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Presentation on Social Entrepreneurship-BrownSchool-18November2010

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This the presentation I gave in Professor Cliff Holekamp\'s class at the Brown School of Social Work at Washington University in St. Louis.

This the presentation I gave in Professor Cliff Holekamp\'s class at the Brown School of Social Work at Washington University in St. Louis.

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Presentation on Social Entrepreneurship-BrownSchool-18November2010 Presentation on Social Entrepreneurship-BrownSchool-18November2010 Presentation Transcript

  • Social Entrepreneurship: Lessons from the Field Jeffrey A. Robinson, Ph.D. Assistant Professor and Assistant Director The Center for Urban Entrepreneurship & Economic Development November 2010
  • The Center for Urban Entrepreneurship & Economic Development World-Class Research Innovative Education Economic Development Impact
  • The Center for Urban Entrepreneurship & Economic Development Research Areas Urban Entrepreneurship & Economic Development – Urban Entrepreneurship (wealth creation, business development, community entrepreneurship, job creation) – Technology Entrepreneurship (technology transfer, technology commercialization, incubators, technology clusters, leveraging university patents, green business) – Social Entrepreneurship (social problems solving, social purpose businesses, social investments, green business) – International Entrepreneurship (institutions and entrepreneurial activity, SME’s and developing nations, entrepreneurship towards economic development) – Economic Development (urban institutions and development, economic development and emerging economies)
  • Social Entrepreneurship Books 2006 2009 2010
  • The Center for Urban Entrepreneurship & Economic Development NJ Social Entrepreneurship Network • Part of NJUEDI Federal Appropriation FY 2010 and FY 2011 • Three (3) Social Innovation and Entrepreneurship Summits • Establishment of a resource website and network • Workshops • Social Innovation Institute – 6 month training – Non-profit Enterprise Track – Social Venture Track NJSEN  Establish a NJ Social Innovation Fund
  • The Center for Urban Entrepreneurship & Economic Development SOCIAL ENTREPRENEURSHIP • “Social entrepreneurship is recognized as encompassing a wide range of activities: – enterprising individuals devoted to making a difference; – social purpose business ventures dedicated to adding for-profit motivations to the nonprofit sector; – new types of philanthropists supporting venture capital- like „investment‟ portfolios; and – nonprofit organizations that are reinventing themselves by drawing on lessons learned from the business world.” Mair, Robinson, Hockerts in Social Entrepreneurship
  • The Center for Urban Entrepreneurship & Economic Development Related terms • Social Enterprise – NPOs creating for profit or for profit like organizations with double- or triple-bottom lines • Social Purpose Business – For profit organization that is created with a specific social purpose • Social Venture - A company or organization that a social entrepreneur starts to achieve their social and economic goals • Social Venture Capital – Venture capital or venture capital-like investment targeted for social ventures; often seeks a social and financial return on investment
  • Social Impact Entrepreneurship Measurement Social Sustainability Social Innovation
  • The Center for Urban Entrepreneurship & Economic Development There is variation in SE • Different theories of change and intervention strategies (social impact and social innovation) • Different types of social venture opportunities • Different approaches to innovation, structure, and measurement
  • The Center for Urban Entrepreneurship & Economic Development Notable Examples • Goodwill Industries • Ice Stone • Harlem Children’s • City Fresh Foods Zone • Greyston Bakery • One Economy • Café Reconcile • Sweet Beginnings • The Doe Fund • Kaboom! • Wilkin Solar
  • City Fresh Foods was founded in 1994 with the mission of utilizing local culinary talent to prepare traditional and home- style meals. Behind our delicious food is a successful business model that incorporates community and economic development to provide organizations with a cost-effective method of meeting their food service needs. City Fresh Foods is located in the Four Corners neighborhood in Dorchester, MA, a community that has been historically bypassed by business investment. Four Corners is evolving into a vibrant, bustling neighborhood. We believe that business is a powerful vehicle for empowering our youth, developing the community, and nurturing the environment. As part of our dedication to our mission, City Fresh Foods: 1. Has relationships with local schools, providing exposure to young adults who might consider the culinary arts profession. 2. Purchases from local organic farmers in season to use the freshest natural ingredients. 3. Recycles and minimizes waste-flow to reduce our impact on the environment. 4. Employs from the community, providing residents with an opportunity to manage, and eventually own the operation. Listed on the Inc. Magazine Inner City 100
  • • Greyston Bakery is a force for personal transformation and community economic renewal. We operate a profitable business, baking high quality gourmet products with a commitment to customer satisfaction. Greyston Bakery provides a supportive workplace offering employment and opportunity for advancement. Our profits contribute to the community development work of the Greyston Foundation. Vision Statements • Greyston Bakery is the nat ionally leading "Brownie Company". We produce Do-Goodie, the best tasting - highest quality brownies at a great value to the consumer. • Greyston Bakery is a leading model for social enterprise building a coalition with employees, community and shareholders. We properly compensate our employees: fair/living wage, health benefits, and direct participation in the profitability of the company. We train, promote from within, and mentor our employees, who we source from the local community Greyston Bakery, through its profit generation, is a substantial source of revenue for the Greyston Mandala, supporting affordable childcare for community, affordable housing for homeless and low income families, and affordable health care for persons with HIV.
