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Social Entrepreneurship:
Challenges and Promises for the Next Decade
Mirjam Schöning, Schwab Foundation for Social Entrepreneurship
“Social Innovation” Conference
Rome, 7-8 October 2009
The Schwab Foundation
Objectives
1.
To be the foremost organization for
identifying, selecting and highlighting
accomplished social entrepreneurs at
the national, regional and global levels.
2.
To be an effective conduit between its
community of social entrepreneurs and
companies as well as governments.
3.
To build a global community of
outstanding social entrepreneurs and
others interested in promoting social
entrepreneurship, leveraging successes
of social entrepreneurs to achieve wider
impact for the public good.
Activities
•
•
•
Selection: 20-25 social entrepreneurs p.a
•
Regional selection in Africa, Latin
America, Europe, South-East Asia, South
Asia
•
« Social Entrepreneur of the Year » and
respective media partnerships established
in 15 key countries
Events / Connecting

Annual Meeting Davos / Dalian

6-8 Regional Meetings
Knowledge Building

Academic Activities (Case studies,
Executive Education)

Global Agenda Council & Global
Redesing Initiative
The Schwab Foundation Network
of the World’s Leading Social Innovators
Currently 160 organizations in
total
Main sectors:
• Education (47)
• Enterprise Development (40)
• Rural Development (37)
• Health (35)
• Environment (33)
• Children and Youth (28)
• Technology (21)
• Financial Inclusion (20)
• Housing (14)
• Agriculture (13)
• Trade (12)
• Energy (10)
• Waste Management (7)
• Water (7)
Type of social enterprise:
• 53 Social Business
• 89 Hybrid Non-Profit
• 32 Leveraged Non-Profit
Europe 40
Geographic spread:
Asia 39
USA and
Canada 24
Africa
11
Latin America
38
Middle East and
North Africa 12
Australia 2
Corporate Partnerships with Social
Entrepreneurs
Basic
Development
Supply Side/
Production
Demand Side/
Consumption
Linking Producers and markets:
•
Handicraft / Fashion
•
Fair trade
•
Agriculture
Examples:
•
SEWA & GAP, PeopleTree
•
TransFair USA, Max Havelaar
•
IDE India
•
IDEAAS, Brazil
Reducing production costs:
•
Medical technology
•
Agricultural devices
Examples:
•
Aravind Eye Hospital/ David Green
•
IDE India / KickStart (Africa)
The Case for Engaging with
Social Entrepreneurs
Basic
Development
Supply Side/
Production
Demand Side/
Consumption
Access to new markets /
Linking Companies and
Customers / BoP:
•
Financial services
•
Telecom
•
IT
Examples:
Rationale for engaging SE:
•
BoP markets are radically
different
•
Deep market knowledge of SE
•
Trusted Social entrepreneurs
have deep market knowledge
and are trusted
•
•
•
SKS Microfinance
CellBazaar
Center for Digital
Inclusion
What is a Social Entrepreneur?
Entrepreneurial
Founder of for-profit or not-for-profit
organization
Social Mission-driven
Employs business methods, but aims at
maximizing social or ecological impact.
Financial return is optimized.
Innovative
New products, services or approaches
driving social transformation.
Sustainable
Revenue through fees, sales of products
and services
Practical Visionary
Focus on implementation
The Social Entrepreneurship Spectrum
Combining social impact and
financial sustainability
financial return
social return
Companies with or
without CSR1) activities
Three types of social enterprises
1. Social Business
• "For-profit" organizations
• Financially self-sustainable and profitable
30 %
Charities / NGOs2)
SE
Social Entrepreneurs maximize social return
while optimizing financial return
1. Corporate Social Responsibility.
2. Non-profit-Organisationen.
Quelle: BCG-Analyse; Schwab Stiftung für Social Entrepreneurship
2. Hybrid Organizations
• Financing mix of earned income and
grants
• Typically a combination of different legal
forms
3. Leveraged Non-Profits
• Non-profit organizations
• Financing primarily through partnerships
with corporations, governments and
foundations
• Highly innovative and leveraged
approach
50 %
20 %
Social Entrepreneurship Spectrum
Social Business
Objective/ Mission
Degree of Innovation/
Social Change
Financial sources and
goals
Treatment of
investment/
Use of profits
Legal form
Hybrid Organization
Leveraged Non-Profit
• Social /ecological impact
maximization
• Social /ecological impact
maximization
• Social /ecological impact
maximization
• Adapting products and services
for marketability to the “base of
the pyramid”
• Involving marginalized as
producers and/or distributors
• Oriented towards scalability
• Testing innovative market-based
solutions
• Bringing products and services to
the “base of the pyramid”
• Highly innovative and social
change oriented
• Mobilizes a large number of
partners (corporate, government,
volunteers) for the cause
• Revenues through sale of products
or services
•At least loss free
• Generate revenue through sales of
products, services or fees
• Long-term reliability on a mix of
grants, (subsidized) loans and
equity investments
• Primarily reliant on grants and
partnerships
• Pay back principal
• Reinvest profits in the SB
• Grameen SB: no
dividends/interests
• Profits of one subsidiary either
reinvested or paid out to nonprofit entity
• No profits
• For-profit entity
• Combination of for-profit and
non-profit entities
• non-profit entity
Leapfrog Fund for
Technology Innovation Transfer
The Leapfrog Fund is supported by the Lemelson Foundation to stimulate the transfer and adaptation
of technological innovations developed by accomplished social entrepreneurs to alleviate poverty and
to provide access to clean water, energy, housing and sanitation in additional communities.
Five new transfer projects involving 11 social entrepreneur partners are being supported:
#
Organisation
Country
Organisation
Country
Technology Innovation
1
TARA / DA
India
Sewa Lanka
Sri Lanka
micro-enterprise housing
construction
2
IDEAAS
Brazil
Instituto Sertão
Vivo
Brazil
solar powered irrigation
systems for rural farming
India
water and sanitation systems
for rural villages
3
Gram Vikas
India
Comprehensive
Rural Health
Project
4
Waste
Concern
Bangladesh
SAIBAN
Pakistan
waste management and
recycling technology
5
Aravind Eye
Hospital
India
Fundación
Paraguay
FundacionVisión
Paraguay
sustainable eye-care services
for low income populations
BACK UP
Examples of Leading Social Entrepreneurs
Hybrid Organisation
Social Business
Leveraged Non-Profit
Organization: Sekem Group
Founder: Helmy Abouleish
Country: Egypt
Organization: Job Factory Basel
Founder: Robert Roth
Country: Schweiz
Organization: Teach for America
Founder: Wendy Kopp
Country: USA
Focus
Landwirtschaftsbildung,
Unternehmensentwicklung, Umwelt
Focus
Arbeitslosigkeit,
Jugendarbeitsbedingungen
Focus
Bildung
Innovation
Entwicklung innovativer biodynam.
Landwirtschaftsmethoden, Weiterbildung
& Qualifizierung
Innovation
Zweite Job-Chance für Jugendliche
mittels speziellem Praktikum mit
effizientem Coaching
Innovation
Hervorragende Graduierte bilden für die
Bildungsgleichberechtigung aller
Einkommensschichten
Strategie
15 profit- und marktorientierte
Ausbildungszentren mit unterschiedl.
Fokus (Informationstechnologien,
Gastronomie, Gitarrenbau etc.) zur
Berufsfindung und -qualifizierung
Strategie
Ausbildung von exzellenten Graduierten
zu bezahlten Lehrern von öffentl.
Schulen mit Aktionsfokus in sozial
schwächeren Regionen
Strategie
Anwendung "grüner" Leitlinien und
Technologien in Farms
Berücksichtigung sozialer & kultureller
Aspekte in Gesundheits- und
Bildungseinrichtungen
Quelle: Schwab Stiftung für Social Entrepreneurship, BCG-Analyse
Regional Selection Process
New Regional Selection Process
• Reduction of the Schwab Foundation
involvement in the national “SEOY” processes
• Focus on selecting the leading 2-5 social
entrepreneurs per region/continent p.a.





