Local Entrepreneurship And Innovation

454 views
382 views

Published on

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

  • Be the first to like this

No Downloads
Views
Total views
454
On SlideShare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
7
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Local Entrepreneurship And Innovation

  1. 1. Ontario Council of Organizations Serving Immigrants – ED Forum<br />Social Entrepreneurship and Innovation –<br />November 2nd, 2009 – 4:00pm to 6:00pm<br />
  2. 2. Social Entrepreneurship and Innovation<br />We are a world of wall builders, partitioners, and dividers of space. We long for the security of safe places. We construct these barriers in a vain attempt to control the elements, to keep the rain from dampening the fire, the wind from covering ours lives with the inevitable dust. Many of the walls we build are essential to our survival. Many, however, are not. By fortifying the unnecessary walls, we in business (for profit and not-for-profit)..huddle in the systems we have closed. The consequences: thinking decays and novelty vanishes.<br />Open Boundaries- Howard Sherman and Ron Schultz1998<br />
  3. 3. Test <br />1. Are You a Self-Starter?<br />If someone gets me started, I keep going all right. <br />I do things my own way. Nobody needs to tell me to get going. <br />Easy does it. I don&apos;t put myself out until I have to. <br />2. How Do You Feel About Other People? <br />Most people bug me. <br />I like people. I can get along with just about anybody. <br />I have enough friends and I don&apos;t need anybody else. <br />3. Can You Lead Others? <br />I can get people to do things if I drive them.<br />I can get most people to go along with me without much difficulty. <br />I usually let someone else get things moving.<br />
  4. 4. Test<br />4. Can You Take Responsibility?<br />I&apos;ll take over if I have to, but I&apos;d rather let someone else be responsible. <br />There&apos;s always some eager beaver around waiting to show off. I say, let him. <br />I like to take charge of and see things through. <br />5. How Good An Organiser Are You?<br />a. I like to have a plan before I start. I&apos;m usually the one who lines things up. <br />b. I do all right unless things get too complicated. Then I may cop out. <br />c. I just take things as they come. <br />6. How Good a Worker Are You? <br />a. I can&apos;t see that hard work gets you anywhere. <br />b. I&apos;ll work hard for a time, but when I&apos;ve had enough, that&apos;s it. <br />c. I can keep going as long as necessary. I don&apos;t mind working hard.<br />
  5. 5. Test<br />7. Can You Make Decisions? <br />I can if I have plenty of time. If I have to make up my mind fast, I usually regret it. <br />I can make up my mind in a hurry if necessary, and my decision is usually O.K. <br />I don&apos;t like to be the one who decides things. I&apos;d probably blow it.<br />8. Can People Trust What You Say? <br />I try to be on the level, but sometimes I just say what&apos;s easiest. <br />They sure can. I don&apos;t say things I don&apos;t mean. <br />What&apos;s the sweat if the other fellow doesn&apos;t know the difference?<br />9. Can You Stick With It? <br />If I make up my mind to do something, I don&apos;t let anything stop me. <br />If a job doesn&apos;t go right, I turn off. Why beat your brains out? <br />I usually finish what I start. <br />10. Can You Keep Records?<br />Records are not important. I know what&apos;s need to be known without keeping records. <br />I can, but it&apos;s more important to get the work out than to shuffle numbers. <br />Since they are needed I&apos;ll keep records even though I don&apos;t want to. <br />
  6. 6. Test <br />1. Are You a Self-Starter?<br />If someone gets me started, I keep going all right. <br />I do things my own way. Nobody needs to tell me to get going. <br />Easy does it. I don&apos;t put myself out until I have to. <br />2. How Do You Feel About Other People? <br />Most people bug me. <br />I like people. I can get along with just about anybody. <br />I have enough friends and I don&apos;t need anybody else. <br />3. Can You Lead Others? <br />I can get people to do things if I drive them.<br />I can get most people to go along with me without much difficulty. <br />I usually let someone else get things moving. <br />
  7. 7. Test<br />4. Can You Take Responsibility?<br />I&apos;ll take over if I have to, but I&apos;d rather let someone else be responsible. <br />There&apos;s always some eager beaver around waiting to show off. I say, let him. <br />I like to take charge of and see things through. <br />5. How Good An Organiser Are You?<br />a. I like to have a plan before I start. I&apos;m usually the one who lines things up.<br />b. I do all right unless things get too complicated. Then I may cop out. <br />c. I just take things as they come. <br />6. How Good a Worker Are You? <br />a. I can&apos;t see that hard work gets you anywhere. <br />b. I&apos;ll work hard for a time, but when I&apos;ve had enough, that&apos;s it. <br />c. I can keep going as long as necessary. I don&apos;t mind working hard.<br />
