Abc2 of present isea june 29 2012

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  • Abc2 of present isea june 29 2012

    1. 1. Institute for Social Entrepreneurship in Asia Marie Lisa Dacanay President, Institute for Social Entrepreneurship in AsiaPRESENT Multisectoral Forum Series Launch; June 29, 2012
    2. 2. ABC of Poverty Reductionthrough Social Entrepreneurship PRESENT as Aspiration The PRESENT Bill The PRESENT Coalition Convergence for PRESENT
    3. 3. PRESENT as ASPIRATION
    4. 4. “Social entrepreneurship entails innovationsdesigned to explicitly improve societal well-being,housed withinentrepreneurial organizations,which initiate, guide orcontribute to change in society”(Perrini, 2006)
    5. 5. Social Entrepreneurship:GLOBAL PHENOMENON: RESPONSE TO CRISISUS: ◦ economic downturn in 70s and 80s  huge cutbacks of federal funding to NGOsEurope: ◦ crisis of welfare states in 80s  retreat from public services + phenomenon of structural unemployment  WISECountries in the South/Philippines: ◦ continuing crisis of development in 90s: massive poverty and inequality  SE-PPS: Social Enterprises with the Poor as Primary Stakeholders
    6. 6. Social Enterprise with the Poor as PrimaryStakeholders (SE-PPS):social mission- driven wealth creating organizations Private enterprise Social enterpriseStockholders/ Primary Poor /Marginalized sectors:proprietors: owners of stakeholders/ engaged as suppliers, workers,capital beneficiaries clients and/or owners; partners in poverty reductionSingle bottom line: Primary Double or triple bottom line:profit objectives poverty reduction, (social), environmental; financial sustainability as supportive objectiveAccumulative: enrich Enterprise Distributive: positive benefitsindividual owners of philosophy accrue to society speciallycapital oftentimes with among broad segments of poornegative social andenvironmental costs
    7. 7. Social Enterprises with the Pooras Primary Stakeholders (SE-PPS) AS INNOVATIVE CHANGE AGENTS provide the poor a combination of transactional and transformational services: ‘Poverty as deprivation of basic capabilities’(Sen,1999; 2009) not just low income positively contribute to creation of economic and social value: much of value created not recognized by mainstream market economy use combination of principles as actors in economic development: market, redistribution reciprocity, solidarity, sustainability
    8. 8. PRESENT: Developing SE-PPS as Partnersof Poor in Strategic Economic Subsectors Single social enterprise interventions  limited in terms of impact and sustainability Importance of interventions at the level of economic subsectors  network of related actors and enterprises performing various functions in competing value chains; may be identified by major raw material source, finished product or final service provided
    9. 9. PRESENT: Developing SE-PPS as Partners ofPoor in Strategic Economic Subsectors Strategic Economic Subsectors ◦ have a potential for growth ◦ large numbers of the poor are players or could become players Examples of strategic economic subsectors where SE-PPS are already playing key roles: coco coir, muscovado sugar, organic rice, essential oils, bamboo, educational toys , school chairs, brewed coffee
    10. 10. Pilipinas Ecofiber: Social Enterprise ValueChain Intervention in Coco Coir Subsector Coco fiber Coir ropes Geonets, Coconut plant liners, Final & & husks trays, etc. sale cocopeat mats Engaged in the extraction of fiber & peat from coconut husks, and the processing of fiber into high quality stitched & woven coir products for sale in the Philippines and abroad. Weavers & Plant Husk Rural workers Edgers Traders Rural coops workers Associat’ns collectors Twining direct Plant agents workers buyers Organized to link input providers, small producers & processors, with traders & distributors of various coir products, and to coordinate the activities of the former in order to meet the requirements of final users.
    11. 11. Poverty Reduction throughSocial Entrepreneurship (PRESENT) ◦ Aspiration of SE-PPS to scale up impact through innovative partnerships with government
    12. 12. THE PRESENT BILL Partnership with Congress to institutionalize Poverty Reduction Through Social Entrepreneurship
    13. 13. PRESENT Bill: Main Features Objective: ◦ Provide a nurturing environment for the development and growth of social enterprises as major vehicles for poverty reduction Enacts: ◦ planning and implementation of a National Poverty Reduction Through Social Entrepreneurship (PRESENT) Program ◦ led by a Commission on Social Enterprises under the Office of the President
    14. 14. PRESENT Bill: Main Features National PRESENT Program: ◦ Development of strategic economic subsectors with potentials for growth and where the poor are concentrated or could be major players ◦ Benefits to the poor: increased incomes and capability to improve their means of living   as workers, suppliers, clients and/or owners of SEs in strategic economic subsectors   as partners in economic and social development ◦ Overall Outcome: substantive poverty reduction
    15. 15. PRESENT Bill:Support Programs for SE-PPS Provision of accessible non-collateralized loans thru special credit windows with a Guarantee Fund Pool Comprehensive insurance system to reduce vulnerability to climate change/calamities Resources for comprehensive capacity development for SEs and poor as partners