Latin America
Africa
Middle East
East and Southeast Asia
India
• Using the World Economic Forum regional
meetings as platform to highlight regional
winners
• Development of new partnerships
National “Social
Entrepreneur of
the Year” winners
Newly identified Soc.
Entrepreneurs from
other countries
2-5 regional
“Social Entrepreneur of
the Year” winners
Regional Selection Latin America
Rio de Janeiro, April 2009
Announcement of winners:
Name
Organization
Country
Sector
Veronica
Abud
Fundacion La
Fuente
Chile
Literacy programs
for children and
youth
Marta Arango
CINDE
Colombia
Early childhood care
and development
Andre
Cavalcanti de
Albuquerque
Terra Nova
Brazil
Resolution of land
conflicts and rights
Martin von
Hildebrand
Gaia
Amazonas
Colombia
Preservation of
Amazon rainforest
and empowerment
of indigenous
populations
Abbreviated List of Social Entrepreneurs
submitting GRI case studies
Poverty Eradication/ Rural Development
•
Agriculture risk insurance, BASIX
•
Low-cost energy solutions, Freeplay/SELCO
•
Land ownership reform, Rural Development
Institute
•
Solving the water scarcity crisis, IDE India
•
Investment fund for start-up social
enterprises, KickStart
•
Reversing the urban distress migration, Gram
Vikras
•
Unleashing the power of the SME sector,
TechnoServe
•
Universal access to credit, Kashf Foundation
Education/Human rights
•
Global literacy, Fundacion La Fuente
•
Universal socio-financial education for
children, Aflatoun
•
Creating an enabling environment for girls,
CAMFED/Fundacion Paraguaya
Health
•
Making medical technology affordable,
PATH/Aravind/David Green
•
Improving access to health services,
Riders for Health
•
Improving child nutrition, Un Kilo de
Ayuda
•
Neglected diseases, OneWorld Health
•
International patent reform, CAMBIA
Leapfrog Fund (2)
Phase I completed:
• Site visits, training of staff and beneficiaries, stakeholder consultations and buy-in, purchases of
equipment and project assessments and planning by the "importing" social entrepreneur.
• INSEAD initiated research of all 16 Leapfrog finalists discovered that 14 of the 16 replication
proposals stimulated by the Leapfrog Fund are in progress (despite not receiving Leapfrog funding).
Phase II in progress:
• The final 50% of the grants has been disbursed to facilitate the purchase of equipment and
employment of staff to implement and apply the new technologies.
• Some initial outcomes:
 Construction of sanitation facilities throughout all households in 2 villages in Jamkhed, Rajasthan.
 Construction of compost plant for solid waste management and recycling programs in low cost housing
development in Karachi, Pakistan
 Research & development of best low-cost solar irrigation model for rural agriculture in Brazil
 Production centre with equipment and trained staff established for production of earth blocks, roofing
and flooring tiles and certificate training of micro-entrepreneur builders in Batticaloa, Sri Lanka.