Local Entrepreneurship And Innovation

Ontario Council of Organizations Serving Immigrants – ED Forum Social Entrepreneurship and Innovation – November 2nd, 2009 – 4:00pm to 6:00pm

Social Entrepreneurship and Innovation We are a world of wall builders, partitioners, and dividers of space. We long for the security of safe places. We construct these barriers in a vain attempt to control the elements, to keep the rain from dampening the fire, the wind from covering ours lives with the inevitable dust. Many of the walls we build are essential to our survival. Many, however, are not. By fortifying the unnecessary walls, we in business (for profit and not-for-profit)..huddle in the systems we have closed. The consequences: thinking decays and novelty vanishes. Open Boundaries- Howard Sherman and Ron Schultz1998

Test 1. Are You a Self-Starter? If someone gets me started, I keep going all right. I do things my own way. Nobody needs to tell me to get going. Easy does it. I don't put myself out until I have to. 2. How Do You Feel About Other People? Most people bug me. I like people. I can get along with just about anybody. I have enough friends and I don't need anybody else. 3. Can You Lead Others? I can get people to do things if I drive them. I can get most people to go along with me without much difficulty. I usually let someone else get things moving.

Test 4. Can You Take Responsibility? I'll take over if I have to, but I'd rather let someone else be responsible. There's always some eager beaver around waiting to show off. I say, let him. I like to take charge of and see things through. 5. How Good An Organiser Are You? a. I like to have a plan before I start. I'm usually the one who lines things up. b. I do all right unless things get too complicated. Then I may cop out. c. I just take things as they come. 6. How Good a Worker Are You? a. I can't see that hard work gets you anywhere. b. I'll work hard for a time, but when I've had enough, that's it. c. I can keep going as long as necessary. I don't mind working hard.

Test 7. Can You Make Decisions? I can if I have plenty of time. If I have to make up my mind fast, I usually regret it. I can make up my mind in a hurry if necessary, and my decision is usually O.K. I don't like to be the one who decides things. I'd probably blow it. 8. Can People Trust What You Say? I try to be on the level, but sometimes I just say what's easiest. They sure can. I don't say things I don't mean. What's the sweat if the other fellow doesn't know the difference? 9. Can You Stick With It? If I make up my mind to do something, I don't let anything stop me. If a job doesn't go right, I turn off. Why beat your brains out? I usually finish what I start. 10. Can You Keep Records? Records are not important. I know what's need to be known without keeping records. I can, but it's more important to get the work out than to shuffle numbers. Since they are needed I'll keep records even though I don't want to.

Social Entrepreneurship Application of entrepreneurial attitudes to social sector: Change is the norm Embrace change Seek change Client focused Shift resources from low to high productivity Calculated risks Create something new Strive for Transparency

Social Innovation Application ofprinciples of innovationto social sector: ” …..broadly classified in two categories: those that see innovation as the final event - 'The idea, practice, or material artifact that has been invented or that is regarded as novel independent of its adoption or non adoption' (G. Zaltman, R. Duncan and J. Holbeck, Innovations and Organizations, Wiley, 1973) and those who see it as a process 'which proceeds from the conceptualization of a new idea to a solution of the problem and then to the actual utilization of a new item of economic or social value.' (S. Meyers and D.G. Marquis, Successful Industrial Innovations. National Science Foundation,1968). We adopt that latter definition...use the terms innovation and innovation process interchangeably.” Innovation = execution

Social Enterprise ,[object Object]

Non-profits have focused primarily on addressing their communities’ social and/or environmental issues

Productive enterprises cross boundaries, by using a business model to address social and/or environmental issuescontinued…

Like any business, a social enterprise needs to sell products or services to paying customers, in a financially-sustainable manner.

Any legal form of organization can be or operate a social enterprise.

A social enterprise can be an initiative within a larger organization or be a free-standing business,[object Object]

Social enterprises apply entrepreneurial approaches to address social and/or environmental issues and create positive community change.

An enterprise, owned at least in part by a non-profit organization, that uses entrepreneurial methods to accomplish social and/or environmental goals and providing its profits to its owner(s) for use in continuing their core missions.

