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Worldwide Social Business Day 2011
GCL in Caldas Team




How might we use Social Business to improve
health in low-income communities?
A challenge by:

                                     &
        www.openideo.com
Our Goal


Our goal is to improve the lives of the
people of Caldas through the development
and adoption of Social Businesses.

With this OpenIDEO challenge, we are
looking for new Social Business ideas, from
which we can pick the most promising to
pilot and implement in Caldas.

                                              2
Welcome to the Worldwide Social Business Day 2011

                          Today, we are going to:
                          1. Understand Social
                             Business
                          2. Improve our
                             understanding of the
                             situation in Caldas
                          3. Get acquainted with the
                             Challenge Themes
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Agenda
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     1. Understand Social Business

     2. Improve our understanding of the situation in Caldas

     3. Get acquainted with the Challenge Themes




                                                               4
Muhammad Yunus’ vision
Using business methods to solve social problems


                                   “I am proposing to create another
                                   kind of business, based on
                                   selflessness that is in all of us. I
                                   am calling it social business.”
                                   Prof. Muhammad Yunus
                                   Nobel Peace Prize Laureate
                                   Inventor of microfinance
                                   Founder of the Grameen Bank
                                   Initiator of the idea of social business




                                                                              5
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Social Business in one sentence...

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                                             A social business is a no loss,
                                             no dividend company with the
                                             only purpose of solving a
                                             social problem.




                                                                               6
Grameen Social Businesses Follow Seven Principles
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The Principles of GSBs


Textmasterformate durch Klicken bearbeiten   1. Business objective will be to overcome poverty,
» Zweite Ebene                                  or one or more problems (such as education, health,
                                                technology access, and environment) which threaten
                                                people and society; not profit maximization

                                             2. Financial and economic sustainability

                                             3. Investors get back their investment amount only.
                                                No dividend is given beyond investment money

                                             4. When investment amount is paid back, company
                                                profit stays with the company for expansion and
                                                improvement

                                             5. Environmentally conscious

                                             6. Workforce gets market wage with
                                                better working conditions

                                             7. …do it with joy


                                                                                                      7
There are two types of Social Business bearbeiten
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                   Type I                               Type II

      A business that commercializes a         A business whose property
      product that creates social value       structure creates social value




         The product in itself meets a       The earnings of the business are
               social challenge               dedicated to a social cause or
                                                   belong to the poor


                                                                  GRAMEEN BANK




                                                                                 8
"Social business unites the dynamism of traditional business with
the social conscience of charity" - Prof. Yunus



            NGOs/Public Sector         Social Business       Traditional Business



                   Social/                 Social/
    Ends        ecological use          ecological use         Profit maximization
                maximization            maximization
                                       Social Business




   Means      Donation financed        Self sustainable         Self sustainable




                                                                                     9
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Agenda
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     1. Understand Social Business

     2. Improve our understanding of the situation in
        Caldas

     3. Get acquainted with the Challenge Themes




                                                        10
The Social Issue
        Every social business starts with one or more social issues. In Caldas, 75% of the
        population live in poverty, 26% in extreme poverty


                               Colombia                                                              Region of Caldas – Key Factors

                                                                                                                      • Population of approx.
                                                                                                                        1 million
                                                                                                                      • 75% live in poverty
                                                                                                                      • 26 % live in extreme poverty
                                                                                                                      • Gini index (2008): 0.610
                                                                                                                        (high)
                                                                                                                      • Main drivers of poverty:
                                                                                                                        Coffee monoculture, lack of
                                                                                                                        domestic value added steps,
                                                                                                                        low education level, and
                                                                                                                        inequality in distribution of
                                                                                                                        wealth

1- Sisben is the Colombian System for Identification of Potential Beneficiaries of Social Programs
Source: Grupo para la reducción de la pobreza gobernación de Caldas                                                                                     11
Focus of the HSBM
       The HSBM of Caldas aims at eradicating poverty by focussing on the
       area of education, nutrition, healthcare and housing



                                                  • 75% only have 5.5 years of education
              Education                           • Lack of agro-industrial knowledge inhibits growth




