Lisa Nitze presents SE Alliance


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Social enterprise is a powerful tool for generating and sustaining social value
Social innovation can be accelerated when social enterprises come together to increase the impact and effectiveness of the field
A robust social enterprise field helps high-performing social enterprises to be developed and resourced for growth and longevity
It is incumbent upon funders, investors, government and the public to encourage robust social enterprise through policies and practices that provide a supportive environment

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  • Change photo to one from conference showing social entrepreneurs learning Change Title to: How Social Enterprise Can Help Your Organization Sustainably Pursue Positive Social Change
  • Change title to Nonprofits
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  • Lisa Nitze presents SE Alliance

    1. 1. Social Enterprise: A Critical Engine of Simultaneous Economic and Social Development <ul><li>By Lisa Nitze </li></ul><ul><li>CEO, Social Enterprise Alliance </li></ul><ul><li>I-7 Conference </li></ul><ul><li>October 15, 2010 </li></ul>
    2. 2. A New Vision <ul><ul><li>The world’s problems are outstripping our current initiatives to address them – not necessarily our current capacity to address them </li></ul></ul><ul><ul><li>Our old models for how to address social problems need to be updated </li></ul></ul><ul><ul><li>Resources residing in silos need to be combined through collaborative partnerships for maximum positive social impact </li></ul></ul>
    3. 3. The Role of Government <ul><li>Traditional View </li></ul><ul><li>Take care of those who can’t take care of themselves </li></ul><ul><li>Educate the people </li></ul><ul><li>Protect the environment </li></ul><ul><li>Build and maintain transportation and communications infrastructures </li></ul><ul><li>Build and maintain public health infrastructures </li></ul><ul><li>Create and implement laws and punishments to provide safety, social stability, equity and fairness in society </li></ul>
    4. 4. The Role of Government <ul><li>Revised View </li></ul><ul><li>Provide those who can’t take care of themselves with the tools to help themselves </li></ul><ul><li>Partner with others in the market to educate, protect the environment, create and maintain infrastructures, protect public health </li></ul><ul><li>Provide incentives for people to self-govern for safety, social stability and equity </li></ul><ul><li>Use leverage to convene partnerships among sources of resources for public good </li></ul><ul><li>Use leverage to convene stakeholders around issues so they can define a middle ground </li></ul><ul><li>Incentivize corporations to invest in societies’ well-being </li></ul><ul><li>Provide seed-funding, be the convener and catalyst </li></ul>
    5. 5. Corporations <ul><li>Traditional View </li></ul><ul><li>Emphasis on short-term profit for shareholders </li></ul><ul><li>See societal needs as the job of government </li></ul><ul><li>See environmental issues as the job of government </li></ul><ul><li>See non-profits as an adjunct of government and make annual contributions to them as asked </li></ul><ul><li>See Universities as disconnected from economy </li></ul><ul><li>See citizen and advocacy groups as on another team </li></ul><ul><li>See government as ineffective </li></ul>
    6. 6. Corporations <ul><li>Revised View </li></ul><ul><li>See other stakeholders in society as partners in long-term health and sustainability of: </li></ul><ul><ul><li>Communities where operate </li></ul></ul><ul><ul><li>Employees </li></ul></ul><ul><ul><li>Customers </li></ul></ul><ul><ul><li>Suppliers </li></ul></ul><ul><ul><li>Distributors </li></ul></ul>
    7. 7. Universities <ul><li>Traditional View </li></ul><ul><li>Educate the best on higher level </li></ul><ul><li>thinking </li></ul><ul><li>Stick to education </li></ul><ul><li>Revised View </li></ul><ul><li>Educate to market needs </li></ul><ul><li>Partner with corporations, government and non-profits to create societal and commercial value while educating </li></ul><ul><li>Commercialize learning where possible </li></ul>
    8. 8. Citizen Advocacy Groups <ul><li>Traditional View </li></ul><ul><li>Corporations are deliberately ignoring needs of society and environment </li></ul><ul><li>Corporations are on another team - damaging society in pursuit of their interests </li></ul><ul><li>Revised View </li></ul><ul><li>Corporations have resources to </li></ul><ul><li>contribute to the community </li></ul><ul><li>Corporations can be partners in solving social problems </li></ul>