  8. 8. Test<br />7. Can You Make Decisions? <br />I can if I have plenty of time. If I have to make up my mind fast, I usually regret it. <br />I can make up my mind in a hurry if necessary, and my decision is usually O.K. <br />I don&apos;t like to be the one who decides things. I&apos;d probably blow it.<br />8. Can People Trust What You Say? <br />I try to be on the level, but sometimes I just say what&apos;s easiest. <br />They sure can. I don&apos;t say things I don&apos;t mean. <br />What&apos;s the sweat if the other fellow doesn&apos;t know the difference?<br />9. Can You Stick With It? <br />If I make up my mind to do something, I don&apos;t let anything stop me. <br />If a job doesn&apos;t go right, I turn off. Why beat your brains out? <br />I usually finish what I start. <br />10. Can You Keep Records?<br />Records are not important. I know what&apos;s need to be known without keeping records. <br />I can, but it&apos;s more important to get the work out than to shuffle numbers. <br />Since they are needed I&apos;ll keep records even though I don&apos;t want to. <br />
  9. 9. Social Entrepreneurship<br />Application of entrepreneurial attitudes to social sector:<br />Change is the norm<br />Embrace change<br />Seek change<br />Client focused<br />Shift resources from low to high productivity<br />Calculated risks<br />Create something new<br />Strive for Transparency<br />
  10. 10. Social Innovation<br />Application ofprinciples of innovationto social sector:<br />” …..broadly classified in two categories: <br />those that see innovation as the final event - &apos;The idea, practice, or material artifact that has been invented or that is regarded as novel independent of its adoption or non adoption&apos; (G. Zaltman, R. Duncan and J. Holbeck, Innovations and Organizations, Wiley, 1973) and <br />those who see it as a process &apos;which proceeds from the conceptualization of a new idea to a solution of the problem and then to the actual utilization of a new item of economic or social value.&apos; (S. Meyers and D.G. Marquis, Successful Industrial Innovations. National Science Foundation,1968). We adopt that latter definition...use the terms innovation and innovation process interchangeably.”<br />Innovation = execution<br />
  11. 11. Social Enterprise<br /><ul><li>Traditionally, businesses (especially corporations) have focused primarily on their own financial bottom lines, while…
  12. 12. Non-profits have focused primarily on addressing their communities’ social and/or environmental issues
  13. 13. Productive enterprises cross boundaries, by using a business model to address social and/or environmental issues</li></ul>continued…<br />
  14. 14. Social Enterprise<br /><ul><li>Any business venture whose primary purpose is to address social and/or environmental issues.
  15. 15. Like any business, a social enterprise needs to sell products or services to paying customers, in a financially-sustainable manner.
  16. 16. Any legal form of organization can be or operate a social enterprise.
  17. 17. A social enterprise can be an initiative within a larger organization or be a free-standing business</li></li></ul><li>Social Enterprise:Various Definitions<br /><ul><li>An organization or venture that advances its social mission through entrepreneurial, earned income strategies
  18. 18. Social enterprises apply entrepreneurial approaches to address social and/or environmental issues and create positive community change.
  19. 19. An enterprise, owned at least in part by a non-profit organization, that uses entrepreneurial methods to accomplish social and/or environmental goals and providing its profits to its owner(s) for use in continuing their core missions.
  20. 20. A social enterprise is a revenue-generating business with primarily social and/or environmental objectives whose surpluses are reinvested for that purpose in the business or in the community, rather than being driven by the need to deliver profit to shareholders and owners. </li></li></ul><li>Nonprofits &SocialEnterprise<br /><ul><li>Charging their clients & other beneficiaries appropriate fees
  21. 21. Contracting with third parties to provide products & services to others who need them, but who are unable to pay
  22. 22. Marketing their products & services to new customers
  23. 23. Social purpose businesses – employing their clients in businesses, providing meaningful training, work experience & wages</li></li></ul><li>Businesses & Social Enterprise<br /><ul><li>Sustainable Business
  24. 24. “More than One” Bottom Line
  25. 25. Corporate Social Responsibility initiatives
  26. 26. Venture Philanthropy
