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About Social Enterprises and Impact Innovation
 

About Social Enterprises and Impact Innovation

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    About Social Enterprises and Impact Innovation About Social Enterprises and Impact Innovation Presentation Transcript

    • aceleradora.njambre.org! @njambreAC! NjambreAceleradora! Paula Cardenau! Co-creating social entreprises
    • State! Citizen Sector! Companies! lack – of - integration
    • + 1.000 M people in extreme poverty (- USD/day)! We need to change the rules of the game!
    • new, integrated models are emerging! charity   fundraised /  grant   income   ! ! social enterprise! impact innovation! CAUSE! STRENGHT! ! Grey area in which organizations are often loosely referred to as social enterprises! charity  with   ‘on  mission’   trading/   contrac6ng   ! social   enterprise   ! socially   responsible   enterprise   ! business   genera6ng   profits  for   charitable   spends   !   commercial   enterprise   ! Adapted from “Financing Civil Society”, Venturesome
    • FotoETV social enterprise, ! which is the essence?! ü  is a business (delivers good / service)! ü  main goal: + social or environmental transformation ! ü  the impact is integral to the nature of the trading activity! ü  profit is a mean, not an end! Don’t live in the “or”, but in the “and” world!
    • High  quality,  affordable  for  all  healthcare   A   network   of   medical   centers   that   offer   services   and   products   at   below-­‐ market  prices,  6ered  according  to  the  pa6ents’  socio-­‐economic  level.     the  impact   •   has  60%  of  the  market  share  of  health  services  in  Costa  Rica   •   has  generated  a  saving  in  surgical  procedures  +40%  vis  a  vis  other   private  clinics,  which  have  been  forced  to  lower  their  prices   •   provided  services  for  3  M  people.  27,000  sophis6cated  eye  surgeries   •   8  clinics  cover  geographically  the  whole  country   •  also  serves  schools,  peniten6ary  centers,  homes  for  the  elderly,  etc.   the  business  model   •  started  as  a  3-­‐year  grant-­‐based  eye  care  program  for  rural  areas,  now   8   clinics   covering   every   medical   specialty   (from   basic   vision   tests   to   sophis6cated  surgical  procedures).     •  =erd  pricing  system  by  which  mid  income  pa6ents  -­‐paying  rates  40%   below  market-­‐  subsidy  low  income,  rural  pa6ents   •  this   enables   ASEMIS   to   cover   costs   while   maximizing   impact,   not   profits.   Profits   reinvested   in   opening   new   clinics   and   health   special=es  (re6na  and  cornea  surgeries//permanent  provincial  clinics   replaced  periodic  tours)   •  USD  5,700  Million  budget   case #1 // consolidated
    • the  learnings     •  organic   growth,   financed   from   cash   flow.   Revenue   serves   to   finance   new   services   or   units   un6l   they   reach   break   even     //   occasional  cashflow  stretches   •  pioneers  in  a  non-­‐existent  market,  once  Asembis  found  out  how   to  deliver  services  effec6vely,  the  growth  strategy  was  based  in   developing   a   system   based   on   rou6nes,   improving   prac6ces   con6nuously,   and   inves6ng   profits   to   build   addi6onal   capacity.   Some6mes  the  innova=on  is  in  the  process   •  “leave  Opera6ons  to  professionals”   •  strong   investment   in   recrui6ng   “integrated”   staff   (top   quality   doctors,  nurses  or  admin,  socially  commi]ed)   •  For   profit   mentality   while   maximizing   social   impact   –   the   sophis=cated  balance      
    • A distribution network of products & services manufactured by people with disabilities (PwD)! increase skills and income, while promoting corporate conscious purchasing!   PDW   B   B   B   PDW   PDW   TA,  financing,   equipment,    aggregated   supplies  purchase,  new   markets,  stability  in   sales   -­‐  compe66ve   products   -­‐  opportunity  to  build   inclusive  value  chains   Flexibility  in   Purchase   Corporate   Volunteers   U  TI  Universi=es     -­‐  TA   -­‐  Process   improvements   F   Financing   Pa6ent   working  capital   S   Suppliers   Flexible   condi=ons   -  Increased income, skills, dignity, autonomy and citizenship for PwD -  New perspective from businesses and consumers towards the capabilities     case #2 // ready to scale ª  20 PwD production workshops ! ª  700 workers with disabilities improving skills and income! ª  90,000 + hours of work ! ª  105 client companies ! ª  943,000+ people consumed a redACTIVOS product! ª  40% of redACTIVOS annual profits invested in La Usina NGO!
    • The model / Lessons Learnt ²  The Social – Commercial “tension” was a catalyst for the healthy growth of the social enterprise! ²  Breaking the mistrust barrier  - opening a new niche means the need to build trust in every stakeholder! ²  Increase production capacity while generating new skills in PwD – not any product will do! ²  Access to working capital! ²  The relevance of relevant KPI to make better strategic decisions! ²  Network effect is key to success!
    • Empowerment of youth and women in underprivileged communities/digital work! case #3 // start-up
    • foto tagging
 audio transcript ! community manager! Software testing! + empowerment! ! + first work opportunity! ! + work in your place / flexible! ! + new perception from the corporate sector! !
