Finance II: Raj Melville

1,533
-1

Published on

Social Entrepreneurship TYE Presentation

Published in: Business, Economy & Finance
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
1,533
On Slideshare
0
From Embeds
0
Number of Embeds
5
Actions
Shares
0
Downloads
48
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Finance II: Raj Melville

  1. 1. Social Entrepreneurship TiE Young Entrepreneurs Raj Melville January 10, 2009
  2. 2. Agenda <ul><li>What is Social Entrepreneurship? </li></ul><ul><li>Social Challenges and Solutions </li></ul><ul><li>Examples of Social Entrepreneurs </li></ul><ul><ul><li>Grameen </li></ul></ul><ul><ul><li>Aravind Eye Clinics </li></ul></ul><ul><ul><li>Agastya </li></ul></ul><ul><li>Getting Started </li></ul><ul><li>Resources </li></ul>
  3. 3. Key Ingredients of a Social Entrepreneur = + Social Activist Business pioneer Social Entrepreneur
  4. 4. What Is Social Entrepreneurship ? <ul><li>Business entrepreneurs change the face of business </li></ul><ul><li>Social entrepreneurs play the role of change agents in the social sector </li></ul><ul><li>Social entrepreneurs create sustainable solutions that change society for the better </li></ul>
  5. 5. Business and Social Entrepreneurs Share Common Traits <ul><li>Strategic thinkers: Like business entrepreneurs, social entrepreneurs act upon what others miss </li></ul><ul><li>Mission driven: Work hard to generate value </li></ul><ul><li>Focused: Both entrepreneurs are intensely focused and hard-driving in their pursuit of a social vision </li></ul><ul><li>Resourceful: They are skilled at mobilizing and motivating resources </li></ul><ul><li>Results oriented: Driven to produce tangible results </li></ul><ul><li>Challenge Seekers: Tackle major issues, opportunities or challenges </li></ul><ul><li>Perseverance: Continue efforts despite obstacles </li></ul>
  6. 6. What sets Social Entrepreneurs Apart? <ul><li>Social Entrepreneurs are innovative, resourceful, and results oriented addressing the root cause of a social issue </li></ul><ul><li>As leaders, social entrepreneurs draw upon the best thinking in the business, nonprofit, and public policy worlds to develop strategies that maximize their social and economic impact </li></ul><ul><li>&quot;Social entrepreneurs are not content just to give a fish or teach how to fish. They will not rest until they have revolutionized the fishing industry.&quot; Bill Drayton, CEO, chair and founder of Ashoka Foundation </li></ul>
  7. 7. Social Entrepreneurship Governmental Organizations For Profit Businesses Non-Profits Social Entrepreneurs
  8. 8. The Non-profit Sector <ul><li>Total US Non Profit Organizations (2006): 1,478,194 </li></ul><ul><ul><li>904,313 Public Charities </li></ul></ul><ul><ul><ul><li>Organizations do not pay federal tax </li></ul></ul></ul><ul><ul><ul><li>Donations are tax deductible </li></ul></ul></ul><ul><ul><li>109,852 Private Foundations </li></ul></ul><ul><ul><ul><li>Created to distribute money to charities or individuals </li></ul></ul></ul><ul><ul><li>About 29 % of Americans over the age of 16 volunteered in 2005 </li></ul></ul><ul><ul><li>In 2004, public charities reported nearly $1.1 trillion in total revenues </li></ul></ul><ul><ul><li>(Source: National Center for Charitable Statistics) </li></ul></ul><ul><li>Total charitable giving in the U.S (2007): $306.39 billion, consists of 2.2 % of GDP </li></ul><ul><ul><li>(Source: Giving USA Foundation) </li></ul></ul>
  9. 9. What Challenges do Social Entrepreneurs tackle? <ul><li>Social entrepreneurs typically address areas of unmet social need or social opportunity creation that the public or private sectors have failed to address </li></ul><ul><ul><li>Health </li></ul></ul><ul><ul><li>Water/Sanitation </li></ul></ul><ul><ul><li>Education </li></ul></ul><ul><ul><li>Sustainable Infrastructure: Housing, Communications </li></ul></ul><ul><ul><li>Renewable Energy </li></ul></ul><ul><ul><li>Environmental Sustainability </li></ul></ul><ul><ul><li>Food and Nutrition </li></ul></ul><ul><ul><li>Women’s Issues </li></ul></ul><ul><ul><li>Sustainable Agriculture & Technology </li></ul></ul><ul><ul><li>Also see the UN Millennium Development Goals http:// www.un.org/millenniumgoals / </li></ul></ul>
