Fundamental : Building a Social Enterprise

1. Building a Social Enterprise
Wisnu Dewobroto
Podomoro University

2. Outline
• Defining your mission
– Dimensions of social entrepreneurship
– Mission as the entrepreneur’s most useful tool
– How to define your organization’s mission
– Planning and leading through mission
• Recognizing and assessing opportunities
– Oppotunity recognition
– Assessing opportunities
Sources:
1. Dees. J.G., Emerson, J. and Economy, P. (2001). Enterprising Nonprofits: A Toolkit for Social
Entrepreneurs. New York: John Willey and Sons. Chapters 1, 2, 3.
2. Praszkier, R. and Nowak, A. (2013). Social Entrepreneurship: Theory and Practice. New York:
Cambridge University Press. Chapter 2.

3. We are all Entrepreneurs
• Entrepreneurship often is associated with startups, and
venture capital, and business incubators.
• But, at Babson, entrepreneurship means to include all of
the brilliant improvisers who continually assess how to
use their strengths and resources at hand to evolve and
reach their goals.
• Entrepreneurial Leader

5. SSI (Self and Social Identification)Social, Environmental, Economic
Responsibility, and Sustainability
(SEERS)

6. Social Entrepreneurship:
a new business model that combine
capitalism and do-gooder mentality

7. FACTS: millenials (who are in productive age, born in between 1980s and 2000)
change the very definition of the word “work”
• 94% are interested in using their skills to benefit a cause
• Today’s young people -> CONCERN with MAKING POSITIVE IMPACTS on the world
as they are with making money
• It’s not just where we’re working, or even how we’re working-> It’s what we’re
working for
• It’s more than just Millennials — Americans want the future of work to be
independent. They value time over money — for their families, friends,
communities, and creative passions
• It’s something deeper than a charity
• It signals a fundamental shift in the way our economy functions

8. 5 Reasons Social Entrepreneurship is a
New Business Model
1. It connects you to your life purpose
2. It keeps you motivated
3. It brings you lasting happiness
4. It helps you help others discover their life
purpose
5. It is what today's consumers want
Source: Fox (2016)

9. Triple Bottom Line Business

10. So, How do social enterprises create
double and triple bottom line profit?
• Cross-Compensation – One group of customers pays
for the service. Profits from this group are used to
subsidize the service for another, underserved group.
• Fee for Service – Beneficiaries pay directly for the
goods or services provided by the social enterprise.
• Employment and skills training – The core purpose is
to provide living wages, skills development, and job
training to the beneficiaries: the employees.
• Market Intermediary – The social enterprise acts as an
intermediary, or distributor, to an expanded
market. The beneficiaries are the suppliers of the
product and/or service that is being distributed to an
international market.

11. So, How do social enterprises create
double and triple bottom line profit?
• Market Connector – The social enterprise facilitates
trade relationships between beneficiaries and new
markets.
• Independent Support – The social enterprise delivers a
product or service to an external market that is
separate from the beneficiary and social impact
generated. Funds are used to support social programs
to the beneficiary.
• Cooperative – A for-profit or nonprofit business that is
owned by its members who also use its services,
providing virtually any type of goods or services.

12. So... Do we have the characters of social
entrepreneurs?
• Watch this video and take note on the key points of
the narrative: https://www.britishcouncil.org/society/social-
enterprise/success-stories/social-enterprise-east-asia-video

13. Social Entrepreneurs as Change Agents
• Adopting a mission to create a sustain social 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 at hand
• Exhibiting a heightened sense of accountability to
the constituencies served and for the outcomes
created.

14. Example of Social Entrepreneurs is
Muhammad Yunus who create
Grameen Bank
• https://www.youtube.com/watch?v=UuZo7W
4ku2U

15. • Having a new idea for
solving a critical social
problem
• Being creative
• Having an entrepreneurial
personality
• Envisioning the broad
social impact of the idea
• Possessing an
unquestionable ethical
character

16. Vision vs. Mission Statement
• Watch this video. Can you tell the difference
between Vision and Mission?
http://www.diffen.com/difference/Mission_Statement_vs_Vision_Statem
ent#Video_Explaining_the_Differences

17. Defining Your Mission
“Mission is the star we steer by. Everything begins with
mission, everything flows from mission” (Frances Hesselbein)
• Mission as the entrepreneur’s most useful tool: It is the reason why we do
what we do; a reason for being, purpose.
• Mission as a discipline
• Mission as a flexible too: it has to be revisited regularly

18. Examples of Mission Statements
• TED: Spreading Ideas. (2 words)
• Smithsonian: The increase and diffusion of knowledge. (6 words)
• National Wildlife Federation: Inspiring Americans to protect wildlife for our children’s future.
(9)
• American Heart Association: To build healthier lives, free of cardiovascular diseases and
stroke. (10)
• Oxfam: To create lasting solutions to poverty, hunger, and social injustice. (10)
• New York Public Library: To inspire lifelong learning, advance knowledge, and strengthen our
communities. (10)
• The Nature Conservancy: To conserve the lands and waters on which all life depends. (11)
• CARE: To serve individuals and families in the poorest communities in the world. (12)
• Habitat for Humanity International: Seeking to put God’s love into action, Habitat for
Humanity brings people together to build homes, communities and hope. (16)
• San Diego Zoo is a conservation, education, and recreation organization dedicated to the
reproduction, protection, and exhibition of animals, plants, and their habitats. (20)
• Doctors without Borders (Médecins Sans Frontières) works in nearly 70 countries providing
medical aid to those most in need regardless of their race, religion, or political affiliation. (21)
• The Rotary Foundation: To enable Rotarians to advance world understanding, goodwill, and
peace through the improvement of health, the support of education, and the alleviation of
poverty. (24)
• NPR: To work in partnership with member stations to create a more informed public – one
challenged and invigorated by a deeper understanding and appreciation of events, ideas and
cultures. (28)

