APS 1015: Social Entrepreneurship
Class 1: Introduction to Social
Entrepreneurship and Social Systems
Tuesday, May 20, 201...
© Norm Tasevski
2
© Norm Tasevski
Before we begin…
This course is designed for those that want to
generate social change
3
© Norm Tasevski
Course Director – Norm Tasevski
4
© Norm Tasevski
Teaching Assistant – Alex Kjorven
5
© Norm Tasevski
Course Director – Karim Harji
6
© Norm Tasevski
What Makes YOU
a Budding (Social)
Entrepreneur???
7
© Norm Tasevski
Agenda
• Class Intros
• Syllabus and Class Structure
• Ground Rules
• Defining Social Entrepreneurship
• W...
© Norm Tasevski
Syllabus
9
© Norm Tasevski
Class Rules
– Participation - quality, not
quantity!
– No stupid questions (only
stupid answers)
– Respect...
Defining Social Entrepreneurship…
11
© Norm Tasevski
The Roots of Social Entrepreneurship
In the beginning…
12
Then…
Private Sector
• Earn $
• Pay tax
• Donate...
© Norm Tasevski
Caveat…
13
Social Entrepreneurship is no longer a
nonprofit-only activity!!!
© Norm Tasevski
To Understand Social Entrepreneurship, we
need to understand entrepreneurship...
14
© Norm Tasevski
Entrepreneurs…
…are motivated
15
© Norm Tasevski
Entrepreneurs…
…are innovative
16
© Norm Tasevski
Entrepreneurs…
…are resourceful
17
© Norm Tasevski
Entrepreneurs…
…take chances
18
How is Social Entrepreneurship
Different?
19
© Norm Tasevski
Entrepreneurs…
…are motivated …are resourceful …are risk takers…are innovative
20
© Norm Tasevski
But, for the social entrepreneur…
…motivations are different
21
© Norm Tasevski
And…
…innovation is different
22
© Norm Tasevski
And…
…resourcefulness is different
23
© Norm Tasevski
And…
…risk taking is different
24
© Norm Tasevski
An Example – “Civic Engagement, Scaled
Up”
25
© Norm Tasevski
Other Differences
Focus on “systems
thinking” and
“systems change”:
“Social entrepreneurs are not content ...
© Norm Tasevski
Some Definitions
• “Social entrepreneurs identify resources where
people only see problems. They view the ...
© Norm Tasevski
What is a Social Enterprise?
• Organizations (non-profit or for-profit) that imbed
both social purpose and...
© Norm Tasevski
The SE Goal - Social vs. Financial Purpose
Social Purpose
– Creating a “social return” by making positive ...
© Norm Tasevski
What SE is and is Not
Social Enterprise Is Not… Social Enterprise Is…
• A fundraising strategy (i.e. a “gi...
© Norm Tasevski
A test…
31
I am:
• A retailer
• Sells goods at rates affordable by low-
income individuals
• Employs indiv...
© Norm Tasevski
32
© Norm Tasevski
What does this mean?
Social
Enterprise
CSR
33
Social
Enterprise
Complexity
Break
34
Motivators for Social Entrepreneurs…
35
© Norm Tasevski
A Question…
What motivates you??
36
© Norm Tasevski
Some Definitions
• Internal and external factors that stimulate desire and energy in people to be
continua...
© Norm Tasevski
38
In response to
why people are
not giving to
the Pakistani
flood in the
same way as
they did for
Haiti, ...
© Norm Tasevski
39
Costin Militaru, an
outreach
worker…has met
addicts as young as
9 years old. "His
family had no money
f...
© Norm Tasevski
40
“On March
24, 1989, the Exxon
Valdez ran aground
in northern Prince
William
Sound, spilling 42
million ...
© Norm Tasevski
41
A total of 32,700
different people
stayed in Toronto's
emergency shelters
in 2005. 4,600 were
children....
© Norm Tasevski
42
© Norm Tasevski
So What Motivates The
Social/Environmental Entrepreneur?
