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APS 1015: Social Entrepreneurship

                   Class 10: The Enabling Environment for
                          Social Entrepreneurship

                           Saturday, November 17, 2012
Instructor:
Norm Tasevski (norm@socialentrepreneurship.ca)
Karim Harji (karim@socialentrepreneurship.ca)
                                                            1
© Norm Tasevski & Karim Harji




                    2
© Norm Tasevski & Karim Harji




Agenda

•    Unreasonable Institute
•    Preparing for your Pitches
•    The enabling environment for SE
•    Review of the course
•    Next week




                                                           3
Your Investment Pitches…




                           4
© Norm Tasevski & Karim Harji




Pitch guidelines
•  Due Dates
   –  Investment Pitch: Midnight on Friday, December 7, 2012
        •  “Dry run”: Midnight on Friday, November 23, 2012
•  Format
   –  PowerPoint deck
•  Time Allotment
   –  12 min presentation (strict) – will give you 5 and 2 minute
      warnings
   –  6 min Q&A
•  Grading
   –  To be done by Karim and Norm
   –  Judges will inform me, but not assign your grades
•  Feedback from Judges
   –  Norm will email his and judges’ feedback shortly after the
      class to integrate into angel investor pitch
                                                                            5
© Norm Tasevski & Karim Harji




Timing

•  Arrive by 12:45pm!!

•  Group order will be assigned on the Monday prior
   to the presentation

•  At the end of the pitches, the judges will deliberate
   (for 10 minutes)

•  Judges will then provide feedback to the entire
   class (and I will provide individual group feedback)

                                                                   6
© Norm Tasevski & Karim Harji




Advice for your pitches
•  Focus on the key components of the business
   model, and highlight the key financial #s
   –  Can you clearly explain how your business works? How it
      makes money? How it generates social/environmental
      change?


•  Comfortably stick to the time allotment
   –  In your practice, aim to deliver your presentation in 10-11
      minutes


•  Anticipate the investor questions
   –  If you were investing your own money into the business,
      what would you care to know about the business model?

                                                                            7
© Norm Tasevski & Karim Harji




Contents for the Investment Pitch…
•  Overview and mission             •  Business model
•  Management and                   •  Competitive advantage
   Advisors                         •  Collaboration/
•  Problem                             partnerships
   –  social issue being            •  Marketing and Sales
      addressed
                                    •  Financial projections
•  Size of the problem
                                    •  Financial requirements
   –  how big is the social issue
•  Solution
   –  Here’s how it works…
•  Value proposition
   –  Inc. social benefit

                                                                         8
© Norm Tasevski & Karim Harji




PowerPoint tips




                                      9
© Norm Tasevski & Karim Harji




                  10
The Enabling Environment…




                            11
© Norm Tasevski & Karim Harji




                  12
© Norm Tasevski & Karim Harji




A Growing Ecosystem




                                        13
© Norm Tasevski & Karim Harji




An Evolving Field




  !"#$%$&'()*+!,-$!.)$&/!'0!1'2)3&!4*,5$(5$*$657-)(8!9!:!;$('5,!05'<!,-$!=$*,$5!0'5!:/%3*2$<$*,!'0!!1'2)3&!4*,5$(5$*$657-)(!!>=:14?!!


                                                                                                                                    14
© Norm Tasevski & Karim Harji




As It Evolves…
•    Definitions
•    Who’s in or not?
•    Expectations vs. reality
•    Demonstrating impact
•    Scalable business models
•    Mission or market?
•    Developing and harnessing talent
•    Access to finance
•    Policy levers and constraints
•    Individual vs organizational capacity
•    Education – academic, mainstream

                                                               15
© Norm Tasevski & Karim Harji




Watch these videos!!!
•    http://vimeo.com/2307567
•    http://www.ted.com/talks/
     katherine_fulton_you_are_the_future_of_philanthropy.html
•    http://www.ted.com/talks/
     jacqueline_novogratz_on_patient_capitalism.html
•    http://www.ted.com/talks/
     melinda_french_gates_what_nonprofits_can_learn_from_coca_cola.
     html
•    http://www.ted.com/talks/bjorn_lomborg_sets_global_priorities.html
•    http://blog.ted.com/2010/09/18/tackling-the-mdgs-an-introduction-
     to-tedxchange/
•    http://www.youtube.com/v/QgzlmKPoMEo?
     f=videos&app=youtube_gdata&title=Tonya%20Surman
•    http://www.ted.com/talks/
     tim_jackson_s_economic_reality_check.html


                                                                              16
Break




        17
Course Summary…




                  18
© Norm Tasevski & Karim Harji




                  19
© Norm Tasevski & Karim Harji




How is Social Entrepreneurship Different?




