APS1015 Class 1: Introduction to Social Entrepreneurship and Social 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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APS1015 Class 1: Introduction to Social Entrepreneurship and Social Systems

  1. 1. APS 1015: Social EntrepreneurshipClass 1: Introduction to SocialEntrepreneurship and Social SystemsWednesday, May 8, 20131Instructors:Norm Tasevski (norm@socialentrepreneurship.ca)Karim Harji (karim@socialentrepreneurship.ca)
  2. 2. © Norm Tasevski & Karim Harji2
  3. 3. © Norm Tasevski & Karim HarjiBefore we begin…This course is designed for those that want to generatesocial change3
  4. 4. © Norm Tasevski & Karim HarjiCourse Director – Norm Tasevski4
  5. 5. © Norm Tasevski & Karim HarjiCourse Director – Karim Harji5
  6. 6. © Norm Tasevski & Karim HarjiWhat Makes YOUa Budding (Social)Entrepreneur???6
  7. 7. © Norm Tasevski & Karim HarjiAgenda•  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 week7
  8. 8. © Norm Tasevski & Karim HarjiSyllabus8
  9. 9. © Norm Tasevski & Karim HarjiClass Rules–  Participation - quality, notquantity!–  No stupid questions (onlystupid answers)–  Respect your classmates –attend and be punctual!9
  10. 10. Defining Social Entrepreneurship…10
  11. 11. © Norm Tasevski & Karim HarjiThe Roots of Social EntrepreneurshipIn the beginning…11Then…Private Sector•  Earn $•  Pay tax•  Donate to charityPublic Sector•  Collect tax•  Run programs•  Grant to charityNonprofit Sector•  Receivedonations/grants•  Run programsNonprofit Sector•  Donations•  Grants•  SustainabilityResponse? Nonprofit SectorPrivate SectorActivities
  12. 12. © Norm Tasevski & Karim HarjiCaveat…12Social Entrepreneurship is no longer anonprofit-only activity!!!
  13. 13. © Norm Tasevski & Karim HarjiTo Understand Social Entrepreneurship, weneed to understand entrepreneurship...13
  14. 14. © Norm Tasevski & Karim HarjiEntrepreneurs……are motivated14
  15. 15. © Norm Tasevski & Karim HarjiEntrepreneurs……are innovative15
  16. 16. © Norm Tasevski & Karim HarjiEntrepreneurs……are resourceful16
  17. 17. © Norm Tasevski & Karim HarjiEntrepreneurs……take chances17
  18. 18. How is Social EntrepreneurshipDifferent?18
  19. 19. © Norm Tasevski & Karim HarjiEntrepreneurs……are motivated …are resourceful …are risk takers…are innovative19
  20. 20. © Norm Tasevski & Karim HarjiBut, for the social entrepreneur……motivations are different20
  21. 21. © Norm Tasevski & Karim HarjiAnd……innovation is different21
  22. 22. © Norm Tasevski & Karim HarjiAnd……resourcefulness is different22
  23. 23. © Norm Tasevski & Karim HarjiAnd……risk taking is different23
  24. 24. © Norm Tasevski & Karim HarjiAn Example – “Civic Engagement, ScaledUp”24
  25. 25. © Norm Tasevski & Karim HarjiOther DifferencesFocus on “systemsthinking” and“systems change”:“Social entrepreneurs are not content just to give a fish orhow to teach fish. They will not rest until they haverevolutionized the fishing industry”Bill DraytonSeek “profit” intraditionallyunprofitable pursuits:“(Social entrepreneurs) work in areas where there is partial ortotal market failure…what distinguishes them is that they are preparedto strike a very different balance when it comes to creatingvalue for those who would not normally be ableto afford it”John ElkingtonPossess a strong“ethical impetus”:David Bornstein: “Why do you work on the kinds of projects you do? Why don’tyou 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 tolive. A project only makes sense to me when it proves useful to make peoplehappier and the environment more respected, and when itrepresents a hope for a better future. This is the soul of myprojects.” 25
  26. 26. © Norm Tasevski & Karim HarjiSome Definitions•  “Social entrepreneurs identify resources wherepeople only see problems. They view the villagers asthe solution, not the passive beneficiary. They beginwith the assumption of competence and unleashresources in the communities they are serving”David Bornstein•  “A social entrepreneur is someone who recognizesa social problem and uses entrepreneurial principlesto organize, create and manage a venture tomake social change”Wikipedia26
  27. 27. © Norm Tasevski & Karim HarjiWhat is a Social Enterprise?•  Organizations (non-profit or for-profit) that imbedboth social purpose and business purpose into theirorganization•  Returns are both Social (i.e. impact) & Financial (i.e.profit)•  Key distinguishing factors: Intent and motivation27
  28. 28. © Norm Tasevski & Karim HarjiThe SE Goal - Social vs. Financial PurposeSocial Purpose–  Creating a “social return” by making positive changewithin an inequitable social system•  Examples: Reduced Poverty, Improved LiteracyFinancial Purpose–  Creating a “financial return”, usually through the sale ofproducts/services in the marketplaceBlended Purpose–  Effecting social change by combining social and financialreturn–  Also called “Blended Value”28
  29. 29. © Norm Tasevski & Karim HarjiWhat SE is and is NotSocial 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 foroperations (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 distinguishingbetween both!)• Quick • A venture that may take several yearsto become profitable/sustainable29