“…it was an epiphanal experience…”
Ray Anderson, ...
© Norm Tasevski
So What Motivates The
Social/Environmental Entrepreneur?
“I heard the same story again and again. Someone ...
© Norm Tasevski
So What Motivates The
Social/Environmental Entrepreneur?
“…that made a real impression on me…”
Jeff Skoll,...
© Norm Tasevski
So What Motivates The
Social/Environmental Entrepreneur?
“I was teaching in one of the universities while ...
© Norm Tasevski
So What Motivates The
Social/Environmental Entrepreneur?
“…powerful moments of inspiration…”
Jacqueline No...
© Norm Tasevski
What about…
Introduction to Social Systems…
49
© Norm Tasevski
What is a System?
“A set of "Things” (people, organizations, objects…) that are
interconnected in such a w...
© Norm Tasevski
System Behaviour
• A system creates/causes its own responses
• Outside forces can influence system respons...
© Norm Tasevski
System Components
1. Elements
2. Interconnections
3. Functions/Purpose
Example: Soccer (Football)
52
Eleme...
© Norm Tasevski
System Components
• Elements
– Tangible (people, buildings)
– Intangible (team pride, learned skills)
• In...
© Norm Tasevski
Social Systems – the Unintended
Responses
54
Social System Unintended Response
•Health Care •Obesity
•Spre...
© Norm Tasevski
What is Not a System?
• Anything with one or more of the components (e.g.
elements, interconnections or fu...
© Norm Tasevski
“Mapping” a System
56
© Norm Tasevski
Another Example
57
© Norm Tasevski
What did we learn?
58
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APS 1015 Class 1 - Intro to SE and Systems

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This introductory class provides an overview and brief history of social entrepreneurship, and the motivations for wanting to be a social entrepreneur. Students will also be exposed to the basics of social systems in preparation for the class 2 systems mapping exercise.

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  • NORMAdd link to sourceCourse is about SE. Ask, “who has heard the term social entrepreneurship? – show of hands (where did you hear it? what does it mean?)Focus is on what SE is, and how it is used in practice
  • NORMOur goal – to get students in a position to start a social enterprise by the end of the courseWe will give you the theory because you need it, but we want to emphasize the practiceWe’ll give you the tools, evaluate you on it, and will give you a chance to pitch your idea to actual investors (and give you exposure to real entrepreneurs)We’ll get into more detail when we go through the syllabus
  • NORMWhat I doEducationConnection to SE
  • KARIMWhat I doEducationConnection to SE
  • NORMTask: Ask the class, “give me your name, and an aspect of your personality that you think makes you a prospective (social) entrepreneur”
  • NORM Start with some introductions so we can get to know who you are then we will review the syllabus and class structure ground rules for the class first part of the lecture before the break will be on social entrepreneurship – defining it, providing examples, and introducing some of the key themes that we will talk about further in the course the second part of the lecture – after the break – will focus on social enterprise… definitions, examples, and setting the stage for later lectures we’ll then review what we learned, and prep for next week’s lecture
  • NORM & KARIMCover:Course objectives – balancing macro and micro (theory and practice)Term assignmentWeek-by-week – note that class schedule may change due to availability of guest speakersOverview – NormReadings - Karim
