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INDEV308 Class 9 - Social Entrepreneurship in the International Development Context
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INDEV308 Class 9 - Social Entrepreneurship in the International Development Context

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Theory: What are the key trends and issues being addressed in the development of social enterprise and entrepreneurship in the developing world? …

Theory: What are the key trends and issues being addressed in the development of social enterprise and entrepreneurship in the developing world?

Practice: What range of organizations are actively engaged in social enterprise and entrepreneurship in the developing world? What are the unique considerations for these ventures?

http://www.socialentrepreneurship.ca/indev308/

Published in: Business, Economy & Finance

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  • 1. INDEV 308: Introduction to Social Entrepreneurship Class 9: Social Entrepreneurship in the International Development Context Monday, July 4, 2011Instructors:Norm Tasevski (norm@socialentrepreneurship.ca)Karim Harji (karim@socialentrepreneurship.ca) 1
  • 2. © Norm Tasevski & Karim Harji
  • 3. © Norm Tasevski & Karim HarjiAgenda• Ashoka• Social enterprises in the developing world• Impact investing• Reviewing the Video Assignment• Next Week 3
  • 4. © Norm Tasevski & Karim HarjiThere are MANY issues in thedeveloping world… 4
  • 5. © Norm Tasevski & Karim HarjiTraditional approaches havehad relatively limited impact… 5
  • 6. © Norm Tasevski & Karim HarjiThe principles of socialentrepreneurship have a role to play… Resourcefulness Motivation Innovation Risk Taking 6
  • 7. © Norm Tasevski & Karim Harji… in educationSource: http://www.enterprisingschools.com/markets/global 7
  • 8. © Norm Tasevski & Karim HarjiCrowdsourcing educational innovation:OpenIdeo + Grey Matters Capitalhttp://www.openideo.com/open/how-might-we-increase-the-availability-of-affordable-learning-tools-educational-for-children-in-the-developing-world/ 8
  • 9. © Norm Tasevski & Karim Harji 9
  • 10. © Norm Tasevski & Karim Harji… in healthSource: http://www.visionspring.org/what-we-do/why-eyeglasses.php 10
  • 11. © Norm Tasevski & Karim HarjiVideo: Aravindhttp://www.youtube.com/watch?v=3cjnNPua7Ag 11
  • 12. © Norm Tasevski & Karim Harji… in agriculture 12
  • 13. © Norm Tasevski & Karim Harji… in communication 13
  • 14. © Norm Tasevski & Karim HarjiVideo: Ushahidihttp://vimeo.com/7838030http://www.ted.com/talks/erik_hersman_on_reporting _crisis_via_texting.html 14
  • 15. © Norm Tasevski & Karim HarjiAn untapped (local) marketImages: http://bottom-of-pyramid.blogspot.com/2008/10/fortune-at-bottom-of-pyramid-2.htmlhttp://www.thehindubusinessline.in/life/2004/11/26/stories/2004112600140300.htm 15
  • 16. © Norm Tasevski & Karim Harji Capital is often (perceived as) the key constraint to growth… but… perhaps misalignment is the issueSource: Alex Nicholls and Cathy Pharoah (2008) The Landscape of Social Investment,http://www.sbs.ox.ac.uk/centres/skoll/research/Pages/landscapeofsocialinvestment.aspx 16
  • 17. © Norm Tasevski & Karim Harji The potential of impact investing“ Impact investing could expand to a $500 billion industry in the next decade.”-- Monitor Institute“… a potential investment opportunity between $400 billion and $1 trillion with potential profits between $183 billion and $667 billion in the next decade…”-- JP Morgan 17
  • 18. © Norm Tasevski & Karim HarjiThere is an emerging class ofimpact/social investors… 18
  • 19. © Norm Tasevski & Karim Harji… that is providing flexible capital(+ more) to these social enterprises 19
  • 20. © Norm Tasevski & Karim HarjiAcumen Fund• http://www.youtube.com/watch?v=g-uhz0J3JTE 20
  • 21. © Norm Tasevski & Karim HarjiPatient Capital(ism) Jacqueline Novogratz (founder of Acumen Fund) – TED talk on “a third way to think about aid” http://www.ted.com/talks/jacqueline_novogratz_a _third_way_to_think_about_aid.html 21
  • 22. © Norm Tasevski & Karim HarjiMarket-Minded Development• What did you find most interesting about the Acumen Fund’s approach?• What challenges or opportunities mentioned in the article do you think will be most critical?• What do you think success looks like for the Acumen Fund? How would you measure it? 22
