‘How to make a difference’
August 2014

1. The way I see the world
2. Making a difference through social enterprise
3. A global trend + what’s emerging in NZ
4. One step at a time
5. Discussion
Running order"

The Anthropocene

Disruption

Dr Michio Kaku – ‘Physics of the impossible’

Lateral power / the distributed century

‘Bursting at the seams’

Half of all children live in poverty

1.5 billion are obese

Ivan Macfadyen- ‘The ocean is broken’

Climate change / systemic change "

Inequality

Inequality
67" 3,500,000,000"="
="

Unemployment > disempowerment"

Fundamental breakdown

We ain’t that smart

"History does not crawl, it jumps."
Black swans

What do we want?"

“The barrier to change
is not too little caring;
it is too much
complexity” Bill Gates
But how…?

Systemic
Enduring
People
What works?Enabling

Social enterprise…

What is it?

EvolutionsSystemsChange
CommercialLow
LowHigh
High
Social Entrepreneur
Social
Enterprise
Good deeds
Optimal

Hybrid form"
primary objective.
Other positive signs abound. Top-tier business
school students are joining social enterprise clubs at
record rates, forcing faculties to rethink curricula.
ing as a distinct sector (see figure 1).
The recent proliferation of certification bodies
and legislative initiatives is one indication among
many that the sector is reaching a tipping point. The
Figure 1
Social enterprises blur traditional boundaries between for-pro t and non-pro t
Source: Adapted from Heerad Sabeti, “The Emerging Fourth Sector,” The Aspen Institute, 2009.
maximize nancial bene t to owners maximize social bene t
Organizations categorized by PURPOSE
OrganizationscategorizedbyINCOME
contributedearned
For-pro t
Social
Enterprise
Non-pro t/
Govt
Business Methods
Entrepreneurship
Public-Private Partnership
Privatization etc.
CSR, ESG Sustainability

A powerful
vehicle for
change
Evolu&ons)
Avoids grant
dependency
Replication /
Open source
Scalability /
sustainability
Multiple-
benefits
Empowers
communities
Leverages
private
investment
Innovative /
disruptive

1 2 3 4 5 6 7
Varieties of Social Enterprise
Commercial
Enterprise
Business
with a
charitable
spend
Socially
Responsible
Business
Social
Purpose
Business
Community
Benefit
Enterprise
Charity with
on mission
contract
income
Charity with
fundraising
and/or grant
income
Businesses that do good BusinessNot For Profit
The Social Enterprise Continuum (NESTA/Young Foundation 2011)
Different structures

‘No profit – no mission’
‘Private businesses are profit centres for
shareholders, social enterprises are profit centres for
stakeholders – the more income, the more benefit.’

Social enterprise models

‘The Robin Hood Business’ "
Y-Gap"

‘One for One’"
TOMS"

Social Enterprise
!!
!!
!!
‘Fair Share’"
Café Direct"

Te Whangai Trust"
‘The Nurturing Business’"

Fifteen"
‘The Nurturing Business’"

Guayaki"
‘The Regenerating Business’"

‘Waste to Value’"
TerraCycle"

‘The Good Asset’ "
Blueskin Energy"

‘The Good Asset’ "
Skypath"

‘Disruptive Provider’"
Unchartered Play"

‘Disruptive Provider’"
Chalkle"

!!
!!!
Grameen Danone"
‘Disruptive Provider’"

Global trends

State of
Social
Enterprise
Survey
2013
Global movement

Accelerators, incubators, & hubs

Education"

Investing for impact
January 2012
Research InstituteThought leadership from Credit Suisse Research
and the world’s foremost experts
How social entrepreneurship is redefining the
meaning of return
Investment primed

Impact funds "

Impact funds "

