Social_Entrepreneurship_663_v1.pdf

SOCIAL ENTREPRENEURSHIP
Sub Code - 663
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Prin. L.N. Welingkar Institute of Management Development & Research

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Chairman
Prof. Dr. V.S. Prasad
Former Director (NAAC)
Former Vice-Chancellor
(Dr. B.R. Ambedkar Open University)
Board Members
1. Prof. Dr. Uday Salunkhe
Group Director
Welingkar Institute of
Management
2. Dr. B.P. Sabale
Chancellor, D.Y. Patil University,
Navi Mumbai
Ex Vice-Chancellor (YCMOU)
3. Prof. Dr. Vijay Khole
Former Vice-Chancellor
(Mumbai University)
4. Prof. Anuradha Deshmukh
Former Director
(YCMOU)
Program Design and Advisory Team
Prof. B.N. Chatterjee
Dean Ð Marketing
Welingkar Institute of Management, Mumbai
Mr. Manish Pitke
Faculty Ð Travel and Tourism
Management Consultant
Prof. Kanu Doshi
Dean Ð Finance
Mr. Smitesh Bhosale
Faculty Ð Media and Advertising
Founder of EVALUENZ
Prof. Dr. V.H. Iyer
Dean Ð Management Development Programs
Prof. Vineel Bhurke
Faculty Ð Rural Management
Prof. Venkat lyer
Director Ð Intraspect Development
Dr. Pravin Kumar Agrawal
Faculty Ð Healthcare Management
Manager Medical Ð Air India Ltd.
Prof. Dr. Pradeep Pendse
Dean Ð IT/Business Design
Mrs. Margaret Vas
Faculty Ð Hospitality
Former Manager-Catering Services Ð Air India Ltd.
Prof. Sandeep Kelkar
Faculty Ð IT
Mr. Anuj Pandey
Publisher
Management Books Publishing, Mumbai
Prof. Dr. Swapna Pradhan
Faculty Ð Retail
Course Editor
Prof. Dr. P.S. Rao
Dean Ð Quality Systems
Prof. Bijoy B. Bhattacharyya
Dean Ð Banking
Prof. B.N. Chatterjee
Dean Ð Marketing
Mr. P.M. Bendre
Faculty Ð Operations
Former Quality Chief Ð Bosch Ltd.
Course Coordinators
Prof. Dr. Rajesh Aparnath
Head Ð PGDM (HB)
Mr. Ajay Prabhu
Faculty Ð International Business
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Ms. Kirti Sampat
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Mr. A.S. Pillai
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Mr. Kishor Tamhankar
Manager (Diploma Division)
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1st Edition, January 2019 2nd Edition, November 2022

CONTENTS
Contents
Chapter No. Chapter Name Page No.
1 Basic Concepts of Social Entrepreneurship 4-31
2 Business at the Base of the Pyramid (BoP) 32-47
3 Major Verticals in Social Entrepreneurship 48-66
4 From a Good Idea to a Good Start 67-81
5 Developing a Strategy and a Business Model 82-103
6 Financial Planning and Funding 104-121
7 Human Resource for a Social Enterprise 122-135
8 Project Management for a Business Plan 136-163
9 Social Entrepreneurs and Innovation 164-179
10 Social Impact Startups 180-205
11 Inspiring Stories from India 206-231
12 Greatest Social Entrepreneurs of all time 232-248
13 Social Entrepreneurship the Road Ahead 249-264
Annexure A 265-268
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BASIC CONCEPTS OF SOCIAL ENTREPRENEURSHIP
Chapter 1
Basic Concepts Of Social Entrepreneurship
Objectives:
After completing this chapter, you will be able to understand:
¥ Definition of an Entrepreneur and his/her objectives
¥ Introduction to Social Entrepreneur
¥ History of Social Entrepreneurship
¥ Definitions of Social Entrepreneurship
¥ Examples of some crazy Social Entrepreneurs
¥ Difference between Charity and Social Entrepreneurship
¥ How to become a Social Entrepreneurship Company
Structure:
1.1 An Entrepreneur
1.2 Objectives of an Entrepreneur
1.3 Four Types of Entrepreneurship
1.4 More about Social Entrepreneurship
1.5 History of Social Entrepreneurship
1.6 Some definitions of Social Entrepreneurship
1.7 Some crazy Social Entrepreneurs
1.8 Some crazy Social Entrepreneurs from India
1.9 The core of Social Entrepreneurship
1.10 Difference between Charity and Social Entrepreneurship
1.11 How to become a Social Entrepreneurship Company
1.12 Millennials and Generation Y
1.13 Activities for the Students
1.14 Summary
1.15 Self-assessment Questions
1.16 Multiple Choice Questions
4

My dear students,
We welcome you to the wonderland of Social Entrepreneurship which,
we are sure, you would like to make a part of your career, once you know
what it means.
Before we discuss this wonderful concept of Social Entrepreneurship, let
us understand what it means to be an entrepreneur and what is meant
by entrepreneurship.
1.1 AN ENTREPRENEUR
Peter F. Drucker has said, ÒThe entrepreneur always searches for change,
responds to it, and exploits it as an opportunityÓ.
According to J. Schumpter, ÒThe word entrepreneur originates from the
17th Century French word entrepreneur which refers to individuals who
undertook risk of creating a new enterprise.Ó
As per Webster dictionary, Òan entrepreneur is one who organizes,
manages and assumes the risk of a business or an enterprise.Ó
As per Irish economist Richard Cantillon, Òan entrepreneur is someone who
takes the risk of running an enterprise by paying certain price for securing
and using resources to make a product and reselling the product for an
uncertain price.Ó
As per J.A. Timmons, ÒEntrepreneurship is a process of creating and seizing
an opportunity and pursuing it regardless of the resources currently
controlledÓ.
In the present scenario, the definition of entrepreneurship includes more
than the creation of an enterprise. It also includes the generation and
implementation of an idea.
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Earlier, large corporate houses used to provide employment to majority job
seekers. In the present time, small and medium enterprises are creating
and offering job opportunities. Specialized knowledge driven ventures can
be started with low capital by intellectual brains. Ample financial support is
available.
New technology has opened up new business sectors like online retailing,
outsourcing, call centers, data management, tele-medicines etc.
TodayÕs consumers are becoming increasingly wealthy and knowledgeable.
This has led to increase in demand for variety.
In the present market, majority of businesses are information driven.
Internet and e-commerce technology changed the way in which a business
operates. Communication has become virtually free.
1.2 OBJECTIVES OF AN ENTREPRENEUR
So, let us discuss the objectives of an entrepreneur. Most business start-
ups begin with one main financial objective Ð to survive. Because a large
percentage of new businesses do not survive much beyond their launch.
The entrepreneur discovers that the business idea is not viable Ð the
business cannot be run profitably or it runs out of cash. Start-ups have a
high failure rate. To survive, a business needs to have:
¥ Sufficient sources of finance (e.g. cash, a bank overdraft, share capital)
¥ A viable business model Ð i.e. one which can make a profit
If survival can be assured, then profit is the next most important financial
objective for a new business. A profit is earned when the revenue of the
business exceeds the total costs. The entrepreneur can choose to reinvest
the profit in the business, or take it out as a personal payment or dividend.
However, it is important to appreciate that, to make a sustainable profit, a
new business needs to be able to:
¥ Add value
¥ Sell into a large enough market
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Another financial objective is personal wealth. Some entrepreneurs have
an objective that goes beyond wanting to earn an adequate income. They
aim to build a valuable business that can substantially increase their
personal wealth.
1.3 FOUR TYPES OF ENTREPRENEURSHIP
As you start a business and then work to build your start-up, often you will
hear about the four types of entrepreneurship.
¥ Small Businesses Entrepreneurship
¥ Scalable Start-up Entrepreneurship
¥ Social Entrepreneurship
¥ Large Company Entrepreneurship
Small Business Entrepreneurship
Think about your local hardware store, coffee shop, garden centre. These
are all examples of small business entrepreneurship. This category doesnÕt
mean that you donÕt have a large team and great revenue, but your path
forward is likely different than the other categories below. Some small
businesses do scale up Ð think of a chain of coffee shops, where they
decide to adopt a franchise model (Tim HortonÕs for example), and this can
mean that your business can move between categories, but the category
you fall into is based on where your business is right now.
Scalable Start-up Entrepreneurship
A scalable start-up is often a business that is using technology or creating
technology in the business. Think of a SAAS (Software As A Service)
company that creates a Customer Relationship Management (CRM)
software. They are going to sign on subscribers for a monthly or annual
fee. The business falls into a space with a large market size and the
potential for them to grow quickly and exponentially exists.
7

Social Entrepreneurship
Social entrepreneurship is mission-driven work. Think of an entrepreneur
who is working on making clean water more accessible to people living in
rural, remote locations in poverty. These are social missions, sometimes
based on the UNÕs Sustainable Development Goals. A social
entrepreneurship entity can be any size.
Large Company Entrepreneurship
This is where a larger company spins off a new division. Though isnÕt the
type of entrepreneurship we often engage with, itÕs an exciting category,
where we see disruptive innovation started by a company with the funding
to move quickly and make a difference.
1.4 MORE ABOUT SOCIAL ENTREPRENEURSHIP
Figure 1.1
8

There are so many people who were brought up by their parents and
teachers inculcating in them the culture of really taking care of people,
helping others, and doing good by providing low-cost services. The
care their families took in helping others had a significant effect on them
and their understanding of what it means to do good business. This is how
the idea of Social Entrepreneurship was developed. Instead of just profit
maximization, a business can be organized around the combination of
social good and profit maximization.
Social entrepreneurship is a kind of entrepreneurship/business that aims at
solving social problems through entrepreneurial practices Ð creating a
competitive product, selling it in market, generating revenues, etc.
Business activities and existence in the market is the driving force of the
company. It ensures its financial standing, thus contributing to the solution
of social problems.
The primary purpose of this kind of businesses is the solution to a
social problem. Profit comes second.
Social Entrepreneurship
Figure 1.2
9

