-8 Regional Meetings Knowledge Building Academic Activities (Case studies, Executive Education) Global Agenda Council & Global Redesing Initiative
  • Slide 3
  • The Schwab Foundation Network of the Worlds Leading Social Innovators Currently 160 organizations in total Main sectors: Education (47) Enterprise Development (40) Rural Development (37) Health (35) Environment (33) Children and Youth (28) Technology (21) Financial Inclusion (20) Housing (14) Agriculture (13) Trade (12) Energy (10) Waste Management (7) Water (7) Type of social enterprise: 53 Social Business 89 Hybrid Non-Profit 32 Leveraged Non-Profit USA and Canada 24 Latin America 38 Africa 11 Australia 2 Asia 39 Europe 40 Middle East and North Africa 12 Geographic spread:
  • Slide 4
  • Corporate Partnerships with Social Entrepreneurs Basic Development Supply Side/ Production Demand Side/ Consumption Linking Producers and markets: Handicraft / Fashion Fair trade Agriculture Reducing production costs: Medical technology Agricultural devices Examples: SEWA & GAP, PeopleTree TransFair USA, Max Havelaar IDE India IDEAAS, Brazil Examples: Aravind Eye Hospital/ David Green IDE India / KickStart (Africa)
  • Slide 5
  • The Case for Engaging with Social Entrepreneurs Basic Development Supply Side/ Production Demand Side/ Consumption Access to new markets / Linking Companies and Customers / BoP: Financial services Telecom IT Rationale for engaging SE: BoP markets are radically different Deep market knowledge of SE Trusted Social entrepreneurs have deep market knowledge and are trusted Examples: SKS Microfinance CellBazaar Center for Digital Inclusion
  • Slide 6
  • Entrepreneurial Social Mission-driven Innovative Sustainable Founder of for-profit or not-for-profit organization Employs business methods, but aims at maximizing social or ecological impact. Financial return is optimized. New products, services or approaches driving social transformation. Revenue through fees, sales of products and services What is a Social Entrepreneur? Practical VisionaryFocus on implementation
  • Slide 7
  • 1. Social Business "For-profit" organizations Financially self-sustainable and profitable 2. Hybrid Organizations Financing mix of earned income and grants Typically a combination of different legal forms 3. Leveraged Non-Profits Non-profit organizations Financing primarily through partnerships with corporations, governments and foundations Highly innovative and leveraged approach The Social Entrepreneurship Spectrum Combining social impact and financial sustainability Three types of social enterprises 1. Corporate Social Responsibility. 2. Non-profit-Organisationen. Quelle: BCG-Analyse; Schwab Stiftung fr Social Entrepreneurship financial returnsocial return SE Charities / NGOs 2 ) Companies with or without CSR 1) activities Social Entrepreneurs maximize social return while optimizing financial return 30 % 50 % 20 %
  • Slide 8
  • Social Entrepreneurship Spectrum Social Business Hybrid Organization Leveraged Non-Profit Objective/ Mission Financial sources and goals Treatment of investment/ Use of profits Legal form Social /ecological impact maximization Revenues through sale of products or services At least loss free Pay back principal Reinvest profits in the SB Grameen SB: no dividends/interests For-profit entity Degree of Innovation/ Social Change Adapting products and services for marketability to the base of the pyramid Involving marginalized as producers and/or distributors Oriented towards scalability Social /ecological impact maximization Testing innovative market-based solutions Bringing products and services to the base of the pyramid Highly innovative and social change oriented Mobilizes a large number of partners (corporate, government, volunteers) for the cause Generate revenue through sales of products, services or fees Long-term reliability on a mix of grants, (subsidized) loans and equity investments Combination of for-profit and non-profit entities non-profit entity Profits of one subsidiary either reinvested or paid out to non- profit entity No profits Primarily reliant on grants and partnerships
  • Slide 9
  • Leapfrog Fund for Technology Innovation Transfer The Leapfrog Fund is supported by the Lemelson Foundation to stimulate the transfer and adaptation of technological innovations developed by accomplished social entrepreneurs to alleviate poverty and to provide access to clean water, energy, housing and sanitation in additional communities. Five new transfer projects involving 11 social entrepreneur partners are being supported: #OrganisationCountryOrganisationCountryTechnology Innovation 1TARA / DAIndiaSewa LankaSri Lanka micro-enterprise housing construction 2IDEAASBrazil Instituto Serto Vivo Brazil solar powered irrigation systems for rural farming 3Gram VikasIndia Comprehensive Rural Health Project India water and sanitation systems for rural villages 4 Waste Concern BangladeshSAIBANPakistan waste management and recycling technology 5 Aravind Eye Hospital India Fundacin Paraguay FundacionVisin Paraguay sustainable eye-care services for low income populations