                           Resourcefulness




 Motivation



              Innovation
                                                  Risk Taking




                                                                20
© Norm Tasevski & Karim Harji




                  21
© Norm Tasevski & Karim Harji


   What Motivates The Social/Environmental
   Entrepreneur?
“…it was an   epiphanal experience…”                  “I heard the same story again and again.
                  Ray Anderson, Interface Carpets
                                                          Someone had experienced an
                                                    intense kind of pain that branded
                                                     them in some way. They said, ‘I had’ to do
                                                    this.   There was nothing else
                                                                       I could do.”
                                                    Jody Jensen, Ashoka




   “I was teaching in one of the universities
      while the country was suffering from a
       severe famine. People were dying of
              hunger, and   I felt very
 helpless. As an economist, I had
 no tool in my toolbox to fix that                    “…that made a real        impression on
                            kind of situation.”                                                   me…”
Mohammed Yunus, Grameen Bank                                   Jeff Skoll, eBay, Skoll Foundation, etc.
© Norm Tasevski & Karim Harji
© Norm Tasevski & Karim Harji




                  24
© Norm Tasevski & Karim Harji




                   -Coffee                               -Personal
                                 ing!
                   roasting/brew                         (Baristas)!
                   -Processing                                        t
                                                         -Online, prin
                                        -Coffee!
                    orders!                               ads!
                                        -Food!
-Farmers!                                           e!                       -Adults that
                                        -Merchandis                                          to
-Suppliers!                                                                  want a place
                                                                              relax, work
                                                                              quietly, meet
                                                                     s!        friends, etc!
                   -Locations!                           -Coffee shop          !
                   -Coffee makin
                                g                        -Kiosks!
                   equipment!
                    -Baristas!

              g!
-Staff trainin                                                               -In-store
-Asset                                                                       Purchases!
acquisition!
 -Marketing!
                                                                                            25
© Norm Tasevski & Karim Harji




Tip…

•  Be a Business Model “Alchemist” – You need to go
   through the business model process many times in
   order to figure out which model best fits




                                                              26
© Norm Tasevski & Karim Harji



Cost Drivers and Revenue Sources!




-???!




         -???!




                                                      27
© Norm Tasevski & Karim Harji




Where does HR Fit?




                                       28
© Norm Tasevski & Karim Harji




Where does Marketing Fit?




                                              29
© Norm Tasevski & Karim Harji


Embedding “Social” across the Business
Model




                                                      30
For-Profit      Non-Profit
 Corporation!     Corporation!


  Partnership!    Charity!


          Sole    Co-Operative
Proprietorship!   Corporation!


                                 31
© Norm Tasevski & Karim Harji


Financing Options – Over the Social
Entrepreneurship “Life Cycle”
MORE EQUITY-LIKE

    !"#$%&'


                                       &()*#+',-$%."-')#/*%#+'0.$1&'


    #$!-+'*$,-&%2-$%'                                                         ,-$%."-')#/*%#+'


                           /"(!"#23"-+#%-1'*$,-&%2-$%4"-)(,-"#5+-'!"#$%&'


                                            0("!*,#5+-'+(#$&'


                                            &()*#++6'"-&/($&*5+-'*$,-&%2-$%'0.$1&'


                   5-+(732#"8-%'1-5%'

                                                                 2#"8-%3"#%-'1-5%'
MORE DEBT-LIKE

    IDEA DEVELOPMENT     PROOF OF CONCEPT         START-UP      SCALE         REPLICATION           EXIT
                                                                                                                 32
                              Source: Alex Nicholls and Cathy Pharoah (2008) “The Landscape of Social Investment”,
                              http://www.sbs.ox.ac.uk/centres/skoll/research/Pages/landscapeofsocialinvestment.aspx
© Norm Tasevski & Karim Harji




Aligning Supply and Demand




                                                                                           33
                  Source: Alex Nicholls and Cathy Pharoah (2008) “The Landscape of Social Investment”,
               http://www.sbs.ox.ac.uk/centres/skoll/research/Pages/landscapeofsocialinvestment.aspx
© Norm Tasevski & Karim Harji




Lessons from The Idea Jams




                                               34
© Norm Tasevski & Karim Harji




                  35
© Norm Tasevski & Karim Harji




                  36
© Norm Tasevski & Karim Harji




Next Week


•  Dry run of investor
   presentations!!