1.5 HISTORY OF SOCIAL ENTREPRENEURSHIP
Social entrepreneurship is relatively a new term. It came into
notice just a few decades ago. But its usage can be found
throughout the history.
In fact, there were several entrepreneurs who established social
enterprises to eliminate social problems or bring positive change in the
society.
¥ Vinoba Bhave, the founder of IndiaÕs Land Gift Movement,
¥ Robert Owen, the founder of cooperative movement and
¥ Florence Nightingale, founder of first nursing school and developer of
modern nursing practices might be included in this category. They had
established such foundations and organizations in 19th century that is
much before the concept of Social Entrepreneurship used in
management.
There were entrepreneurs during nineteenth and twentieth centuries who
made efforts to eradicate social evils. Apart from this, there are many
societies and organizations that work for child rights, women
empowerment, save environment, save trees, treatment of waste products,
etc. Apart from addressing the social issues, social entrepreneurship also
includes recognition and addressing the environmental problems and
financial issues for rural and urban poor.
These days, the concept of social entrepreneurship has been widely used
and that too in different forms.
¥ The establishment of Grameen Bank by Muhammad Yunus,
¥ Ashoka: The Innovators for the Public by Bill Drayton,
¥ Youth United by Jyotindra Nath,
¥ Rang De by Ramakrishna and Smita Ram,
¥ SKS Microfinance by Vikram Akula and
¥ Roozt.com by Nick Reder, Brent Freeman and Norma La Rosa
¥ Andrew Mawson, best known for his work at the Bromley by Bow
Centre in East London, which became the UK's first Healthy Living
Centre.
10

In fact, all big brands and companies are adopting the concept of social
entrepreneurship and trying to address the issues in our society by opening
schools in far flung areas, educating women for family planning, making it
possible for farmers and poor individuals to access low interest credits,
establishing plants for waste treatment, planting trees and going green.
The concept of Social Entrepreneurship has also been included as a
separate branch of management courses. Even youth is also looking
forward to volunteering their services and brilliant ideas to bring a social
change through social entrepreneurship.
To make the concept very clear, let us discuss an example of an
early Social Entrepreneur.
Figure 1.3
This is Henry Dunant, a Swiss businessman and social activist, founder of
the International Red Cross. A businessman who created an
organization with radically new idea around 150 years ago. He did what
every entrepreneur did. He found allies, he built a team, he found funding,
he had to fight humiliation.
11

Dunant arrived in Solferino on the evening of 24 June 1859, on the same
day a battle between the two sides had occurred nearby. Twenty-three
thousand wounded, dying and dead remained on the battlefield, and there
appeared to be little attempt to provide care. He was so shocked that he
himself took the initiative to organize the civilian population, especially the
women and girls, to provide assistance to the injured and sick soldiers.
They lacked sufficient materials and supplies, and Dunant himself
organized the purchase of needed materials and helped erect makeshift
hospitals. He convinced the population to service the wounded without
regard to their side in the conflict as per the slogan "Tutti fratelli" (All are
brothers) coined by the women of nearby city Castiglione delle Stiviere. He
asked what if we care about these people unconditionally and he knew that
the only way to realize this is to form to create a private neutral
organization and thatÕs what he did. He received the first Noble peace prize
in 1901 as a result of his vision and action. He also succeeded in gaining
the release of Austrian doctors captured by the French. He was one of the
first social entrepreneurs. Today about 100 million people work for his
organization. Most of them are unpaid. Each of you must have been
touched by his organization at some point.
1.6 SOME DEFINITIONS OF SOCIAL ENTREPRENEURSHIP
A social entrepreneur is someone who recognizes a social problem and
uses entrepreneurial principles to organize, create, and manage a venture
to make social change. Whereas a business entrepreneur typically
measures performance in profit and return, a social entrepreneur assesses
success in terms of the impact he/she has on society.
The act of giving is very much anchored in benevolence, which means
deliberate goodwill, act of kindness. A perpetuating divide that we are
trying to eradicate. Divide of haves and have nots. Privileged and less
privileged. Bridging the inequality through social development.
Today with social and economic inequality growing worldwide, people are
connected with the idea that it is possible to do business on human scale.
It is possible to make money and do something good for the community.
This idea is called social entrepreneurship. It is new and creative approach
to do business, social engagements and social services. Today numerous
organizations operating worldwide are called social enterprises. It is like
any other business charging at market rates and generating profits, but
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what makes it on a human scale is the way that profit is used. Profits serve
to create and fulfil social missions.
Social enterprises do not serve to enlarge the wealth of the owners or
shareholders. They operate to contribute to Social equality and to
improve the living conditions of people in the community. Generated profit
is reinvested either in business or for realizing social goals like job creation,
social inclusion, cultural needs, healthcare, and preservation of
environment. Social enterprise places Social goals ahead of increased
profits. They use business as a means of social change. They resolve
social problems through market strategies. Social entrepreneurship is
also a good way for civil society organizations that want to reduce
dependence on donor systems, in getting greater financial operation
and freedom.
Starting a social enterprise is a challenge for all those for whom profit is
not the only goal and who want a job that makes sense and has a purpose.
Who are the people who impress us most? Enterpreneurial heroes of all
times. Their vision plus action. They see transformation and new reality
that is coming. They ask Òwhat ifÓ questions.
¥ What if we have a computer on every desk?
¥ What if we could organize the worldÕs information?
¥ What if we connect everybody on the same platform?
They donÕt stop talking about it. They actually get their hands dirty. They
revolutionize industries. They take a step in unknown. They take personal
risks. In the beginning everybody thinks they are ridiculous. But when
they are successful, everyone thinks what they are doing is normal.
Social entrepreneurs also ask Òwhat ifÓ questions.
¥ What if we could get medication to any corner of the world when we can
buy a bottle of coke in any village?
¥ What if we could speed up malaria diagnosis by hundreds of times?
¥ What if everybody could stay overnight at everybody elseÕs place so that
we build more tolerance and understanding a trust between the people?
¥ What if we stop treating millions of street children as victims and come
up with mobile schools that teach them directly on the streets?
¥ What if we use the talents of the blind to detect breast cancer?
13

¥ What if people with autism who are incredibly good at quality testing in
software development are utilized for these jobs?
Social entrepreneurship applies practical, innovative, and sustainable
approaches to benefit society, with an emphasis on the marginalized and
the socioeconomically disadvantaged.
Social entrepreneurs drive social innovation and transformation in
various fields including education, health, environment and enterprise
development. They pursue poverty alleviation goals with entrepreneurial
zeal, business methods and the courage to innovate and overcome
traditional practices.
Social entrepreneurship is about applying practical, innovative and
sustainable approaches to benefit society in general, with an emphasis on
those who are marginalized and poor.
There are three key components that emerge out of these definitions and
are more of less common when it comes other variations of the definitions
of Social Entrepreneurship:
¥ The problem
¥ A sustainable solution
¥ Social change
Social enterprises, which vary from small startups to international
nonprofits, generate social good from an economic need.They play the role
of change agents in the social sector, by:
¥ Adopting a mission to create and sustain social value (not just private
value);
¥ Recognizing and relentlessly pursuing new opportunities to serve that
mission;
¥ Engaging in a process of continuous innovation, adaptation, and learning;
¥ Acting boldly without being limited by resources currently in hand, and
¥ Exhibiting heightened accountability to the constituencies served and for
the outcomes created.
14

Today, as the world struggles in 2014 with problems including poverty,
violence, climate change, education disparity, AIDS, and more, social
entrepreneurship is exploding in popularity. A few examples include:
¥ TheSkoll Foundation,
¥ Schwab Foundation for Social Entrepreneurship,
¥ TheCenter for the Advancement of Social Entrepreneurship at Duke
University, and
¥ TheGlobal Social Entrepreneurship Competition at Washington University
in St. Louis.
Social Entrepreneurs areÒThe New HeroesÓ.
Here are just a few social-entrepreneur efforts worldwide:
¥ Paying African women togo to free HIV clinics
¥ Deliveringgrid-powered electricity to food trucks
¥ Educating poor girlsin Africa
¥ Helping Central American coffee farmers toget fair prices
¥ Giving clean drinking water toone million peoplein seventeen countries
¥ Gettingmore American kidsinterested in Science, Technology,
Engineering, and Mathematics (STEM).
According to Ashoka, the largest network of Social Entrepreneurs
worldwide, ÒSocial Entrepreneurs are individuals with innovative solutions
to societyÕs most pressing social problems.
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1.7 SOME CRAZY SOCIAL ENTREPRENEURS
They ask Òwhat if ?Ó questions. They are fantastic and incredible to work
with. They are shining examples of social entrepreneurship with vision and
innovation.
Simon Berry:
Figure 1.4
About 600000 children die every year because of diarrhea. Medication has
to be there on the spot where the disease is. He asked Òwhat if we could
get medication to any corner of the world when we can buy a bottle of coke
in any village?Ó
He combined these two thoughts and he built a small container that fits
exactly in the space between coke bottles in a casket. Inspired by the
global distribution and reach of Coca-Cola products, Simon Berry has built
a successful new model to bring lifesaving, over-the-counter medicines to
low-income communities where they are currently unavailable. and he
partnered with Coca Cola and eventually the state of Zambia and Africa
ordered half a million of these containers.
Simon believes that if suppliers create products that truly suit the needs
and constraints of the people at the bottom of the pyramid, the private
market can play a key role in healthcare distribution in rural or under-
resourced settings. His mission is, therefore, to ensure that the correct
products and sustainable supply chains are in place to enable shopkeepers
and the existing health system to reliably stock affordable treatments.
16

Miguel Luengo
Figure 1.5
To detect malaria parasites in an individual you have to look at the blood
sample and you have to detect parasites done under a microscope by
specialists which are few.
He asked, ÒWhat if we could speed up malaria diagnosis by 100s of times?
Why donÕt we do what NASA does when they put space images to the web
and ask people to look for planet?ÓHe pushed the images of blood samples
and turned them into a mobile game so instead of shooting aliens, one
shoots malaria parasites on an image and at the same time one identifies
malaria parasites in the body of an actual individual and one fights malaria
while playing a mobile game.
Brian Chesky
Figure 1.6
His idea was what if everybody could stay overnight at everybody elseÕs
place so that we build more tolerance and understanding a trust between
the people. In 1999 he came up with an idea of couchsurfing and he
founded the organization in 2003. without people like him who took it from
the social side, there would not have been airbnb which was created five
years after this organization was founded and turned his idea in 25 billion
dollar business. And a nightmare for hotels.
17