    • 4 models by which a social enterprise achieves changes the rules of the game! 2 Inclusive Value Chain! 1 Generates Access! 4 Community Ownership ! IMPACT 3 Circular Economy – Regenerating Ecosystems!
    • Access  to:   Housing   Nutri6on   Energy   Health   Sanita6on   Produc6vity   Financial  services   " Aravind,  cataract  surgeries  to  fight  preventable  blindness,  6  hospitals  in   India,  300,000  surgeries  /  year     " Amagi:  Fashion  ougit  for  people  with  disabili6es  www.amagi.com.ar/   "    The  Working  World:  Accessible  financial  services  to  recovered  factories   and  coopera6ves.  www.theworkingworld.org     "    Proyecto  Ser:  high  quality  healthcare  for  low  income  women  in  Northern   Argen6na.  Purchasing  a  USD  5  card  annually,  they  have  access  to   affordable  medical  services.  100,000  women  associated.   "   Moses  Muzaazi:    biodegradable  sanitary  pads  that  help  prevent  female   adolescent  scholar  drop  out  in  Uganda.  Local  produc6on.   "    IDEAAS:    Affordable  solar  energy  panels  in  rural  communi6es  with  no   access  to  electricity,  through  leasing.     "    Energe:  solar  heaters  for  low  income  communi6es,  rural  mid-­‐income   producers,  and  ABC1  sector.  www.energe.com.ar   " SolarEar:  Low  cost  hearing  aids,  feed  with  solar  energy  and  rechargeable   ba]eries  (long  useful  life).  www.solarear.com.br   " Ikotoilets:    toilet  malls  to  promote  sanitary  use  culture  in  Kenya.   www.ecotact.org/ecoweb/   "   ZMQ:  Health  preven6on  &  educa6on  in  isolated  rural  areas  through   mobile  phone  gaming  h]p://www.youtube.com/watch?v=du7zWSpKSKo   Genera=ng  Access  Model  
    • Inclusive  value  chain:     Vulnerable  communi6es     Partners   Producers   Distributors   Co-­‐creators   "    Interrupción:    sells  in  the  US  organic  produc6on,  under  fair  trade   system,    of  12,000  La6n-­‐American  small  producers.  With  the  fees  of   fair  trade,  educa6ve  /health/  financial  service  funds  are  created  for   producers  and  their  families.  www.interrupcionfairtrade.com   "    Oro  Verde:  Cer6fies  social  and  environmental  mining  responsible   prac6ces  and  gives  craosman  miners  access  to  markets,  by  paying  a   fee  that  goes  back  to  their  local  communi6es.  700  families/5,000   people  self  www.greengold-­‐oroverde.org/loved_gold   "    Granja  Andar:  Catering  service  and  bakery  that  gives  work  to  95   people  with  intellectual  disability.  Family  franchises.     "    RedAsta:    Direct  selling  system  of  jewelry  and  design  products   elaborated  by  800  small  craosman  women  in  Río  de  Janeiro,  Brasil.   www.redeasta.com.br   "    MicroConsignment:  Sale  of  product  and  services  that  improve  life   quality  of  isolated  rural  communi6es  through  local  entrepreneurs.   248  entrepreneurs  sold  55,400  products.  They  improve  income,   acquire  new  abili6es,  gain  protagonism.  Greg  van  Kirk.   www.cesolu6ons.org   Inclusive  value  chain  model  
    • "    Mamagrande:  Bio  plas6c  produc6on  using  natural  renewable   resources,  cleaning  polluted  water  and  bringing  low  income  rural   communi6es  into  the  value  chain.  www.mamagrande.org   "    Guayaki:  Works  jointly  with  organic  cer6fied  yerba  mate   producers  and  under  na6ve  species  of  Atlan6c  rainforest  in   Argen6na,  Brasil  and  Paraguay.  The  objec6ve  is  the  conserva6on   and  development  of  communi6es  through  the  commercializa6on   of  products  in  USA  and  Canada.  www.guayaki.com.ar   Circular  economy  model   Ecosystem  regenera=on          
    • innovation serving people & planet! impact innovation?! Foto Energe
    • # 1
 create markets! ü  non-existent markets, no suppliers, no competitors ! ü  higher associated costs! ü  need to raise awareness!
    • # 2 empathy in R+D! ü  high quality technologies that actually meet the needs and desires of underserved communities! ü  users are key to co-design goods and services! Foto Amagi
    • ü  ‘last mile’ is the first one! ü  + eficiency in distribution chain! ü  based in local entrepreneurs! ü  tiered pricing! # 3
 distribution to enable access! Foto Community Enterpise Solutions
    • # 4 governance / decisions shared with stakeholders! ü  underserved communities gradually at some point of decision making! ü  Producers opening costs / consumers involved to lower prices! ü  empowerment!
    • # 5
 work in underserved communities!
    • # 6
 new leaderships! ü  holistic & empathic vision! ü  Integrated social and commercial profile! ü  New skills development!
    • # 7 economic value to garbage
    • # 8 change visions
    •       The challenge Still a handful Emerging support ecosystem Limited access to capital Lack of legislation “hybrid” models needs to be understood
    • 26   Ø  we believe in the high potencial of social business! Ø  we create them!
    • We  s=mulate  impact   innova=on  opportuni=es.   We  co-­‐build  the  impact   economy  ecosystem       We  co-­‐build  and/or   accelerate  impact   innova=on  enterprises.     Co  Crea=on  Hubs   Our  solu6on   28  
    • Sector Público
 ESTADO! Sector Social! OSCs! Sector Privado
 EMPRESA! new integrated models!
    • new type of economy centered in people!
    • aceleradora@njambre .org! www.! Njambre! .org! Gracias !! thanks!
 Paula Cardenau
 paula@njambre.org! @njambreAC! 
 !