•  Arrive by 1pm!!




                                           37

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APS1015H Class 10 - Enabling Environment for Social Entrepreneurship

  • 1. APS 1015: Social Entrepreneurship Class 10: The Enabling Environment for Social Entrepreneurship Saturday, November 17, 2012 Instructor: Norm Tasevski (norm@socialentrepreneurship.ca) Karim Harji (karim@socialentrepreneurship.ca) 1
  • 2. © Norm Tasevski & Karim Harji 2
  • 3. © Norm Tasevski & Karim Harji Agenda •  Unreasonable Institute •  Preparing for your Pitches •  The enabling environment for SE •  Review of the course •  Next week 3
  • 5. © Norm Tasevski & Karim Harji Pitch guidelines •  Due Dates –  Investment Pitch: Midnight on Friday, December 7, 2012 •  “Dry run”: Midnight on Friday, November 23, 2012 •  Format –  PowerPoint deck •  Time Allotment –  12 min presentation (strict) – will give you 5 and 2 minute warnings –  6 min Q&A •  Grading –  To be done by Karim and Norm –  Judges will inform me, but not assign your grades •  Feedback from Judges –  Norm will email his and judges’ feedback shortly after the class to integrate into angel investor pitch 5
  • 6. © Norm Tasevski & Karim Harji Timing •  Arrive by 12:45pm!! •  Group order will be assigned on the Monday prior to the presentation •  At the end of the pitches, the judges will deliberate (for 10 minutes) •  Judges will then provide feedback to the entire class (and I will provide individual group feedback) 6
  • 7. © Norm Tasevski & Karim Harji Advice for your pitches •  Focus on the key components of the business model, and highlight the key financial #s –  Can you clearly explain how your business works? How it makes money? How it generates social/environmental change? •  Comfortably stick to the time allotment –  In your practice, aim to deliver your presentation in 10-11 minutes •  Anticipate the investor questions –  If you were investing your own money into the business, what would you care to know about the business model? 7
  • 8. © Norm Tasevski & Karim Harji Contents for the Investment Pitch… •  Overview and mission •  Business model •  Management and •  Competitive advantage Advisors •  Collaboration/ •  Problem partnerships –  social issue being •  Marketing and Sales addressed •  Financial projections •  Size of the problem •  Financial requirements –  how big is the social issue •  Solution –  Here’s how it works… •  Value proposition –  Inc. social benefit 8
  • 9. © Norm Tasevski & Karim Harji PowerPoint tips 9
  • 10. © Norm Tasevski & Karim Harji 10
  • 12. © Norm Tasevski & Karim Harji 12
  • 13. © Norm Tasevski & Karim Harji A Growing Ecosystem 13
  • 14. © Norm Tasevski & Karim Harji An Evolving Field !"#$%$&'()*+!,-$!.)$&/!'0!1'2)3&!4*,5$(5$*$657-)(8!9!:!;$('5,!05'<!,-$!=$*,$5!0'5!:/%3*2$<$*,!'0!!1'2)3&!4*,5$(5$*$657-)(!!>=:14?!! 14
  • 15. © Norm Tasevski & Karim Harji As It Evolves… •  Definitions •  Who’s in or not? •  Expectations vs. reality •  Demonstrating impact •  Scalable business models •  Mission or market? •  Developing and harnessing talent •  Access to finance •  Policy levers and constraints •  Individual vs organizational capacity •  Education – academic, mainstream 15