                                                  • 23% the population at risk of malnutrition
                Nutrition                         • 7.4% already suffer from malnutrition



                                                  • 550k depend on subsidized low quality health
             Healthcare                             care system with long waiting periods to
                                                    receive proper medical treatment



                                                  • Extreme low quality housing and
                Housing                             overcrowded conditions in high risk areas


Source: Grupo para la reducción de la pobreza gobernación de Caldas                                     12
The Holistic Social Business Movement of Caldas will
be based on three main building blocks



                                  Grameen Caldas
                                 Umbrella Organization

              1                    2                   3
                   Grameen              Grameen              SB Joint
                     Caldas              Caldas            Ventures and
                  Microfinance           Social              corporate
                  Organization          Business           investments
                                          Fund



               Loans for mini-          Private and        Corporate SB
               entrepreneurs           corporate SBs        investments
What are we working on…

        Education: CGC      Nutrition: Panela




                                                       And Many More to come…
     Income: Home Stays   Healthcare: Bienestar




                                                  14
Caldas is the perfect first step for a large scale
development of HSBM



 Caldas represents all climate zones…




                                                                Latin America
                                                          Colombia
                                                     Caldas

                                                       Bangladesh

  … which makes it the perfect HSBM pilot
  area
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     1. Understand Social Business

     2. Improve our understanding of the situation in Caldas

     3. Get acquainted with the Challenge Themes




                                                               16
What is Concepting?


   The Concepting Phase is where we take everything we learned
      during Inspiration and use it to create big, bold and
      innovative ideas that address the challenge question.



                            To help guide the focus of your
                            concepts, we’ve created a set of
                            Themes to think about…
Introducing Challenge Themes




         Women +                     Invest in                 Maximise
         Children                      Local                   Resources



To learn more and get started, check out http://bit.ly/grameen-ideas
Introducing Challenge Themes




       Awareness +                    Inviting               Community
       Storytelling                   Outside                Connections
                                      Interest




To learn more and get started, check out http://bit.ly/grameen-ideas
Any other questions?

We are looking forward to your ideas!

http://bit.ly/grameen-ideas
THANK YOU AND HAPPY SOCIAL BUSINESS DAY!
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 Caldas Team Overview

