measuring the social + economic impact of investing in entrepreneurship in emerging markets
DESCRIPTION
Thierry Sanders, Founder and Director - BiD Network - The NetherlandsTRANSCRIPT
Social Entrepreneurship
&
Metrics in developing
countriesTBLI - Nov 12th 2009
Social Entrepreneurship
For profit?or
Not-for profit?
Social Entrepreneurship?
Social entrepreneurship is the work of a social entrepreneur. 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. Whereas a business entrepreneur typically measures performance in profit and return, a social entrepreneur assesses success in terms of the impact s/he has on society as well as in profit and return. While
social entrepreneurs often work through nonprofits and citizen groups, many now are working in the private and governmental sectors and making important impacts on society.
Source:Wikipedia
Dilemmas in metrics
• The not-for profits …. which goals ?• Do multinationals contribute to development ?• The maximisation of X ?• SMEs in developing countries … some ideas
Not-for profits: which goals?• Jobs• Homes• Access to energy• Women• Biodiversity• Happines• Revenue generation• ….. Efficient use of funds
?
www.socialevaluator.eu
Do multinationals contribute to development ?
www.mdgscan.com
The maximisation of X
• Access to clean energy (E+Co, GVEP)• Access to drinking water (Aguas Claras)• Micro-credits (Oikocredit)• Real medicine (Medicine Shoppe-Acumen)• Internet connections for all (InfoDev, IICD)• ….
BiD Network: Maximising SMEs started & jobs created (per Euro of budget)
9
www.bidnetwork.org
[2] Matchmaking
[1] Sourcing,
assessment& coaching
Entre-preneurs
[3]Investment
Services
FinancedSMEs
Self-startedSMEs
Investors, brokers &
banks
Experts &Coaches
7000
500 100
250
50
Since 2005 …300 SMEs started and created 3000 direct jobs= €15,000 per SME and €1500 per job
Job creation efficiencies• Joint Strike Fighter € 5 million / job• Green energy jobs(Spain) € 500,000 / job• Spanish private sector € 250,000 / job• Obama’s package € 150,000 / job• Dutch re-employment € 70,000 / job• BiD Network € 1,500 / job• ICCO € 1,000 / job• ProCredit € 300 / job
Focus on jobs can be deadly
Sales
Jobs2:1
5:3
Sales
Jobs2:1
3:1
Sales are the key to sustainable jobsProfits
Profits
Sales growth (& jobs) arethe USP of an SME
MNCs 8% max.
SMEs 25-27% for multiple years
Micros 200% in 1st months, then 0%
BiD Network is testing a webbased system for developing country SMEs
Sales
Jobs
Investment
Country
Input-Output table
Indirect jobs
Jobs for the poor
Cash to the poor
Take-Away
• www.socialevaluator.eu• www.mdgscan.com• Global impact investing network (look for IRIS)
THANK YOU !