Arnoud Raskin
Figure 1.7
There are @ 100 million street children in the world talking about shelter.
So he asked what if we stop treating them as victims and he came up not
only with mobile schools that teach them directly on the streets 50000
every year. He created a company called streetwise and today companies
like BASF and NIKE book corporate training sessions with him and his
street kids because they realize that street kids can show them the
employees a lot of critical business skills like resilience, positive focus.
Frank Hoffmann, Gynecologist, Germany
Figure 1.8
He asked what if we use the talents of the blind to detect breast cancer. He
started training blind women to become medical examiners. To detect
breast cancer with women. They can do it cheaper and faster. They can
give more time for patients, get a job for themselves, heal the stigma of
being blind as deficient. Its a win win.
18

Thorkil Sonne From Denmark
Figure 1.9
He asked can people with autism use their talent to become consultants for
businesses. His company works with businesses like SAP because it turns
out that autists are incredibly good at quality testing in software
development. Autists can do stuff that none of us can do. He turned a
problem / weakness into competitive advantage.
1.8 SOME CRAZY SOCIAL ENTREPRENEURS FROM INDIA
Urvashi Sahni
Talking about the best of social entrepreneurs in India, Urvashi Sahni
definitely tops the list. She is the founder and CEO of SHEF (Study Hall
Education Foundation), an organization dedicated to offering education to
the most disadvantaged girls in India. Urvashi Sahni has worked with over
900 schools and changed the life of 150,000 girls (directly) and 270,000
girls (indirectly) with her program. She was rightly felicitated with
theÔSocial Entrepreneur Of The YearÔaward in 2017 for her selfless act of
dedication and passion.
19

Figure 1.10
Harish Hande
Harish Hande is another pioneering social entrepreneur of India and a
remarkable committed one. He is the CEO & Founder of Selco, a company
rendering sustainable energy source to rural regions of the country. This
project was the first rural solar financing program in India. Till date, Selco
has contributed over 120,000 installations and has more than 25 operating
retail and service centres in Karnataka alone.
Figure 1.11
Jeroo Billmoria
Jeroo Billmoria is one of the renowned social entrepreneurs of India who is
supervising several International NGOs for the betterment of society. She
initiated the ÔChildlineÕ that aims to provide help in form of healthcare and
police assistance, especially to street children. Right from her childhood,
she had a vision of giving back to the underprivileged in the society. She
also believed in self-empowerment of women in India. Jeroo Billmoria was
20

felicitated with the Skoll Award for Social Entrepreneurship and is a Schwab
and Ashoka Fellow as well.
Figure 1.12
Anshu Gupta
Born in a middle-class family in Uttar Pradesh, took media as a profession
and while as an intern he witnessed the need of proper clothing for the
poor in rural India. Anshu then founded Goonj, a social enterprise that
collects used clothing from the urban crowd, sort them, fix and later
distribute among the poor and needy. The relief work was done by Goonj
during the times of natural calamities in Gujarat, Tamil Nadu and Kerala
have been highly acknowledged.
Figure 1.13
21

Santosh Parulekar
Santosh Parulekar worked to create job opportunities for the unemployed
youth in rural India. He startedÔPipal Tree, a company that aims to impart
formal training to the youth and provides them with reputable jobs in
companies across the country. Operating since 2007, Pipal Tree has trained
over 1,500 workers and intends to open training centres pan India in the
coming years.
Figure 1.14
1.9 THE CORE OF SOCIAL ENTREPRENEURSHIP
As per Bill Drayton, Leading Social Entrepreneur, ÒSocial Entrepreneurs are
not just to give a fish or teach how to fish. They will not rest until they
have revolutionized the fishing industry.Ó
Doing a business and contributing to a social cause simultaneously is a real
WIN-WIN situation for all stakeholders. Social entrepreneurs are not just
another bunch of entrepreneurs. The significant differentiation point of
social entrepreneurs is their relatively high social conscience. Social
entrepreneurs look at any social problem as a challenge and opportunity to
serve a social cause. Money is not a bigger motivation than getting to
address a social need.
22

Social Entrepreneurs play the role of change agents in the social sector
by:
1. Adopting a mission to create and sustain social value (not just private
value)
2. Recognizing and relentlessly pursuing new opportunities to serve that
mission
3. Engaging in a process of continuous innovation, adaptation and learning
4. Acting boldly without being limited by resources currently in hand
5. Exhibiting a heightened sense of accountability to the constituencies
served and the outcomes created.
Ten characteristics of Social Entrepreneurs:
1. Trying to shrug off the constraints of ideology or discipline.
2. Identifying and applying practical solutions to problems, combining
innovation, resourcefulness and opportunities.
3. Innovating by finding a new product, service or approach to a social
problem.
4. Focusing first and foremost on social value creation and, in that spirit,
willing to share innovations and insights for others to replicate.
5. Having an unwavering belief in everyoneÕs innate capacity to contribute
meaningfully to economic and social development.
6. Showing a dogged determination that pushes them to take risks that
others would not dare.
7. Balancing their passion to change with the zeal to measure and monitor
the impact.
8. Having a great deal to teach change makers in other sectors.
9. Display a healthy impatience.
10.Jumping in before ensuring that they are fully resourced.
23

1.10 DIFFERENCE BETWEEN CHARITY AND SOCIAL
ENTREPRENEURSHIP
Many people feel that the words charity and social entrepreneurship are
synonymous. They are not. Let us understand the difference between these
two concepts.
1. Charity means to redistribute income from the haves to have-nots,
whereas Social entrepreneurship means to be a change agent through
innovative mutually beneficial exchanges creating social values.
2. Charity works within given structures in society, whereas social
entrepreneurship creates opportunities and enables social structural
change.
3. The purpose of charity is to alleviate immediate suffering rather than
deep social change. Purpose of Social entrepreneurship is to improve
social conditions.
4. Primary source of finance in case of charity is donations whereas Social
entrepreneurship is a self sufficient working business model.
5. Sustainability of charity depends upon funding by donors. Social
entrepreneurship is sustainable because it is funded by continuous
profits made by a self sufficient business model.
6. Charity is designed to relieve immediate distress. Though the response
is quick, it is short-lived. Social entrepreneurship can run for decades
like any other enterprise.
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1.11 HOW TO BECOME A SOCIAL ENTREPRENEURSHIP
COMPANY
¥ Pick and know your issue. What pressing problem is your company
most able to address as a result of your expertise and experience? For
example, high-tech companies could help put cheap laptops in the hands
of poor children. Pharmaceutical businesses might want to increase
access to health care.
¥ Pick a method. How do you plan to address the issue? Companies
typically choose one of four methods:
¥ Donate a percentage of company profits;
¥ Affiliate with a cause, community, or charity;
¥ Develop a product or service that will raise money; or
¥ Fund-raise directly for an issue.
¥ Build the brand and increase awareness. Utilize the strengths of
your marketing and communications staffs to increase the publicÕs
awareness of the problem and solution. Many non-profit organizations
cannot afford expensive marketing campaigns Ð but businesses can.
Utilize the strengths of your marketing and communications staffs to
increase the publicÕs awareness of the problem and solution.
¥ Run it like a business. Even if the social-entrepreneurship side of a
company does not generate a profit, it should be run like a business.
Create a strategic plan with the goal of operating and executing as
efficiently and successfully as possible.
¥ Hire intelligent staff. Just because a person chooses to work in the
non-profit sector rather than the for-profit one does not mean he or she
is any less capable. Hire the best Ð and pay accordingly.
¥ Be transparent and authentic. Many organizations have a high
amount of overhead and pay their executives excessively-high salaries.
Publicly disclose all actions and financial data with the goal of having as
much funds as possible going directly to the cause.
25

¥ Create smart partnerships. Other companies Ð perhaps even
competitors may be working on the same issue. Explore such
opportunities so that all of the companiesÕ efforts will converge and the
whole of the work will be greater than the sum of its altruistic parts.
¥ Use all appropriate media channels. Social media and online content
have made it easier than ever to communicate with millions of people
throughout the word. Aim to create viral campaigns that will spread
across Facebook, Twitter, YouTube, LinkedIn, and more.
1.12 MILLENNIALS AND GENERATION Y
Millennial is a person reaching young adulthood in the early 21st century.
Generation Y is the generation born in the 1980s and 1990s, comprising
primarily the children of the baby boomers and typically perceived as
increasingly familiar with digital and electronic technology.
DeloitteÕs global2014 Millennial Survey has found that:
While most Millennials (74 percent) believe business is having a positive
impact on society by generating jobs (48 percent) and increasing
prosperity (71 percent), they think business can do much more to address
societyÕs challenges in the areas of most concern: resource scarcity (68
percent), climate change (65 percent) and income equality (64 percent).
Additionally, 50 percent of Millennials surveyed want to work for a business
with ethical practices.
Millennials believe the success of a business should be measured in terms
of more than just its financial performance, with a focus on improving
society among the most important things it should seek to achieve.
Millennials are also charitable and keen to participate in Ôpublic lifeÕ: 63
percent of Millennials donate to charities, 43 percent actively volunteer or
are a member of a community organization, and 52 percent have signed
petitions.
Generation Y has a global perspective, understanding that their
responsibilities extend past just the business they work for. Thus,
business should aim to generate profits and help society. Millennials
want no part of the stereotypical ÒgreedyÓ business worldÑthey want to be
a part of a company that actively seeks to improve the world. To
attract the future leaders of Generation Y, businesses leaders must become
26

social entrepreneurs that serve altruistic purposes in addition to creating
profits.
1.13 ACTIVITIES FOR THE STUDENTS
There might be some social entrepreneurs in and around your city. Visit
one of them and interview him/her. Make a questionnaire of ten questions
to be asked. Find out the following facts about the venture:
1. When and how the venture started
2. For-profit or no-profit
3. How long it took to take shape
4. Opportunities available and threats faced by the venture
5. Social impact created by the social entrepreneur
6. Any other significant achievements
27

