doing business the old way is not good

1. Social Entrepreneurship : An
Emerging Intervention to
Rural Development
By
Dr. L. Murali Krishnan, Division of
Agricultural Extension, ICAR-IARI,
New Delhi -12

2. Out line
 Introduction
 Social Entrepreneurship – concepts
 Areas for social enterprises
 Social Entrepreneurship’s Model
 Essential components of Social
Entrepreneurship
 Social Entrepreneurship in Agriculture
 Historical Examples of Social Entrepreneurs
 Challenges and Opportunities in social
Entrepreneurship
 Conclusion

3. Introduction
 Indian economy has been witnessing rapid
growth since the onset of liberalizations
 Globalization enables the market opportunities
in world wide
 Unfortunately ( India’s 65% of population live in
rural India. Most of them are poor ) social and
environmental problems of the country are
increasing with changes in technology and
increasing competition

4. Cont…
 Social Enterprise integrates social aims with
economic development opportunities for Rural
development
 Innovator with social welfare get opportunities
and turn as a social entrepreneur for inclusive
economic development
 Social leadership (social influential value )
helps the convergence of various organizations
for inclusive development of poor and
marginalized sectors

5. Cont….
 The World Bank survey (2008), India is home to
33% of the global poor, with 828 million people
living with less than $2 a day
 Change is not changeable
 Changing paradigm shift of Indian society
 In 1960-1980-Agricultural Revolution
 In 1980-2000-Industrial Revolution
 In 2000-2014-Information based Social
Revolution

6. What is social entrepreneurship?
 The “Entrepreneurs are catalysts and innovators
behind economic progress”. “Entrepreneurs
create value”
 Social entrepreneurs; catalysts and innovators
behind social and economic progress
 Social entrepreneurship is the activity of
establishing new business ventures to achieve
social change. The business utilises creativity and
innovation to bring social, financial, service,
educational and community benefits
 (Talbot, Tregilgas & Harrison, 2002)


7. Definition
“Social Entrepreneurship is recognizing and
resourcefully pursuing opportunities to create a
social value”
- Professor G. J.
Dees. 1980.
“Social Entrepreneurship is the practice of
responding to market failures through
transformative and financially sustainable
innovations aimed at solving social problems”
- Andrew M.

8. Characteristics of a Social
Entrepreneur
 Develop new models and pioneer new
approaches to enable them to overcome
obstacles
 Take innovative approaches to solve social
issues
 Transform communities through strategic
partnerships
 Not bound by sector norms or traditions
 Not confined by barriers that stand in the
way of their goals

9. Elements of Social Enterprise
 Social enterprises are not charities or welfare
agencies
 private businesses established by entrepreneurs
 Encouraging community participation, inclusion
and utilising a bottom-up approach
• Utilises sound (social capital ) commercial business practices to ensure
sustainability i.e. the business will naturally uphold and encourage environmental
sustainability as well as ethical considerations

10. What are all the areas for Social
enterprises?
 Social entrepreneurs find opportunity in most
economic sectors. The growth areas for social
enterprises are,
 Environmental
 Food and agriculture
 Housing
 Health and care
 Information services
 Financial services
 Training and business development
 Manufacturing

11. Social Enterprise - sector
analysis

12. Social Entrepreneurship’s
Model

13. Private Sector
Utilizes markets
to exchange goods
& services for
profit
Public Sector
Respond to market
failures by providing
public goods and
services or through re
distribution
Voluntary Sector
Engage individuals
in action to
achieve
social impact
Andrew M. Wolk (2007) - US Small business Administration
Private Sector
Utilizes markets
to exchange goods
& services for
profit
Public Sector
Respond to market
failures by providing
public goods and
services or through re
distribution
Voluntary Sector
Engage individuals
in action to
achieve
social impact
Private Sector
Utilizes markets
to exchange goods
& services for
profit
Public Sector
Respond to market
failures by providing
public goods and
services or through re
distribution

14. Blurring Sectors : Trends Creating ground for
Social Entrepreneurship to emerge
Private Sector
Voluntary
sector
Public
Sector
Call for business
ethics
Reliance on
business
and
Non profit
service
providers
Accountability
sustainability
PPP CSR

15. Essential components of Social
Entrepreneurship
1. Response to Market Failure
2. Transformative innovations
3. Financial sustainability
Ref: Andrew M. Wolk, 2007 - US Small Business Administration

16. 1. Response to Market
Failure
 Social Entrepreneurs address market failures
 They identify opportunity and act upon them
 They pursue social value rather than purely
economic value
 They target underserved, neglected or highly
disadvantaged population

17. 2. Transformative innovations
 Social Entrepreneurs are change
agents
 They will address root causes of social
problem
 They will change the social system
which create and continue problem.
 Transformative change can be
national, global or even local with
strong impact

18. 3. Financial sustainability
 Dependency Model-
Depending primarily on philanthropy, voluntarism and government
subsidy
 Sustainability Model-
A combination of philanthropy, subsidy and earned income strategies
 Self sufficiency Model-
Depending solely on earned income strategies

