Social Entrepreneurship

Sustainable Strategies For Building Economic Self-reliance

Sponsored by:

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Agenda

5:30 ContextSocial Entrepreneur I

6:00 Mayan Tree 6:30 Introductions

Break 7:00 Entrepreneurship

Social Entrepreneur II - Support - Issues - Implementation

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BYU Center for Economic Self-Reliance

Create an Economic Self-Reliance Model

Enhance the Effectiveness of Practitioner Organizations

Recognize Interventions With Best ESR Impacts

Measure Success At Family Level

Economically Vulnerable Families

Economic Self-Reliance Model

ESR Practitioners

ESR Interventions

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Social Ventures

NGOs, nonprofits, governments, multilateral groups, churches, etc.

Microenterprise, direct foreign investment, education, business development, etc.

2/5th of the World

Economically Vulnerable Families

Economic Self-Reliance Model

ESR Practitioners

ESR Interventions

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Social Entrepreneurs

Social entrepreneurs combine the passion of A social mission

(explicit and central)

With business-like discipline, innovation, and determination

Mayan Tree

Introductions

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Entrepreneurs

The entrepreneur shifts economic resources out of an area of lower and into an area of higher productivity and greater yield.

- Jean Bapiste Say (19th Century Economist)

The function of entrepreneurs is to reform or revolutionize the patterns of production . . . By exploiting an invention or, more generally, an untried technological possibility for producing a new commodity or producing an old one in a new way, by opening up a new source of supply of materials or a new outlet for products, by reorganizing an industry and so on.

- Joseph Schumpeter (20th Century Economist)

The entrepreneur always searches for change, responds to it, and exploits it as an opportunity.

- Peter Drucker (Management Guru)

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Entrepreneurs

Entrepreneurs are innovative, opportunity-oriented, resourceful, value-creating change agents.

- Dees & Economy (Enterprising Nonprofits)

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Entrepreneur 10 D’s (Bygrave)

Dreamers Decisiveness Doers Determination Dedication Devotion Details Destiny Dollars Distribution

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Social Entrepreneurship

Social entrepreneurs play the role of change agents in the social sector, by:

Adopting a mission to create and sustain social value

Recognizing and relentlessly pursuing new opportunities to serve that mission

Engaging in a process of continuous innovation, adaptation, and learning

Acting boldly without being limited by resources currently in hand

Exhibiting a heightened sense of accountability to the constituencies served and for the outcomes created

Social entrepreneurs are not content just to give a fish, or teach how to fish. They will not rest until they have revolutionized the fishing industry.

- Bill Drayton (Ashoka)

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Social Entrepreneur Characteristics

They are constantly looking for new ways to serve their constituencies and to add value to existing services.

They are willing to take reasonable risk on behalf of the people that their organization serves.

They understand the difference between needs and wants.

They understand that all resource allocations are really stewardship investments.

They weigh the social and financial return of each of these investments.

They always keep mission first, but know that without money, there is no mission output.

(Peter Brinckerhoff)

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Social Entrepreneurship

Social entrepreneurship implies blurring of sector boundaries Nonprofit organization Social purpose

business ventures Hybrid organizations

mixing nonprofit and for-profit elements

Philanthropy, Hybrids, Commerce

Muhammad YunusGrameen Bank

Another Social Entrepreneur Example

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Grameen Bank

Combat Poverty Through Business

Grameen Bank

Microenterprise, Infrastructure, Businesses, Nonprofits

2.4 Million Families in Bangladesh

Economically Vulnerable Families

Economic Self-Reliance Model

ESR Practitioners

ESR Interventions

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Example: Grameen Family & Muhammad Yunus

Grameen For-ProfitGrameen Bank 1983Grameen Textile 1995Grameen Cybernet 1996Grameen Phone 1996Grameen Knitwear 1997Grameen Bitek 1998Tulip Dairy & Food Processing 1999Grameen Software 1999Grameen IT Park 2000

Grameen NonprofitGrameen Trust 1989Grameen Agriculture Found. 1991Grameen Uddog 1994Grameen Fund 1994Grameen Fisheries Foundation 1994Grameen Telecom 1995Grameen Shamogreen 1996Grameen Shakti (Energy) 1996Grameen Kalyan 1996Grameen Shikkha (Education) 1997Grameen Communications 1997Grameen Securities Mgmt 1998

Grameen BankLoans: General – 1976 Collective Enterprise – 1982 Housing – 1984

Basic Housing – 1987 Capital Recovery – 1990 Family – 1992 Seasonal – 1992Food Stock – 1992 Tube Well – 1992 Latrine – 1993Leasing – 1993 Supplementary – 1994 Cattle –

1994 Homestead Purchase – 1996 Pre-Basic Housing – 1996 Special General – 1997 Seasonal II – 1997 Seasonal III – 1997 Intermediate – 1997 Higher Education - 1997

Savings: Group Fund, Personal, Special, Current, Grameen Pension Scheme, Fixed Deposit

Grameen Phone:35% Grameen Telecom51% Telenor Invest AS (Norway)9.5% Marubeni (Japan)4.5% Gonophone (New York)

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Social Entrepreneur Support

Books How To Change The World, David Bornstein (anecdotal)

Enterprising Nonprofits, Dees, Emerson, & Economy Strategic Tools for Social Entrepreneurs, Dees,

Emerson, & Economy Social Entrepreneurship, Peter Brinckerhoff

Articles What is a Social Entrepreneur? The Meaning of “Social Entrepreneurship” Social Capitalists Five Social Enterprise Myths, Dispelled Famous Last Words of Failed Social Entrepreneurs

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Social Entrepreneurship Support Websites

www.ashoka.org, www.changemakers.net www.redf.org/links_general.htm www.socialvc.net www.skollfoundation.org/socialedge www.se-alliance.org www.schwabfound.org www.echoinggreen.org http://faculty.fuqua.duke.edu/centers/case/ www.hbs.edu/socialenterprise/ www.aspeninstitute.org www.socialent.org www.socialenterprisemagazine.org

Conferences National Gathering for Social Entrepreneurs Skoll World Forum on Social Entrepreneurship

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Social Entrepreneurship Issues

Mission / Vision Strategy Business Planning Accountability /

Impact Competition Opportunities Resources Innovation

Financial Management

Human Resources Governance Donors / Investors Scale Organizational

Change Risk

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Successful Entrepreneurs

Founders Focused Fast Flexible Forever Innovating Flat Frugal Friendly Fun

1st Class TeamNiches, SpecializationDecisions & Implement QuicklyOpen Mind, Respond to ChangeTireless InnovatorsFew Layers of ManagementOverhead Low, Productivity HighTo Customers, Suppliers, WorkersExciting Atmosphere

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Social Entrepreneurship Implementation

Mission Diagnostic Readiness Checklist Competitive Strategy Framework Business Plan SROI