Social entrepreneurship and venture philanthropy
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Social entrepreneurship and venture philanthropy

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A presentation given to course participants at a LEAD workshop

A presentation given to course participants at a LEAD workshop

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    Social entrepreneurship and venture philanthropy Social entrepreneurship and venture philanthropy Presentation Transcript

    • SOCIAL ENTERPRENEURSHIP AND VENTURE PHILANTHROPY ALI SALMAN Training Workshop at LEAD [email_address] 2 nd November 2007
    • OUTLINE
      • SOCIAL ENTREPRENEURSHIP
        • CONCEPT
        • CHALLENGES
        • CASE STUDY
      • VENTURE PHILANTHROPY
        • CONCEPT
        • CHALLENGES
        • CASE STUDY
    • SOCIAL ENTREPRENEURSHIP
      • Entrepreneurship
        • Creation of Value AND Wealth
      • With Social Entrepreneurship….
      • Product, becomes
        • Pro Poor
      • Market, becomes
        • Bottom of Pyramid (the 5 billion market)
      • Bottom line, becomes:
        • Double (Access to Poor and Return to Shareholders)
    • More on Concept-SE
      • Pro Poor is not a low-priced edition!
      • Its about a new price-performance relationship!
      • In most of BoP, shortage of talent exists, therefore work must be deskilled.
      • Source: C.K. Prahald, The Fortune at the Bottom of the Pyramid: Eradicating Poverty through Profits
    • Basic Economics
      • Small Unit Packages (?)
      • Low Margin per unit
      • High Volume
      • High Return on Capital Employed
      • Source: C.K. Prahald, The Fortune at the Bottom of the Pyramid: Eradicating Poverty through Profits
    • Marketing Strategy
      • Don’t just sell a product; sell value!
      • Invest heavily in education of customers.
    • PARADIGM SHIFT
      • By its very nature, success in BoP market will break existing paradigms (Grameen).
    • TRENDS
      • HOUSING FOR THE POOR
      • THAR DEEP: WATERING IN A CONSERVATIVE WAY
      • MICRO FINANCE
      • RENEWABLE ENERGY
      • INEXPENSIVE LAPTOPS AND ICTS
      • CHECK OUT: www.nextbillion.org
    • Break
      • Questions and Discussions
    • CASE STUDY: PANI GHAR
      • Concept
      • Pilot
      • Challenges
        • Winning trust of a sizable customer base
        • Creating Local partnership
        • Delivering Service
    • Key Lessons and Risks
      • Market Size: Buying Intent Estimation can go wrong as poor customers may mix up between need and demand.
      • New Markets: Social Entrepreneurs find it hard to ‘sell’ those products, which have remained either free or under-priced.
      • Buying Power: Purchase power estimates can go wrong, as persons with lower income have higher tendency to hide their income.
    • Key Lessons and Risks
      • Unintended Beneficiaries: As Social Entrepreneurs, we might end up selling our products to non-poor. (P/G Experience)
      • Regulatory Risks: Regulator does not understand the grey area between for-profit and non-profits. (P/G experience)
      • Double Bottom Line: It implies additional accountability, which has costs.
    • Risks Mitigation
      • GO UP, CLOSE AND PERSONAL: Most of the risks are based on poor information about customers and weak communication systems.
      • TAX HOLIDAY/ TAX REBATE FOR SOCIAL ENTERPRISES: If corporate world can be offered monetary incentives for investment, then why not social enterprises?
    • Break
      • For tea, this time!
    • VENTURE PHILANTHROPY
      • Combination of Venture Capital Model with Philanthropy to create a viable and growing non-profit.
    • CONCEPTS
      • Deep Investment Analysis
      • Leadership
      • Relationships
      • Power of Networks
      • Making the Greatest Impact
      • Funding What Others Do Not
      • Performance
      • Strategic Assistance
    • TRENDS
      • QARSHI FOUNDATION
        • Health and Education
      • CARE FOUNDATION (BAREEZE/SEFAM INDUSTRIES)
        • Education
      • ALI FOUNDATION (PACKAGES)
        • Culture
        • Education
    • Break
      • Any questions?
    • Venture Philanthropy
      • Case Study
      • Why I have chosen SKMT?
      • SKMT has become a sustainable organization, and is a significant player in the cancer treatment.
    • VP: PRECONDITIONS
      • Charisma
      • Alternative to Charisma? Deep and prolonged personal commitment of the leader
      • Trust
      • Team
      • Initial Capital/Seed Money
      • Must adhere to a real problem and propose a real solution
        • Can we define ‘real’ being in terms of money?
        • “ A Real Problem is one for which a solution is provided, people are ready to spend money.”
    • VP: Launching Pad
      • International Quality Standards
      • Wide and diverse resource base (over a million donors in mass contact in 1994-95 contributed 120 million rupees i.e. 120 per person!)
        • Revenue from treatments
        • Zakat
        • Donation
        • Other Income
        • Started with a base in Zakat and Donations; now Revenue is almost equal, if not more, than Zakat and Donations combined.
      • Public Attractions (Fund Raising Programmes)
      • Technology (SMS, E Banking)
    • Skaukat Khanum: Revenue Base
    •  
    • VP: Getting Results
      • Institutional Capital
        • Long term vision
        • Very well paid (above market) staff
      • Knowledge Platform
        • Which Cancer Patient should be given a priority is a decision governed by the probability of cure and recovery.
      • Sustained and High Quality Pro Poor Welfare System
    • SE AND VP COMPARED   NATURE INVESTMENT INCENTIVES PRICING PRODUCT MARKETS RESULTS SOCIAL ENTERPRISE FOR PROFIT OWN+ LOAN+ EQUITY SALARY + SHARES NOT FREE TAILOR MADE BOTTOM OF PYRAMID *ACCESS TO BOP *PROFITS VENTURE PHILANTHROPY NOT FOR PROFIT OWN+ CHARITY SALARY + BONUS VARIES STANDARD BOP PLUS RICH *SUSTAINABILITY
    • AT CROSS ROADS
      • Microfinance and Health Care: The Coming Convergence
      • Socially Responsible Funds
      • Managing NGOs with Venture Philanthropy Models.