20. Timeline of Relevant social
innovations in Agricultural sector
 1837 – John Deere invents steel plough
 1863 – International "Corn Show" in Paris with
corn varieties from different countries
 1866 – Gregor Mendel publishes his paper
describing Mendelian inheritance
 1871 – Louis Pasteur invents pasteurization
 1895 – Refrigeration for domestic and
commercial food preservation introduced in
the United States and the United Kingdom

21. Social Entrepreneurship in Agriculture
 Role in the Future with Special Regards to the
Agriculture and Energy Sectors
 Sophisticated technology is needed in farming
sector
 Agricultural production should be market oriented
 Natural resource conservation (water and land )
 Rural women play a vital role in farm and home
system
 Small land holdings fit for precision agriculture.
Need for developing small farmers consortiums

22. Cont
 It contributes substantially in the physical aspect of farming,
livestock management, post harvest and allied activities
 Micro Enterprise development related to agriculture and
allied agricultural activities like cultivating to organic
vegetables, flowers, mushroom growing and beekeeping
 Some more areas can be like dehydration of fruits and
vegetables, canning or bottling of pickles, chutneys, jams,
squashes and other products that are ready to eat
 Micro-Enterprise development related to livestock
management activities
 like diary farming, poultry farm, livestock feed production
and production of vermi composting

23. Social Entrepreneurship model for
Agriculture

24. Factors behind the emergence of Social
Enterprise Sectors in Agriculture
1. Political Environment: The extent of the
government’s role
2. Legal environment: The ease of experimentation
3. Social Environment: The Presence of widespread
focus on socio-economic problems
4. Cultural Environment: The presence of an active
Civil Society and of linkages with countries bearing
developed Social Enterprise sectors
5. Institutional Environment: The presence of a
supporting eco-system of enabling organizations
Political Environment

25. Historical Examples of Social
Entrepreneurs
1. Mr. William Bill Drayton
2. Dr. Varghese Kurien
3. Professor Muhammad Yunus
4. Mrs. Ela Ramesh Bhatt

26. Ashoka: Innovators for the Public
 Founded in 1980 by Bill Drayton in Washington
 He created and pioneered the global field of
social entrepreneurship
 He is responsible for the rise of the phrase
"social entrepreneur”
 He invest in social entrepreneurs with
innovative solutions that are sustainable and
replicable, both nationally and globally

27. What Ashoka does?
Supporting Social
Entrepreneurs
Promoting Group
Entrepreneurship
Building Infrastructure
for the Sector

28. Selection Criteria
1. The Knockout Test
2. Creativity
3. Entrepreneurial Quality
4. Social Impact of the Idea
5. Ethical test
William Bill Drayton

29. Ashoka: Innovators for the
Public
 Established programs
in over 60 countries
and supports the
work of over 2000
Fellows
 Employs 160 staff in
25 regional offices
throughout Africa,
the Americas, Asia,
Europe, the Middle
East, and North Africa

30. Dr. Varghese Kurien
1. Milkman of India.
2. Father of white revolution.
3. Architect of operation flood
4. 1989 world food prize laureate

31. Social problem
 Lack of economic freedom to the
dairy farmers
 They were on the clutches of
middle man
 They were not organized
 They were not having control over
production, procurement and
marketing

32. Transformative innovation
 Milk producers
cooperative societies
at the village level
and a processing unit
called a ‘union’ at
the district
level.(1946)
 The first products
with the Amul brand
name were launched
in 1955
Prime Minister Jawaharlal
Nehru inaugurates the Anand
Plant

33.  Gujarat Cooperative
Milk Marketing
Federation Limited
(GCMMF Ltd.)1973
 Replication of the
Anand pattern
through the
Operation Flood
programme

34. Impact of Operation Flood
 It has helped dairy farmers direct their own
development and Increased nutritional status of
people
 Development of national milk Grid and Reduced
regional & seasonal price fluctuation
 Farmers were ensured with maximum share of
money which consumers pay
 Making dairying India’s largest self-sustainable rural
employment programme
 Bringing India close to self-sufficiency in milk
production,
 To make India the world’s largest milk producer

35. 1. Banker to poor
2. Founder of Grameen Bank
3. 2006 Nobel peace prize laurite
Professor Muhammad Yunus
Social
Problem
•Poverty (created by institutions and the policies)
•Women in Bangladesh were neglected by society
•Conventional banking rejected poor by classifying
them as ‘not credit worthy’.