  27. 27. Micro-enterprise and micro-finance
  28. 28. Social purpose businesses – employing a disadvantaged group in business, providing meaningful training, work experience & wages
  29. 29. Differential/discounted pricing</li></li></ul><li>Organizational Readiness<br />Strategy<br />Governance<br />Human resources<br />Finances<br />Operations, Products and Services<br />Market perspective<br />
  30. 30. Overview of Social EnterpriseBenefits of Social Enterprise<br />Diversifies funding sources<br />Generates unrestricted funding<br />Creates an “entrepreneurial spirit”<br />Enhances understanding of clients<br />Tests social value<br />Adds skills and competencies to the organization<br />
  31. 31. Traditional View<br />
  32. 32. SocialEnterprise View<br />
  33. 33. Common Misunderstandings / Myths<br />The purpose ofsocialenterprise is to make money<br />The purpose ofsocialenterprise is to employ people<br />Socialenterprise will distract my organization from achieving its mission<br />We will lose our non-profit status<br />Socialenterprise is a new concept<br />We will never need to fundraise again<br />If we make too much money, funders will cut us off<br />
  34. 34. Overview of Social EnterpriseProcess Overview<br />Context Setting<br />Idea Generation and 1st Screen<br />Business Concept and 2nd Screen<br />Business Planning Workshop<br />Write Business Plan<br />
  35. 35. Context SettingUnderstanding the Context<br />External Context<br />Organizational Readiness Workbook<br />Internal Context<br />The strategic framework<br />Goals, expectations for the initiative<br />Management capabilities<br />Marketable assets – skills, products/services, brand/reputation & intellectual property<br />Clients and other key stakeholders<br /><ul><li>External Context
  36. 36. Trends
  37. 37. Opportunities
  38. 38. Challenges</li></li></ul><li>Overview of Social EnterpriseDevelopment Funnel<br />5 seconds<br />100 ideas<br />Brainstorming<br />Screen 1<br />2 minutes<br />10 ideas<br />Screen 2<br />2-3 hours<br />1-3 ideas<br />2 days<br />0-3 ideas<br />Key Questions<br />15 days +<br />1-3 ideas<br />Business Plan<br />
  39. 39. Level 1 ScreenIdentifying Opportunities<br />
  40. 40. Brainstorm 50 -100 Ideas<br />
  41. 41.
  42. 42. Case Study<br />Three members of Northwood Management team generated the following list of earned income opportunities:<br />1. Summer Camp<br />2. Cyber School<br />3. Translation Bureau<br />4. Training- Proposal Writing/ Fundraising<br />5. Training- Home Child Care<br />6. Training-Dance / Fitness-Salsa for mothers of newly born babies<br />
  43. 43. Earned income Opportunities brainstorming session Continues….<br />Renting Space <br />Sponsorship Program <br />Day Care <br />ESL <br />11. Placement Agency <br />Community Information Center<br />Job Training <br />
  44. 44. Earned income Opportunities brainstorming session Continues….<br />Financial GYM at reduced price <br />Planning <br />Consulting Non-for-profit<br />17. Sensitivity Training<br />18. Access and Equity training <br />19. Tourism Advisory<br />20. Restaurant<br />21. Apprenticeship Program<br />
  45. 45. Northwood Screening Criteria<br />Does the idea further your vision, mission, values and strategic priorities?<br /> 1=no, 2=partial fit, 3=full fit<br />Is there a potential customer benefit? <br /> 1=none, 2=some need/some customers, 3=urgent need/many customers<br />Are there financial savings and how much?<br /> 1= increase costs, 2=break even, 3= likely savings<br />What investment is required?<br /> 1 - greater than 100,000, 2 - Less than 100,000 3 - less than 50,000<br />Is there a champion?<br /> 1=no, 2= neutral 3=yes<br /> Scoring: each idea will have a score of 5-15<br />
  46. 46. Create new services and screening<br />The Following Four Earned Income Opportunities rates the highest using the filter<br />1. Sponsorship Program (3/3/3/3/3)<br />2. Cyber School (3/3/3/3/3/3)<br />3. Translation Bureau (3/3/3/3/3)<br />4. Renting Space (3/3/2/2/3/2)<br />5. Summer Camp(3/3/2/2/3/2)<br />
  47. 47. Screening Phase 2<br />Create a concept statement<br />Describe product<br />Target audience and reason for buying it<br />When, where, how?<br />Product attractiveness<br />Financial results<br />Marketing issues and competitors<br />Risk factors<br />Does it fit with the organisation?<br />Test with sample of external experts<br />
  48. 48. Screening Phase 3Feasibility Analysis and Priority Setting<br />Does the product have financial potential?<br />How likely is the product to implemented successfully (easy or hard)?<br />Is an investment required?<br />Is an investment justifiable in terms of financial or mission improvement?<br />Does the product advance mission<br /> and strategic priorities?<br />
  49. 49. First Set of Measures<br />Product A<br />
  50. 50. Product A<br />Second Set of Measures<br />