  • Slide 10
  • BACK UP
  • Slide 11
  • Examples of Leading Social Entrepreneurs Social Business Organization: Sekem Group Founder: Helmy Abouleish Country: Egypt Focus Landwirtschaftsbildung, Unternehmensentwicklung, Umwelt Innovation Entwicklung innovativer biodynam. Landwirtschaftsmethoden, Weiterbildung & Qualifizierung Strategie Anwendung "grner" Leitlinien und Technologien in Farms Bercksichtigung sozialer & kultureller Aspekte in Gesundheits- und Bildungseinrichtungen Hybrid Organisation Leveraged Non-Profit Organization: Job Factory Basel Founder: Robert Roth Country: Schweiz Focus Arbeitslosigkeit, Jugendarbeitsbedingungen Innovation Zweite Job-Chance fr Jugendliche mittels speziellem Praktikum mit effizientem Coaching Strategie 15 profit- und marktorientierte Ausbildungszentren mit unterschiedl. Fokus (Informationstechnologien, Gastronomie, Gitarrenbau etc.) zur Berufsfindung und -qualifizierung Organization: Teach for America Founder: Wendy Kopp Country: USA Focus Bildung Innovation Hervorragende Graduierte bilden fr die Bildungsgleichberechtigung aller Einkommensschichten Strategie Ausbildung von exzellenten Graduierten zu bezahlten Lehrern von ffentl. Schulen mit Aktionsfokus in sozial schwcheren Regionen Quelle: Schwab Stiftung fr Social Entrepreneurship, BCG-Analyse
  • Slide 12
  • Regional Selection Process New Regional Selection Process Reduction of the Schwab Foundation involvement in the national SEOY processes Focus on selecting the leading 2-5 social entrepreneurs per region/continent p.a. Latin America Africa Middle East East and Southeast Asia India Using the World Economic Forum regional meetings as platform to highlight regional winners Development of new partnerships National Social Entrepreneur of the Year winners Newly identified Soc. Entrepreneurs from other countries 2-5 regional Social Entrepreneur of the Year winners
  • Slide 13
  • Regional Selection Latin America NameOrganizationCountrySector Veronica Abud Fundacion La Fuente ChileLiteracy programs for children and youth Marta ArangoCINDEColombiaEarly childhood care and development Andre Cavalcanti de Albuquerque Terra NovaBrazilResolution of land conflicts and rights Martin von Hildebrand Gaia Amazonas ColombiaPreservation of Amazon rainforest and empowerment of indigenous populations Rio de Janeiro, April 2009 Announcement of winners:
  • Slide 14
  • Abbreviated List of Social Entrepreneurs submitting GRI case studies Health Making medical technology affordable, PATH/Aravind/David Green Improving access to health services, Riders for Health Improving child nutrition, Un Kilo de Ayuda Neglected diseases, OneWorld Health International patent reform, CAMBIA Poverty Eradication/ Rural Development Agriculture risk insurance, BASIX Low-cost energy solutions, Freeplay/SELCO Land ownership reform, Rural Development Institute Solving the water scarcity crisis, IDE India Investment fund for start-up social enterprises, KickStart Reversing the urban distress migration, Gram Vikras Unleashing the power of the SME sector, TechnoServe Universal access to credit, Kashf Foundation Education/Human rights Global literacy, Fundacion La Fuente Universal socio-financial education for children, Aflatoun Creating an enabling environment for girls, CAMFED/Fundacion Paraguaya
  • Slide 15
  • Leapfrog Fund (2) Phase I completed: Site visits, training of staff and beneficiaries, stakeholder consultations and buy-in, purchases of equipment and project assessments and planning by the "importing" social entrepreneur. INSEAD initiated research of all 16 Leapfrog finalists discovered that 14 of the 16 replication proposals stimulated by the Leapfrog Fund are in progress (despite not receiving Leapfrog funding). Phase II in progress: The final 50% of the grants has been disbursed to facilitate the purchase of equipment and employment of staff to implement and apply the new technologies. Some initial outcomes: Construction of sanitation facilities throughout all households in 2 villages in Jamkhed, Rajasthan. Construction of compost plant for solid waste management and recycling programs in low cost housing development in Karachi, Pakistan Research & development of best low-cost solar irrigation model for rural agriculture in Brazil Production centre with equipment and trained staff established for production of earth blocks, roofing and flooring tiles and certificate training of micro-entrepreneur builders in Batticaloa, Sri Lanka.

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