SBBs have several benefits:
Private investors and institutions can invest to help create better social outcomes and receive a financial return
Paying only once performance targets are met ensures efficient allocation of scarce public resources
Service providers are given latitude to determine which services to offer
They enable expansion of services that might not otherwise obtain funding.
Newpin SBB diagram
SBB precedents around the world
The first social benefit bond was issued in the United Kingdom (UK) in September 2010
to fund a preventative program targeting recidivism of former inmates at Peterborough
Prison. When the program successfully decreases the rate of recidivism, the UK
Government realises savings through reduced expenditure on corrective services and
returns are paid to investors. The return to investors will be 7.5% to 13%, depending on
success of the program. Initial indications are positive and the UK now has 14 further
SBBs live or in development with an approximate total value of £280 million.
New York City launched an SBB to reduce youth recidivism for over 3,400 adolescent
Newpin
SBB Trust
Results
$ Return
SAVINGS
UnitingCare
BurnsideInvestors
The Newpin Social
Benefit Bond offers a
unique opportunity to
generate a competitive
financial return, as
well as create a lasting
Social Impact Bonds
New markets - impact

‘Impact for Cash’"
Bikes in Schools"

New markets – social procurement

New structures"

NZ Market…?"

Pilots, Positions, & Prototypes

Demand increasing &
unmet"
Capability low,
understanding low"
Need for standards /
benchmarks"
Limited support at all
levels"
Need to grow demand
and supply capital"

A sustainable, prosperous and inclusive NZ"
To deliver the next generation of
transformational social enterprise "
Activate talent, raise
awareness and building
capability"
Support
social enterprises to
deliver scalable
solutions"
Facilitate access to
markets and capital"

Monitor’s research has identified the following four stages of pioneer firm develop-
ment that are distinct both from the firm’s experience and the investor’s perspective:
Blueprint
First of all, pioneers need to blueprint their designs for the future business. This is
often driven by not much more than a strong sense of ‘moral imagination’, striv-
ing for radically better solutions to meet the needs of the poor. This stage involves
connecting the capability for business and often technical innovation to address the
needs of customers or suppliers in the BoP. This is no trivial matter, as the requisite
1. Blueprint 2. Validate 4. Scale
FOUR STAGES OF PIONEER FIRM DEVELOPMENT
3. Prepare
We
ve
pio
bu
th
fou
life
an
Development pathway"

Development tools"
"
COACHING + DIRECT SUPPORT"
"
"
COMPASS NETWORK"
"
"
SEED FUNDING "
"
TOOLS +
PERFORMANCE MEASURES
"
NETWORKS + PARTNERSHIP BROKERING"
"

Build an ecosystem"

One step at a time"

You are part of a growing global
movement whose core goal is to
create a tipping point
You don’t have to do it all!

But do something that matters

PURPOSE
PROBLEM SOLUTION
KEY METRICS
UNIQUE VALUE
PROPOSITION
UNFAIR ADVANTAGE
CHANNELS
CUSTOMER SEGMENTS
COST STRUCTURE FINANCIAL SUSTAINABILITY
IMPACT
V1.04 Available at www.socialleancanvas.com
Existing Alternatives High Level Concept Early Adopters
SocialLeanCanvasisadaptedfromTheLeanCanvas(www.leancanvas.com)whichisinturnadaptedfromTheBusinessModelCanvas(www.businessmodelgeneration.com)andislicensedundertheCreativeCommonsAttribution‐ShareAlike3.0Un-portedLicense.
Have a plan and a process"

Copy proven models

Make friends"

Stay with it – it really is the journey
…and do the little things well"

Know where the door is

Power – know it, use it

“Power!properly!understood!is!nothing!but!the!
ability!to!achieve!purpose.!It!is!the!strength!
required!to!bring!about!social,!poli;cal!and!
economic!change...!One!of!the!great!problems!of!
history!is!that!the!concepts!of!love!and!power!
have!usually!been!contrasted!as!opposites!—!
polar!opposites!—!so!that!love!is!iden;fied!with!a!
resigna;on!of!power,!and!power!with!a!denial!of!
love.!!

Now,!we've!got!to!get!this!thing!right.!Power!
without!love!is!reckless!and!abusive,!and!love!
without!power!is!sen;mental!and!anemic.!It!is!
precisely!this!collision!of!immoral!power!with!
powerless!morality!which!cons;tutes!the!major!
crisis!of!our!;mes.”!
!
Mar$n&Luther&King&