19. Diagnostic tool to define your mission
Is the mission: Yes To some
extent
No
1. Short and sharply focused?
2. Clear and easily understood?
3. A statement of why you do what you do or why the
organization exists?
4. About purpose, not means?
5. Sufficiently broad?
6. A direction for doing the right things?
7. Focused on your opportunities?
8. Matched to your competence?
9. Inspiring your commitment?
10. Stating what, in the end, you want to be remembered
for?
Source: Dees, et al. (2001, p. 25)

20. Assessing Opportunities: A Quick Guide
• Demand: is there a demand for the social services or products
to be offered?
• Mission Fit: does it fit with the mission?
Most attractive
Least attractive
Mission Fit
Demand (need/desire)
High
Low
Low High

21. Assessing the Opportunity
• Social Value Potential
• Market Potential
• Sustainability Potential

22. Social Value Potential (high vs low)
• Strategic alignment: service/product creates social
value that is aligned with the mission.
• Achievable outcomes: service/product will create a
significant change in user behavior, condition, or level
of satisfaction.
• Partnership and/or Alliance: Additional partnership(s)
would have a synergistic effect and improve or
increase chances for desired results – social value.
• Organizational benefit: successful service/product will
increase or create positive community perception of
and/or political support for the organization.

23. Market Potential (High vs Low)
• User Need: Evidence of social need and an open
window of opportunity.
• User Desire: Evidence of user interest or evidence
of success of similar services in other
communities.
• Funder interest: Evidence of interest, or
noticeable trends in grant making or government
contracts for similar service.
• Market share: Evidence of an open market with
little competition.

24. Sustainability Potential (High vs Low)
• Idea development: research and development resources are
available or easily accessible
• Startup: low cost of startup and/or easily accessible funding for
startup.
• Cost-to-Benefit Ratio: Low total program costs compared against
high public benefit.
• Organizational capability: Board, staff, or volunteer capability is
present and aligned with potential service or project.
• Income potential: target population with discretionary income
potential and/or evidence/desire to pay fees.
• Organizational capacity: internal structures, space, technology, etc.
are in order to easily adjusted for new services or expansion of
services.
• Funder interest: trends or other evidence of funder interst for tree
to five year horizon.

25. Emphatize

44. Empathize: Methods & tools
Assume a
beginner’s
mindset : Why ?
•We all carry our experiences, understanding, & expertise with us.
•These aspects of ourselves are incredibly valuable assets to bring to
the design challenge – but at the right time, & with intentionality.
•Our assumptions may be misconceptions & stereotypes, & can
restrict the amount of real empathy we can build.
•Assume a beginner’s mindset in order to put aside these biases, so
that you can approach a design challenge afresh.

47. Empathize: Methods & tools
Assume a beginner’s mindset :
How ?
•Don’t judge. Just observe & engage users without the influence of value
judgments upon their actions, circumstances, decisions, or “issues.”
•Question everything. Question even (and especially) the things you think you
already understand. Ask questions to learn about how the user perceives the
world. Think about how a 4-year-old asks “Why?” about everything. Follow up
an answer to one “why” with a second “why.”
•Be truly curious. Strive to assume a posture of wonder & curiosity, especially
in circumstances that seem either familiar or uncomfortable.
•Find patterns. Look for interesting threads & themes that emerge across
interactions with users.
•Listen. Really. Lose your agenda & let the scene soak into your psyche.
Absorb what users say to you, & how they say it, without thinking about the next
thing you’re going to say.

50. Empathize: How to use ” What, How & Why ” ?
Set-up: Divide a sheet into three sections: What?, How?, & Why?
Start with concrete observations:
•What is the person you’re observing doing in a particular situation or photograph?
•Use descriptive phrases packed with adjectives & relative descriptions.
Move to understanding:
•How is the person you’re observing doing what they are doing?
•Does it require effort? Do they appear rushed? Pained?
•Does the activity or situation appear to be impacting the user’s state of being either
positively or negatively?
•Again, use as many descriptive phrases as possible here.
Step out on a limb of interpretation:
•Why is the person you’re observing doing what they’re doing, & in the particular way that
they are doing it?
•This step usually requires that you make informed guesses regarding motivation & emotions.
•Step out on a limb in order to project meaning into the situation that you have been
observing. This step will reveal assumptions that you should test with users, & often uncovers
unexpected realizations about a particular situation.

51. Empathize: User Camera Study –> Why ?
•In empathy work, you want to understand your users’
lives, & specific tasks within the context of their lives.
•A User Camera Study allows us to understand a user’s
experience by seeing it through their eyes.
•It also allows you to understand environments to which
you might not normally have access.

52. Empathize: User Camera Study – How ?
1. Identify subjects whose perspective you are interested in learning more about.
2. Briefly explain the purpose of the study, & ask if they would be willing to
take photographs of their experiences. Get permission to use images they take.
3. Provide a camera to your subject & instructions such as:
•“We would like to understand what a day in your life feels like. On a day of your
choosing, take this camera with you everywhere you go, & take photos of experiences
that are important to you.” Or, you could try:
•“Please document your [morning routine] experience with this camera.” Or,
•“Take pictures of things that are meaningful to you in your kitchen.”
Frame your request a little broader than what you believe your problem space
might be, in order to capture the surrounding context. Many insights can emerge
from that surrounding space.
4. Afterwards, have your subject walk you through the pictures & explain the
significance of what they captured. Return to a good empathetic interviewing
technique to understand the deeper meaning of the visuals & experience they
represent.