A presentation to the National Digital Conference on the role of social enterprise and technology in wealth creation. Includes business models, key areas of contribution, and major challenges. More at www.innovationlab.my.

1. KAL JOFFRES
NATIONAL DIGITAL
CONFERENCE, JULY 3, 2013

2. WE DESIGN TECHNOLOGY TO CREATE A BETTER
SOCIETY FOR THE UNDERPRIVILEGED
The Social Innovation Lab works with the public,
government, and social organisations to build and
incubate innovative solutions to social problems.

3. Social Enterprise Business Models Investment
West has spent US$2.3 trillion in aid
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Yet there is no correlation between aid expenditure and GDP
growth
Until 8% of GDP, where it is associated with GDP decline
One in 8 people lack access lack access to safe water
1.5 billion people lack access to sanitation facilities

4. Social Enterprise Business Models Investment
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Given Away
Not used for intended purpose
Not safeguarded
Diverted to black market
Does not reach intended market

5. Social Enterprise Business Models Investment
July 15, 2005 vs. January 12, 2010
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9 million copies of Harry Potter were delivered in a single day
in US & UK
Shelves kept continually stocked
Haiti earthquake strikes
Wrong kinds of supplies going into the country for weeks
Cannot get aid into the country fast enough
Some hospitals flooded, others empty
Putting locals out of a business

6. Social Enterprise Business Models Investment
Social enterprise
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What if we could bring the strengths of the market economy
to bear on social problems?
Business must not only be for profit, but also for social
purpose

7. Social Enterprise Business Models Investment
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Social enterprise
An organization whose primary purpose is to create a
sustainable social benefit…
(organizations whose primary goal is to create jobs usually unsustainable)
… that uses a private sector business model to sustain itself

8. Social Enterprise Business Models Investment
A-Z Bed nets
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Given Away Purchased
Not used for intended purpose
Not safeguarded
Diverted to black market
Does not reach intended market
Incentivize distribution, generate income
Valued by owners
Higher impact in malaria prevention

9. Social Enterprise Business Models Investment
9Grameen Bank

10. Social Enterprise Business Models Investment
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12. Social Enterprise Business Models Investment
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13. Social Enterprise Business Models Investment
Why social enterprise
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Bringing the strengths of business to bear on social problems
Sustainability
Discipline
Incentives
Scale
Leverage
Easterly (2007)

14. Social Enterprise Business Models Investment
14Big ideas

15. Social Enterprise Business Models Investment
Design for extreme affordability
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Key Business Models
Design for Extreme Affordability

16. Social Enterprise Business Models Investment
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Cross-Subsidization

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Two Businesses

18. Social Enterprise Business Models Investment
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VisionSpring
Microfranchising

19. Social Enterprise Business Models Investment
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Inclusive Capitalism

20. Social Enterprise Business Models Investment
21Big ideas

21. Social Enterprise Business Models Investment
Improving resource allocation
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Solving information problems – where can I find X?
Enabling collaborative consumption – Airbnb, sharing
household items, decentralized logistics
SOLS Tech
Shufflecar
We Design Change

22. Social Enterprise Business Models Investment
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23. Social Enterprise Business Models Investment
Providing market access
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Enabling market fragmentation or “small producers”
MyTeksi / TaxiMonger
Elevyn
Samasource
Kiva

24. Social Enterprise Business Models Investment
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25. Social Enterprise Business Models Investment
Enabling scale and efficiency
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Virtualising processes and services
Replacing infrastructure and doing content delivery
M-Pesa
SKS Microfinance
Blended learning
Farm management

26. Social Enterprise Business Models Investment
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27. Social Enterprise Business Models Investment
The biggest challenges are offline
Community organizing, NGOs are a big part of the equation
and having a strong “third sector” is critical (e.g. Kiva)
It has to be people-centred. Pitfalls of top-down government
programmes. Focus on understanding the situation on the
ground
Understand the “why” of technology – do people want this?
Why do they want it? Technology is a tool to do something,
not an inherent social good
Where does this leave us?

28. Social Enterprise Business Models Investment
Rural internet centres
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Challenge: create economic value
1. Look at what people do, not what people say or what is
reported
2. Find extreme users, not average users
3. Expand extreme users’ practices through PPPs
In application