cmns 485 sfu
TRANSCRIPT
CREATIVITY AND SOCIAL ENTREPRENEURSHIP Problem solving and opportunity creation
Wes Regan & Paola Qualizza March 5th 2015CMNS 458 Simon Fraser University
WHAT PROJECT OR IDEA ARE YOU WORKING ON?
SOCIAL INNOVATION (CREATIVITY)A RESPONSE TO WICKED PROBLEMS?
• Wicked Problems (Planning/Sociology Term) are:● extremely complex● sometimes hard to understand the causes of● most often extremely difficult to solve● Karl Marx (socialist revolution) aside…
• Can be created by or made worse through:● Lack of political will or ideologically based policy creation● Competing interests ● Market Failures (Vancouver housing…)● Loss of an industry or economic shock/restructuring● Public health crisis (disease, aging etc.)● Natural disaster, war, famine● Time
INNOVATION VS SOCIAL INNOVATION
INNOVATION VS SOCIAL INNOVATION
SOCIAL INNOVATION
What can be done NOW?
• Finding unique solutions to social problems or social needs where government (public sector) or the market (private sector) has failed to
• Often requires a non-profit or for-profit venture of some kind that can bring together elements of public and/or private sector, formal/informal/social economy to take a different approach
• BUT can also take place within government or a single NGO or business
• Examples…
Entrepreneurship
Entrepreneurship is the process of starting a business or other organization. The entrepreneur develops a business model, acquires the human and other required resources, and is fully responsible for its success or failure..
•Social Innovation + Entrepreneurship = Social Entrepreneur
LOHA- A SOCIAL INNOVATION RESPONSE TO VANCOUVER’S AFFORDABLE HOUSING CRISIS
LOHA- A SOCIAL INNOVATION RESPONSE TO VANCOUVER’S AFFORDABLE HOUSING CRISIS
THE SHARING ECONOMY – NEW WAYS OF BUYING AND OWNING
CROWDFUNDING - NEW WAYS OF FINANCING FUNDRISE (U.S.) - REAL ESTATE DEVELOPMENT
DEMOCRATIZATION OF FINANCE & DEVELOPMENT?
SOCIAL ENTERPRISE
•Understood to have begun in the late 1980s early 1990s (with respect to earlier entrepreneurial charitable models as far back as the 1800s.
•A response to government de-funding the social safety net and more financial pressure on charities to deliver public benefits
•Much ambiguity today (Typology)●Social Purpose Business●Social Venture ●Social Impact Business ●Community Contribution Company ●Enterprising Non-Profit
EMPLOYMENT BASED SOCIAL ENTERPRISEMISSION POSSIBLE, POTLUCK CAFÉ AND CATERING
SKILL DEV/WOMEN’S HEALTH/ECONOMIC JUSTICE BASED SOCIAL ENTERPRISE
East Van Roasters
Common Thread Sewing Cooperative
MICRO-ENTERPRISE FOCUSED SOCIAL ENTERPRISES
SOCIAL ENTERPRISE REVENUE GENERATOR TO SUPPORT NON-PROFIT OR CHARITY
For-Profit Social Impact Business
B-Corp (Benefit Corporation)
COOPERATIVES
• Founded on the idea that people know what is best for themselves
• Highly democratic structure• Often used to deliver social services,
sometimes as non-profit organizations
Examples:• Worker-owned: Urban Shift Delivery, Victory Gardens, The
Wood Shop
• Consumer-owned: MEC, housing coops, credit unions
• Producer-owned: farmers, artists, professional services
FINANCIAL CONSIDERATIONS
• Blended ROI• Social ROI• Patient Capital (longer timeframe for
profitability)• Absorption of additional costs (33% Est.
Shahmash, 2010) • Tax credits (ENP, Buy Social)• Social Impact Bonds• Community Bonds • Reporting and monitoring • Emerging Procurement Policies?
FUNDING AND RESOURCES FOR STARTUPS
• For-profit• 3F (Friends, Family and Fools) Debt financing (loans, line of credit),
equity raise (Eligible Business Corporation, issue shares to investors – tax creditable for EBC) Crowdfunding (Indiegogo, Kickstarter) Futurpreneur, Small Business BC, Angel Investor (the Unicorns of the investment world) LUSH FUNd
• Non-profit● Foundations - Vancity Community Foundation,
Vancouver Foundation, the Real Estate Foundation, Mconnell Foundation, Central City Foundation, Tides Foundation, Ashoka, Lush
● Government Granting Agencies – Provincial (Proceeds of Crime, BC Gaming) City of Vancouver (Direct Social Services Grants, DTES Capital Grants, Social Innovation Fund,
● Greenest City) Federal Government – Arts Council, IRAP (technology)
THE PIPELINE/ECOSYSTEM• Groundswell• RADIUS, ISIS (UBC), THNK• Futurepreneur• Ashoka (BC Ideas)• DTES Community Investment Fund (BOB)• Community Futures (Regional ED in BC)• Small Business BC• WESBC• IRAP• Tides• Vancity• DevCo (BC Co-op Association)• Foundations/Government Grants• BDC/investors (scaling up)
GROUNDSWELL: GRASSROOTS ECONOMIC ALTERNATIVES
• Building a more democratic economy• Addressing youth un/underemployment &
social isolation• Creating an ecosystem of
support for social enterprises and community projects
Community & ClubhouseHard & Soft Skills
MentoringVisit the café at 566 Powell
St!
GROUNDSWELL OFFERS PROGRAMS BASED ON THREE INTERWEAVING THREADS:
GROUNDSWELL VENTURES LOOK AT INCREASING VALUE BESIDES $$ AND ORGANIZE DEMOCRATICALLY
The Wood Shop Co-op
upcycled custom wood furniture
Living LegendsRaw and living food products & education
The Plant CollectivePlant thift shop, seed library and gardening
workshops
THE TRIALS AND TRIBULATIONS OF ENTREPRENEURSHIP….
...AND SOCIAL ENTREPRENEURSHIP IN PARTICULAR!
WHAT DOES IT TAKE?
CREATIVITY (and patience, and risk, and thick skin, and determination and…)
SOME FOOD FOR THOUGHT FOR STARTUPS RISK, FAILURE AND LEARNING
• Part of entrepreneurship is assuming risk• It’s ok to be a little bit scared or intimidated, this
is totally natural, but the more you validate your assumptions (or prove them wrong and pivot) the more confidence you will gain
• Don’t be afraid to fail...but remember you are accountable and responsible and your decisions and actions will impact people
• But if you do, embrace it fully as a learning opportunity
• For social entrepreneurs you are taking on additional challenges as running a “regular” business is hard enough as it is!
RADIUS – FAILURE WAKE 2013
BUT DON’T BE AFRAID OF SUCCESS EITHER!
CONCLUSIONBE PRESENT AND EMBRACE THE PROCESS, BE CURIOUS, BE HONEST, BE HUNGRY
Thank you, happy to be here with you!
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