Overview of social innovations and social entrepreneurship with advice and list of resources.

1. The new business
of business –
solving societal
issues and making
profit
Mindaugas Danys
November, 2015, Vilnius

2. Outline
• Introduction
• Social innovations as driver for change
• Double bottom line and social enterprise
• Serving Bottom of the pyramid
• Lean startup/design thinking/scaling
• Impact investment & measurement
• Cases

3. 1st coworking space in Lithuania in 2010

4. 1st Urban Garden in Vilnius in 2013

5. Monthly Hub Camps since 2011

6. 6

8. The best minds of my generation are thinking
about how to make people click ads.
That sucks.
Jeff Hamerbacher, ex Facebook

11. To fix a problem at its root cause, you have to create
change at all levels of society: individuals, communities,
businesses, nonprofits, schools, and governments.

15. Tool bank & sharing economy

17. Car sharing/pooling & bike sharing

18. data by
SHARE THE ABUNDANCE: ROOMS

19. It’s getting big & noticed

20. Crowdfunding

27. Upcycling

30. What is Social Entrepreneurship

31. Social Entrepreneurship
• The practice of creating business solutions to address the needs,
challenges, inefficiencies and inequalities in society actively engaging
stakeholders with a profitable, wealth-generation and sustainable
long term approach measured by a double-bottom line of financial
return and social impact.

35. Single Bottom Line - Conventional Business
• You open a restaurant to make people happy with your food.
• People pay for food.
• You pay your waiters, cooks and employees.
• You pay for ingredients you buy in the markets.
• What is the most important element?
• To make a profit.
– If you don’t make money, you can’t buy ingredients, pay employees, sell your
food and make people happy.
• Making a profit is your bottom line.

36. Double Bottom Line
• You open a fair-trade, organic food restaurant to promote awareness and
support environmental, health and social issues.
• People pay for food.
• You pay your waiters, cooks and employees.
• You pay for more expensive ingredients from fair-trade and organic
providers.
• What are the important elements here?
• To make a profit.
• If you don’t make money, you can’t buy ingredients, pay employees, sell your
food, make people aware of the environmental, social and health issues or
support them.
• You are willing to pay a higher price of ingredients and have less profit to
support the causes.
• Making a profit and Having Social Impact is your double bottom line.

37. Jamie Oliver’s Fifteen
https://youtu.be/Tvs-2wEgGAc

38. The Empowerment Plan Project
https://youtu.be/mo-kvh1w60w
http://vimeo.com/43923922

39. Bee hives in Copenhagen
nearly 5 tons! of honey from 20 apiaries
http://vimeo.com/30085046

40. The Big Issue
There are 9 Big Issue projects by the same name in
other nations:
The Big Issue Australia (From June 1996).
The Big Issue Japan (From November 2003).
The Big Issue Kenya (From 2007).
The Big Issue Korea (From July 2010).
The Big Issue Malawi (From 2009).
The Big Issue Namibia
The Big Issue The Republic of Ireland.
The Big Issue South Africa (From December 1996).
The Big Issue Taiwan (From April 2010).
The Big Issue Zambia (From 2007).
https://youtu.be/4K9Ni44CGYA

41. Social Entrepreneurship…
• Is not Charity or Philanthropy
• Social entrepreneurs are not asking for donations to give handouts to
those in need.
• Is not about helping others.
• Is about enabling, engaging, empowering and connecting
stakeholders.
• Is not Corporate Social Responsibility.
• It is about making profit and maximizing efficiency while having a
double-bottom line: profit and social impact.
• You can become wealthy by doing good.

42. Social Enterprise Mark UK
Your company must:
• have social and/or environmental aims
• have its own constitution and governance
• earn at least 50% of revenue from trading (or as a new start, you
pledge to reach this within 18 months)
• spend at least 50% of profits on social/environmental aims
• distribute residual assets to social/environmental aims if dissolved
• demonstrate SOCIAL VALUE

43. EU Definition
According to the definition of the European
Commission a social enterprise “operates by
providing goods and services for the market in an
entrepreneurial and sometimes innovative fashion
and uses its profits primarily to achieve social
objectives. It is managed in an open and responsible
manner and, in particular, involve employees,
consumers and stakeholders affected by its
commercial activities”

44. Make a business case

45. The Promise of Social Entrepreneurship
• As long as we remain true to a double-bottom line vision and
committed to enabling and empowering stakeholders, profit
generation and dividends can become the most powerful incentive
towards efficient use of resources, transparency and realization of a
growing social impact.