  • NORMThings to DoEdit list directly on the slide (if changes are suggested)Demonstrate the 5 fingers rule:5 Fingers – It’s a great idea and I will be one of the leaders in implementing it.4 Fingers – I think it’s a good idea/decision and will work for it.3 Fingers – I’m not in total agreement but feel comfortable to let this decision or a proposal pass without further discussion.2 Fingers – I am more comfortable with the proposal but would like to discuss some minor issues.1 Finger – I still need to discuss certain issues and suggest changes that should be made.Fist – A no vote - a way to block consensus. I need to talk more on the proposal and require changes for it to pass
  • NORM Start with some introductions so we can get to know who you are then we will review the syllabus and class structure ground rules for the class first part of the lecture before the break will be on social entrepreneurship – defining it, providing examples, and introducing some of the key themes that we will talk about further in the course the second part of the lecture – after the break – will focus on social enterprise… definitions, examples, and setting the stage for later lectures we’ll then review what we learned, and prep for next week’s lecture
  • NORM Start with some introductions so we can get to know who you are then we will review the syllabus and class structure ground rules for the class first part of the lecture before the break will be on social entrepreneurship – defining it, providing examples, and introducing some of the key themes that we will talk about further in the course the second part of the lecture – after the break – will focus on social enterprise… definitions, examples, and setting the stage for later lectures we’ll then review what we learned, and prep for next week’s lecture
  • NORMTask: Get class to think of one word they would use to describe entrepreneurship Write down words on the board
  • NORM
  • NORMKey difference – from money to community
  • NORMKey idea – building“resiliency” of communities
  • NORMKey idea – engaging people, collaborating
  • NORMKey idea – engaging people, collaborating
  • KARIMTimeraiser is a Canadian non-profit event supporting artists and non-profit agencies in six communities across Canada. Timeraiser's mission is to "bring people to causes and causes to people"The Timeraiser is described as "part volunteer fair, part silent art auction, and part night on the town“. Participants bid volunteer hours to charitable organizations and charities, in return for “puchasing” artwork by local artists. The event is a way for people to find causes and for agencies to connect with skilled volunteers.
  • Challenge your assumptions!!
  • KARIM
  • KARIM
  • NORMKey lesson – the definition of SE is fuzzy - does this fuzziness weaken the term? (i.e. if everyone is a social entrepreneur, does it weaken)Goal – to distinguish SE from CSR, charity, etc
  • NORMIs Walmarta social enterprise – reason for, reason againstGoal – to distinguish SE from CSR, charity, etc
  • NORMKey lesson – tensionUltimate challenge of each SE is balancing opposing forces (e.g. social and financial mission)We will discuss tools you can use to deal with these tensions, and will learn from other entrepreneurs on how they’ve dealt with their tensionsYou should feel tension as you develop your SEA theme in the courseHow do you distinguish social enterprise from regular company? Motivation, intent, way of thinking, sacrifice
  • NORMGoal – to distinguish SE from CSR, charity, etcDefinitions are blurry
  • Hand out assignment!!!
  • Get students to think of one word to answer:CompassionEmotional reaction to injustice
  • Get a student to readWhat is the problem with these definitions? They are detached, emotionless, passionless – this isn’t what social entrepreneurship motivation is all about
  • Pakistani FloodsPic from Time Magazine
  • Drug house in Bucharest – economy caused closing of needle houses, people fear risk of HIV going upPic from Time Magazine
  • Quote from: http://www.scientificamerican.com/article.cfm?id=environmental-effects-ofPic from:
  • Homelessness in Toronto (Pic from: http://www.walkinghome.ca/facts/)What did you think/feel when we saw these photos?
