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Sweden - "MONDRAGON, SUSTAINABILITY & Social Entrepreneurship" - Blekinge Institute of Technology - Nov 2009
 

Sweden - "MONDRAGON, SUSTAINABILITY & Social Entrepreneurship" - Blekinge Institute of Technology - Nov 2009

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Session at "Master Strategic Leadership towards Sustainability" in Blekinge Institute of Technology - November 2009 - Karlskrona SWEDEN ...

Session at "Master Strategic Leadership towards Sustainability" in Blekinge Institute of Technology - November 2009 - Karlskrona SWEDEN

"MONDRAGON COOPERATIVE EXPERIENCE & SOCIAL ENTREPRENEURSHIP
Confronting the case to FSSD (Framework Strategic Sustainable Development)
with MSLS 2010 tribe"

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  • Si como SOCIO tienes inquietudes que compartir y discutir con otros socios del resto de cooperativas,del Grupo Mondragón. Desde Ahots kooperatibista te invitamos a participar con nosotros, tanto desde nuestra web social ---- http://www.ahotskooperatibista.org/ -------- como presencialmente en nuestras reuniones mensuales, o con nuestra publicación trimestral en forma de revista. Somos cooperativistas preocupados desde hace muchos años por lo que pasa en nuestras cooperativas: en lo referente a nuestras condiciones laborales, al funcionamiento de la democracia cooperativista, al comportamiento de las cooperativas con su entorno, al trato que se da a la gente trabajadora no cooperativista y, más recientemente, a la expansión que está teniendo el movimiento cooperativo al que pertenecemos en el marco de la globalización capitalista.
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    Sweden - "MONDRAGON, SUSTAINABILITY & Social Entrepreneurship" - Blekinge Institute of Technology - Nov 2009 Sweden - "MONDRAGON, SUSTAINABILITY & Social Entrepreneurship" - Blekinge Institute of Technology - Nov 2009 Presentation Transcript

    • MONDRAGON COOPERATIVE EXPERIENCE & SOCIAL ENTREPRENEURSHIP Confronting the case to FSSD (Framework Strategic Sustainable Development) with MSLS 2010 tribe MSLS 2010 – BTH – Karlskrona – Sweden – November 19th 2009 Dr. JM Luzarraga Mondragon University jmluzarraga@eteo.mondragon.edu Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • How do we create more knowledge? Are we ready for “optimal disconfort” co-creation? Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • CHECK IN: Who am I? What is my life dream? What knowledge do we want to co-create today? Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • Our destiny/vision for today? …backcasting What knowledge do we want o co-create today? FSSD & MSLS2010 passions & life dreams MONDRAGON Social Cooperative Entrepreneurship Experience Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • Our destiny/vision for today?... backcasting What knwoledge do we want o cocreate today? FSSD & MSLS2010 passions & life dreams – Create a company to leverage awareness on sustainability in my home town – Facilitate companies transformation process to become sustainable – Develop & design new sustainable production industries through eco-design – Create an education project on sustainability and social entrepreneurship –… CHANGE THE WORLD THROUGH SUSTAINABILITY :) Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • Our destiny/vision for today? ... backcasting What knwoledge do we want o cocreate today? MONDRAGON Cooperative Experience – What is MONDRAGON? – What is shared/promoted? – How big is it? Effective? Who’s involved? – What is SUCCESS for M.? – What makes M. so successful? – How does MONDRAGON engage coop members? – Is administration of M. coop different than others? – What stages has M. taken from the beginning till now? – How started? How proceeded? & What is planned now? – What was the process of creating M.? – What was the original IMPETUS? – What is M. view of sustainability? What is you vision? – Does cooperativism guarantee sustainability? – How does M. take “sustainability” into account? (not only social sustainability but ecological? – Does the companies in that region form a local supply chain to support each other? – What are the common shared values by companies in M.? Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • Our destiny/vision for today? … backcasting What knwoledge do we want o cocreate today? Social Entrepreneurship – Social entrepreneurship: profit? Non-profit? How to make a better world? – What are some NGO’s/orgs? – Who is using that model? – What is a cooperative? What are some hybrid models? – How would an organisation with social entrepreneurship features be set up? – What are the challenges in setting a SE, how do we overcome them? – Cooperatives as a TOOL to rebuild trust in society – How does it work? – Advice for creating cooperative networks in our home cities through social entrepreneurship. – How can a company as individual integrate in a social cooperative? – How can I use a model of SE to start a Facilitation business? – Successful models of SE? – Does a cooperative have to count on higher level of TRUST among its “members” than “conventional” companies Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • Our destiny/vision for today? … backcasting What knwoledge do we want o cocreate today? – What MSLS can teach – How to integrate the social MONDRAGON & What entrepreneurship potential to MONDRAGON can teach MSLS strategies? MSLS? – How Social Entrepreneurship – Building FSSD approach theory understands the into MONDRAGON importance of ecological value university education as opposed to just social value? system? – How does MONDRAGON take “sustainability” into account? How can we leverage its commitment? – How to design a SUSTAINABLE COOPERATIVE SOCIAL BUSINESS MODEL? Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • INDEX – stepping stones to our shared vision CHECKIN: What knowledge do we want to create today? 1. What was the process of creating MONDRAGON? Mondragon Cooperative Corporation (1956-2006) 2. How does the Framework for Strategic Sustainable Development feed in MONDRAGON? Confronting MONDRAGON to FSSD 3. Understanding Social Entrepreneurs Who is a SE? Characteristics? The power of unreasonable people CHECKOUT: What might be our next step to our shared dream? Our shared dream… CREATING A SUSTAINABLE COOPERATIVE SOCIAL BUSINESS MODEL Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • What was the process of creating MONDRAGON? Mondragon Cooperative Corporation (1956-2006) Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • 1. Mondragon Cooperative Corporation (1956-2006) Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • Starting point (1940) Massive unemployment & social crises: Spain dictatorship after civil war. Lack of any education: technical or in business Steel-mechanic industrial roots, small & local Closed and protected market Lack of any technology A shared dream… EDUCATION & CO-OPERATIVE ENTREPRENEURSHIP TO SURVIVE & TRANSFORM THE SOCIETY!!! Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • Mondragon education: Leading thoughts “The world is not there to contemplate it but to transform it” “Share knowledge & education to democratize power” “A technical school that it is not at the same time a school for human being development, is caving its own grave” “Work and study hast to go hand by hand” “God ideas are those ones who transform into real actions” “Se ha dicho que el cooperativismo es un movimiento económico que utiliza la acción educativa. Pudiéndose también alterar el orden de la definición diciendo que es un movimiento educativo que utiliza la acción económica” JM Arizmendiarrieta Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • Mondragon education: historical facts Prior to industrial co-operatives creation: – 1943: In-factory technical training – 1948: Engineering Technical school – 1956: First industrial co-operative ULGOR (13 years later) – 1966: First local co-operative cluster ULARCO (inter-cooperation) – 1974: Degree studies / international university agreements – 1998: Mondragon University -3 faculties: Engineering MGEP – Business ETEO – Education HUEZI Academic course: 1974-75 2007-08 – International experience: 2 110 – Post-graduate: - 459 – Graduate: - 3.248 – Courses: 237 – Technical: 815 Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • Highlights at Dec 2007 Number of companies: 107 Mondragon Group Mondragon Congress/ Permanent Commission Workforce: 103.731 Mondragon Presidency/ General Council – Worker members: 80.9% Financial Industrial Division Distribution Division Division Industrial Automatisation – Female/male members: 42.2% Automotive Body Builders – Abroad: 14.261 Components Construction Total sales: 15.056 M. euros Elevation (57% international sales ind.) Equipment HouseholdGoods Business ranking if listed: Engineering & Services – Spain: 7th Machine Tools Industrial Systems – Europe: 32nd Tools & Systems – Forbes 500: 462nd Group activities: Mondragon University, 12 Technology Centers & Garaia Innovation Park Source: MCC 2006 - Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • Mondragon background & leading thoughts A worker cooperative network started by Father Arizmendiarrieta in 1956 in Mondragon, a 30.000 people village in the Basque Country (Spain) Named by several academics as one of the best examples of democracy at the work place (Macleod, Vanek, Williamson, Malone, Whyte & Whyte,…) VISION: The companies that make up MONDRAGON share their commitment to cooperation and democracy in the workplace, backed by a unique system of worker participation. VALUES: – Cooperation: owners & main actors – Participation: management involvement – Social Responsibility: fair distribution of wealth created – Innovation: permanent change Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • Mondragon Worker Co-operative principles Worker Co-operatives: working people are the heart of the companies Committment to the local environment & society: continuous experimentation to satisfy society needs (Alecop, MU, Eroski,…) Business excelency, assuming the leadership & maximum competitiveness using the cooperative legal form MONDRAGON CO-OPERATIVE PRINCIPLES: 1. Open membership 6. Incomes/wages solidarit 2. Democratic member control 7. Inter-cooperation 3. Work over ownership 8. Social transformation 4. Capital as a tool 9. Universal character 5. Management participation 10. Education and training Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • Devoted to employment creation: Mondragon net- job growth: 1956-2006 80000 70000 1) First production plant abroad 2) MCC holding structure creation 60000 3) Started Eroski Group 50000 expansion all over Spain / 5 production plants abroad 40000 4) 26 Production plants abroad 30000 5) 57 Production plants abroad 20000 10000 0 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 Years Source: ex novo - Adaptation from MCC - 2005 1) 2) 3) 4) 5) Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • Committed to “companies creation & survival” through inter-cooperation Companies created on diverse sectors & industries: Number of Mondragon cooperative companies: 1956-2003 Source: Clamp 2003 Avoid companies shut-downs: every Mondragon company has suffered a critical difficulties period over its history Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • Mondragon Factories abroad Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • International “multi-localization” industrial strategy –“Creative vs. destructive international trade” 45,000 40,000 1) First production plant abroad 35,000 2) MCC holding structure creation 3) 26 Production plants abroad 30,000 4) 65 Production plants abroad 25,000 Total employees Employees abroad (since 99) 20,000 15,000 10,000 5,000 0 1960 1962 1964 1966 1968 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 Years 1) 2) 3) 4) 5) Source: ex novo - Adaptation from MCC - 2007 1) 2) 3) 4) Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • What about the Retail division? Main facts from 2008: - Total sales 9.013 M. euros - 2.440 centers: 115 hyper, 1029 super, 274 travel agencies, 53 petrol stations, 44 FORUM (sport), 300 IF (perfume), 6 ABAC (books). In France: 4 hyper, 16 super & 17 petrol stations. In Andorra: 4 IF (perfume) - 2.000 workforce growth (reaching 56.000) - Opening of 164 new retail centers (Hyper, super) - Strategic decision to transform conventional companies into cooperatives: - It might become the bigger cooperative worldwide with more than 50.000 working members - At the end of 2008 already 14.733 people participate in ownership, profits and management (1.475 annual growth) Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • Mondragon University: identity signs Prior basement/seed to the industrial companies creation Devoted to University-Companies integration Co-operative & participatory University: companies + students + teachers (workers) Village University: devoted to local community service Committed to Entrepreneurship & R+D+ innovation Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • Mondragon University: main roles 1. Local community Technical, social & business education 2. Supports “education & work” combination (ALECOOP 1966) 3. Technology Research & innovation – Technology centre IKERLAN (1974) – Innovation Pole GARAIA (2007) 6. New companies creation & entrepreneurship (1984 – SAIOLAN 1996 – Mondragon Team Academy 2008) 7. International education: (since 1974, in 2008 (110 + 12) Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • How does the Framework for Strategic Sustainable Development feed in MONDRAGON? Confronting MONDRAGON to FSSD Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • 2. How does the Framework for Strategic Sustainable Development feed in MONDRAGON? Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • The FSSD Funnel: Where might be MONDRAGON? From To Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • The FSSD Funnel: Where might be MONDRAGON? Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • 4 sustainability principles: Where is MONDRAGON? “In a sustainable society, nature is not subject to systematically increasing... ...concentrations of substances extracted from the Earth’s crust, ...concentrations of substances produced by society, ...degradation by physical means, and, in that society... ...people are not subject to conditions that systematically undermine their capacity to meet their needs “ Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • 4 Sustainability principles: 1- Concentration of substances extracted from the Earts’s crust Source MONDRAGON Annual report 2008 Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • 4 Sustainability principles: 2- Concentration of substances produced by society Source MONDRAGON Annual report 2008 Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • 4 Sustainability principles: 2- Concentration of substances produced by society Source MONDRAGON Annual report 2008 Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • 4 Sustainability principles: 3- Degradation by physical means Source MONDRAGON Annual report 2008 Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • 4 Sustainability principles: 4- ...people are not subject to conditions that systematically undermine their capacity to meet their needs Source MONDRAGON Annual report 2008 Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • 4 Sustainability principles: 4- ...people are not subject to conditions that systematically undermine their capacity to meet their needs Source MONDRAGON Annual report 2008 Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • 4 sustainability principles: Where is MONDRAGON? “In a sustainable society, nature is not subject to systematically increasing... - Oil dependant industries ...concentrations of substances extracted - Oil Transport & logistics from the Earth’s crust, - Oil Automotive industry -… ...concentrations of substances produced - Plastic, Iron & Steel by society, components: home appliance, automotive, construction -… ...degradation by physical means, - Construction industries and, in that society... ...people are not subject to conditions that - Humanity at work based on systematically undermine their capacity to a Cooperative system meet their needs “ “People-centred companies” Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • 5-level model - football example My text about the systems level, My text about the systems level, My text about the systems level My text about the success level, My text about the success level, My text about the success level My text about the strategic level, My text about the strategic level, My text about the strategic level My text about the action level, My text about the action level, My text about the action level My text about the tools level, My text about the tools level, My text about the tools level Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • Starting point (1940) Massive unemployment & social crises: Spain dictatorship after civil war. Lack of any education: technical or in business Steel-mechanic industrial roots, small & local Closed and protected market Lack of any technology A shared dream… EDUCATION & CO-OPERATIVE ENTREPRENEURSHIP TO SURVIVE & TRANSFORM THE SOCIETY!!! Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • 5-level model – MONDRAGON 1940 scenario? Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • Starting point (Mondragon 2007) Solid group expanded internationally Successful structures in the past European production industrial crises: employment threat Global & interconnected economy Local communities on threat: urban massification, internal migration & radical social differences among & within countries Lack and difficulties to create new business Need of a change/evolution of our competetitive model: – FROM production/manufacturing TO Knowledge-Research-Innovation – FROM local TO Glocal Current challenge… INNOVATION & MULTI-LOCALIZATION TO DEFEND LOCAL COMMUNITY STABILITY & ENABLE SOCIAL TRANSFORMATION “GLOCALLY”!!! Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • 5-level model – MONDRAGON 2007 scenario? Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • Backcasting & ABCD – MONDRAGON 2020 1. Begin with the end in mind – MONDRAGON 2020 Year 2020 ?? Awareness Creative Solutions Future Decide on Present Priorities Baseline Does it move us in the right direction? Is it a flexible platform? 3. Move step by step towards the vision Is it a good return on investment? Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • Understanding Social Entrepreneurs Who is a SE? Characteristics? Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • 3. “THE POWER OF UNREASONABLE PEOPLE How Social Entrepreneurs Create Markets that Change the World” (Harvard Business Press 2008) - Understanding what is a Social Entrepreneur - Classifying types of Social Enterprises - Identifying SE market opportunities - Tapping SE financial resources Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • Our goals for today Based on the book “The power of unreasonable people” (J Elkington & P. Hartigan – Harvard Business Press 2008) Our objectives are: To introduce a new generation of social & environmental entrepreneurs To understand their Business Models & leadership styles To identify their market opportunities To find out their financial resources Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • Understanding what is a Social Entrepreneur “The reasonable man adapts himself t the world The unreasonable man persist