  • 16. © Norm Tasevski & Karim Harji Watch these videos!!! •  http://vimeo.com/2307567 •  http://www.ted.com/talks/ katherine_fulton_you_are_the_future_of_philanthropy.html •  http://www.ted.com/talks/ jacqueline_novogratz_on_patient_capitalism.html •  http://www.ted.com/talks/ melinda_french_gates_what_nonprofits_can_learn_from_coca_cola. html •  http://www.ted.com/talks/bjorn_lomborg_sets_global_priorities.html •  http://blog.ted.com/2010/09/18/tackling-the-mdgs-an-introduction- to-tedxchange/ •  http://www.youtube.com/v/QgzlmKPoMEo? f=videos&app=youtube_gdata&title=Tonya%20Surman •  http://www.ted.com/talks/ tim_jackson_s_economic_reality_check.html 16
  • 17. Break 17
  • 19. © Norm Tasevski & Karim Harji 19
  • 20. © Norm Tasevski & Karim Harji How is Social Entrepreneurship Different? Resourcefulness Motivation Innovation Risk Taking 20
  • 21. © Norm Tasevski & Karim Harji 21
  • 22. © Norm Tasevski & Karim Harji What Motivates The Social/Environmental Entrepreneur? “…it was an epiphanal experience…” “I heard the same story again and again. Ray Anderson, Interface Carpets Someone had experienced an intense kind of pain that branded them in some way. They said, ‘I had’ to do this. There was nothing else I could do.” Jody Jensen, Ashoka “I was teaching in one of the universities while the country was suffering from a severe famine. People were dying of hunger, and I felt very helpless. As an economist, I had no tool in my toolbox to fix that “…that made a real impression on kind of situation.” me…” Mohammed Yunus, Grameen Bank Jeff Skoll, eBay, Skoll Foundation, etc.
  • 23. © Norm Tasevski & Karim Harji
  • 24. © Norm Tasevski & Karim Harji 24
  • 25. © Norm Tasevski & Karim Harji -Coffee -Personal ing! roasting/brew (Baristas)! -Processing t -Online, prin -Coffee! orders! ads! -Food! -Farmers! e! -Adults that -Merchandis to -Suppliers! want a place relax, work quietly, meet s! friends, etc! -Locations! -Coffee shop ! -Coffee makin g -Kiosks! equipment! -Baristas! g! -Staff trainin -In-store -Asset Purchases! acquisition! -Marketing! 25
  • 26. © Norm Tasevski & Karim Harji Tip… •  Be a Business Model “Alchemist” – You need to go through the business model process many times in order to figure out which model best fits 26
  • 27. © Norm Tasevski & Karim Harji Cost Drivers and Revenue Sources! -???! -???! 27
  • 28. © Norm Tasevski & Karim Harji Where does HR Fit? 28
  • 29. © Norm Tasevski & Karim Harji Where does Marketing Fit? 29
  • 30. © Norm Tasevski & Karim Harji Embedding “Social” across the Business Model 30
  • 31. For-Profit Non-Profit Corporation! Corporation! Partnership! Charity! Sole Co-Operative Proprietorship! Corporation! 31
  • 32. © Norm Tasevski & Karim Harji Financing Options – Over the Social Entrepreneurship “Life Cycle” MORE EQUITY-LIKE !"#$%&' &()*#+',-$%."-')#/*%#+'0.$1&' #$!-+'*$,-&%2-$%' ,-$%."-')#/*%#+' /"(!"#23"-+#%-1'*$,-&%2-$%4"-)(,-"#5+-'!"#$%&' 0("!*,#5+-'+(#$&' &()*#++6'"-&/($&*5+-'*$,-&%2-$%'0.$1&' 5-+(732#"8-%'1-5%' 2#"8-%3"#%-'1-5%' MORE DEBT-LIKE IDEA DEVELOPMENT PROOF OF CONCEPT START-UP SCALE REPLICATION EXIT 32 Source: Alex Nicholls and Cathy Pharoah (2008) “The Landscape of Social Investment”, http://www.sbs.ox.ac.uk/centres/skoll/research/Pages/landscapeofsocialinvestment.aspx
  • 33. © Norm Tasevski & Karim Harji Aligning Supply and Demand 33 Source: Alex Nicholls and Cathy Pharoah (2008) “The Landscape of Social Investment”, http://www.sbs.ox.ac.uk/centres/skoll/research/Pages/landscapeofsocialinvestment.aspx
  • 34. © Norm Tasevski & Karim Harji Lessons from The Idea Jams 34
  • 35. © Norm Tasevski & Karim Harji 35
  • 36. © Norm Tasevski & Karim Harji 36
  • 37. © Norm Tasevski & Karim Harji Next Week •  Dry run of investor presentations!! •  Arrive by 1pm!! 37