INDEV 308: Introduction to Social      Entrepreneurship                   Class 9: Social Entrepreneurship in the         ...
© Norm Tasevski & Karim Harji
© Norm Tasevski & Karim HarjiAgenda•   Ashoka•   Social enterprises in the developing world•   Impact investing•   Reviewi...
© Norm Tasevski & Karim HarjiThere are MANY issues in thedeveloping world…                                                ...
© Norm Tasevski & Karim HarjiTraditional approaches havehad relatively limited impact…                                    ...
© Norm Tasevski & Karim HarjiThe principles of socialentrepreneurship have a role to play…                           Resou...
© Norm Tasevski & Karim Harji… in educationSource: http://www.enterprisingschools.com/markets/global                      ...
© Norm Tasevski & Karim HarjiCrowdsourcing educational innovation:OpenIdeo + Grey Matters Capitalhttp://www.openideo.com/o...
© Norm Tasevski & Karim Harji                    9
© Norm Tasevski & Karim Harji… in healthSource: http://www.visionspring.org/what-we-do/why-eyeglasses.php                 ...
© Norm Tasevski & Karim HarjiVideo: Aravindhttp://www.youtube.com/watch?v=3cjnNPua7Ag                                     ...
© Norm Tasevski & Karim Harji… in agriculture                                     12
© Norm Tasevski & Karim Harji… in communication                                       13
© Norm Tasevski & Karim HarjiVideo: Ushahidihttp://vimeo.com/7838030http://www.ted.com/talks/erik_hersman_on_reporting   _...
© Norm Tasevski & Karim HarjiAn untapped (local) marketImages: http://bottom-of-pyramid.blogspot.com/2008/10/fortune-at-bo...
© Norm Tasevski & Karim Harji   Capital is often (perceived as) the key constraint to   growth… but… perhaps misalignment ...
© Norm Tasevski & Karim Harji The potential of impact investing“ Impact investing could expand to a $500  billion industry...
© Norm Tasevski & Karim HarjiThere is an emerging class ofimpact/social investors…                                        ...
© Norm Tasevski & Karim Harji… that is providing flexible capital(+ more) to these social enterprises                     ...
© Norm Tasevski & Karim HarjiAcumen Fund• http://www.youtube.com/watch?v=g-uhz0J3JTE                                      ...
© Norm Tasevski & Karim HarjiPatient Capital(ism) Jacqueline Novogratz (founder of Acumen Fund) – TED talk on “a third way...
© Norm Tasevski & Karim HarjiMarket-Minded Development• What did you find most interesting about the  Acumen Fund’s approa...
© Norm Tasevski & Karim HarjiAcumen Fund: Student Leaders Workshop• http://www.acumenfund.org/investment-  story/acumen-fu...
© Norm Tasevski & Karim HarjiThe Impact Investing Marketplace  Source: Monitor Institute (2008) “Investing for Social & En...
Break        25
© Norm Tasevski & Karim HarjiMicrofinanceMicrofinance as a subset of impact investing…with a 40 year track recordImages:ht...
© Norm Tasevski & Karim Harji“The promise of microfinance”The (previously) unbankable now have…• Access to credit• Underst...
© Norm Tasevski & Karim HarjiThe growth of the microfinance industrySource: http://blogs.cgdev.org/open_book/2010/02/chart...
© Norm Tasevski & Karim HarjiAn industry in crisis?                                           29
© Norm Tasevski & Karim HarjiLet’s revisit these assumptions…The (previously) unbankable now have…• Access to credit• Unde...
© Norm Tasevski & Karim HarjiState of the industrySource: “Microfinance Banana Skins 2011: Losing Its Fairy Dust”, http://...
© Norm Tasevski & Karim HarjiAssessing the impact of microfinanceSource: http://blogs.cgdev.org/open_book/2009/06/roodman-...
© Norm Tasevski & Karim HarjiInvesting in microenterprises vs SMEs• Which is “better”? Why?• Under what conditions?• How d...
© Norm Tasevski & Karim HarjiSo what does this add up to?• Market-based approaches can (and must) have a role  to play alo...
© Norm Tasevski & Karim HarjiSmart or Right? Thinking like a Philanthropistand Investing in Social Impact• http://nextgenc...
© Norm Tasevski & Karim HarjiThe 2nd Online Video AssignmentExpectations  – 2-5 minutes  – Explain your business model:   ...
© Norm Tasevski & Karim HarjiNext week• Lecture on the Enabling Environment for Social  Entrepreneurship• Guest lecture by...
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INDEV308 Class 9 - Social Entrepreneurship in the International Development Context

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Theory: What are the key trends and issues being addressed in the development of social enterprise and entrepreneurship in the developing world?