in trying to adapt the world to himself. Therefore, all progress depends on the unreasonable man” (George Bernard Swaw, 1903) Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • Social entrepreneurs are… Innovative, Resourceful, Practical and Opportunistic,… as any other entrepreneurs But… What motivates social entrepreneurs is not doing the “DEAL” but achieving the “IDEAL” So they have a long term commitment with their projects Most Social entrepreneurs stumble across the opportunity to SERVE OTHERS Common inspiration is: “You have to be the change you want to see in the world” (Gandhi) Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • Why are they unreasonable? Because… They Want to Change the World They are insanely ambitious They are propelled by emotions They think they know the future They seek profit in unprofitable pursuits They ignore the evidence They try to Measure the Unmeasurable They refuse to be made into Superheroes They are, well, unreasonable Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • Characteristics of Successful Social entrepreneurs Try to shrug off the constraints of ideology or discipline Identify & apply practical solutions to social problems, combining innovation, resourcefulness, and opportunity Innovate by finding a new product, a new service, or a new approach to a social problem Focus-first & foremost-on social value creation and, in that spirit, are willing to share their innovations & insights for other to replicate Jump in before ensuring they are fully resourced Have an unwavering belief in everyone’s innate capacity, often regardless of education, to contribute meaningfully to economic & social development Show a dogged determination that pushes them to take risks that others wouldn’t dare Balance their passion for change with a zeal to measure and monitor their impact Have a great deal to teach change makers in other sectors Display a healthy impatience Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • How they look like… Nicholas Negroponte (MIT-medialab) “Entrepreneur behind the One laptop per child project” VIDEO: http://tinyurl.com/qkavho Dr. Govindappa “Aravind Eye Hospital” “The largest Eye care medical Dr. Mohammed Yumus centre in the world” “Grameen Bank – Nobel Price 2006” VIDEO: http://tinyurl.com/qb37rm VIDEO: http://tinyurl.com/dmbz9f Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • Classifying types of Social Enterprises Traditional classification: Model 1: Leveraged Nonprofit ventures Model 2: Hybrid Nonprofit ventures Model 3: Social Business Ventures Social Enterprise from a wider perspective Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • Traditional classification Model 1: Leveraged Nonprofit ventures A public good is being delivered to the most economically vulnerable, who do not have access to, or are unable to afford, the service rendered Both the entrepreneur and the organization are change catalysts, with a central goal of enabling direct beneficiaries to assume ownership of the initiative Multiple external partners are actively involved in supporting the venture financially, politically, and in kind The founding entrepreneur morphs into a figurehead, in some cases for the wider movement, as others assume responsibilities and leadership Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • Traditional classification Model 1: Leveraged Nonprofit ventures Bunker Roy “Barefoot College” http://tinyurl.com/ottmg8 N. Negroponte OLPC www.laptop.org http://tinyurl.com/5tfazu Mother Teresa “Missionaries of Charity” VIDEO: http://tinyurl.com/d25chs Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • Traditional classification Model 2: Hybrid Nonprofit ventures Goods or services are delivered to populations that have been excluded or underserved by mainstream markets, but the notion of making a profit is not totally out of the question Sooner or later the founding entrepreneur or his/her team, typically develops a marketing plan to ensure that the poor or otherwise disadvantaged can access the product or service being provided The enterprise is able to recover a portion of its costs through the sale of goods & services, in the process often identifying new markets To sustain activities & address the unmet needs of poor or otherwise marginalized clients, the entrepreneur mobilizes funds from public, private, and/or philanthropic organizations in the form of grants, loans As mainstream investors & business enter the picture, even when they are not seeking mainstream financial returns, they push to become model 3 Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • Traditional classification Model 2: Hybrid Nonprofit ventures Rick Aubry “Rubicon Programs” VIDEO: http://tinyurl.com/o4dd82 Dr. Govindappa Martin Fisher “Aravind Eye Hospital” KickStart: www.kickstart.org http://tinyurl.com/qb37rm VIDEO: http://tinyurl.com/p7mep3 Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • Traditional classification Model 3: Social Business ventures The entrepreneur sets up the venture as a business with the specific mission to drive transformational social and/or environmental change Profits are generated, but the aim is not maximize financial returns for shareholders but instead to financially benefit low-income groups and to grow the social venture by reinvestment, enabling it to reach and serve more people The entrepreneur seeks out investors interested in combining financial and social returns The enterprise’s financing-and scaling- opportunities can be significantly greater because social business can more easily take on debt and equity Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • Traditional classification Model 3: Social Business ventures Dr. Mohammed Yumus F. Arizmendiarrieta “Grameen Bank – Nobel Price 2006” MONDRAGON Cooperatives VIDEO: http://tinyurl.com/qt65ux http://tinyurl.com/p75akt http://tinyurl.com/otm9ft Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • Team activity Select one social entrepreneur you might know? Identify which characteristics does he/she have? Identify which type of social enterprise is in used? Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • Classifying Social enterprise from a wider perspective Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • 10 market opportunities for social entrepreneurs 1. Demographic opportunities Facts: - Human population toward 9 billion to10 billion people - Age distribution skewing: old vs. young boom nations - Worldwide migration: from rural to cities - One of the best ways of reining population growth is encouraging economic development Examples of successful Social Entrepreneurs - Jeroo Billimoria – Child Helpline International - http://www.childhelplineinternational.org/ - Martin Fisher – Cooperative Home Care Associates (CHCA), the Paraprofessional Healtcare Institute (PHI) & Independence Care System (ICS) http://www.chcany.org/ Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • 10 market opportunities for social entrepreneurs 2. Financial opportunities Facts: - The notion that the haves will find ways to gain more and that the have-nots will lose more has been acknowledged since biblical times - Extreme financial inequality can sow the seeds of insurrections and social cataclysm - Tools & frameworks for economic justice are weak or nonexistent Examples of successful Social Entrepreneurs - Jeroo Billimoria – Aflatoun - http://www.aflatoun.org/ - Martin Fisher – Kickstart - http://www.kickstart.org/ (0.6% GDP of Kenya GDP & 0.25% of Tanzania GDP) - Fazle Abed – Bangladesh Rural Advancement Committee- http://www.brac.net/ Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • 10 market opportunities for social entrepreneurs 3. Nutritional opportunities Facts: - True famine, hunger, and poor nutrition have been constants through-out human history - 862 million people across the world are hungry, up from 852 million a year ago - Every day, almost 16,000 children die from hunger-related causes-- ONE CHILD EVERY FIVE SECONDS. Examples of successful Social Entrepreneurs - Takao Furuno – The power of Duck - http://tinyurl.com/ojdwy7 - Hector Gonzalez – Cuadritos - http://www.cuadritos.com.mx/ (the largest self-sustaining food bank in Mexico, feeding 100.000 people a day) Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • 10 market opportunities for social entrepreneurs 4. Resource opportunities Facts: - A growing world population will not be a problem if the planet’s resources were limitless, but they are not - Demographic pressures are fistering awareness of the natural resource limits to economic growth - Example: the UN argues that the conflict in Darfur has been driven by competition for water as climate change bites Examples of successful Social Entrepreneurs - Phil LaRocco – E+Co - http://www.eandco.net/ - Fabio Rosa – Ideaas - http://www.ideaas.org.br/ & the widely replicated Palmares project http://www.ashoka.org/node/3291 Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • 10 market opportunities for social entrepreneurs 5. Environmental opportunities Facts: - Environmental issues are universal: there is not South-North differences - Nevertheless, poor populations everywhere in the world re forced to live in the worst circumstances - The dominant environmental concerns include the immediate of clean water & sanitation, the risks of local & indoor pollution , & vulnerability to natural hazards. - Other parts of the world: noise, traffic congestion, air & water pollution, long- term climate change,… Examples of successful Social Entrepreneurs - Yan Arthus-Bertrand – The Earth from the Air - http://www.wecommunic8.com/earthfromtheair/ - Wangari Maathi – Green Belt Movement - http://www.greenbeltmovement.org/ Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • 10 