46. Spectrum of Businesses
• Pure profit.Business.
• Good profit.Ethical Business
• Extra profit put to good use.Corporate Social
Responsibility
• Make profit and do good.Social
Entrepreneurship
• Profit but no dividend.Social Business
• Charity. No Profit, No Dividend.Non-Profit
• Public Services, incentives and
regulations.Government
• Framework initiatives.International
Organizations

47. TOMS – not a social business but a strong
mission
• https://youtu.be/7MV3HWQHl1s

48. Some Thoughts on the Challenges of Social
Entrepreneurship
• Regulations:
– Conventional legislation recognizes and regulates charity and for-profit business but
not social entrepreneurship. It also provides incentives for both, but very little for
social enterprises.
• Awareness:
– People still ask: “are you a charity or a business?”. People think you don’t want to
make money.
• Unfair competition:
– From Corporate Social Responsibility Programs and Non-Profit organizations with no
need to return a profit or efficiency.
– From Businesses which don’t have a double bottom line and incure in lower costs.
• Is failing fast and forward an option for those who have nothing?

49. In 2014 Mom’s Fair in Vilnius and
Kaunas received 137.500 of
stuff from 1 500 families, over
60 % was sold, the rest was
donated.
www.mamumuges.lt

50. Impact Measurement

51. Why Measure Performance and Impact
It’s important to assess the performance of social enterprises and their
impact.
Enterprise Performance: measures the performance of the social enterprise
and the return on investment.
Social Impact: measures social/mission gains and risks as a result of the
social enterprise.
Indicators include number of active beneficiaries as well as jobs created per
year and average income of active beneficiaries as a result of the social
enterprise.
Financial Sustainability: measures the financial sustainability gained as a
result of the enterprise;
Organizational Development: measures the organizational development
gained as a result of the enterprise

54. https://www.youtube.com/watch?v=b9dx2GCUtTs

56. • plant a seedling for $1; wait 6-10
years; sell a tree for $30.

57. Bottom of a Pyramid

58. Bottom of the Pyramid

60. Cheap, natural, easy to produce
• Because the machines used in
production of the pads effectively run
on solar-generated power, the factory
can be set up anywhere. It takes just
a week to set up a cottage industry
and start producing MakaPads. The
production timeline, from harvesting
the raw papyrus to passing out a
ready-to-use pad, takes an average of
four days.
• https://youtu.be/jkhVmKkphN8

61. Biogas Backpack – 4 hours of cooking

62. SPOUTS of water

63. One Dollar Glasses

64. d.light celebrates 50 mill. lives impacted
Not enough to create good product

65. Design for social change

66. Repellent Mosquito Nets
• In West Africa,
over 3,000
children die of
malaria every
day;
• 1 out of every 5
childhood
deaths is due to
malaria.
• Malaria kills a
child every 30
seconds in West
Africa.

67. How to outsmart competition

68. Be art

69. Show value added
MAMMU Latvia
79 EUR !

70. Tell a story – share your mission

71. Good causes – get viral
ALSA.org reports that as of September 2, 2014 it has received $106
million in Ice Bucket donations from over 3 million donors.

74. Millenials push for changes – use it

75. Engage

76. What’s your mission?

77. • 3,000 retail stores and
on the auction site
• Retail sales: $3.5 billion
• People served through
employment programs:
10 million
• People placed in
employment: 350,815
Scaling up

78. Use mainstream channels

79. Piggy back

80. The rules has changed

81. Use Lean Startup methods

82. Business Canvass – an alternative to business
plan

83. You are not alone

85. Impact investment is growing

86. Impact Investments
Impact investing refers to investments "made into companies,
organizations, and funds with the intention to generate a measurable,
beneficial social or environmental impact alongside a financial return"
It is a form of socially responsible investing that serves as a guide for
various investment strategies.

87. Public Support
• The UK GOVERNMENT, provides a 30 percent tax relief for social
investments, which is anticipated to stimulate as much as GBP 500
million in additional investment over the next five years.
• The EUROPEAN UNION created regulation to formally recognize funds
that invest 70 percent of investor capital into European social
businesses as “European Social Entrepreneurship Funds,” enabling
these managers to market and fundraise more effectively among
impact investors.

88. Social impact bonds
• The investors receive a financial return from the government based
on whether the project they've invested in achieves certain
measurable milestones—for example 5% better education outcomes
or 10% lower re-offending rates. In this way, the SIBs helps the
government achieve its aims, often a lower cost than it could achieve
itself, and the investors make a return on their money.

89. Names to know in the sector
• Ashoka
• Acumen
• Schwab
• Erste
• Reach for Change
• British Council
• Kaos pilot
• Unreasonable Institute
• Grameen
• Social Capital Markets
• Skoll
• Kauffman
• SEF Riga
• Mammu
• Global Impact Investment
Network
• EVPA

90. Bill Drayton, Ashoka’s Founder and CEO and a pioneer in
the field of social entrepreneurship:
“Social entrepreneurs are not content just to give
a fish, or teach how to fish.
They will not rest until they have revolutionized
the fishing industry.”

91. What to do next?
• Find your passion
• Network & share
• Ideate & prototype
• Execute & scale
• Inspire
• Use your moral power
• Engage volunteers
• Capitalize on making
good

92. Thanks!
Mindaugas Danys
mindaugas.danys
@gmail.com
Mob. +37068601247
Skype: mdanys4282