  30. 30. © Norm Tasevski & Karim HarjiA test…30I am:•  A retailer•  Sells goods at rates affordable by low-income individuals•  Employs individuals with barriers toemployment•  Goals:–  92% of imported goods from greenfactories–  95% of waste redirected from landfill–  Desire to be supplied 100% byrenewable energy by 2015Social 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 in2009
  31. 31. © Norm Tasevski & Karim Harji31
  32. 32. © Norm Tasevski & Karim HarjiWhat does this mean?SocialEnterpriseCSR32SocialEnterpriseComplexity
  33. 33. Break33
  34. 34. Motivators for Social Entrepreneurs…34
  35. 35. © Norm Tasevski & Karim HarjiA Question…What motivates you??35
  36. 36. © Norm Tasevski & Karim HarjiSome Definitions•  Internal and external factors that stimulate desire and energy in people to becontinually interested in and committed to a job, role or subject, and to exertpersistent effort in attaining a goal. Motivation is the energizer of behaviourand mother of all action. It results from the interactions among conscious andunconscious factors such as the (1) intensity of desire or need, (2) incentive orreward value of the goal, and (3) expectations of the individual and of his orher 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 andmaximize pleasure, or it may include specific needs such as eating andresting, or a desired object, hobby, goal, state of being, ideal, or it may beattributed to less-apparent reasons such as altruism, selfishness, morality, oravoiding morality. Conceptually, motivation should not be confused witheither volition or optimism. Motivation is related to, but distinct from, emotion.”Wikipedia36
  37. 37. © Norm Tasevski & Karim Harji37In responseto whypeople arenot giving tothe Pakistaniflood in thesame way asthey did forHaiti, onewoman said:!!“It’s a roguestate, if theycan affordthe nuclearbomb theycan lookafter theirown”!!
  38. 38. © Norm Tasevski & Karim Harji38Costin Militaru, anoutreach worker…has met addicts asyoung as 9 yearsold. "His familyhad no money forfood. He washungry and keptcrying, so they fedhim heroin,"Militaru says. "Ifyoure high, youdont need food.”!!
  39. 39. © Norm Tasevski & Karim Harji39“On March 24, 1989,the Exxon Valdezran aground innorthern PrinceWilliam Sound,spilling 42 millionliters of crude oiland contaminating1,990 kilometers ofshoreline. Some2,000 sea otters,302 harborseals and about250,000seabirds diedin the daysimmediatelyfollowing thespill.”!
  40. 40. © Norm Tasevski & Karim Harji40A total of 32,700different peoplestayed in Torontosemergency sheltersin 2005. 4,600were children. !!Over half a millionTorontohouseholds livebelow the povertyline!!1 in 10 homelessreport attemptedsuicide in 2006!
  41. 41. © Norm Tasevski & Karim Harji41
  42. 42. © Norm Tasevski & Karim HarjiSo What Motivates The Social/Environmental Entrepreneur?“…it was an epiphanal experience…”Ray Anderson, Interface Carpets
  43. 43. © Norm Tasevski & Karim HarjiSo What Motivates The Social/Environmental Entrepreneur?“I heard the same story again and again. Someone hadexperienced an intense kind of pain that brandedthem in some way. They said, ‘I had’ to do this. There wasnothing else I could do.”Jody Jensen, Ashoka
  44. 44. © Norm Tasevski & Karim HarjiSo What Motivates The Social/Environmental Entrepreneur?“…that made a real impression on me…”Jeff Skoll, eBay, Skoll Foundation, etc.
  45. 45. © Norm Tasevski & Karim HarjiSo What Motivates The Social/Environmental Entrepreneur?“I was teaching in one of the universities while the country wassuffering from a severe famine. People were dying of hunger, and Ifelt very helpless. As an economist, I had no toolin my toolbox to fix that kind of situation.”Mohammed Yunus, Grameen Bank
  46. 46. © Norm Tasevski & Karim HarjiSo What Motivates The Social/Environmental Entrepreneur?“…powerful moments of inspiration…”Jacqueline Novogratz, Acumen Fund
  47. 47. © Norm Tasevski & Karim HarjiWhat about…
  48. 48. Introduction to Social Systems…48
  49. 49. © Norm Tasevski & Karim HarjiWhat is a System?“A set of "Things” (people, organizations, objects…) that areinterconnected in such a way that they form theirown pattern of behaviour over time”Donella Meadows
  50. 50. © Norm Tasevski & Karim HarjiSystem Behaviour•  A system creates/causes its own responses•  Outside forces can influence system response, butdon’t cause the response•  The same outside force that acts upon two differentsystems can therefore elicit two different responses•  Example: the flu virus50
  51. 51. © Norm Tasevski & Karim HarjiSystem Components1.  Elements2.  Interconnections3.  Functions/PurposeExample: Soccer (Football)51ElementsInterconnectionsPurpose
  52. 52. © Norm Tasevski & Karim HarjiSystem 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)52
  53. 53. © Norm Tasevski & Karim HarjiSocial Systems – the Unintended Responses53Social 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
  54. 54. © Norm Tasevski & Karim HarjiWhat is Not a System?•  Anything with one ore more of the components(e.g. elements, interconnections or function/purpose) missing54
  55. 55. © Norm Tasevski & Karim Harji“Mapping” a System55
  56. 56. © Norm Tasevski & Karim HarjiAnother Example56
  57. 57. © Norm Tasevski & Karim HarjiWhat did we learn?57

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