  10. 10. SEs Bring New Approaches to Social Issues <ul><li>New Design Solutions </li></ul><ul><ul><li>Process Redesign – Aravind Eye Care ( www.aravind.org ) </li></ul></ul><ul><ul><li>Product Redesign – Jaipur Foot </li></ul></ul><ul><ul><li>Distribution/Logistics – Saafwater www.saafwater.com </li></ul></ul><ul><ul><li>Infrastructure/Technology – Grameen Phone </li></ul></ul><ul><li>New Business Models </li></ul><ul><ul><li>Micro-Finance </li></ul></ul><ul><ul><ul><li>Grameen </li></ul></ul></ul><ul><ul><li>Cooperatives </li></ul></ul><ul><ul><ul><li>SEWA http://www.sewa.org </li></ul></ul></ul><ul><ul><ul><li>Muthu Velayutham, Gram Mooligai Co Ltd http://www.new-ventures.org/arquivos/GramMooligai.pdf </li></ul></ul></ul><ul><ul><li>Triple Bottom Line </li></ul></ul><ul><li>New Funding Models </li></ul><ul><ul><li>Venture Philanthropy </li></ul></ul><ul><ul><li>Socially responsible funds. </li></ul></ul><ul><ul><ul><li>Calvert Funds </li></ul></ul></ul><ul><ul><ul><li>Acumen Fund </li></ul></ul></ul><ul><ul><li>Creative Leverage models </li></ul></ul>
  11. 11. Examples of Social Entrepreneurs <ul><li>Grameen </li></ul><ul><li>Aravind and Aurolab </li></ul><ul><li>Agastya </li></ul><ul><li>Water Centric (presenting today) </li></ul><ul><li>Additional examples: </li></ul><ul><li>“ How to Change the World” by D. Bornstein </li></ul><ul><li>“ The Fortune at the Bottom of the Pyramid” by C. K. Prahalad </li></ul><ul><li>www.Ashoka.org </li></ul>
  12. 12. Grameen <ul><li>Grameen Bank was started by Prof. Muhammad Yunus in Bangladesh in 1976 ( http://www.grameen-info.org/ ) </li></ul><ul><li>Social goal was to </li></ul><ul><ul><li>Extend banking facilities to poor men and women who otherwise would not get bank loans </li></ul></ul><ul><ul><li>Eliminate the exploitation of the poor by money lenders </li></ul></ul><ul><ul><li>Create opportunities for self-employment for the large number of unemployed people in rural Bangladesh </li></ul></ul><ul><li>Currently Grameen has </li></ul><ul><ul><li>7.61 million borrowers, 97 per cent of whom are women </li></ul></ul><ul><ul><li>2,535 branches in 83,343 villages </li></ul></ul><ul><ul><li>Loan recovery rate is 98.24 per cent. </li></ul></ul><ul><ul><li>2008 Projected loan disbursement of US $ 874 million </li></ul></ul><ul><ul><li>For profit concern generating dividends to borrowers who are shareholders </li></ul></ul>
  13. 13. Grameen
  14. 14. Grameen <ul><li>What did they do differently? </li></ul><ul><ul><li>Went after untapped sector </li></ul></ul><ul><ul><ul><li>Were willing to take a risk with uncollateralized loans to poor </li></ul></ul></ul><ul><ul><ul><li>Focused on women entrepreneurs </li></ul></ul></ul><ul><ul><li>Introduced new business processes </li></ul></ul><ul><ul><ul><li>No legal paperwork for loans </li></ul></ul></ul><ul><ul><ul><li>Created self help groups to ensure repayment thru social pressure </li></ul></ul></ul><ul><ul><ul><li>Simplified loan repayments with weekly meetings for incremental loan payments </li></ul></ul></ul><ul><ul><li>Created competitive product </li></ul></ul><ul><ul><ul><li>Set market rates of interest versus usurious money lender rates </li></ul></ul></ul><ul><li>Websites like www.kiva.org and www.microplace.org now allow individuals to help entrepreneurs in developing countries </li></ul>
  15. 15. Aravind Eye Hospital <ul><li>Founded in 1976 by Dr. G. Venkataswamy, in Madurai, India ( http://www.aravind.org/ ) </li></ul><ul><li>A social organization committed to the goal of elimination of needless blindness through comprehensive eye care services. </li></ul><ul><li>Every year the Aravind Eye Care System </li></ul><ul><ul><li>Sees over 2.4 million patients </li></ul></ul><ul><ul><li>Does over 200,000 cataract operations, nearly half of them free </li></ul></ul><ul><ul><li>Average cost at one hundredth of that in the US. </li></ul></ul><ul><ul><li>Doctors conduct over 2000 operations a year, over 6 times the national average </li></ul></ul><ul><li>Aurolab, a manufacturing spinoff, makes interocular lenses to world class standards at tenth of international cost ($4-5 versus $100 -$150) </li></ul>