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WSBD open ideo challenge

  • 1. Worldwide Social Business Day 2011 GCL in Caldas Team How might we use Social Business to improve health in low-income communities? A challenge by: & www.openideo.com
  • 2. Our Goal Our goal is to improve the lives of the people of Caldas through the development and adoption of Social Businesses. With this OpenIDEO challenge, we are looking for new Social Business ideas, from which we can pick the most promising to pilot and implement in Caldas. 2
  • 3. Welcome to the Worldwide Social Business Day 2011 Today, we are going to: 1. Understand Social Business 2. Improve our understanding of the situation in Caldas 3. Get acquainted with the Challenge Themes
  • 4. Titelmasterformat durch Klicken bearbeiten Agenda Textmasterformate durch Klicken bearbeiten » Zweite Ebene 1. Understand Social Business 2. Improve our understanding of the situation in Caldas 3. Get acquainted with the Challenge Themes 4
  • 5. Muhammad Yunus’ vision Using business methods to solve social problems “I am proposing to create another kind of business, based on selflessness that is in all of us. I am calling it social business.” Prof. Muhammad Yunus Nobel Peace Prize Laureate Inventor of microfinance Founder of the Grameen Bank Initiator of the idea of social business 5
  • 6. Titelmasterformat durch Klicken bearbeiten Social Business in one sentence... Textmasterformate durch Klicken bearbeiten » Zweite Ebene A social business is a no loss, no dividend company with the only purpose of solving a social problem. 6
  • 7. Grameen Social Businesses Follow Seven Principles Titelmasterformat durch Klicken bearbeiten The Principles of GSBs Textmasterformate durch Klicken bearbeiten 1. Business objective will be to overcome poverty, » Zweite Ebene or one or more problems (such as education, health, technology access, and environment) which threaten people and society; not profit maximization 2. Financial and economic sustainability 3. Investors get back their investment amount only. No dividend is given beyond investment money 4. When investment amount is paid back, company profit stays with the company for expansion and improvement 5. Environmentally conscious 6. Workforce gets market wage with better working conditions 7. …do it with joy 7
  • 8. There are two types of Social Business bearbeiten Titelmasterformat durch Klicken Textmasterformate durch Klicken bearbeiten » Zweite Ebene Type I Type II A business that commercializes a A business whose property product that creates social value structure creates social value The product in itself meets a The earnings of the business are social challenge dedicated to a social cause or belong to the poor GRAMEEN BANK 8
  • 9. "Social business unites the dynamism of traditional business with the social conscience of charity" - Prof. Yunus NGOs/Public Sector Social Business Traditional Business Social/ Social/ Ends ecological use ecological use Profit maximization maximization maximization Social Business Means Donation financed Self sustainable Self sustainable 9
  • 10. Titelmasterformat durch Klicken bearbeiten Agenda Textmasterformate durch Klicken bearbeiten » Zweite Ebene 1. Understand Social Business 2. Improve our understanding of the situation in Caldas 3. Get acquainted with the Challenge Themes 10
  • 11. The Social Issue Every social business starts with one or more social issues. In Caldas, 75% of the population live in poverty, 26% in extreme poverty Colombia Region of Caldas – Key Factors • Population of approx. 1 million • 75% live in poverty • 26 % live in extreme poverty • Gini index (2008): 0.610 (high) • Main drivers of poverty: Coffee monoculture, lack of domestic value added steps, low education level, and inequality in distribution of wealth 1- Sisben is the Colombian System for Identification of Potential Beneficiaries of Social Programs Source: Grupo para la reducción de la pobreza gobernación de Caldas 11
  • 12. Focus of the HSBM The HSBM of Caldas aims at eradicating poverty by focussing on the area of education, nutrition, healthcare and housing • 75% only have 5.5 years of education Education • Lack of agro-industrial knowledge inhibits growth • 23% the population at risk of malnutrition Nutrition • 7.4% already suffer from malnutrition • 550k depend on subsidized low quality health Healthcare care system with long waiting periods to receive proper medical treatment • Extreme low quality housing and Housing overcrowded conditions in high risk areas Source: Grupo para la reducción de la pobreza gobernación de Caldas 12
  • 13. The Holistic Social Business Movement of Caldas will be based on three main building blocks Grameen Caldas Umbrella Organization 1 2 3 Grameen Grameen SB Joint Caldas Caldas Ventures and Microfinance Social corporate Organization Business investments Fund Loans for mini- Private and Corporate SB entrepreneurs corporate SBs investments
  • 14. What are we working on… Education: CGC Nutrition: Panela And Many More to come… Income: Home Stays Healthcare: Bienestar 14
  • 15. Caldas is the perfect first step for a large scale development of HSBM Caldas represents all climate zones… Latin America Colombia Caldas Bangladesh … which makes it the perfect HSBM pilot area
  • 16. Titelmasterformat durch Klicken bearbeiten Agenda Textmasterformate durch Klicken bearbeiten » Zweite Ebene 1. Understand Social Business 2. Improve our understanding of the situation in Caldas 3. Get acquainted with the Challenge Themes 16
  • 17. What is Concepting? The Concepting Phase is where we take everything we learned during Inspiration and use it to create big, bold and innovative ideas that address the challenge question. To help guide the focus of your concepts, we’ve created a set of Themes to think about…
  • 18. Introducing Challenge Themes Women + Invest in Maximise Children Local Resources To learn more and get started, check out http://bit.ly/grameen-ideas
  • 19. Introducing Challenge Themes Awareness + Inviting Community Storytelling Outside Connections Interest To learn more and get started, check out http://bit.ly/grameen-ideas
  • 20. Any other questions? We are looking forward to your ideas! http://bit.ly/grameen-ideas
  • 21. THANK YOU AND HAPPY SOCIAL BUSINESS DAY! The Grameen Creative Lab team durch Klicken bearbeiten Titelmasterformat in Caldas Textmasterformate durch Klicken bearbeiten » Zweite Ebene Caldas Team Overview