FERNANDO MISTURA, CO-FOUNDER, 2.5 SECTOR PROJECT,DOCUMENTARY ”BETWEEN WORLDS”ONLINE GLOBAL SOCIAL ENTREPRENEURSHIP CONFERE...
AGENDA The 2.5 Sector Project Social Business: a new business paradigm How big is the market? The advantages of social...
THE 2.5 SECTOR PROJECT  Inspire young business leaders   and entrepreneurs to createsustainable BUSINESS SOLUTIONS    that...
THE 2.5 SECTOR! SOCIAL BUSINESS ARE REVOLUTIONIZING TRADITIONALBUSINESS PARARDIGM                                      The...
WHAT IS THE POTENTIAL FOR GROWTH?MARKET SIZING ESTIMATES               SPECTRUM OF INVESTMENTSource: WRI, 2005US$ 1 trilli...
WHY ARE SOCIAL BUSINESSES TRANSFORMING THE SOCIAL SECTOR    Access to expansion capital due to the adoption of commercial ...
GRAMEEN DANONE FOODS           Product                     Process                                Purposeo Highly nutritiv...
ARAVIND EYE HOSPITAL           Product                                  Process                                   Price   ...
OTHER CHALLENGES Social business ENTREPRENEURS’ mindset is socially-oriented: replicate instead ofprotect their business...
Thank you for your participation!Contact us at: fernando@doisemeio.com ONLINE GLOBAL SOCIAL ENTREPRENEURSHIP CONFERENCE   ...
AFFORDABILITY AND AVAILABILITY IS CRUCIAL FOR THE SUCCESS OFSOCIAL BUSINESS VENTURES SOCIAL BUSINESS MODELSPay per use    ...
BASIC PRINCIPLES OF MARKET-BASED SOLUTIONS    Fonte: Valeria Budinich, Kimberly Manno-Reott , Stephanie Schmidt. Harvard B...
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Fernando mistura between worlds

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Country: Brazil
Speaker: Fernando Mistura

What is the problem?
The narrow view of ways of doing business that is widely disseminated in Brazil and throughout the world.

What is the opportunity?
Disseminate examples of people that have decided to do differently, and incorporate social values in their business.

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Fernando mistura between worlds