Practice: What range of organizations are actively engaged in social enterprise and entrepreneurship in the developing world? What are the unique considerations for these ventures?

http://www.socialentrepreneurship.ca/indev308/

Published in: Business, Economy & Finance
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INDEV308 Class 9 - Social Entrepreneurship in the International Development Context

  1. 1. INDEV 308: Introduction to Social Entrepreneurship Class 9: Social Entrepreneurship in the International Development Context Monday, July 4, 2011Instructors:Norm Tasevski (norm@socialentrepreneurship.ca)Karim Harji (karim@socialentrepreneurship.ca) 1
  2. 2. © Norm Tasevski & Karim Harji
  3. 3. © Norm Tasevski & Karim HarjiAgenda• Ashoka• Social enterprises in the developing world• Impact investing• Reviewing the Video Assignment• Next Week 3
  4. 4. © Norm Tasevski & Karim HarjiThere are MANY issues in thedeveloping world… 4
  5. 5. © Norm Tasevski & Karim HarjiTraditional approaches havehad relatively limited impact… 5
  6. 6. © Norm Tasevski & Karim HarjiThe principles of socialentrepreneurship have a role to play… Resourcefulness Motivation Innovation Risk Taking 6
  7. 7. © Norm Tasevski & Karim Harji… in educationSource: http://www.enterprisingschools.com/markets/global 7
  8. 8. © Norm Tasevski & Karim HarjiCrowdsourcing educational innovation:OpenIdeo + Grey Matters Capitalhttp://www.openideo.com/open/how-might-we-increase-the-availability-of-affordable-learning-tools-educational-for-children-in-the-developing-world/ 8
  9. 9. © Norm Tasevski & Karim Harji 9
  10. 10. © Norm Tasevski & Karim Harji… in healthSource: http://www.visionspring.org/what-we-do/why-eyeglasses.php 10
  11. 11. © Norm Tasevski & Karim HarjiVideo: Aravindhttp://www.youtube.com/watch?v=3cjnNPua7Ag 11
  12. 12. © Norm Tasevski & Karim Harji… in agriculture 12
  13. 13. © Norm Tasevski & Karim Harji… in communication 13
  14. 14. © Norm Tasevski & Karim HarjiVideo: Ushahidihttp://vimeo.com/7838030http://www.ted.com/talks/erik_hersman_on_reporting _crisis_via_texting.html 14
  15. 15. © Norm Tasevski & Karim HarjiAn untapped (local) marketImages: http://bottom-of-pyramid.blogspot.com/2008/10/fortune-at-bottom-of-pyramid-2.htmlhttp://www.thehindubusinessline.in/life/2004/11/26/stories/2004112600140300.htm 15
  16. 16. © Norm Tasevski & Karim Harji Capital is often (perceived as) the key constraint to growth… but… perhaps misalignment is the issueSource: Alex Nicholls and Cathy Pharoah (2008) The Landscape of Social Investment,http://www.sbs.ox.ac.uk/centres/skoll/research/Pages/landscapeofsocialinvestment.aspx 16
  17. 17. © Norm Tasevski & Karim Harji The potential of impact investing“ Impact investing could expand to a $500 billion industry in the next decade.”-- Monitor Institute“… a potential investment opportunity between $400 billion and $1 trillion with potential profits between $183 billion and $667 billion in the next decade…”-- JP Morgan 17
  18. 18. © Norm Tasevski & Karim HarjiThere is an emerging class ofimpact/social investors… 18
  19. 19. © Norm Tasevski & Karim Harji… that is providing flexible capital(+ more) to these social enterprises 19
  20. 20. © Norm Tasevski & Karim HarjiAcumen Fund• http://www.youtube.com/watch?v=g-uhz0J3JTE 20
  21. 21. © Norm Tasevski & Karim HarjiPatient Capital(ism) Jacqueline Novogratz (founder of Acumen Fund) – TED talk on “a third way to think about aid” http://www.ted.com/talks/jacqueline_novogratz_a _third_way_to_think_about_aid.html 21
  22. 22. © Norm Tasevski & Karim HarjiMarket-Minded Development• What did you find most interesting about the Acumen Fund’s approach?• What challenges or opportunities mentioned in the article do you think will be most critical?• What do you think success looks like for the Acumen Fund? How would you measure it? 22
  23. 23. © Norm Tasevski & Karim HarjiAcumen Fund: Student Leaders Workshop• http://www.acumenfund.org/investment- story/acumen-fund-student-leaders-workshop.html 23