1.14 SUMMARY
In the present scenario, the definition of entrepreneurship includes more
than the creation of an enterprise. It also includes the generation and
implementation of an idea. In the present market, majority of businesses
are information driven. Internet and e-commerce technology changed the
way in which a business operates. Communication has become virtually
free. New technology has opened up new business sectors like online
retailing, outsourcing, call centers, data management, tele-medicines etc.
TodayÕs consumers are becoming increasingly wealthy and knowledgeable.
This has led to increase in demand for variety.
Most business start-ups begin with one main financial objective Ð
to survive. If survival can be assured, then profit is the next most
important financial objective for a new business. Another financial objective
is personal wealth.
The idea of Social Entrepreneurship is that instead of just profit
maximization, a business can be organized around the combination of
social good and profit maximization.
Social entrepreneurship is relatively a new term. It came into notice just a
few decades ago. But its usage can be found throughout the history. In
fact, there were several entrepreneurs like Vinoba Bhave, Robert Owen and
Florence Nightingale who established social enterprises to eliminate social
problems or bring positive change in the society. These days, the concept
of social entrepreneurship has been widely used and that too in different
forms. E.g. Grameen Bank by Muhammad Yunus, Ashoka by Bill Drayton,
Youth United by Jyotindra Nath, Rang De by Ramakrishna and Smita Ram,
SKS Microfinance by Vikram Akula and Andrew Mawson, best known for his
work at the Bromley by Bow Centre. Henry Dunant, a Swiss businessman
and social activist, founder of the International Red Cross was one of the
first social entrepreneurs.
In fact, all big brands and companies are adopting the concept of social
entrepreneurship and trying to address the issues in our society by opening
schools in far flung areas, educating women for family planning, making it
possible for farmers and poor individuals to access low interest credits,
establishing plants for waste treatment, planting trees and going green.
28

Today with social and economic inequality growing worldwide, people are
connected with the idea that it is possible to do business on human scale.
It is possible to make money and do something good for the community.
This idea is called social entrepreneurship. Social enterprises do not serve
to enlarge the wealth of the owners or shareholders. They operate to
contribute to Social equality and to improve the living conditions of people
in the community.
Social entrepreneurs ask Òwhat ifÓ questions such as ÒWhat if we could get
medication to any corner of the world when we can buy a bottle of coke in
any village?Ó and ÒWhat if we could speed up malaria diagnosis by
hundreds of times?Ó As per Bill Drayton, Leading Social Entrepreneur,
ÒSocial Entrepreneurs are not just to give a fish or teach how to fish. They
will not rest until they have revolutionized the fishing industry.Ó
The words charity and social entrepreneurship are not synonymous.
Charity means to redistribute income from the haves to have-nots,
whereas Social entrepreneurship means to be a change agent through
innovative mutually beneficial exchanges creating social values.
1.15 SELF-ASSESSMENT QUESTIONS
1. What are the objectives of an entrepreneur? What is the difference
between the objectives of an entrepreneur and a social entrepreneur?
2. Describe the social impact of the work of Florence Nightingale and
Henry Dunant.
3. Describe the importance of Òwhat ifÓquestions in case of social
entrepreneurs.
4. How do Social Entrepreneurs play the role of change agents in the social
sector?
29

1.16 MULTIPLE CHOICE QUESTIONS
1. Founder of International Red Cross is-------
a. Henry Dunant
b. Florence Nightingale
c. Frank Hoffmann
d. Thorkil Sonne
2. Founder of ÒairbnbÓis ------------.
a. Frank Hoffmann
b. Thorkil Sonne
c. Brian Chesky
d. Henry Dunant
3. Ashoka, The Innovators for the Public is founded by --------------.
a. Jyotindra Nath,
b. Bill Drayton,
c. Ramakrishna and Smita Ram,
d. Vikram Akula
4. Social enterprise places ---------------ahead of increased profits.
a. WorkersÕ safety
b. Political gain
c. Social goals
d. Personal gain
5. Which is the generation born in the 1980s and 1990s, comprising
primarily the children of the baby boomers and typically perceived as
increasingly familiar with digital and electronic technology.
a. Millennials
b. Generation Y
c. Centurions
d. Socialite youth
Answers: 1 (a), 2 (c), 3 (b), 4 (c), 5 (b)
30

REFERENCE MATERIAL
Click on the links below to view additional reference material for this
chapter
Summary
PPT
MCQ
Video Lecture - Part 1
Video Lecture - Part 2
31

BUSINESS AT THE BASE OF THE PYRAMID (BOP)
Chapter 2
Business At The Base Of The Pyramid (BOP)
Objectives:
¥ The importance of BoP markets in the World Economic Pyramid
¥ Ethical, Responsible, & Profitable BoP Business Practices
¥ Contribution of Management Guru, Mr. CK Prahalad
Structure:
2.1 The World Economic Pyramid
2.2 How to tap into the BoP Market
2.3 Ethical, Responsible, & Profitable BoP Business Practices in Healthcare
2.4 How Businesses can Best Operate in Base of the Pyramid (BoP)
Markets
2.5 Contribution of Mr. C.K.Prahalad
2.6 Case Studies
2.8 Summary
32

2.1 THE WORLD ECONOMIC PYRAMID
Figure 2.1
The Base of the above World Economic Pyramid (BoP) refers to the 4 billion
people who earn per capita incomes below $8 per day or less than $3000
per annum, which is the minimum income considered necessary to
maintain a decent life. Among these four billion people, there are 2.7 billion
people who live on less than $2.50 a day. In India, the bottom or the base
is much lower. The poverty line was defined at INR 47.00 ($0.69) per
capita per day for urban areas and INR 32.00 ($0.47) per capita per day in
rural areas. Thus, the bottom of the pyramid is the largest, but
poorest socio-economic group.
This Base of the Pyramid represents a multi-trillion dollar market.
According to World Bank projections, the population at the bottom of the
pyramid could swell to more than 6 billion people over the next 40 years,
because the bulk of the worldÕs population growth occurs there. This is the
strength of the BoP market.
Annual Per Capita Income
$3000 to $20000
Less than $3000
$ 20000
33

2.2 HOW TO TAP INTO THE BOP MARKET
Just imagine, how the companies that want to tap into this latent market
will get benefited. For this, they should strike a balance between profit-
creation for themselves and value-creation for their consumers at the BoP.
In order to appeal to the BoP demographic, companies must design
products and services that are useful and affordable to the people there.
It would be ethical to sell to them the products like mosquito nets, water
filters etc. provided that the basic requirements of usefulness and
affordability are met. At the end of the day, value creation for the BoP
consumers is paramount.
A health store was running a malaria promotion activity. They had offered a
discount on bed nets. They thought they had enough nets to last 2 months.
However, all the nets were sold out in a week itself. In another health
store, pre-promotion traffic was about 200 customers per month. After a
series of promotions, they recorded 1,000 customers per month in steady
traffic. It shows that low income people have ability and willingness to pay
for healthcare; basic business practices work in developing country
contexts; all you need is good training, marketing and dedicated
entrepreneurs.
Hindustan LeverÕs strategy of selling sachet-packaged soaps, shampoos,
and creams to the BoP markets was commendable as an initial step.
Pushing the companyÕs reformulated and repackaged products onto rural
villagers indeed produced incremental sales in the near term. However, in
the long run, this strategy almost failed because the products did not
address the fundamental problems of that market. The business strategy
must be geared towards the development of products and services that
address the fundamental problems of poverty and sustainable
development. Companies must routinely engage in close dialogue with BoP
communities to be in tune with local wants and needs. They must create
value for BoP consumers even as they generate profits for themselves.
NGOs or non-profits pursue social equity whereas private companies aim
for scale and profits. So, NGOs and private companies should form a
powerful alliance to promote these dual aims. NGOs or nonprofits may
harness the entrepreneurial expertise of for-profit executives to help BoP
clients develop effective business enterprises. Private companies, on the
other hand, should hire expertise from NGOs to reach BoP consumers.
34

Examples:
1. Danone has set up a joint venture with Bangladesh's Grameen Bank to
manufacture and sell bottom-of-the-pyramid dairy products.
2. Microsoft has tied up with the NGO Pratham to deliver personal
computers to Indian villagers.
3. Intel and two large Indian information technology firms, Wipro and HCL
Infosystems, have launched the Community PC in partnership with other
NGOs to deliver personal computers to Indian villagers.
4. NestlŽ has joined hands with health professionals and NGOs in
Colombia, Peru, and the Philippines to deliver educational programs on
nutrition and nutritionally fortified food products to the poor.
5. Telenor has teamed up with Grameen Bank to sell cellular telephones to
rural consumers.
6. World Diagnostics found that, in Uganda, it could best sell its HIV, STD,
and malaria test kits through NGOoperated health care networks.
7. The SC Johnson Company has been partnering with youth groups in
the Kibera slum of Nairobi, Kenya. Together SC Johnson and the groups
have created a community-based waste management and cleaning
company, providing home-cleaning, insect treatment, and waste
disposal services for residents of the slum.
8. One of many examples of products that are designed with needs of the
very poor in mind is that of a shampoo that works best with cold water
and is sold in small packets to reduce barriers of upfront costs for the
poor. Such a product is marketed by Hindustan Unilever.
9. One example of "bottom of the pyramid" is the growing microcredit
market in South Asia, particularly in Bangladesh. With technology being
steadily cheaper and more ubiquitous, it is becoming economically
efficient to "lend tiny amounts of money to people with even tinier
assets".
35