  1. 1. FERNANDO MISTURA, CO-FOUNDER, 2.5 SECTOR PROJECT,DOCUMENTARY ”BETWEEN WORLDS”ONLINE GLOBAL SOCIAL ENTREPRENEURSHIP CONFERENCE www.SENS24.com March 24th, 2013
  2. 2. AGENDA The 2.5 Sector Project Social Business: a new business paradigm How big is the market? The advantages of social business Challenges of social business  Grameen Danone Foods  Aravind Eye Hospital Conclusions
  3. 3. THE 2.5 SECTOR PROJECT Inspire young business leaders and entrepreneurs to createsustainable BUSINESS SOLUTIONS that strive to achieve HIGH SOCIAL IMPACT and ECONOMIC RETURNPromote and Consolidate the 2.5 SECTOR in Brazil
  4. 4. THE 2.5 SECTOR! SOCIAL BUSINESS ARE REVOLUTIONIZING TRADITIONALBUSINESS PARARDIGM The 2.5 Sector is composed by: Social Businesses  Commercialize affordable products/services that are critical to the exercise of citizenship by poor and 2º Sector 3º Sector fragile populations Social Insertion companies  Re-insert marginalized populations into the labour market by providing direct employment, training and 2.5 Sector coaching, allowing employees to find a position in traditional companies in a later stage SOCIAL BUSINESSES Fair-Trade Companies Essential Characteristics  Business partnerships, based on dialog, transparency and respect, with the objective of1 Have a clear social purpose commercializing products from “out-of-the-market” and theory of change suppliers, offering them better exchange conditions (better prices) and rights guaranties2 Adopt profitable business strategies
  5. 5. WHAT IS THE POTENTIAL FOR GROWTH?MARKET SIZING ESTIMATES SPECTRUM OF INVESTMENTSource: WRI, 2005US$ 1 trillionPotential for investedcapital over the next10 years Source: JP Morgan, 2010, Impact investing: an emerging asset class
  6. 6. WHY ARE SOCIAL BUSINESSES TRANSFORMING THE SOCIAL SECTOR Access to expansion capital due to the adoption of commercial BUSINESS SOLUTION strategies and innovative structures Higher financial autonomy and resources diversification Long-term and structured solutions: products and services Business models based on social innovation INNOVATION Attractiveness to traditional companies in building partnerships Creation of new actors in the Value Chain (Supply and Distribution) Business model capable of attracting talents PERFORMANCE Greater complexity and impact ambition Competitive remuneration HIGH-SCALE SOCIAL Capacity of generating high-scale impact IMPACT Perennial business strategies Replicable Influence public policy / political commitment
  7. 7. GRAMEEN DANONE FOODS Product Process Purposeo Highly nutritive iogurt o Local suppliers and distributors – o The company’s mission is to rede Grameen Group. eradicate children malnutritiono Containing 30% of dailyvitamines and nutrients o Proximity Business approach o Profit:a mean to expand andBangladeshi children lack (factory suplies the market within reach such goals 60km)o Affordable price= o 100% of profits are reinvestedUS$ 0.07 / container o Sustainable value chain after initial capital recovering 48% of children up to 5 years in Bangladesh live on extreme sub-nutrition
  8. 8. ARAVIND EYE HOSPITAL Product Process Price Doctors make up to 100 surgeries per day More than 250.000 surgeries per yearo Low cost interocular lenses: US$ 2 o Standardized activities: o Innovative pricing method: paysa $4, while market price is around - High volume who wants and who can!US150 - High quality o Low cost surgery: o Every paid surgery covers othero High quality: lenses are exported US$ 0 a US$ 200, while market price 2 gratuity surgeriesto over 110 countries is around $1500 o Service reaches the patient in rural zones – Eye camps & tele centres 60% of blind people have cataract, 70% of these live in rural areas, 80% of ophthalmologists live in urban centres
  9. 9. OTHER CHALLENGES Social business ENTREPRENEURS’ mindset is socially-oriented: replicate instead ofprotect their business Hybrid models are often necessary > unbundling activities to develop market basedsolutions Patience: most social business models take much longer to mature Scale is important and commercial capital can help, but the process of bringing ininvestors is often complicate for entrepreneurs and poses governance issues: dealingwith mission delivery and sustainability Legal structures are often not tailored for social business, pose challenges anddemand some innovative-thinking
  10. 10. Thank you for your participation!Contact us at: fernando@doisemeio.com ONLINE GLOBAL SOCIAL ENTREPRENEURSHIP CONFERENCE www.SENS24.com March 24th, 2013
  11. 11. AFFORDABILITY AND AVAILABILITY IS CRUCIAL FOR THE SUCCESS OFSOCIAL BUSINESS VENTURES SOCIAL BUSINESS MODELSPay per use  Pay per use of a community-level facilityIDEAAS, Grameen Phone, and  Rental of individual product or serviceDMT Mobile ToiletsNo frills  Quality services but without “fancy acessories”Aravind Eye Hospital, Lifespring  High asset utilisation and service specialisationHospitals  High volumeParaskilling  No frill servicesAravind Eye Hospital  + disaggregation of tasks to be undertaken by non specialists (without qualification)Shared Channels  Shared distribution networks to reach into remote markets (use of SHG orServals burners, Nutriset NGOs to reach the market) Source: Monitor Institute, 2009
  12. 12. BASIC PRINCIPLES OF MARKET-BASED SOLUTIONS Fonte: Valeria Budinich, Kimberly Manno-Reott , Stephanie Schmidt. Harvard Business School Conference on Global Poverty and Business Approaches. December 2, 2005

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