  16. 16. Aravind Eye Hospital <ul><li>What did they do differently? </li></ul><ul><ul><li>Focused on the social objective </li></ul></ul><ul><ul><li>&quot;But Aurolab sells the lenses for less, not only because their costs are lower but because they chose to price them lower – because our goal is maximizing service rather than maximizing profit.&quot; </li></ul></ul><ul><ul><li>Streamlined the entire operation process </li></ul></ul><ul><ul><ul><li>Setup as a production line </li></ul></ul></ul><ul><ul><ul><li>Increased the utilization of doctors and equipment </li></ul></ul></ul><ul><ul><li>Built new multi-tiered pricing models </li></ul></ul><ul><ul><ul><li>Cross subsidized free patients with higher charges for those who could pay </li></ul></ul></ul>
  17. 17. Agastya <ul><li>Founded in 1999 by Ramji Raghavan in Bangalore, India ( http://www.agastya.org/ ) </li></ul><ul><li>Non-profit focused on transforming education in India through a scalable and interactive education model </li></ul><ul><ul><li>India, one of the most populous countries, has over 35% illiteracy rate </li></ul></ul><ul><ul><li>Rural schools are poorly staffed with teachers with inadequate training </li></ul></ul><ul><li>Created a science training center with distributed centers in each rural district </li></ul><ul><ul><li>Developed a new style of interactive teaching </li></ul></ul><ul><ul><li>Agastya Mobile Labs take science education out remote schools </li></ul></ul><ul><ul><li>Mobile Labs reach over 800 rural teachers and 40,000 students a year </li></ul></ul><ul><ul><li>Over 30 Agastya Mobile Labs make it largest science outreach program in the world </li></ul></ul><ul><li>Results show passing rates at Agastya schools up from 40% to 96%. </li></ul><ul><li>Having touched over 80,000 teachers and 2.5 million children, </li></ul><ul><li>Prime Minister’s National Knowledge Commission has recommended the ‘Agastya model’ for nationwide dissemination </li></ul>
  18. 18. Agastya
  19. 19. Agastya <ul><li>What did they do differently? </li></ul><ul><ul><li>Disruptive business model </li></ul></ul><ul><ul><ul><li>Developed a unique teaching model </li></ul></ul></ul><ul><ul><ul><li>Break the typical mold of teacher/student interaction </li></ul></ul></ul><ul><ul><li>Redesigned the supply chain </li></ul></ul><ul><ul><ul><li>Took classes out to the student </li></ul></ul></ul><ul><ul><li>Matched resources to talent available </li></ul></ul><ul><ul><ul><li>High school students as capable instructors </li></ul></ul></ul><ul><ul><ul><li>Scales reasonably well </li></ul></ul></ul><ul><ul><li>Engage the ‘customer’ i.e. student </li></ul></ul><ul><ul><ul><li>Created a product that satisfied both student and teacher’s needs </li></ul></ul></ul>
  20. 20. Getting Started <ul><li>Social entrepreneurs play the role of change agents in the social sector, by: </li></ul><ul><ul><li>Adopting a mission to create and sustain social value (not just private value) </li></ul></ul><ul><ul><li>Recognizing and relentlessly pursuing new opportunities to serve that mission </li></ul></ul><ul><ul><li>Engaging in a process of continuous innovation, adaptation, and learning </li></ul></ul><ul><ul><li>Acting boldly without being limited by resources currently in hand </li></ul></ul><ul><ul><li>Exhibiting heightened accountability to the constituencies served and for the outcomes created </li></ul></ul><ul><ul><ul><li>(Source: The Meaning of Social Entrepreneurship, J. Gregory Dees) </li></ul></ul></ul><ul><li>Define a clear vision around a social issue or challenge </li></ul><ul><li>Identify market opportunity and define innovative or disruptive solutions </li></ul><ul><li>Build a sustainable business model </li></ul><ul><li>Clearly define social impact metrics </li></ul><ul><li>Recruit and attract resources and volunteers </li></ul>
  21. 21. Funding <ul><li>Sources of funds </li></ul><ul><ul><li>Family and Friends </li></ul></ul><ul><ul><li>Competitions </li></ul></ul><ul><ul><li>Fundraising events </li></ul></ul><ul><ul><li>Foundations and Grants </li></ul></ul><ul><ul><li>Social Investors </li></ul></ul>