2.3 ETHICAL, RESPONSIBLE, & PROFITABLE BOP
BUSINESS PRACTICES IN HEALTHCARE
The private sector plays a vital role in improving the delivery of healthcare
in the BoP markets. However, healthcare businesses that promote medical
practice by non-licensed and unqualified personnel serve as a barrier to
effective healthcare. Patients who unknowingly receive medical treatment
or medical products from non-medical practitioners incur risks of
permanent damage to their health and more substantial barriers to proper
healthcare. The lack of eye care professionals contributes to poor eye care
practices. Attempts at medical care provided by non-medical professionals
can cause great harm to patients. Healthcare businesses that profit from
patient unawareness are unethical and irresponsible, and patients must be
taught to recognize and avoid them. Most living in poverty trust only the
services of traditional healers, chemical sellers, and local community
members.
By delivering innovative, technology-based solutions to the BoP, social
entrepreneurs enhance the quality of life at the BoP. Often, this means
bringing low-cost, life-saving technologies to the people. A healthcare
technologies company, Vestergaard, developed a mosquito net that
releases insecticide into the environment (even after multiple washes), a
technology that has been used with great success at various African sites
to combat malaria. The same company also designed a portable water filter
that provides safe drinking water to millions as well as a pipe filter
technology that purifies drinking water.
The company does not provide these useful technologies free of charge to
the BoP consumers. Rather, they strive to make them available at
affordable prices. A portable water filter that can provide safe drinking
water for a year, for example, costs as little as $5. Moreover, various
financing programs ensure that these technologies reach those who need
them the most. Social entrepreneurship thus revolutionizes the concept of
philanthropy, regarding people at the BoP not as mere recipients of charity
but as business partners.
The role of business is to contribute to economic development and poverty
alleviation. Look at the recent global success of the mobile telephony
industry, and the rapid growth in emerging markets over the last two
decades. More discussions now focus on providing goods and services
36

profitably to the base of the economic pyramid (BOP), like mobile phone
companies have.
We must look at how to structure and commercialize the huge business
opportunities that exist in addressing the inefficiencies of BOP markets,
using a combination of business model innovation (especially around
reduced cost structures), research, entrepreneurship, and patient capital.
2.4 HOW BUSINESSES CAN BEST OPERATE IN BASE OF
THE PYRAMID (BOP) MARKETS
a. One of the biggest errors companies can make is to treat base of the
pyramid (BoP) projects differently from their core business. These
projects should be driven as rigorously and as laser-focused on meeting
the numbers as companies would with "traditional marketsÓ.
b. A business model must hit a target return on investment within a
certain time frame. This is not an easy task and businesses need a huge
amount of patience and the willingness to look beyond traditional short
term metrics.
c. It's vital to understand the needs, demands and constraints of the
target market. Itis necessary to work closely with communities,
adjusting the business model to the local context and understanding the
financial needs of customers.
d. The major challenge BOP units face is where they are based. You
shouldn't run a business in a village from the Mumbai office and have a
standalone cell in the field.
e. Businesses that most successfully serve BOP markets constantly adapt
their products to meet consumer preferences. They found that
customers were much more receptive to their solar products if the cords
were white, not black. It's key to respect everyone as a customer, even
if their purchasing power is low.
f. Though it is about selling stuff to poor people, we have to give these
consumers the freedom and respect to make their own purchasing
decisions.
37

g. It is necessary to take the risk away from the customer. For example,
trust in solar was low, because people had bad experiences. So,There
was a company which decided to sell solar as a service rather than a
product, so the customer could stop paying if the system stopped
working.
h. Greenway Grameen, the Indian social enterprise selling cookstoves,
stands out for improving health, saving people money and providing a
product customers really want and need. We must create good
examples like this in BoP markets.
2.5 CONTRIBUTION OF MR. C.K.PRAHALAD
Figure 2.2
Mr. C.K.Prahalad (CK) was the co-author of the book "The Fortune at the
Bottom of the Pyramid" (with Stuart L. Hart), about the business
opportunity in serving the Bottom of the Pyramid.
38

Figure 2.3
The bottom of the economic pyramid consists of four billion people living
on less than $8 per day. For more than 50 years, the World Bank, donor
nations, various aid agencies, national governments and civil society
organizations have all done their best, but they were unable to eradicate
poverty.
Aware of this frustrating fact, CK begins his book, ÒIf we stop thinking of
the poor as victims or the burden and start recognizing them as resilient
and creative entrepreneurs and value conscious customers, a whole new
world of opportunity will open upÓ. He suggests that four billion poor can be
the engine of the next round of global trade and prosperity and can be a
source of innovations. Serving the BOP customers requires that large firms
work collaboratively with civil society organizations and local governments.
Furthermore, market development at the BOP will create millions of new
entrepreneurs at the grass root level.
39

CK provides the following building blocks for creating products and
services for BOP markets:
¥ Focus on quantum jumps in price performance
¥ Blending old and new technology (Hybrid solutions)
¥ Scaleable and transportable operations across countries, cultures and
languages
¥ Eco-friendly products
¥ Redesign the products from the beginning: marginal changes wonÕt work
¥ Build logistical and manufacturing infrastructure
¥ Educate customers
¥ Products must work in hostile environments like noise, dust, abuse,
electric blackouts, unsanitary conditions and water pollution
As per CK, strengths of the BoP markets are:
¥ It is a viable market: There is money in BoP market
¥ Access to BoP market is not difficult
¥ The poor are very brand conscious
¥ The BoP market is connected (mobile phones, TV, Internet)
¥ BoP customers are very much open towards advanced technology.
¥ BoP markets must become an integral part of the work and of the core
business of the private sector.
With a large number of Indian managers travelling extensively, their choice
of stay was restricted to either expensive hotels or lodges. With the help of
CK, Indian Hotels Company conducted a research to find out the basic
expectation of most travelers and they designed a budget hotel named
Ginger which was born out of his BoP vision.
CK also conducted management programs for the Tata groupÕs senior
management. The result was creation of several products for the lower end
of the market, such as Nano, Tata Swach water filter, Tata housing (Low
cost residential apartments).
40

With the help of CK, HUL developed a soap bar with a coating to make it
waterproof to ensure a longer life. This was to help the BoP consumers in
India.
CKÕs BoP theory came as a revelation for CavinKare too. They created low
price sachets in shampoos.
His contribution is thus, enormous.
2.6 CASE STUDIES
Part 1
Coronavirus and the millions who ate Parle G biscuits as they went
home!
Parle-G biscuits have been catering to the bottom of the pyramid since
1939. It is the worldÕs largest selling biscuit brand, coming in packs costing
as little as Rs2. ItÕs said that if one stacked all the Parle-G biscuits
produced in a month on top of each other, the distance between the Earth
and the moon would be covered. Generations remember dunking the
biscuit in milk and tea or even water for the sudden energy that it
provides.After more than eight decades of its existence, mothers, in
villages and cities alike, still use the omnipresent biscuit not just as a food
item but also as a pacifier for their children.
Pandemic period: A company official told The Economic Times that Parle-
G notched record sales in the lockdown period of March, April and May
when Corona virus pandemic was at peak. It seemed that people turned to
Parle G biscuits in times of crisis, with job losses happening and incomes
falling. With the virus refusing to go away and the lockdown getting
extended, the federal and the state governments were forced to extend the
lockdown in various installments. In this period, factories shut, leaving
laborers, many of whom survived on daily wages, jobless. For several, a
job was their only source of income. This left them with no option but to
head home. As they packed their bags and trudged or took buses and
trains home, they carried packs of that biscuit Ð Parle-G Ð to feed
themselves and their children. In many cases, it would go on to be their
only source of nourishment over journeys lasting thousands of kilometers
in this large country.
41

Another thing that helped Parle Products clinch record sales were the good
samaritans (charitable or helpful persons) buying sacks of biscuits for
distributing to the migrants they would meet on expressways, bypasses
and various roads of the states.
Parle-G became the go-to option for many, while for many it was the only
food option available. "This is a common man's biscuit; people who cannot
afford bread, buy Parle-G," said Mayank Shah, category head, Parle
Products. He added that several state governments also requisitioned
biscuits and several non-governmental organizations also bought in huge
quantities.
Parle believes in large potential market i.e. mass market for product. Mass-
production, mass-distribution and mass-promotion allows Parle to maintain
low-price for Parle-G, while targeting all segments of the market (i.e.
masses).
Part 2
Leveraging Inclusive Business Models to Support the Base of the
Pyramid during COVID-19
Inclusive businesses are companies that develop innovative ways to do
commercially-viable business with people living at the base of the pyramid
(BOP) and to expand access to basic products and services. The COVID-19
crisis is expected to roll back some of the progress made against global
poverty over the last two decades, with the greatest impact on individuals
at the base of the economic pyramid. Inclusive businesses that expand
access to goods, services, and livelihoods for these individuals are
responding to the crisis by reorienting and adapting their inclusive business
models and operations. This note highlights some actions that companies
are taking to address needs at the base of the pyramid.
JK Organisation is a group of companies that includes JK Paper, a paper
and wood products manufacturer that purchases timber grown by small
farmers in some of the poorest districts in India. JK Paper is repurposing its
grassroots marketing and using its staff to deliver health and safety
information to farmers and their communities via public address systems,
and signs and pamphlets in prominent locations. The business group is also
distributing hygiene products, including masks and sanitizers, and
providing ambulance support for government hospitals.
42

DCM Shriram Limited, an Indian agribusiness and chemical
manufacturing company, has set up COVID-19 Ôcontrol roomsÕ in
collaboration with local government administrators. These are monitoring
the health of migrant workers and their families in 50 villages that
surround four of the companyÕs manufacturing plants and providing them
with key information and sanitation kits. Through village-level workers, this
effort has reached over 1,700 migrant workers and their families.
Olam International, a global agricultural supply chain integrator and
commodity trader, is using its online platform to send information and
advice on COVID-19 to smallholder farmers in its supply chain. It is also
using the platform to facilitate online payments to farmers.
Goodlife is a large pharmacy chain in Kenya with neighborhood stores in
high-traffic locations that serve lowto lower-middle-income Ôemerging
consumers.Õ When the COVID-19 crisis started, Goodlife launched
pharmacy-tohome deliveries so that its customers could continue getting
their prescriptions and other healthcare products.
Salauno is an ophthalmology company that provides eyecare to
underserved, low-income patients in Mexico. As a result of the COVID-19
crisis, Salauno is accelerating efforts to provide telemedicine through video
conference platforms such as Zoomand WhatsApp, which enable its medical
personnel to provide care to existing patients and consult with potential
patients.
Visit a slum area in your city and interview as many people as possible
there and find out the following facts:
¥ What are their needs not getting fulfilled even today
¥ Which daily needs are proving very expensive for them
¥ Which cheaper products and services are expected by them but not
available in market
Make your report about what you can do to cater to their needs.
43