  24. 24. © Norm Tasevski & Karim HarjiThe Impact Investing Marketplace Source: Monitor Institute (2008) “Investing for Social & Environmental Impact, A Design for Catalyzing an Emerging Industry”, http://www.monitorinstitute.com/impactinvesting/ 24
  25. 25. Break 25
  26. 26. © Norm Tasevski & Karim HarjiMicrofinanceMicrofinance as a subset of impact investing…with a 40 year track recordImages:http://southeastasia.foreignpolicyblogs.com/2011/05/27/the-poverty-of-microfinance/http://simran.crownpac.net/blog/2007/05/04/microfinance-%E2%80%93-a-zero-sum-game/ 26
  27. 27. © Norm Tasevski & Karim Harji“The promise of microfinance”The (previously) unbankable now have…• Access to credit• Understand how to use creditAnd have demonstrated…• An ability to repay in full, and on time• Through peer pressure, no collateral requiredSo that…• Money can be recycled for further lending• Create businesses and economic growth• Empower people and improve social conditions 27
  28. 28. © Norm Tasevski & Karim HarjiThe growth of the microfinance industrySource: http://blogs.cgdev.org/open_book/2010/02/charting-growth.php 28
  29. 29. © Norm Tasevski & Karim HarjiAn industry in crisis? 29
  30. 30. © Norm Tasevski & Karim HarjiLet’s revisit these assumptions…The (previously) unbankable now have…• Access to credit• Understand how to use creditAnd have demonstrated…• An ability to repay in full, and on time• Through peer pressure, no collateral requiredSo that…• Money can be recycled for further lending• Create businesses and economic growth• Empower people and improve social conditions 30
  31. 31. © Norm Tasevski & Karim HarjiState of the industrySource: “Microfinance Banana Skins 2011: Losing Its Fairy Dust”, http://www.cmef.com 31
  32. 32. © Norm Tasevski & Karim HarjiAssessing the impact of microfinanceSource: http://blogs.cgdev.org/open_book/2009/06/roodman-morduch-2009.php 32
  33. 33. © Norm Tasevski & Karim HarjiInvesting in microenterprises vs SMEs• Which is “better”? Why?• Under what conditions?• How do (or would) we know? ** Draw on the reading by Aneel Karnani, and Serge’s talk earlier in the semester 33
  34. 34. © Norm Tasevski & Karim HarjiSo what does this add up to?• Market-based approaches can (and must) have a role to play alongside traditional approaches to aid. But there will sometimes be tensions between them…• There will always be a need for traditional grant-making because you can simply not expect a financial return for all situations e.g. humanitarian disasters• Impact investing and microfinance are approaches that are challenge traditional notions of risk and return by adding a 3rd dimension: (social) impact• The principles of social entrepreneurship can be applied to traditional approaches in order to help them scale even more successfully. This depends on balancing the financial and social tensions, and taking into account the local context… 34
  35. 35. © Norm Tasevski & Karim HarjiSmart or Right? Thinking like a Philanthropistand Investing in Social Impact• http://nextgencharity.com/talks/sasha_dichter_sma rt_or_right 35
  36. 36. © Norm Tasevski & Karim HarjiThe 2nd Online Video AssignmentExpectations – 2-5 minutes – Explain your business model: • How the customer “experiences” your product/service (“here’s how it works…”) • Why the customer will be willing to pay for your product/service (instead of the alternative – e.g. a competitor’s product or some other substitute product) • How you make money • How your model achieves social/environmental goals – Think of this video as a “practice run” for your final pitch – Use of visual aides is a bonus, but not necessary 36
  37. 37. © Norm Tasevski & Karim HarjiNext week• Lecture on the Enabling Environment for Social Entrepreneurship• Guest lecture by Jennifer King, Executive Director of Social Venture Partners Waterloo Region 37

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