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Social Business in India


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Social Business in India, present and future

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Social Business in India

  1. 1. Social Entrepreneurship Page 1
  2. 2. Why?......bcoz India is already one of the biggest players….• Page 2
  3. 3. • Muhammed Yunus - Social Business.mp4 Page 3
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  7. 7. What Is Entrepreneurship?Process of creating value by bringing together a unique package of resources to exploit an opportunity Page 7
  8. 8. Defining „social entrepreneur‟– Development change agent working in the market as an arena– Innovative, opportunity-seeking, resourceful person, group or institution– Leads creation of enterprises, enterprise systems or enterprise development programs demonstrating positive development impact Page 8
  9. 9. The New Buzzword: Social EntrepreneurshipSo, is social entrepreneurship basically entrepreneurship regardless of the context?Or is “social entrepreneurship” something truly different? Page 9
  10. 10. What Is Social Entrepreneurship?Nonprofits making money Page 10
  11. 11. What Is Social Entrepreneurship? Nonprofits making moneyFor-profits doing things to show they are not evil Page 11
  12. 12. Nonprofits making money What Is Social Entrepreneurship?For-profits doing things to show they are not evilProcess of creating value by bringing together a unique package of resources to exploit an opportunity, in pursuit of high social returns Page 12
  13. 13. The only big difference betweencommercial and social entrepreneurship: Denomination of the returns Social and commercial entrepreneurship have most of the same characteristics Page 13
  14. 14. Do Social Entrepreneurs “look” like Any Other Entrepreneur Social concern, but also: Innovativeness Achievement orientation IndependenceSense of control over destiny Low aversion to risk Tolerance for ambiguity Page 14
  15. 15. Traits of a successful social entrepreneur• Willingness to self connect• Willingness to share credit• Willingness to break free of established structures• Willingness to cross disciplinary boundaries• Willingness to work quietly• Strong ethical impetus Page 15
  16. 16. The Main Difference: The Measurement Problem• What is bottomline? Economic profit? Or something more?• How do we count it?• What is “social return on investment” for venture philanthropists?• Can we compare investments? Page 16
  17. 17. Focusing on Social ImpactSocial entrepreneurs are driven by a social mission, implying that:Success is defined by creating the intended social impact, not simply by Economic value creation for owners, managers, and employees, or Consumption value for customersSuccess in achieving this impact is both Hard to measure in timely, reliable, cost- effective ways, and Open to dispute due to value differences Page 17
  18. 18. • Social Entrepreneurs_ Pioneering Social Change.mp4 Page 18
  19. 19. So why does socialentrepreneurship matter? Page 19
  20. 20. What Solutions do we have Today• Government – alone is not the answer – Inefficiencies, slow, bureaucratic, prone to corruption….• Nonprofit Orgs. – inadequate – dependent on donations (uncertain, demand far exceeds supply) – “compassion fatigue” – Raising money takes time and energy, which can be spent planning growth/expansion• Multilateral Institutions (World Bank…) - ineffective – Conservative, slow, under-funded, unreliable – Success is measured by a) GDP (might not be helping poor) b) Volume of loans negotiated (not measuring impact) – Exclusively work with the government• Corporate Social Responsibility – still evolving – “as long as it can be done without sacrificing PROFITS” Page 20
  21. 21. New kind of Business Social Business Enterprise– Creating business models revolving around low-cost products and services to resolve social problems– Social business is for „more-than- profit’ as it combine revenue generating business with a social- value-generating structure– Have 2 characteristic • Unlimited potential for scalability • Limited capital requirement Page 21
  22. 22. How can you do business and serve social goals?Why is profit-making not conflicting with social objectives?Profits - – Promotes R&D, innovation, new technologies – Increases efficiency – Enables penetration to new geographical areas and serve deeper layers of low-income people – Helps recover costs and pay back investors, thus encourages investmentsPMBs (profit max. businesses) vs. SBs (social businesses)How they are same yet different – Employ workers, create goods & services for consumers – Must recover full costs – Profits are important – YET objective is to create social benefit and not limited to personal gainsCan there be a HYBRID i.e. 60% PMB and 40% SB?? Page 22
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  25. 25. Social Entrepreneurship Is a National Priority• Continued prosperity requires private solutions to social problems and unmet needs • Social ventures • Private support for these venture Page 25
  26. 26. Contrast with BusinessBusinesses also create social impacts, both positive and negative, typically – As unintended side-effects that – Play a relatively minor role in organizational decision makingTheir social benefits result from an “invisible hand,” not by designSuccess is commonly defined in terms of private value creation (usually profit)Market discipline helps to reinforce private value creation Page 26
  27. 27. Limits of Market DisciplineSocial sector customer and capital markets are less effective at ensuring intended social impact as:  Intended beneficiaries frequently do not pay full cost  Payers cannot easily assess the social impact or the efficiency of operations  Comparisons across organizations are inherently problematic  Rewards to resource providers are not reliably correlated with performance Page 27
  28. 28. Thus, Social Entrepreneurs . . .Adopt a mission to create sustained positive social impactRelentlessly pursue opportunities to serve this missionContinuously innovate, adapt, and learnAct boldly, not constrained by resources currently in hand, andExercise self accountability for cost- effectively serving the social mission Page 28
  29. 29. Growing Need for MBA SkillsUsed wisely business skills can: Create more sustained impact Shift philanthropic resources to more appropriate uses Leverage those resources Improve financial strength and capacity of social sector organizations Enhance efficiency and effectiveness Page 29
  30. 30. MBAs Can Add Value, but….It is crucial to Respect the work of those in your field Be sensitive to the limits of markets and business methods Manage potential risks and challenges Prepare for resistance and skepticism Learn your chosen field well Consider blended /hybrid solutions Follow your passion! Page 30
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  32. 32. • TAPMI Leadership Lecture 2011 - Harish Hande.mp4 Page 32