market opportunities for social entrepreneurs 6. Health opportunities Facts: - From HIV/AIDS, to malaria, to potential pandemics like SARS or Flu- A, the world problems can seen overwhelming - In 2006,11 million children <5 years died from preventable causes - 4 million babies will not survive their first month of life - > 1/2 million women died in pregnancy, during labor, or after birth Examples of successful Social Entrepreneurs - Dr. Paul Farmer – “The Man who will cure the world” - http://tinyurl.com/aovmpq - Dr. Devi Shetty – Narayana Hrudayalaya - http://www.narayanahospitals.com/ - Vera Cordeiro – Resnacer - http://www.ashoka.org/node/3420 Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • 10 market opportunities for social entrepreneurs 7. Gender opportunities Facts: - There is always an inescapable gender component - In the 1995 Kobe earthquake, 1,5 times more women than men died - In the Asian tsunami, death rates for women were 3-4 times those for men - There are several factors: biological, cultural, economic, or access to health care, education & information technology. Examples of successful Social Entrepreneurs - Wu Qing – Beijing Cultural Development Center for Rural Women - http://www.nongjianv.org/english/index.html Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • 10 market opportunities for social entrepreneurs 8. Educational opportunities Facts: - Few factors are as powerful as education in empowering humans - In a knowledge society access to educations becomes eevn more important Examples of successful Social Entrepreneurs - Bunker Roy – Barefoot College - http://www.barefootcollege.org/ - Kyle Zimmer - Fist book - http://www.firstbook.org - Wendy Kopp – Teach For America - http://www.teachforamerica.org/ - Michael Brown & Alan Khazei –City Year - http://www.cityyear.org - Javier Gonzalez – abcdespanol - http://www.abcdespanol.com/es/ - Liz Maw – Netimpact - http://www.netimpact.org/ Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • 10 market opportunities for social entrepreneurs 9. Digital opportunities Facts: - Enthusiasts may talk of “growing up digital”, but the IT revolution has created its own divides - 80% of people in the world have never heard a dial tone, let alone surfed the Web - Kofi Annan: “People lack many things: jobs, shelter, food, health care & drinkable water. Today, being cut off from basic telecommunications services is hardship almost as acute as these other deprivations, & may indeed reduce the chances of finding remedies to them” Examples of successful Social Entrepreneurs - Rodrigo Baggio – Committee for Democracy in IT - http://www.cdi.org.br/ Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • 10 market opportunities for social entrepreneurs 10. Security opportunities Facts: - September 11th terrorism attack changed world security, however this might be an effect of deeper & previous security causes. - Instead of turning to companies like General Dynamics or Halliburton for security measures, governments should look to social entrepreneurs who recognize address the physical, psychological, social, economic, energy-related, water-related, or environmental security. - Rich western countries spend up of 25 times as much on defense as they do on overseas aid. Examples of successful Social Entrepreneurs - Pioneer Human Service - http://www.pioneerhumanservices.org/ Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • “YOU HAVE TO BE THE CHANGE YOU WANT TO SEE IN THE WORLD” GANDHI Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • CHECKOUT: What might be our next step to our shared dream… “Creating a Sustainable Cooperative Social Business Model” Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • Our shared dream: MSLS-MONDRAGON Potential MSLS thesis to start working – What MSLS can teach Building FSSD approach into – How to integrate the social MONDRAGON & What MONDRAGON University? entrepreneurship potential to MONDRAGON can teach MSLS strategies? MSLS? Start a new Team-cooperative to facilitate – How Social Entrepreneurship FSSD sustainability implementation? – Building FSSD approach theory understands the into MONDRAGON importance of ecological value university education as opposed to just social value? system? – How does MONDRAGON Developing MONDRAGON sustainability through: eco-clusters in Euskadi?, take “sustainability” into cluster in China? account? How can we leverage its commitment? Start collaboration & exchanges – How to design a SUSTAINABLE between BTH and MU: ecodesign, COOPERATIVE SOCIAL BUSINESS master, erasmus,… MODEL? Implementing FSSD into a MONDRAGON cooperative Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009
    • ‫ﺷﻜﺮا‬ Eskerrik asko Muchas gracias Thank you 谢谢你 “Our strength does not lead to struggle but co-operation” P. JM Arizmendiarrieta - 1956 Dr. JM Luzarraga - Mondragon University – Kalskrona - Sweden - November 2009