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
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
CSR, ESG Sustainability
1 2 3 4 5 6 7
Varieties of Social Enterprise
Businesses that do good BusinessNot For Profit
The Social Enterprise Continuum (NESTA/Young Foundation 2011)
‘No profit – no mission’
‘Private businesses are profit centres for
shareholders, social enterprises are profit centres for
stakeholders – the more income, the more benefit.’
Investing for impact
Research InstituteThought leadership from Credit Suisse Research
and the world’s foremost experts
How social entrepreneurship is redefining the
meaning of return
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
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
A sustainable, prosperous and inclusive NZ"
To deliver the next generation of
transformational social enterprise "
Activate talent, raise
awareness and building
social enterprises to
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:
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
COST STRUCTURE FINANCIAL SUSTAINABILITY
V1.04 Available at www.socialleancanvas.com
Existing Alternatives High Level Concept Early Adopters
Have a plan and a process"