  22. 22. Resources <ul><li>Funding Sources </li></ul><ul><li>Saffron Circle: http:// www.saffroncircle.org / </li></ul><ul><li>Echoing Green: http:// www.echoinggreen.org / </li></ul><ul><li>Ashoka: http://www.ashoka.org/ </li></ul><ul><li>Acumen Fund: http:// www.acumenfund.org / </li></ul><ul><li>Agora Partnerships: http:// www.agorapartnerships.org / </li></ul><ul><li>New Profit: http:// www.newprofit.org / </li></ul><ul><li>Draper Richards Foundation: http:// www.draperrichards.org / </li></ul><ul><li>Social Innovation Forum: http:// socialinnovationforum.org / </li></ul><ul><li>MIT IDEAS Competition: http://web.mit.edu/ideas </li></ul><ul><li>Changemakers: http://www.changemakers.net/ </li></ul><ul><li>Ashoka’s Youth Venture: http://www.genv.net/ </li></ul><ul><li>University Network: http:// www.universitynetwork.org </li></ul>
  23. 23. Resources <ul><li>Sites about Social Entrepreneurship and Social Innovation </li></ul><ul><li>Ashoka’s Website for Social Innovation: http:// www.changemakers.net / </li></ul><ul><li>PBS Series on Social Entrepreneurs: http:// www.pbs.org/opb/thenewheroes / </li></ul><ul><li>The Skoll Foundation: http:// www.skollfoundation.org / </li></ul><ul><li>The Schwab Foundation: http:// www.schwabfound.org/sf/index.htm </li></ul><ul><li>Draper Richards Foundation: http:// www.draperrichards.org / </li></ul><ul><li>Duke University: http:// www.caseatduke.org / </li></ul><ul><li>Columbia University: http://www4.gsb.columbia.edu/socialenterprise/ </li></ul><ul><li>Harvard University: http:// www.hbs.edu/socialenterprise / </li></ul><ul><li>Stanford University: http:// www.gsb.stanford.edu/csi / </li></ul><ul><li>Bill & Melinda Gates Foundation: http:// www.gatesfoundation.org/default.htm </li></ul><ul><li>Clinton Foundation: http:// www.clintonfoundation.org/index.htm </li></ul><ul><li>Google.org: http:// www.google.org / </li></ul>
  24. 24. Resources <ul><li>Search for Volunteer opportunities or post openings </li></ul><ul><li>Volunteer Match: http:// www.volunteermatch.org ./ </li></ul><ul><li>Network for Good: http:// www.networkforgood.org / </li></ul><ul><li>Idealist.org: http:// www.idealist.org / </li></ul><ul><li>Charity and Foundation Evaluation/Search sites </li></ul><ul><li>Guidestar: www.Guidestar.org </li></ul><ul><li>Charity Navigator: http:// www.charitynavigator.org / </li></ul><ul><li>Global Giving: http:// www.globalgiving.com / </li></ul>
  25. 25. Further Reading <ul><li>How to Change the World: Social Entrepreneurs and the Power of New Ideas, Updated Edition by David Bornstein </li></ul><ul><li>The Fortune at the Bottom of the Pyramid by C. K. Prahalad </li></ul><ul><li>Creating a World Without Poverty: Social Business and the Future of Capitalism by Muhammad Yunus </li></ul><ul><li>Business Planning for Enduring Social Impact: A Social-Entrepreneurial Approach to Solving Social Problems , Andrew Wolk & Kelley Kreitz </li></ul><ul><li>Capitalism at the Crossroads: Aligning Business, Earth, and Humanity by Stuart L. Hart </li></ul><ul><li>The End of Poverty: Economic Possibilities for Our Time by Jeffrey D. Sachs </li></ul><ul><li>Banker To The Poor: Micro-Lending and the Battle Against World Poverty by Muhammad Yunus </li></ul><ul><li>Leaving Microsoft to Change the World: An Entrepreneur’s Odyssey to Educate the World’s Children by John Wood </li></ul><ul><li>Three Cups of Tea: One Man’s Mission to Promote Peace . . . One School at a Time by Greg Mortenson & David Oliver Relin </li></ul>
  26. 26. Questions? <ul><li>Contact me </li></ul><ul><ul><li>Raj Melville </li></ul></ul><ul><ul><ul><li>Email: [email_address] </li></ul></ul></ul><ul><ul><ul><li>Blog: http://socialecosystem.wordpress.com/ </li></ul></ul></ul>
  27. 27. Social Entrepreneurs <ul><li>Unlike traditional business entrepreneurs, social entrepreneurs primarily seek to generate &quot;social value&quot; rather than profits. And unlike the majority of non-profit organizations, their work is targeted not only towards immediate, small-scale effects, but sweeping, long-term change. </li></ul><ul><li>http://www.pbs.org/opb/thenewheroes/whatis/index.html </li></ul>
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×