    9. 9. Nonprofits <ul><li>Old View: The Traditional Nonprofit </li></ul><ul><li>Model of meeting need through dependency on donations </li></ul><ul><li>Model of pursuing good without responsibility for figuring out how to pay for it </li></ul><ul><li>Lack of connection to market drivers allows original model to become out of touch </li></ul><ul><li>Federal organizations do not meet local needs with local solutions </li></ul>
    10. 10. Social Enterprises <ul><li>Revised View: The Social Enterprise </li></ul><ul><li>A market-based, business-like approach to solving a social problem </li></ul><ul><li>Its mission is to meet a societal need in a way that is self-sustaining </li></ul><ul><li>Simultaneous pursuit of social and economic development that is not zero-sum </li></ul><ul><li>Partnering with government, business, universities and all other sources of resources creatively to achieve goals </li></ul>
    11. 11. What is a Social Enterprise? <ul><li>A “Social Enterprise” is a nonprofit or private sector entity that: </li></ul><ul><ul><li>Uses earned revenue strategies, either exclusively as a business or as a significant part of a nonprofit’s revenue stream, and </li></ul></ul><ul><ul><li>Directly addresses social needs either through its goods and/or services or by employing people who are disabled or disadvantaged </li></ul></ul>
    12. 12. Social Enterprises Make up a Rapidly Growing and Vital Sector of the U.S. Economy <ul><li>The economic downturn has caused nonprofits to seek new solutions for sustainability as charitable contributions decline </li></ul><ul><li>Social need has increased as corporations and government cut jobs and budgets </li></ul><ul><li>Public awareness of social entrepreneurship has risen and purchasers are increasingly seeking to support positive social change with their dollars </li></ul><ul><li>Nonprofits adding revenue-generating streams to their business models can increase scale and impact </li></ul><ul><li>Government social program budgets are shrinking creating market opportunities for growth of the social enterprise sector </li></ul><ul><li>Having market-based elements to their business models keeps nonprofits tracking with the evolution of market need </li></ul>
    13. 13. A Few Examples of Social Enterprises Common Ground Women’s Bean Project Homelessness Women in Transition Real estate development Product Assembly/Retail Sale Juma Ventures Cornerstone/National Day 1 Underprivileged Youth Domestic Violence Employment and Training Database Product Project Health EngAGE Urban Health Clinics Elderly Care Hospital Contracts Program Design Consulting Harbor City Services DC Kitchen Mental health Addiction/Incarceration Corporate Shredding, Moving, Catering Services Filing, Storage Case Studies of Select Social Enterprises in the Health Care Field
    14. 14. Economic and Social Infrastructures Can’t Keep Pace with the Growth of Social Enterprise <ul><li>New legal and tax structures are needed </li></ul><ul><li>Access to growth capital is constrained by outdated frameworks </li></ul><ul><li>Clear definitions of the sector are necessary to measure impact </li></ul><ul><li>Branding and awareness building is required to drive greater growth </li></ul>
    15. 15. <ul><li>Why Should Corporations Be Investing in the Success of Social Enterprises? </li></ul><ul><li>It represents a highly leveraged investment </li></ul><ul><li>They strengthen the communities where your employees live </li></ul><ul><li>Employee retention, attraction </li></ul><ul><li>and development </li></ul><ul><li>Business-like approaches to </li></ul><ul><li>social problems use society’s </li></ul><ul><li>resources more efficiently </li></ul>
    16. 16. Why are Social Enterprises Good Partners for Business? <ul><li>Sources of market-research </li></ul><ul><li>Sources of innovation </li></ul><ul><li>Sources of inspiration </li></ul><ul><li>Investments in the future </li></ul>
    17. 17. <ul><li>Social and economic development are no longer mutually exclusive </li></ul><ul><li>“ Nonprofit” and “For Profit” are rapidly becoming outdated distinctions </li></ul><ul><li>Triple bottom line analysis is being done by all actors in pursuit of sustainable progress </li></ul><ul><li>Those enterprises that will be the most successful as the shifts continue are those that have attracted and invested in the largest percentage of change leaders – innovators who excel at leadership, teamwork and empathy </li></ul>The Sands are Shifting and Stakeholder Roles are Changing in the Economy and in Society
    18. 18. Social Enterprise Alliance 5358 42 nd Place NW Washington, DC 20015 [email_address] P: (202) 758-0194 F: (202) 449-9611 Questions?