  • What is your reaction?Why do some people see these types of images and act, and others not?Is there a difference if you are living it as opposed to seeing it from afar?Reflect on this for your term assignment
  • Email link, just in case: http://www.youtube.com/watch?v=OUG4JXE6K4A
  • From Bornstein book
  • Link, just in case: http://www.ted.com/talks/jeff_skoll_makes_movies_that_make_change.htmlAsk, who is Jeff Skoll?Show first 6:20 minutes of TED clipTell students about TED Talks
  • From Bornstein book
  • Link, just in case: http://www.ted.com/talks/jacqueline_novogratz_inspiring_a_life_of_immersion.htmlAsk, who is Jacqueline NovotratzShow first 5ish minutes of TED clip
  • Image from: http://dimensionsidesign.com/ Break this up – as you debate, think about the other side (what is their motivation?)Frame this: What does success look like? Where are the lines? Bring up the Walmart exampleWhere is the line? Is it drawn by money? How else is it drawn?Why is it okay for corporations to make a lot of money, but it isn’t for social enterprises?Link back to the perspectives of the panelists at end of the courseWhat about microfinance? It has been growing for years, and there are plans for IPOs. Is this a logical thing to do? Is this reflective of what is expected of social entrepreneurs?Who is benefitting?Karim – Yunus against IPOsLesson: It is a fear among social enterprises to make too much money (sellouts)Revisit Ben and Jerry’s example – if you were in their shoes, what would you have done (knowing that it dilutes the social mission)?it’s okay to talk about money, but you need to know where your personal line is
  • Flu – the virus doesn’t attack a person, the body creates the conditions for the flu to flourishTalk about the way this happens –
  • Flu – the virus doesn’t attack a person, the body creates the conditions for the flu to flourishTalk about the way this happens –
  • Flu – the virus doesn’t attack a person, the body creates the conditions for the flu to flourishTalk about the way this happens –
  • NORMFocus on the distinction between entrepreneur and enterprise
  • APS 1015 Class 1 - Intro to SE and Systems

    1. 1. APS 1015: Social Entrepreneurship Class 1: Introduction to Social Entrepreneurship and Social Systems Tuesday, May 20, 2014 1 Instructors: Norm Tasevski (norm@socialentrepreneurship.ca) Alex Kjorven (alex@socialentrepreneurship.ca)
    2. 2. © Norm Tasevski 2
    3. 3. © Norm Tasevski Before we begin… This course is designed for those that want to generate social change 3
    4. 4. © Norm Tasevski Course Director – Norm Tasevski 4
    5. 5. © Norm Tasevski Teaching Assistant – Alex Kjorven 5
    6. 6. © Norm Tasevski Course Director – Karim Harji 6
    7. 7. © Norm Tasevski What Makes YOU a Budding (Social) Entrepreneur??? 7
    8. 8. © Norm Tasevski Agenda • Class Intros • Syllabus and Class Structure • Ground Rules • Defining Social Entrepreneurship • What motivates the social entrepreneur? • Break • Introduction to Social Systems • What did we learn? • Next week 8
    9. 9. © Norm Tasevski Syllabus 9
    10. 10. © Norm Tasevski Class Rules – Participation - quality, not quantity! – No stupid questions (only stupid answers) – Respect your classmates – attend and be punctual! 10
    11. 11. Defining Social Entrepreneurship… 11
    12. 12. © Norm Tasevski The Roots of Social Entrepreneurship In the beginning… 12 Then… Private Sector • Earn $ • Pay tax • Donate to charity Public Sector • Collect tax • Run programs • Grant to charity Nonprofit Sector • Receive donations/grants • Run programs Nonprofit Sector • Donations • Grants • Sustainability Response? Nonprofit Sector Private Sector Activities
    13. 13. © Norm Tasevski Caveat… 13 Social Entrepreneurship is no longer a nonprofit-only activity!!!