2.8 SUMMARY
The Base of the above World Economic Pyramid (BoP) refers to the 4 billion
people who earn per capita incomes below $8 per day or less than $3000
per annum, which is the minimum income considered necessary to
maintain a decent life. Among these four billion people, there are 2.7 billion
people who live on less than $2.50 a day.This Base of the Pyramid
represents a multi-trillion dollar market. The companies that want to tap
into this latent market should strike a balance between profit-creation for
themselves and value-creation for their consumers at the BoP. They must
design products and services that are useful and affordable to the people
there. It would be ethical to sell to them the products provided that the
basic requirements of usefulness and affordability are met. At the end of
the day, value creation for the BoP consumers is paramount. The business
strategy must be geared towards the development of products and services
that address the fundamental problems of poverty and sustainable
development. Companies must routinely engage in close dialogue with BoP
communities to be in tune with local wants and needs. They must create
value for BoP consumers even as they generate profits for themselves. The
role of business is to contribute to economic development and poverty
alleviation.
One of the biggest errors companies can make is to treat base of the
pyramid (BoP) projects differently from their core business. These projects
should be driven as rigorously and as laser-focused on meeting the
numbers as companies would with "traditional marketsÓ.
According to CK Prahalad, ÒIf we stop thinking of the poor as victims or the
burden and start recognizing them as resilient and creative entrepreneurs
and value conscious customers, a whole new world of opportunity will open
upÓ.
44

1. How to tap into the BoP market? Make a list of steps to be taken.
2. Make a short note on Hindustan UnileverÕs strategy for BoP market.
3. Make a short note on contribution of CK Prahalad.
Annual per capita income of mature markets is-------
a. $3000
b. $1000
c. $30000
d. $20000
The poverty line was defined at INR 47.00 per capita per day for urban
areas and INR ------------ per capita per day in rural areas.
a. 32
b. 26
c. 49
d. 15
3. Danone has set up a joint venture with Bangladesh's Grameen Bank to
manufacture and sell ------------------------.
a. Computers
b. Mobile phones
c. Dairy products
d. Mosquito nets
4. Microsoft has tied up with the NGO Pratham to deliver ---------------- to
Indian villagers.
a. Personal Computers
b. Mobile phones
c. Dairy products
d. Mosquito nets
45

5. Telenor has teamed up with Grameen Bank to sell ----------------- to
rural consumers.
a. Cellular telephones
b. Soaps
c. Furniture
d. TV sets
Answers: 1 (d), 2 (a), 3 (c), 4 (a), 5 (a)
46

REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
Video Lecture
47

MAJOR VERTICALS IN SOCIAL ENTREPRENEURSHIP
Chapter 3
Major Verticals In Social Entrepreneurship
Objectives:
¥ Information about various fields in which social entrepreneurship can be
developed.
Structure:
3.1 Community Projects / Enterprises
3.2 Non-profit Organizations
3.3 Social Firms
3.4 Cooperatives
3.5 Social Purpose Businesses
3.6 Credit Unions
3.7 Community Development Finance Institutions
3.8 Development Trusts
3.9 Public Sector Spin-outs:
3.10 Trading Arms of Charities
3.11 Fair Trade Organizations
3.12 Activities for the Student
3.13 Summary
There are many different types of social enterprise business models and
structures which vary according to their core purpose, ownership,
management structure and accountability. These different types of social
entrepreneurship show just how varied the concept can be.
48

3.1 COMMUNITY PROJECTS / ENTERPRISES
These are enterprises which serve a particular geographical community or
community of interest. A community project is a relatively small-scale
effort to address an issue within a specific community. Social,
environmental and economic issues are the primary focus of most
community projects, but the interpretations of what this means can be
quite broad. Anything from an effort to build a community garden in an
affluent suburb to the organization of a volunteer fire department in a
poverty-stricken rural area can fall under the umbrella of a social
entrepreneurship community project.
Community projects are one of the best examples of the idea that anyone
can be a social entrepreneur. You donÕt need a business degree, power or
connections to affect change where you live. All you need is
the entrepreneurial initiative, creativity, tenacity, and commitment to see a
project through to completion.
Some ideas regarding Community Projects
a. Social Supermarket: Create a food market that sells food to low-
income communities at a discounted price. Discounted food is donated
(or purchased very cheaply) from food suppliers and other
supermarkets, who cannot sell the food themselves for a variety of
reasons such as approaching expiry dates, dented cans, and product
mislabeling.
49

b. Used textbooks for social change: Partner with student groups/clubs
to collect used textbooks at the end of each semester. Students donate
their used textbooks. Some of the textbooks are re-sold to students at
the college/university of their collection source; some of the textbooks
are donated to students in need at underserved universities in the
developing world. The profits are split between the student groups/
clubs, program administration costs, and any remaining funds are used
to support social programs in developing communities.
c. Sustainable water: Build small water purification stations in
communities in developing countries using off-the-shelf products. Initial
funds to build it can come from traditional charitable methods, or
through debt/equity financing; the communities can be partial owners
(or full owners, if using cooperative business model). Ongoing costs to
maintain and staff the water station come from the sale of purified
water to its beneficiaries, but at near break-even levels, costing almost
nothing for the beneficiaries.
d. Baking/cooking for a social cause: Open a bakery/restaurant or
another food-providing establishment that focuses on building
employment skills for underemployed groups, such as at-risk youth or
former drug addicts. The profit from sales of food and beverage go to
wages, training, and social betterment programs for the staff-
beneficiaries.
e. Efficient wood stoves: Millions of women suffer from cardiopulmonary
diseases as a direct result of breathing in wood smoke on a daily basis.
Build a more efficient stove to solve this problem. Sell the stoves at or
above market rate to those who can afford it, and use the money from
the sale of the stoves to partly subsidize the cost for those who cannot
afford it. (Pradhan Mantri Ujjwala Yojana is a scheme of the Ministry of
Petroleum & Natural Gas for providing LPG connections to women from
Below Poverty Line (BPL) households).
50

Figure 3.2
f. Beauty Products: Partner with major beauty brands to sell their
products as an online retailer. Convince them to provide their products
to you at a favorable wholesale rate, and divert the profits to purchasing
milk and baby bottles for distribution in BoP market.
Some examples of Community Projects in India
1. ERC Eye Care: ERC offers accessible, affordable and inclusive Òon
demandÓ eye care to the rural population of North- East. It has a
network of rural Vision Centers and mobile unit, which is connected to
city based hospitals.
51

2. SAS Poorna Arogya Healthcare Pvt Ltd: SAS-PAP is a community
based healthcare program to provide low cost healthcare services to
urban and rural poor. The program is designed and being implemented
by SAS Poorna Arogya Healthcare in collaboration with NGOs/MFIs and
network of partner hospitals. SAS-PAP has been running a successful,
innovative, and self sustaining affordable healthcare model in the state
of Karnataka form 2010. Till date it has 431,258 members among whom
263,124 are women, 42,681 are children and 125,453 are men. Its
primary focus is to provide healthcare to women.
3. Seven Sisters Development Assistance (SeSTA): SeSTA believes
that engagement of well educated meaningful people at grassroots is
most crucial for development of poor and marginalized communities.
SeSTA recruits young professionals and grooms them as development
professionals through its one year in-house training programme. SeSTA
mobilizes women from poor and marginalized communities in the form
of SHG, village level organizations and block level SHG Federations and
builds their capabilities around livelihood (agriculture, livestock and skill
development) so that they can enhance their income.
4. Providing Plastic Water Tanks: In a village in Maharashtra, there was
severe shortage of water. One of our students convinced his father to
spend money from their account to create a borewell for the benefit of
his community there. The borewell got huge amount of water. He then
convinced his father to buy eight plastic water tanks to create storage of
water. He placed the water tanks near each and every colony and gave
borewell connections to them. Thus he solved the water problem in his
community.
5. Dharnai, Bihar: Dharnai, a village in Bihar, is IndiaÕs first fully solar
powered village. Dharnai is a small village with 2400 people. Located
near Bodh Gaya in BiharÕs Jehanabad district, it didnÕt have access to
electricity. But a few years ago, the villagers took things in their own
hands and changed their fate forever. Once struggling to get basic
electricity like most villages in India, Dharnai has now changed its fate
and become the first village in India to completely run on solar
power. Residents of Dharnai had been using diesel-based generators
and hazardous fuel like cow dung to meet the electricity requirement for
decades, which were both costly and unhealthy. Since the launch of
GreenpeaceÕs solar-powered 100 kilowatt micro-grid in 2014, quality
52

electricity is being provided to more than 2,400 people living in this
village in Jehanabad district.
6. Payvihir, Maharashtra: An obscure village in the foothills of Melghat
region of Amravati district in Maharashtra, Payvihir, has set an example
for the country by consistently showing how communities and NGOs can
work together to conserve the environment and ensure sustainable
livelihood for people. Khoj, a partner of AID (Association for IndiaÕs
Development) has been working with the communities in the area since
1996. AID has supported the work of Khoj since 2008 and the eco
villages since 2011. Volunteers have also connected them to C
Srinivasan who works extensively on waste management across India.
¥ Khoj facilitated the recognition of 190 hectares of land under Forest
Rights Act (2006), which gives rights to the Gram Sabha to regenerate,
manage and use non-timber produce from the land sustainably
¥ The villagers, with the help of Khoj planted 50,000 trees and tended to
them under Mahatma Gandhi National Rural Employment Guarantee
Act (MGNREGA)
¥ Villagers also constructed check dams and other soil & water
conservation structures (continuous collecting trenches and water
absorption trenches) using MGNREGA funds
¥ Overgrazing is a major reason for deforestation. Village committees
have demarcated specific areas for grazing and routinely guard
afforested areas.
¥ Planting fodder has helped with rearing cattle. Cattle dung is used for a
piped distribution bio-gas system in the village to reduce dependence
on forest for fuel
¥ Zero waste generation in the village
In 2014, Payvihir bagged the Biodiversity Award from the United
NationÕs Development Programme for turning a barren, 182-hectare land
under community forest right, into a forest. Recently, the village also
came up with an out-of-the-box idea of selling organic sitafals (custard
apples) and mangoes in Mumbai under their brand Naturals Melghat!
53