A social enterprise is a revenue-generating business with primarily social and/or environmental objectives whose surpluses are reinvested for that purpose in the business or in the community, rather than being driven by the need to deliver profit to shareholders and owners. ,[object Object]

Contracting with third parties to provide products & services to others who need them, but who are unable to pay

Marketing their products & services to new customers

Social purpose businesses – employing their clients in businesses, providing meaningful training, work experience & wages,[object Object]

“More than One” Bottom Line

Corporate Social Responsibility initiatives

Micro-enterprise and micro-finance

Social purpose businesses – employing a disadvantaged group in business, providing meaningful training, work experience & wages

Differential/discounted pricing,[object Object]

Overview of Social EnterpriseBenefits of Social Enterprise Diversifies funding sources Generates unrestricted funding Creates an “entrepreneurial spirit” Enhances understanding of clients Tests social value Adds skills and competencies to the organization

Common Misunderstandings / Myths The purpose ofsocialenterprise is to make money The purpose ofsocialenterprise is to employ people Socialenterprise will distract my organization from achieving its mission We will lose our non-profit status Socialenterprise is a new concept We will never need to fundraise again If we make too much money, funders will cut us off

Overview of Social EnterpriseProcess Overview Context Setting Idea Generation and 1st Screen Business Concept and 2nd Screen Business Planning Workshop Write Business Plan

Context SettingUnderstanding the Context External Context Organizational Readiness Workbook Internal Context The strategic framework Goals, expectations for the initiative Management capabilities Marketable assets – skills, products/services, brand/reputation & intellectual property Clients and other key stakeholders ,[object Object]

Level 1 ScreenIdentifying Opportunities

Case Study Three members of Northwood Management team generated the following list of earned income opportunities: 1. Summer Camp 2. Cyber School 3. Translation Bureau 4. Training- Proposal Writing/ Fundraising 5. Training- Home Child Care 6. Training-Dance / Fitness-Salsa for mothers of newly born babies

Earned income Opportunities brainstorming session Continues…. Renting Space Sponsorship Program Day Care ESL 11. Placement Agency Community Information Center Job Training

Earned income Opportunities brainstorming session Continues…. Financial GYM at reduced price Planning Consulting Non-for-profit 17. Sensitivity Training 18. Access and Equity training 19. Tourism Advisory 20. Restaurant 21. Apprenticeship Program

Northwood Screening Criteria Does the idea further your vision, mission, values and strategic priorities? 1=no, 2=partial fit, 3=full fit Is there a potential customer benefit? 1=none, 2=some need/some customers, 3=urgent need/many customers Are there financial savings and how much? 1= increase costs, 2=break even, 3= likely savings What investment is required? 1 - greater than 100,000, 2 - Less than 100,000 3 - less than 50,000 Is there a champion? 1=no, 2= neutral 3=yes Scoring: each idea will have a score of 5-15

Create new services and screening The Following Four Earned Income Opportunities rates the highest using the filter 1. Sponsorship Program (3/3/3/3/3) 2. Cyber School (3/3/3/3/3/3) 3. Translation Bureau (3/3/3/3/3) 4. Renting Space (3/3/2/2/3/2) 5. Summer Camp(3/3/2/2/3/2)

Screening Phase 2 Create a concept statement Describe product Target audience and reason for buying it When, where, how? Product attractiveness Financial results Marketing issues and competitors Risk factors Does it fit with the organisation? Test with sample of external experts

Screening Phase 3Feasibility Analysis and Priority Setting Does the product have financial potential? How likely is the product to implemented successfully (easy or hard)? Is an investment required? Is an investment justifiable in terms of financial or mission improvement? Does the product advance mission and strategic priorities?

First Set of Measures Product A

Product A Second Set of Measures

Design Northwood Neighbourhood Services launched the Translation Bureau Social Purpose: Creating jobs for newcomers Low start up cost High return Expertise of 25 Years Champion ( experienced )

Research Our research indicated that there is a need for translation earned income opportunity Surprise: Found out a sister organization inherited a translation Social Enterprise What did we do?

Testing/Piloting Northwood Neighbourhood Services Launched Translation Bureau Launched Cyber School Launched Summer Camp Launched Space Rental

Evaluation Business Generated $___ Employed 190 Translators and Interpreters Built organizational capacity to regenerate income Developed expertise in the area Launched 3 other successful ventures

Level 1 ScreenDefinition of a “Good” Idea Meets a significant customer need – there is a market Return on Investment (ROI) Risk can be managed Competitive advantage Price Performance Leverages a strength/asset Fits with mission/values

Level 1 ScreenLevel 1 Screening Criteria Does the idea further your vision, mission, values and strategic priorities? 1=no, 2=partial, 3=full fit Is there a potential customer benefit? 1=none, 2=some need/some customers, 3=urgent need/many customers Is there profit potential (by third year)? 1=Breakeven, 2= $10K-$20K, 3=more than $20K What investment is required? 1=major investment, 2=minor investment, 3 achieve with current resources Is there a champion? 1=no, 2=neutral, 3=yes Scoring: each idea will have a score of 5-15

Level 1 ScreenFeasibility Dimensions Organizational Fit Strategic (Do we want to do it?) Operational (Can we do it? Business Potential Market (Will others want to buy it from us?) Financial Model (Will it meet our financial goals?)

Local Entrepreneurship And Innovation

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