    14. 14. © Norm Tasevski To Understand Social Entrepreneurship, we need to understand entrepreneurship... 14
    15. 15. © Norm Tasevski Entrepreneurs… …are motivated 15
    16. 16. © Norm Tasevski Entrepreneurs… …are innovative 16
    17. 17. © Norm Tasevski Entrepreneurs… …are resourceful 17
    18. 18. © Norm Tasevski Entrepreneurs… …take chances 18
    19. 19. How is Social Entrepreneurship Different? 19
    20. 20. © Norm Tasevski Entrepreneurs… …are motivated …are resourceful …are risk takers…are innovative 20
    21. 21. © Norm Tasevski But, for the social entrepreneur… …motivations are different 21
    22. 22. © Norm Tasevski And… …innovation is different 22
    23. 23. © Norm Tasevski And… …resourcefulness is different 23
    24. 24. © Norm Tasevski And… …risk taking is different 24
    25. 25. © Norm Tasevski An Example – “Civic Engagement, Scaled Up” 25
    26. 26. © Norm Tasevski Other Differences Focus on “systems thinking” and “systems change”: “Social entrepreneurs are not content just to give a fish or how to teach fish. They will not rest until they have revolutionized the fishing industry” Bill Drayton Seek “profit” in traditionally unprofitable pursuits: “(Social entrepreneurs) work in areas where there is partial or total market failure…what distinguishes them is that they are prepared to strike a very different balance when it comes to creating value for those who would not normally be able to afford it” John Elkington Possess a strong “ethical impetus”: David Bornstein: “Why do you work on the kinds of projects you do? Why don‟t you just want to make a lot of money?” Fabio Rosa: “I am trying to build a little part of the world in which I would like to live. A project only makes sense to me when it proves useful to make people happier and the environment more respected, and when it represents a hope for a better future. This is the soul of my projects.” 26
    27. 27. © Norm Tasevski Some Definitions • “Social entrepreneurs identify resources where people only see problems. They view the villagers as the solution, not the passive beneficiary. They begin with the assumption of competence and unleash resources in the communities they are serving” David Bornstein • “A social entrepreneur is someone who recognizes a social problem and uses entrepreneurial principles to organize, create and manage a venture to make social change” Wikipedia 27
    28. 28. © Norm Tasevski What is a Social Enterprise? • Organizations (non-profit or for-profit) that imbed both social purpose and business purpose into their organization • Returns are both Social (i.e. impact) & Financial (i.e. profit) • Key distinguishing factors: Intent and motivation 28
    29. 29. © Norm Tasevski The SE Goal - Social vs. Financial Purpose Social Purpose – Creating a “social return” by making positive change within an inequitable social system • Examples: Reduced Poverty, Improved Literacy Financial Purpose – Creating a “financial return”, usually through the sale of products/services in the marketplace Blended Purpose – Effecting social change by combining social and financial return – Also called “Blended Value” 29
    30. 30. © Norm Tasevski What SE is and is Not Social Enterprise Is Not… Social Enterprise Is… • A fundraising strategy (i.e. a “give” mentality) • A business line (i.e. a “sales” mentality) • Solely focused on either “customers” or “clients” • Focused on both “customers” and “clients” • Dependent on restricted funds for operations (i.e. not sustainable) • Sustainable (ideally “self-sufficient”) • An event or one-off activity (e.g. conferences, bake sales) • A continuous, market-driven activity • Providing value to clients only • Providing value to both “clients” and “customers” (and distinguishing between both!) • Quick • A venture that may take several years to become profitable/sustainable 30
    31. 31. © Norm Tasevski A test… 31 I am: • A retailer • Sells goods at rates affordable by low- income individuals • Employs individuals with barriers to employment • Goals: – 92% of imported goods from green factories – 95% of waste redirected from landfill – Desire to be supplied 100% by renewable energy by 2015 Social Enterprise or Not? Facts: • $115M raised for charity since 1995 ($18M in 2009) • Over 1,000 environmentally- approved products on sale • 1700 new jobs created in Canada in 2009
    32. 32. © Norm Tasevski 32
    33. 33. © Norm Tasevski What does this mean? Social Enterprise CSR 33 Social Enterprise Complexity
    34. 34. Break 34
    35. 35. Motivators for Social Entrepreneurs… 35
    36. 36. © Norm Tasevski A Question… What motivates you?? 36
    37. 37. © Norm Tasevski Some Definitions • Internal and external factors that stimulate desire and energy in people to be continually interested in and committed to a job, role or subject, and to exert persistent effort in attaining a goal. Motivation is the energizer of behaviour and mother of all action. It results from the interactions among conscious and unconscious factors such as the (1) intensity of desire or need, (2) incentive or reward value of the goal, and (3) expectations of the individual and of his or her significant others.” BusinessDictionary.com • “Motivation is the activation or energization of goal-orientated behavior. Motivation may be rooted in the basic need to minimize physical pain and maximize pleasure, or it may include specific needs such as eating and resting, or a desired object, hobby, goal, state of being, ideal, or it may be attributed to less-apparent reasons such as altruism, selfishness, morality, or avoiding morality. Conceptually, motivation should not be confused with either volition or optimism. Motivation is related to, but distinct from, emotion.” Wikipedia 37
    38. 38. © Norm Tasevski 38 In response to why people are not giving to the Pakistani flood in the same way as they did for Haiti, one woman said: “It’s a rogue state, if they can afford the nuclear bomb they can look after their own”
    39. 39. © Norm Tasevski 39 Costin Militaru, an outreach worker…has met addicts as young as 9 years old. "His family had no money for food. He was hungry and kept crying, so they fed him heroin," Militaru says. "If you're high, you don't need food.”