7. Hivre Bazaar, Maharashtra:
Figure 3.4
Amid the desperate denizens scrounging for water in the drought-
affected parts of Maharashtra stands a village that has not felt the need
to call a single water tanker Ð in fact, it hasnÕt called for one since 1995.
The village also has 60 millionaires and the highest per-capita income in
India. Facing a major water crisis each year because of the measly
rainfall it gets, the village decided to shun water-intensive crops and
opted for horticulture and dairy farming. Their consistent water
conservation initiatives led to rising groundwater levels and the village
started to prosper. Today, the village has 294 open wells, each brimming
with water just as the village brims with prosperity.
8. Odanthurai, Tamil Nadu: Odanthurai, a panchayat situated in
Mettupalayam taluk of Coimbatore district, has been a model village for
the other villages for more than a decade. The panchayat has not only
been generating electricity for their own use, but also selling power to
Tamil Nadu Electricity Board. Having already won international acclaim
through its unique welfare schemes and energy self-sufficiency drives,
Odanthurai near Mettupalayam has begun efforts to develop a corpus of
Rs 5 crore to install wind and solar energy farms. This project will
enable free supply of electricity to over 8,000 residents.
54

9. Chizami, Nagaland:A small village in NagalandÕs Phek district, Chizami
has been scripting a quiet revolution in terms of socioeconomic reforms
and environmental protection for almost a decade. A model village in
the Naga society, Chizami is today visited by youth from Kohima and
neighbouring villages for internships in the Chizami model of
development. In 1994, Monisha Behal, womenÕs rights activist and
founder of North East Network (NEN), landed in Nagaland to improve
womenÕs health standards in the state.NEN, (North East
Network)working with CWS (Chizami WomenÕs Society), started skill
enhancement programmes such as bamboo craft, food processing,
organic farming, rooftop water harvesting and low-cost sanitation.
Discourses on governance, women empowerment human rights issues
were also organized. What is unique in the Chizami model of
development is that marginalised women have played an important role
in bringing about this socio-economic and sustainable transformation
that is rooted in traditional practices of the state.
10.Gangadevipalli, Andhra Pradesh: If India lives in its villages, then
the model it perhaps must follow is Gangadevipalli, a hamlet in Andhra
PradeshÕs Warangal district where every house has the bare necessities
of life, and more. From regular power and water supply to a scientific
water filtration plant, a community-owned cable TV service and
concrete, well-lit roads, this model village has been steadily gaining in
prosperity thanks to a disciplined and determined community that has
also managed to work in harmony towards goals set collectively.
55

3.2 NON-PROFIT ORGANIZATIONS
The exact structure of a non-profit organization is likely to differ based
on legal jurisdiction, but on the whole, non-profit organizations exist not
to generate revenue for shareholders and stakeholders but to
create an enterprise focused on a specific cause. One common
misconception is that non-profit organizations funnel all the donations they
receive into their mission, but this isnÕt the case. Executive leadership for
large non-profits can often be quite well compensated; their income
generally isnÕt nearly as high as that of the leader of a comparably sized
organization in the private sector, but nonprofits do spend money
on operational expenses like salaries, marketing, and offices. Any extra
revenue is put back into the organizationÕs endowment or reinvested in
other ways rather than paid out to shareholders.
Aside from operations, though, nonprofits are bound by duty and often by
law to use the income they generate to address issues relating to their
mission. Non-profits may focus on specific issues, such as the treatment of
a rare disease or their missions may be a bit more general and focused
on broad categories such as social impact, early childhood education,
womenÕs health, and cancer research.
Examples of Non-profit Organizations in India
¥ Bharatiya Jnanpith
¥ Bangalore Astronomical Society
¥ The C.P.Ramaswami Aiyar Foundation
¥ Free Software Foundation, Tamil Nadu
¥ NASSCOM
¥ HelpAge India
¥ Indian Cancer Society
¥ Kerala Sahitya Akademi
¥ Khel Khel Mein Foundation
¥ Pune District Education Association
56

3.3 SOCIAL FIRMS
Social firm is another name for a work integration social enterprise (WISE),
a business created to employ people who have a disability or are otherwise
disadvantaged in the labour market. Its commercial and production
activities are undertaken in the context of a social mission, with profits
going back into the company to further its goals. A significant number of
the employees of social firms will be people with a disability or
disadvantage, including psychiatric disabilities. All workers are paid a
market-rate wage or salary that is appropriate to the work. All employees
are intended to have the same employment opportunities, rights and
obligations.
Examples:
¥ The Raw Carrot Soup Enterprise: The purpose of The Raw Carrot is to
provide employment for individuals with disabilities. The vehicle through
which this happens is the sales of gourmet soup. The Raw Carrot Soup
Enterprise currently has 3 kitchen locations (ministries/franchises) in
Paris, Mt. Forest & Kitchener Ontario with 3 more in process.
Figure 3.5
¥ SoFA (Social Firms Australia) is a not-for-profit organisation
committed to creating accessible, durable employment for people with a
mental illness or disability, with a particular focus on assisting people
with a mental illness. SoFA works to create accessible employment by
supporting organisations to establish social firms and by providing
assistance in the support required for employees with a mental illness.
57

3.4 CO-OPERATIVES
A cooperative is "an autonomous association of persons united voluntarily
to meet their common economic, social, and cultural needs and aspirations
through a jointly-owned and democratically-controlled enterprise"
Cooperatives may include:
¥ Businesses owned and managed by the people who use their services
(a consumer cooperative)
¥ Organizations managed by the people who work there (worker
cooperatives)
¥ Multi-stakeholder or hybrid cooperatives that share ownership between
different stakeholder groups. For example, care cooperatives where
ownership is shared between both care-givers and receivers.
Stakeholders might also include non-profits or investors.
¥ Second- and third-tier cooperatives whose members are other
cooperatives
¥ Platform cooperatives that use a cooperatively owned and governed
website, mobile app or a protocol to facilitate the sale of goods and
services.
¥ Examples of Cooperatives in India:
¥ Aavin is the trademark of the Tamil Nadu Co-operative Milk Producers'
Federation Limited. Aavin procures milk, processes it and sells milk and
milk products to consumers.
¥ Adarsh Co-operative Bank: It is a Multi-State Co-operative Bank that
had begun operations in 1972, at Sirohi of Rajasthan with a motive to
create an autonomous association of persons united voluntarily to meet
their common, economic, social and cultural needs.
58

¥ Anand Milk Union Limited or Amul is considered one of the largest co-
operatives of India today. is an Indian dairy company, based at Anand in
the state of Gujarat. Formed in 1948, it is a cooperative brand managed
by a cooperative body, the Gujarat Co-operative Milk Marketing
Federation Ltd. (GCMMF), which today is jointly owned by 3.6 million
milk producers in Gujarat. Amul spurred India's White Revolution, which
made the country the world's largest producer of milk and milk products.
¥ Horticultural Producers' Cooperative Marketing and Processing
Society, popularly known by its acronym, HOPCOMS, is a farmers'
society founded in 1965 for the direct marketing of farm produces. The
society is headquartered in Lalbagh, Bengaluru, in the south Indian state
of Karnataka and its activities are spread in the districts of Bangalore
Urban, Bangalore Rural, Kolar, Ramanagarand Chikkaballapura.
¥ Indian Coffee House is a restaurant chain in India, run by a series
of worker co-operative societies. It has strong presence across India with
nearly 400 coffee houses.
¥ KRIBHCO: is an Indian cooperative society that manufactures fertilizer,
mainly urea.
¥ Shri Mahila Griha Udyog Lijjat Papad, popularly known as Lijjat, is
an Indian women's cooperative involved in manufacturing of various fast-
moving consumer goods. The organisation's main objective is
empowerment of women by providing them employment opportunities.
Figure 3.7
59

3.5 SOCIAL PURPOSE BUSINESSES
Some businesses founded to both generate profit and affect some sort of
change for the good of the general public or a specific group of people in
need of assistance. An organization that strives to strike an ideal balance
between for-profit organizations and non-profit programs is known as
a social purpose business. Social entrepreneurs who follow this route
believe that the pursuit of financial gain doesnÕt have to be at odds with
ethical, conscience-focused action. These kinds of businesses tend to
attract impact investors. Impact investing" operates much like any
traditional business investment or venture capital effort, only with the
added concern of generating social good. An impact investor will want to
ensure that their investment goes toward a business model thatÕs not only
likely to succeed but also likely to succeed in its mission of
affecting positive change.
3.6 CREDIT UNIONS
A credit union is a type of financial co-operative. Ranging in size from
small, volunteer-only operations to large entities with thousands of
participants, credit unions can be formed by large corporations,
organizations and other entities for their employees and members. Credit
institutions are created, owned and operated by their participants.
Credit unions follow a basic business model: Members pool their money Ð
technically, they are buying shares in the cooperative Ð in order to be able
to provide loans, demand deposit accounts, and other financial products
and services to each other. Any income generated is used to fund projects
and services that will benefit the community and interests of its members.
3.7 COMMUNITY DEVELOPMENT FINANCE INSTITUTIONS
These are providers of loans and other types of investment primarily for
social enterprises and other small businesses.
3.8 DEVELOPMENT TRUSTS
These are community enterprises which aim to develop a community,
usually through the ownership and management of property.
60