    16. 16. PRESENT Bill:Support Programs for SE-PPS Mainstream SE content in formal educational system Proactive SE market development program promoting principles of fair trade R&D on strategic economic subsectors; appropriate technologies; and innovations to democratize access of poor to quality basic social services Recognition and support for LGUs in developing social enterprises
    17. 17. PRESENT Bill:Incentives for SE-PPS Preferential treatment in government procurement including coverage of performance bonds Tax exemptions and tax breaks for SE-PPS and social investors Cash incentives (i.e. at least 25% of minimum wage for social enterprises employing PWDs)
    18. 18. PRESENT Bill Initiative: Strategic Rationale ◦ PRESENT Bill as a codification of agenda for change to assist poor overcome poverty resulting from state and market failures thru their effective participation in SE-PPS ◦ PRESENT Bill as codification of incentives and support for SE-PPS as major partners of government in poverty reduction
    19. 19. THE PRESENT COALITION Microcosm, Voice and Action Network of Emerging SE Sector
    20. 20. PRESENT Coalition: main actors Co-Convenors: FSSI & Ateneo Sch of Gov’t Members of Steering Committee include ◦ PhilSEN ◦ WFTO-Asia/Philippines ◦ INAFI-Philippines ◦ Eagle’s Wings Dev’t Foundation ◦ Bote Central/ Philippine Coffee Alliance ◦ Pilipinas Ecofiber Corporation ◦ Hapinoy/MVI ◦ Foundation for TheseAbled ◦ PRRM ◦ ISEA
    21. 21. PRESENT Coalition: initiative to unitewhat was once a fragmented sector Basis of Unity: o Push for the enactment and implementation of the PRESENT Bill o Undertake a nationwide education campaign on SE as vehicles for poverty reduction o Develop standards and benchmarks for self- regulation and development of sector
    22. 22. PRESENT Coalition: Microcosm, Voice andAction Network of Emerging SE Sector Informed estimate of Philippine SE sector: +/- 30,000 Various Actors: ◦ Fair Trade Organizations (crafts, agri-business, processed food) ◦ CSO-initiated SEs serving various segments of the poor (agri-based processing; trading and marketing in upland, lowland, coastal communities; important players in sustainable agriculture and forestry- related enterprises) ◦ Cooperatives (agriculture/agri-business; savings and credit; social services) ◦ Faith-based organizations espousing a solidarity economy ◦ Social welfare-oriented enterprises serving disadvantaged groups (PWDs, women and children) ◦ Micro Finance Institutions ◦ SEs initiated by young professionals (fashion, processed food, services to micro-enterprises) ◦ SMEs with double or triple bottom line ◦ Management and consulting services for SEs/micro-enterprises ◦ SE Service, Resource and Advocacy Institutions/Networks
    23. 23. Convergence for PRESENT Possible Action Points with National Government Agencies (NGAs)
    24. 24. Possible Action Points with NGAs:Invest in strategic PRESENT research Undertake a comprehensive study to define the most strategic economic subsectors to undertake PRESENT programs. (NEDA) Undertake a national profiling of the social enterprise sector to better ground government-social enterprise convergence initiatives. (NAPC)
    25. 25. Possible Action Points with NGAs:Begin the paradigm shift towards PRESENT Explore the reconfiguration of existing resources or develop new programs with ODA donors to ◦ Undertake initiatives to address bottlenecks negatively affecting social enterprise growth ◦ Evolve structures and systems that would inform the IRR (Implementing Rules and Regulations) of the PRESENT Bill
    26. 26. Possible Action Points with NGAs:Evolve best practices in PRESENT Develop social enterprise-government convergence initiatives ◦ As part of the socio-economic component of government’s thrust in 609 poorest municipalities identified by NAPC ◦ As a key component of priority industries for national convergence identified by DTI ◦ To strengthen/enhance the thrust of DA in organic/ sustainable agriculture  coco coir; organic rice; muscovado; coffee; school chairs; educational toys; bamboo
    27. 27. Possible Action Points with NGAs:Pursue PRESENT innovations Establish a planning, monitoring, evaluation body and system to evolve effective, transparent, corruption-free public procurement schemes and mechanisms involving SEPPS ◦ coco coir, organic fertilizer, community-based processing equipment for coffee, educational toys, school chairs In cooperation with bank and non-bank-financial institutions, pilot risk-based lending with a Guarantee Fund Pool for SEPPS Pilot the development of insurance schemes to address the vulnerability of SEPPS and the poor to natural disasters and climate change
    28. 28. Possible Action Points with NGAs:Pursue PRESENT innovations Set up a pilot Social Enterprise Development Fund to support capability building of social enterprises Evolve a market development program promoting the principles of fair trade in partnership with SEPPS Pilot social enterprise-based social protection schemes and the efficient/ effective delivery of quality basic social services in preparation for a post-CCT scenario Explore appropriate tax incentives for SEPPS
    29. 29. Concluding Remarks:PRESENT COALITION’s ASPIRATIONSTRONG, PROACTIVE & INNOVATIVE SE SECTOR with a SIGNIFICANT CITIZEN BASE +GOVERNMENT PLAYING DEVELOPMENTAL ROLE thru SUCCESSFUL CONVERGENCE EFFORTS +RELEVANT SUPPORT from SOCIAL INVESTORS  SE-PPS as MAJORITY OF VIBRANT SME SECTOR in the COUNTRY SUBSTANTIVE POVERTY REDUCTION

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