  • 23. © Norm Tasevski & Karim HarjiAcumen Fund: Student Leaders Workshop• http://www.acumenfund.org/investment- story/acumen-fund-student-leaders-workshop.html 23
  • 24. © Norm Tasevski & Karim HarjiThe Impact Investing Marketplace Source: Monitor Institute (2008) “Investing for Social & Environmental Impact, A Design for Catalyzing an Emerging Industry”, http://www.monitorinstitute.com/impactinvesting/ 24
  • 25. Break 25
  • 26. © Norm Tasevski & Karim HarjiMicrofinanceMicrofinance as a subset of impact investing…with a 40 year track recordImages:http://southeastasia.foreignpolicyblogs.com/2011/05/27/the-poverty-of-microfinance/http://simran.crownpac.net/blog/2007/05/04/microfinance-%E2%80%93-a-zero-sum-game/ 26
  • 27. © Norm Tasevski & Karim Harji“The promise of microfinance”The (previously) unbankable now have…• Access to credit• Understand how to use creditAnd have demonstrated…• An ability to repay in full, and on time• Through peer pressure, no collateral requiredSo that…• Money can be recycled for further lending• Create businesses and economic growth• Empower people and improve social conditions 27
  • 28. © Norm Tasevski & Karim HarjiThe growth of the microfinance industrySource: http://blogs.cgdev.org/open_book/2010/02/charting-growth.php 28
  • 29. © Norm Tasevski & Karim HarjiAn industry in crisis? 29
  • 30. © Norm Tasevski & Karim HarjiLet’s revisit these assumptions…The (previously) unbankable now have…• Access to credit• Understand how to use creditAnd have demonstrated…• An ability to repay in full, and on time• Through peer pressure, no collateral requiredSo that…• Money can be recycled for further lending• Create businesses and economic growth• Empower people and improve social conditions 30
  • 31. © Norm Tasevski & Karim HarjiState of the industrySource: “Microfinance Banana Skins 2011: Losing Its Fairy Dust”, http://www.cmef.com 31
  • 32. © Norm Tasevski & Karim HarjiAssessing the impact of microfinanceSource: http://blogs.cgdev.org/open_book/2009/06/roodman-morduch-2009.php 32
  • 33. © Norm Tasevski & Karim HarjiInvesting in microenterprises vs SMEs• Which is “better”? Why?• Under what conditions?• How do (or would) we know? ** Draw on the reading by Aneel Karnani, and Serge’s talk earlier in the semester 33
  • 34. © Norm Tasevski & Karim HarjiSo what does this add up to?• Market-based approaches can (and must) have a role to play alongside traditional approaches to aid. But there will sometimes be tensions between them…• There will always be a need for traditional grant-making because you can simply not expect a financial return for all situations e.g. humanitarian disasters• Impact investing and microfinance are approaches that are challenge traditional notions of risk and return by adding a 3rd dimension: (social) impact• The principles of social entrepreneurship can be applied to traditional approaches in order to help them scale even more successfully. This depends on balancing the financial and social tensions, and taking into account the local context… 34
  • 35. © Norm Tasevski & Karim HarjiSmart or Right? Thinking like a Philanthropistand Investing in Social Impact• http://nextgencharity.com/talks/sasha_dichter_sma rt_or_right 35
  • 36. © Norm Tasevski & Karim HarjiThe 2nd Online Video AssignmentExpectations – 2-5 minutes – Explain your business model: • How the customer “experiences” your product/service (“here’s how it works…”) • Why the customer will be willing to pay for your product/service (instead of the alternative – e.g. a competitor’s product or some other substitute product) • How you make money • How your model achieves social/environmental goals – Think of this video as a “practice run” for your final pitch – Use of visual aides is a bonus, but not necessary 36
  • 37. © Norm Tasevski & Karim HarjiNext week• Lecture on the Enabling Environment for Social Entrepreneurship• Guest lecture by Jennifer King, Executive Director of Social Venture Partners Waterloo Region 37

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