3.9 PUBLIC SECTOR SPIN-OUTS
A Òspin-outÓ is no different from any start up company. The only distinction
is that a spin-outÕs employees used to work in the public sector, for
example in government or healthcare, and have branched out on their own
selling things or providing services in the open, ie private sector market.
These are independent social enterprises set up to deliver services that
were previously provided by public sector organizations. Also known as
'externalized' services.
3.10 TRADING ARMS OF CHARITIES
A set up to undertake trading activity in order to raise money for the
charity parent company e.g. charity shops, catalogs, training and
consultancy. Developing trading activities and earning income that can help
meet the charitable aims. With austerity and funding cuts that will continue
for years to come, more and more charities are considering whether to set
up a trading arm (subsidiary) to become more sustainable and reduce
reliance on ever decreasing grant funding.
3.11 FAIR TRADE ORGANIZATIONS:
Fair trade is a trading partnership, based on dialogue, transparency and
respect, that seeks greater equity in international trade. It contributes to
sustainable development by offering better trading conditions to, and
securing the rights of, marginalized producers and workers. Fair Trade
Forum Ð India (FTF-I) is the National Network for Fair Trade in India. It
works with more than 200,000 producers Ð artisans and farmers Ð through
more than 100 member organizations. FTF-I is a not-for-profit
organisation, registered under the Societies Registration Act 1860. They
are committed to ensuring that producers are paid a fair price for what
they produce.
61

After reading this chapter, you must have been motivated to think about
starting some social enterprise yourself. Make a write up as to which type
of social enterprise would best suit your aptitude, and in which you are
sure to make a good social impact.
62

3.13 SUMMARY
There are many different types of social enterprise business models and
structures which vary according to their core purpose, ownership,
management structure and accountability. These different types of social
entrepreneurship show just how varied the concept can be. The different
types of social enterprise business models and structures are as follows:
¥ Community Projects / Enterprises
¥ Non-profit Organizations
¥ Social Firms
¥ Cooperatives
¥ Social Purpose Businesses
¥ Credit Unions
¥ Community Development Finance Institutions
¥ Development Trusts
¥ Public Sector Spin-outs
¥ Trading Arms of Charities
¥ Fair trade organizations
Anyone can be a social entrepreneur. You donÕt need a business degree,
power or connections to affect change where you live. All you need is
the entrepreneurial initiative, creativity, tenacity, and commitment to see a
project through to completion.
63

1. Make short notes on:
a. Social supermarket
b. Seven Sisters Development Assistance
c. Hivre Bazaar
2. What are public sector spin outs?
3. What is the business model followed by credit unions?
1. Anything from an effort to build a community garden in an affluent
suburb to the organization of a volunteer fire department in a poverty-
stricken rural area can fall under the umbrella of -------------.
a. Credit Union
b. Development trust
c. Cooperatives
d. Community project
2. ERC eye care is a:
a. Credit Union
c. Cooperatives
3. The Raw Carrot Soup Enterprise is:
a. Community project
b. Social firm
c. Cooperative
d. Development trust
64

4. Anand Milk Union Limited or Amul is:
a. Cooperative
b. Credit union
c. Social firm
d. Public sector enterprise
5. ----------------- is a type of financial co-operative. Ranging in size from
small, volunteer-only operations to large entities with thousands of
participants, ------------- can be formed by large corporations,
organizations and other entities for their employees and members.
a. Credit Union
c. Cooperatives
Answers: 1 (d), 2 (d), 3 (b), 4 (a), 5 (a)
65

REFERENCE MATERIAL
chapter
Summary
PPT
MCQ
Video Lecture
66

FROM A GOOD IDEA TO A GOOD START
Chapter 4
From A Good Idea To A Good Start
Objectives:
¥ How to get a good idea
¥ Steps for a successful start of the business
Structure:
4.1 A Good Idea
4.2 Research Your Issue
4.3 Establish a Solid Business Plan
4.4 Find out the Funding Options
4.5 Seek Ongoing Support from a Mentor
4.6 Hire the Right People
4.7 Build a Company Culture
4.9 Summary
My dear students,
After studying the first three chapters, now you are on the way to become
an aspiring entrepreneur and you have a passion for a social or
environmental issue. Let me tell you that there are infinite opportunities
available and they are growing day by day. Starting up a Social Purpose
Business allows you to leverage your entrepreneurial principles to organize,
mobilize and manage a for-profit business that supports social change.
Let us now discuss the steps to be followed for starting a social purpose
business.
67

4.1 A GOOD IDEA
Figure 4.1
As discussed in the chapter No. 1, crazy social entrepreneurs ask Òwhat ifÓ
questions.
¥ What if we could get medication to any corner of the world when we can
buy a bottle of coke in any village?
¥ What if we could speed up malaria diagnosis by hundreds of times?
¥ What if everybody could stay overnight at everybody elseÕs place so that
we build more tolerance and understanding a trust between the people?
¥ What if we stop treating millions of street children as victims and come
up with mobile schools that teach them directly on the streets?
¥ What if we use the talents of the blind to detect breast cancer?
¥ What if people with autism who are incredibly good at quality testing in
software development are utilized for these jobs?
¥ What if we start a recycling business that helps reduce the amount of
plastic water bottles in landfills? It can resonate with a wide audience, in
turn making a greater positive impact on the environment.
¥ My dear students,
¥ You also ask Òwhat ifÓquestions.
68

Examples of good ideas of social issues:
¥ Christine Poirier of Montreal, Quebec, designed her own nursing top
to feel more comfortable breastfeeding in public. Her desire to help other
women have positive breastfeeding experiences is what inspired Christine
to co-found Momzelle, which makes quality, fashionable nursing apparel,
sponsors breastfeeding events across North America and donates tops to
womenÕs centers.
¥ Paani Foundation: We come across a celebrity who uses not just his
face and his goodwill, but also his brains to be able to do something to
make the world a better place. A great example of this is the work which
Aamir Khan is doing with the Paani Foundation, which is battling the
water shortage in Maharashtra by systematizing watershed management
to tackle drought , which has been around for many years. What makes
Aamir's initiative praise-worthy is that he is leveraging his public persona
intelligently. He realizes that the impact a celebrity has can be quite
transitory , which is why the Paani Foundation insists that the villager do
the work themselves - they need to take ownership of the solution if the
changes need to be long-lasting.
Figure 4.2
¥ Farm2Food Foundation: The brainchild of Deep Jyoti Sonu Brahma, the
Farm2Food foundation runs the Òfarmpreneur programÓ in government
schools to encourage children to create and take charge of school
gardens. Training them in technical farm skills, organic farming and
agricultural trade, the idea is to inspire children to take up agriculture as
an occupation.
69

Figure 4.3
¥ Carers Worldwide Started by Anil Patil: Anil highlights and tackles
the problems faced by Ôcare-giversÕ. There is an increasing need for
quality long-term care for people with chronic illnesses and disabilities.
Usually, family members or friends play the role of Ôcare-giversÕ. But it is
not easy being one, as the pressure on carers is high and they do not
have a support system. This is where Carer Worldwide steps in, by trying
to create a world-wide network of carers who can create a helpful
ecosystem for each other and augment their incomes.
¥ LeapForWord : To help students in rural India learn English and unlock
their potential, Pranil Naik has designed a unique, plug-and-play model
which democratizes teaching and learning of English. From curriculum
and delivery mechanism to after school classes, Naik has created an easy
atmosphere for learning.
Figure 4.4
70

¥ World Health Partners (WHP): It identifies and orchestrates the
relationship between different stakeholders including informal medical
provider to create a robust network of healthcare centers under a
common brand name, ÒSkyÓ, in under served and remote areas. WHP
equips informal healthcare providers with medical knowledge and
diagnostic skills, who act as the first line of healthcare defense for the
poor.
¥ Adhyayan: One of the fundamental problems with the public education
system is accountability of teachers and administrators. School-audits
are conducted but are not always effective. Kavita Anand is
fundamentally transforming the way school audits take place to become
a powerful tool in the hands of every school. By placing the process of
audits in the hands of ÔinsidersÕ in schools, like parents, staff and
students, she is shifting it from a process of scrutiny to that of self-
evaluation and reflection. After the review process an action plan is
created to chart the course of improvement of each school.
Some more ideas:
¥ Paying women togo to free clinics
¥ Deliveringsolar electricity to villages
¥ Educating poor girls
¥ Helping farmers toget fair prices
¥ Giving clean drinking water to people
¥ My dear students, you might be losing sleep or getting concerned about
some social problems. E.g.
¥ There might be frequent accidents on a particular street, where there is
neither a traffic police nor a signal nor a speed breaker.
¥ Because of the stray dogs, so many senior citizens or school-going
children might be getting hurt while commuting on the road.
¥ So many senior citizens who are well to do, have become lonely because
their children have settled in USA or in Australia. There is no one to take
care of them when they are not well due to some health issue.
¥ There are many such concerns. Make a list of them. You are inspired by
something. Ask Òwhat ifÓ questions. You want to do something good for
the society. Choose a social issue of your choice. You can change India to
make it a better place to live.
71

4.2 RESEARCH YOUR ISSUE
Even if you have personal experience with the social issue you are hoping
to solve, take the time to do your research.
¥ What is your target market, and what assumptions are you making about
it?
¥ Is there a real need for your Social Purpose Business?
¥ What is your competition and how will you stand out from it?
¥ What is the value you want to bring to your customers?
For this, you have to perform the following activities:
a. Market research and analysis: Varied information about the consumer
and the market using the market research analysis technique could be
easily ascertained. Listed below are few of them:
¥ Prevailing trends in the Market.
¥ Market Segmentation.
¥ Market information on product prices.
¥ Analysis about the business strength, weakness, opportunities as well
as threat.
¥ Market research analysis on products, consumer accounts, and
competitor.
b. Feasibility studies: A feasibility study tests the viability of an idea, a
project or even a new business. The goal of a feasibility study is to
emphasize potential problems that could occur if one pursues
a project and determine if, after considering all significant factors, the
project is a good idea. Feasibility studies also allow a business to
address where and how it will operate, potential obstacles, competition
and the funding needed to get the business up and running. For
example, a small school looking to expand its campus might perform a
feasibility study to determine if it should follow through, considering
material and labor costs, how disruptive the project would be to the
students, the public opinion of the expansion, and laws that might affect
the expansion.
72

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