36. Transformative innovation
Origin of Grameen Bank Project
 It was established in the village of Jobra,
Bangladesh, in 1976.
 In 1983 it was transformed into a formal bank
under a special law passed for its creation
 It is owned by the poor borrowers of the bank
who are mostly women
 Borrowers of Grameen Bank at present own 95
percent of the total equity of the bank

37. What does Grameen Bank do?
 It provides financial services to the
rural poor of Bangladesh
 Overall goal of Grameen Bank is
elimination of poverty
 It promotes credit as human right
 It is not based on any collateral or
legally enforceable contracts

39. Method of action
1. Credit system must be based on survey of the
social background
2. Establish priority; serve the most poverty
stricken people
3. At beginning restrict credit to income-
generating production operations
4. Make it possible for the borrower to be able to
repay the loan
5. Lean on solidarity groups
6. Invest in human resources

40. Transformative innovations
 Grameen credit is based on the premise that
poor have skills which remain un utilized or
under utilized
 It believes that charity is not an answer to
poverty
 It created its own methodology of banking.
 It brought credit to the poor, women, the
illiterate
 It enabled the poor to build on their existing
skill to earn a better income

41. • Grameen Bank has today over 7.5 million
borrowers
• Totally 65% of them managed to clearly improve
socio-economic conditions and lifted
themselves out of poverty
2006, Grameen Bank & Professor Muhammad Yunus
were Awarded the Nobel Peace prize for their
efforts to create economic & social development
from bellow.

42. Ela Ramesh Bhatt, Founder of SEWA
Social Problem
1. Women were earning very little even though they
were working almost 18 hrs.
2. They were living in very bad condition.
3. They did not have any social security.
4. They were exploited by money lenders.
5. They were not organized.
6. They were not visible & recognized as workers.

43. Transformative innovation
…So she was decided to organize these women,
through…
Self- Employed Women's Association
 SEWA is an organization of women workers in
the informal sector- that is the
Small vegetable vendors
The home based workers
The construction workers
Head loaders
Laborers

44. SEWA Bank: first women’s
bank in India
Capital formation process.
1. Coming out of clutches of money lenders.
2. Building the business
3. Building the savings
4. Having more assets & equipments
5. Having better living conditions

45. Global context
 U.K. Community Action Network (CAN)
 The Stanford Business School - Social
Entrepreneurship initiative
 Canadian Centre for Social Entrepreneurship
 Social and Enterprise Development Innovations (SEDI)
 The Israeli Greenhouse for Social Entrepreneurship
 International Institute of Social Entrepreneurship
Management (India)
 Inter-American Development Bank
 The Initiative on Social Enterprise – Harvard Business
School

46. Challenges in social
Entrepreneurship
 The majority of them have yet to
recognize social entrepreneurship as a
field of legitimisation
 Lack of capital is a major challenge for
the Indian social entrepreneurs
 The government’s policies and regulations
for social entrepreneurs are very complex
and strict, with no tax incentives or
subsidies being provided for a social
business, the combination of which acts
as major impediment to the growth of
social businesses in India.

47. Opportunities: India's
potential in global market
 Youngest population
 English communication
 Geographical centre
 Cultural heritage
 Another 20 years we are the
economic leader for the world
 For that the need of the hour is
social entrepreneurship

48. Information and
Communication Technology
 At present 24 millions people
connected with broad band
 Moves to 640 millions in future 5 years
 Interesting business opportunities are
coming with social entrepreneurship
 Power of technology and community
(convergence)
 Networking of human relations

49. Conclusion
 Social entrepreneurship is an answer to the
impending crisis of Agricultural Development and
Food Security
 Social entrepreneurship is the recognition of a
social problem and the uses of entrepreneurial
principles to organize, create and manage a social
venture to achieve a desired social change
 The main aim of social entrepreneurship is to
achieve social and environmental goals
 Social Entrepreneurship is important in the field of
Extension Education discipline and Agricultural
Extension profession

50. Conclusion…
 In a business entrepreneur typically measures
performance in profit and return, Thus, the main
aim of social entrepreneurship is to further
broaden social, cultural, and environmental goals.
 Social Entrepreneurs help people to help
themselves
 Social entrepreneurs can help get better various
issues like nutrition, education and health and
illiteracy
 Social entrepreneurship helps to achieve a balance
between a growing GDP growth, ensuring inclusive
growth and to address the issues ranging from
education, energy efficiency to climate change

51. Reference
 Srivastava and Tandon (2002) Report of study on Non􀇦 government
organizations in India.“Participatory Research in Asia” (PRIA)(2002)
 Frumkin, P. (2002). Social Entrepreneurship On Being Nonprofits.
Cambridge, Mass.: Harvard University Press
 Chakraborty, S.K. (1987), Managerial Effectiveness And Quality of
Worklife: Indian Insights, New Delhi, Tata McGraw􀇦Hill Publishing
Co
 Khanna, Tarun. (2010) “India’s Entrepreneurial Advantage”,
McKinsey Quarterly, 2004 Special Edition
 Christie, M. J., & Honig, B. (2006). Social Entrepreneurship: New
Research Findings. Journal of World Business
 Gupta, R. (2001) “Creating Indian Entrepreneurs. India Today”,
McKinsey & Company, February 12, 2001
 Sharma, A. (2010). India’s Welfare Gamble: Add 100 Million to the
Dole. The Wall Street Journal, pp. A1,A16. June 8,2010.

52. “We have to get out of the mind set that the rich will
do business and the poor will have the charity”
-Muhammad Yunus
Thank you…