  51. 51. Design <br />Northwood Neighbourhood Services launched the Translation Bureau<br />Social Purpose: Creating jobs for newcomers<br />Low start up cost<br />High return<br />Expertise of 25 Years<br />Champion ( experienced )<br />
  52. 52. Research<br />Our research indicated that there is a need for translation earned income opportunity<br />Surprise:<br />Found out a sister organization inherited a translation Social Enterprise<br />What did we do?<br />
  53. 53. Testing/Piloting<br />Northwood Neighbourhood Services <br />Launched Translation Bureau<br />Launched Cyber School<br />Launched Summer Camp<br />Launched Space Rental<br />
  54. 54. Evaluation<br />Business Generated $___<br />Employed 190 Translators and Interpreters<br />Built organizational capacity to regenerate income<br />Developed expertise in the area<br />Launched 3 other successful ventures<br />
  55. 55. Level 1 ScreenDefinition of a “Good” Idea<br />Meets a significant customer need – there is a market<br />Return on Investment (ROI)<br />Risk can be managed<br />Competitive advantage<br />Price<br />Performance<br />Leverages a strength/asset<br />Fits with mission/values<br />
  56. 56. Level 1 ScreenLevel 1 Screening Criteria<br />Does the idea further your vision, mission, values and strategic priorities?<br />1=no, 2=partial, 3=full fit<br />Is there a potential customer benefit?<br />1=none, 2=some need/some customers, 3=urgent need/many customers<br />Is there profit potential (by third year)?<br />1=Breakeven, 2= $10K-$20K, 3=more than $20K<br />What investment is required?<br />1=major investment, 2=minor investment, 3 achieve with current resources<br />Is there a champion?<br />1=no, 2=neutral, 3=yes<br />Scoring: each idea will have a score of 5-15<br />
  57. 57. Level 1 ScreenFeasibility Dimensions<br />Organizational Fit<br />Strategic (Do we want to do it?)<br />Operational (Can we do it?<br />Business Potential<br />Market (Will others want to buy it from us?)<br />Financial Model (Will it meet our financial goals?)<br />
  58. 58. Level 1 ScreenThe Success Quadrant<br />High<br />Financial & Market Potential<br />Business Potential<br />Low<br />Financial & Market Potential<br />Low strategic & Operational Fit<br />High strategic & Operational Fit<br />Organizational Fit<br />
  59. 59. Level 1 ScreenGuidelines for Fast Screening Process<br />Trust experience/judgment<br />Be objective (not about personal taste)<br />Think about the customer perspective<br />Simple and quick discussion – screen quickly<br />Don’t split hairs – the winners will be clear winners<br />Accept that some good ideas will not be selected<br />No more than 2 minutes per idea<br />Ask, “What do I need to believe is true?”<br />
  60. 60. Identify Short List to Explore FurtherTop Ideas & Champions<br />
  61. 61. Product A<br />Decision Measures<br />
  62. 62. Product A<br />Decision Measures<br />
  63. 63. Next Steps<br />Business Concept and Level 2 Screen<br />Business Planning<br />Write Business Plan<br />
  64. 64. Partnerships<br />What are they:<br />Shared risk and return<br />Negotiated objectives<br />Customized investment<br />
  65. 65. Entrepreneurial Partnering<br /><ul><li>Cause-related marketing
  66. 66. Cause-related purchasing
  67. 67. Joint ventures
  68. 68. Mergers
  69. 69. Acquisitions
  70. 70. Partnerships</li></li></ul><li>Human and Financial Investment<br />Least Structured to Most Structured<br />
  71. 71. Partnerships - examples<br />Management Services Organizations<br />Sharing of services between a number of not-for-profits<br />Examples - CHSI - Health Care System<br />Vendor through to M&A relationships<br />
  72. 72. Venture Philanthropy<br />Capital and human resources invested in charities by various types of investors in search of a social return on their investment. VP involves a high engagement over many years with fixed milestones and tangible returns and exit achieved by developing alternative, sustainable income.<br />
  73. 73. Venture Philanthropy Priority<br />Significant problem<br />Appropriate solution<br />SROI<br />Enthusiasm/being with a winner<br />Impact/building on success<br />Innovative and entrepreneurial<br />
  74. 74. Elements<br />Capital for growth, reliable money<br />Human resource expertise/strategic coaching<br />Partnering internally and externally<br />Performance centred, results orientated<br />Long term, exit strategy to sustainability<br />Business case/plan <br />Business to business presentation<br />Management, board, cash management, impact<br />
  75. 75. Venture Philanthropy - examples<br />Social Venture Partner - Canada/International<br />New Profit, Inc<br />Small foundations<br />
  76. 76. John Baker Aperio<br />215 Spadina Ave Suite 170 Toronto, OntarioM5T 2C7 <br />Direct: 416-304-0016 Toll Free: 800-479-1782<br />john.baker@aperio.ca<br />http://www.aperio.ca<br />

×