  • The Center for Urban Entrepreneurship & Economic Development SOCIAL IMPACT
  • The Center for Urban Entrepreneurship & Economic Development Social Impact Does the venture make a significant social impact? Social impact is a key element of a social venture. What issue or problem is the venture being set up to address? How a social venture makes the impact and where it wants to make the impacts are important strategic decision. What is the theory of change? A social venture can make impact at different levels (e.g. community, local, regional national) or with varying degrees of depth (e.g. intermediary, service provider, employer, or instructor). Social ventures are often challenged by the tradeoff between breadth and depth of their social impact. How the founders reconcile this tension is an important indicator of strategic direction.
  • Landscape of Intervention Targeted Level of Social Impact Private Philanthropy CSR Program Corporate Philanthropy Government Agency Public Policy Pure Market Broad High Low (Bureaucratic) Level of Institutional Control (Entrepreneurial)
  • Landscape of Intervention Targeted Civic or Community Venture Level of Social Impact Private Philanthropy Social Venture CSR Program (with philanthropic support) Corporate Philanthropy Government Agency Social Venture Social Venture (working closely with government) (with market-based strategy) Public Policy Pure Market Broad High Low (Bureaucratic) Level of Institutional Control (Entrepreneurial)
  • The Center for Urban Entrepreneurship & Economic Development SOCIAL INNOVATION
  • The Center for Urban Entrepreneurship & Economic Development Social Innovation Is the venture using a new approach to addressing the social/environmental issue? Social ventures break new ground, pioneer new approaches, or develop new models. These ventures need to creatively navigate the economic, social, and institutional entry barriers to social sector markets. Social entrepreneurs develop new approaches to addressing social problems or utilize technology to facilitate problem solving. It is important that a social venture uses effective innovations for the problem they are addressing.
  • The Center for Urban Entrepreneurship & Economic Development Three types of social innovation • Service Delivery Innovation – Closes gaps in the system through partnerships • Boundary-Spanning (Bridging) Innovations – Makes unusual and creative connections across sectors • Technology or Product Innovation – Uses technological innovation to address social/environmental issue
  • Harlem Children's Zone Founded in 1970, Harlem Children's Zone, Inc. is a pione ering, non-p rofit, community -bas ed organization that works to enhance the quality of life for children and families in some of New York City's most devastated neighborhoods. Formerly known as Rheedlen Centers for Children and Families, HCZ, Inc.'s 15 centers serve more than 12,500 children and adults, including over 8,600 at-risk children. The emphasis of The Children's Zone work is not just on education, social service and recreation, but on rebuilding the very fabric of community life. .
  • A Triple Bottom Line Company
  • NLEN and Sweet Beginnings, LLC Brenda Palms-Barber, CEO Sweet Beginnings is a producer of natural honey-based personal care products and premium honey. Sweet Beginnings is a Chicagobased corporation owned by the North Lawndale Employment Network (NLEN). The company was originally started in 2004 as a transitional jobs program for former offenders. The success of the program spawned the formation of the Beeline brand. The program boasts a 3% recidivism rates versus an average rate of 80+% in most rehabilitation programs.
  • The Center for Urban Entrepreneurship & Economic Development WILKIN SOLAR
  • The Center for Urban Entrepreneurship & Economic Development Wilkin Solar opportunity - challenge Opportunity • 56% of Ghana households with no access to electricity (use kerosene and candles) – 23% in urban communities, the rest in rural communities Challenge • Uncertainty in market acceptance of products • Lack of existing credit facilities in rural areas to facilitate upfront consumer payments for purchases
  • The Center for Urban Entrepreneurship & Economic Development What are the implications of different types of social innovation? • What is the relationship between boundary spanning social innovation and social impacts? • Is the level of social innovation is related to the level of the social impact? • Possible answers: – More innovative social ventures have more targeted social impact. – Less innovative have broader social impact. – Is there a hidden cost of social innovation?
  • The Center for Urban Entrepreneurship & Economic Development SUSTAINABILITY FINANCIAL SUSTAINABILITY
  • NLEN and Sweet Beginnings, LLC Brenda Palms-Barber, CEO Sweet Beginnings is a producer of natural honey-based personal care products and premium honey. Sweet Beginnings is a Chicagobased corporation owned by the North Lawndale Employment Network (NLEN). The company was originally started in 2004 as a transitional jobs program for former offenders. The success of the program spawned the formation of the Beeline brand. The program boasts a 3% recidivism rates versus an average rate of 80+% in most rehabilitation programs.