    40. 40. © Norm Tasevski 40 “On March 24, 1989, the Exxon Valdez ran aground in northern Prince William Sound, spilling 42 million liters of crude oil and contaminating 1,990 kilometers of shoreline. Some 2,000 sea otters, 302 harbor seals and about 250,000 seabirds died in the days immediately following the spill.”
    41. 41. © Norm Tasevski 41 A total of 32,700 different people stayed in Toronto's emergency shelters in 2005. 4,600 were children. Over half a million Toronto households live below the poverty line 1 in 10 homeless report attempted suicide in 2006
    42. 42. © Norm Tasevski 42
    43. 43. © Norm Tasevski So What Motivates The Social/Environmental Entrepreneur? “…it was an epiphanal experience…” Ray Anderson, Interface Carpets
    44. 44. © Norm Tasevski So What Motivates The Social/Environmental Entrepreneur? “I heard the same story again and again. Someone had experienced an intense kind of pain that branded them in some way. They said, „I had’ to do this. There was nothing else I could do.” Jody Jensen, Ashoka
    45. 45. © Norm Tasevski So What Motivates The Social/Environmental Entrepreneur? “…that made a real impression on me…” Jeff Skoll, eBay, Skoll Foundation, etc.
    46. 46. © Norm Tasevski So What Motivates The Social/Environmental Entrepreneur? “I was teaching in one of the universities while the country was suffering from a severe famine. People were dying of hunger, and I felt very helpless. As an economist, I had no tool in my toolbox to fix that kind of situation.” Mohammed Yunus, Grameen Bank
    47. 47. © Norm Tasevski So What Motivates The Social/Environmental Entrepreneur? “…powerful moments of inspiration…” Jacqueline Novogratz, Acumen Fund
    48. 48. © Norm Tasevski What about…
    49. 49. Introduction to Social Systems… 49
    50. 50. © Norm Tasevski What is a System? “A set of "Things” (people, organizations, objects…) that are interconnected in such a way that they form their own pattern of behaviour over time” Donella Meadows
    51. 51. © Norm Tasevski System Behaviour • A system creates/causes its own responses • Outside forces can influence system response, but don‟t cause the response • The same outside force that acts upon two different systems can therefore elicit two different responses • Example: the flu virus 51
    52. 52. © Norm Tasevski System Components 1. Elements 2. Interconnections 3. Functions/Purpose Example: Soccer (Football) 52 Elements Interconnections Purpose
    53. 53. © Norm Tasevski System Components • Elements – Tangible (people, buildings) – Intangible (team pride, learned skills) • Interconnections – Physical flows (e.g. objects moving) – Information flows (e.g. rules, instructions) • Function/Purpose – Intended responses (e.g. goal to win a soccer match) – Unintended responses (e.g. violence after a soccer match) 53
    54. 54. © Norm Tasevski Social Systems – the Unintended Responses 54 Social System Unintended Response •Health Care •Obesity •Spread of preventable disease • Education •High school dropout •High education costs • Transportation •Environmental damage •Inefficient movement of people •Food •Food insecurity •Food waste
    55. 55. © Norm Tasevski What is Not a System? • Anything with one or more of the components (e.g. elements, interconnections or function/purpose) missing 55
    56. 56. © Norm Tasevski “Mapping” a System 56
    57. 57. © Norm Tasevski Another Example 57
    58. 58. © Norm Tasevski What did we learn? 58

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