  • The Center for Urban Entrepreneurship & Economic Development
  • The Center for Urban Entrepreneurship & Economic Development (Financial) Sustainability Is this venture financially viable? Is this venture positioned to fulfill its mission over the long-term? A sustainable social venture is financially viable and positioned to fulfill its mission. Many social ventures are not sustainable because they rely upon unstable grant-making or government institutions for their funding. Alternatively, earned-income or fee-for- service business model are generally more effective strategies for social ventures. How a social venture marshals its resources to sustainable is an important strategic decision that often separates traditional non-profit organizations from social entrepreneurship.
  • 3 Types of Earned Income Strategies • Generate revenue from the products/services provided to the clients/communities/etc. you serve (For-profit or nonprofit) • Generate revenues from products/services provided to the public or to other companies and organizations (For-profit or nonprofit) • Create a for profit organization that is owned by the non-profit organization (Hybrid)
  • The Center for Urban Entrepreneurship & Economic Development Types of Social Venture Opportunity Value-based opportunities are those that demonstrate a clear potential for profit and growth to the entrepreneur. Although the idea has a social focus, the primary goal of the entrepreneur is to use this opportunity to create financial value. Issue-based opportunities are, on the other hand, those discovered when the entrepreneurs are not fiscally driven but are motivated to respond directly to the social needs of the community. Simms and Robinson 2009
  • The Center for Urban Entrepreneurship & Economic Development MEASURING IMPACT
  • The Center for Urban Entrepreneurship & Economic Development What do social entrepreneurs change? • They change behavior of people in society • They change existing condition • They facilitate changes in future opportunities • How can these things be tracked? Measured?
  • The Center for Urban Entrepreneurship & Economic Development Measurement How does this venture measure its social impact and evaluate success? Are the measurement tools appropriate for this type of venture? Measurement and evaluation are essential to social entrepreneurship. In addition to the financial metrics used by traditional ventures, social ventures must measure their impact and evaluate its effectiveness. There are many ways to measure and evaluate the social impact of a venture. The key is that the social venture is using an appropriate type of measurement tool that is in line with their theory of change.
  • The Center for Urban Entrepreneurship & Economic Development Why Measure? • Accountability • Evaluation • Outcomes and Impacts • Effectiveness General Principles – Outputs vs. Outcomes – Evaluation vs. measurement
  • The Center for Urban Entrepreneurship & Economic Development REDF VIDEO
  • The Center for Urban Entrepreneurship & Economic Development Key Questions for Your Venture From REDF • How can we measure the success of our efforts? • How do we know whether we’re accomplishing what we set out to do? • How can we make informed decision about the ongoing use of our resources? • How can we test and convince others of what we believe to be true: that for each dollar invested in our portfolio agencies’ efforts, there are impressive, quantifiable resulting benefits to individuals and to society?
  • In 1997, the agency began a network of programs for a 24-block area: the Harlem Children's Zone Project. In 2007, the Zone Project grew to almost 100 blocks and served 7,400 children and over 4,100 adults. Recent results:  100% of students in the Harlem Gems pre-K program were found to be school-ready for the sixth year in a row.  81% of Baby College parents improved the frequency of reading to their children $4.8 million returned to 2,935 Harlem residents as a result of HCZ's free tax-preparation service  10,883 number of youth served by HCZ in 2008  This year, President Obama announced that HCZ would be used as the model for a national program to address youth issues in urban areas.
  • Wilkin Solar: Triple Bottom Line Returns 30 jobs created 3,100 households with access to clean energy 105,000 liters of kerosene offset 2007-2008
  • The Center for Urban Entrepreneurship & Economic Development Measurement and Evaluation • Trade-offs and Opportunities – Short-term vs. Long-term – Pre/Post Treatment vs. Longitudinal – Survey vs. Interview – Self-reported vs. Observed – Formative vs. Summative – Evaluation vs. Social Return on Investment • Question : Do social ventures with multiple point measurement protocols and evaluation procedures receive better funding than those without these protocols and procedures?
  • The Center for Urban Entrepreneurship & Economic Development Five Observations about Performance Management (Acumen) 1. Culture matters far more than systems 2. If you build systems, start with a pencil and paper 3. Think on the margin 4. Count outputs and then worry about outcomes 5. Don’t confuse information with judgment – “Simple Measures for Social Enterprise” - Telestad
  • The Center for Urban Entrepreneurship & Economic Development DISCUSSION What will your next steps be?
  • Social Entrepreneurship Jeffrey A. Robinson, Ph.D. jrobinson@business.rutgers.edu Twitter: @jrobinsonphd Search for Jeffrey Robinson
  • Social Entrepreneurship Jeffrey A. Robinson, Ph.D. Assistant Professor and Assistant Director The Center for Urban Entrepreneurship & Economic Development November 2010