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GRAMEEN & OTHER BEST PRACTICES
By: Mark Thornton & Marina Kusumawardhani
SOCIAL ENTREPRENEURSHIP
ABOUT
Generation Social: Social Entrepreneurship Academy
Mission: Social entrepreneurship/business training Fund mobilization Focus: youth & women Public awareness!
US-based company; founded 2012 in Vienna.
ABOUT (2)
Social Entrepreneurship best-practices Expert Team Youth:
Creativity Leadership
Community: Demand-driven Experiential Engagement Partnership with stakeholders
Fund mobilization Organizational transformation
GEN Y
Which generation are you?
GEN Y (2) The way we work/produce
in the future => new trends
New work-force globally: 2,3 billions
Work method: Immediate
achievement + appreciation
Impatient/anxious No hierarchy Success = joy and
fun Time/place flexibility
Keywords: digital, collective mindset, sharing, participation, collaboratively, WIP, learning new skills
Engaging (professionalism)
Purpose Passion + job
=> 54% entrepreneurs!
PHILOSOPHY
Private Sector – Citizen Sector Capitalism – Socialism => equal
chance/opportunity Transformation from inside + financial
sustainability
SOCIAL ENTREPRENEURSHIP
Vision Identify and recognize social
problems => social change Using entrepreneurial principles to
create social venture Performance = profit + social
return History
Literature 1960s Michael Young 1950s: more than
sixty social enterprise (“world’s most successful social entrepreneur” – Harvard)
“In my case, I like to support causes where
"a lot of good comes from a little bit of good," or, in other words, where the
positive social returns vastly exceed the
amount of time and money invested.”
ASHOKA Founded 1981 by Bill Drayton Identify and support social entrepreneurs
through social venture capital Goal: citizen sector business sector Operate in > 70 countries, >2000 SEs, “Youth Venture” => invests in team of
young people 11 out of 30 Forbes’ under 30 SEs
James Whelton (Coder Dojo): 10,000 kids in 22 countries
Sejal Hathi: 3 enterprises to help young girls in >100 countries
Hugh Evans: 2012 Global Citizen concert in Central Park
“Social entrepreneurs will not be content by giving a fish or
teaching how to fish; they will not stop until they revolutionize the
whole fishing industry.”
GRAMEEN BANK Founded 1976 27$ from own pocket for 42
women Today: $11,35 billion, >8
million borrowers 68% crosses line of poverty
(19 thousand out of 111tsd beggars)
95% return rate Social business: 97% by
borrowers, 3% by government.
Youth: social business is 70% creativity.
“Whenever I see problems in the society, I create business out of
it.”
ACUMEN/SKOLL/BAREFOOT Acumen Fund:
Global venture fund for entrepreneurial approaches Jacqueline Novogratz (2001). Seed Capital from Rockefeller, Cisco
Systems, philanthropists. Patient capital – loans or equity, not grants $83 million investments (2012), in 46 enterprises (100 million people
and created 58000 jobs) Skoll Foundation:
Social entrepreneurship foundation Jeff Skoll (eBay) (1999) Investing in, connecting & celebrating SEs Invests through annual Skoll Award for SE Media projects: Uncommon Heroes short films Skoll Centre for Social Entrepreneurship at Oxford Uni, international
forum and conferences
ACUMEN/SKOLL/BAREFOOT (2) Barefoot College:
Voluntary organization => empowerment & sustainability
Founded 1972, Bunker Roy 3000 children attending 150 night
schools, trained >3 million people for jobs
Gandhi philosophy: each village being self-reliant (medical, energy, etc)
Solar systems to illiterate poor women => no degree
Partners with UNESCO and UNDP for solar training replication
Formulas for change! Individuals Network Funding Replication/best-practices Media/recognition
“We went to Ladakh … and we asked this woman, ‘What was the benefit you had from solar electricity?’ And she thought for a minute and said, ‘It’s the first time I can see my husband’s face in winter.’”
INTEGRATION INTO DEVELOPMENT PROJECTS Sustainability:
Market/feasibility studies: Sense of belonging Cultural sensitivity and
awareness Business model:
Initial investment: affordability of individual projects
Payback plan Aid/grant vs. investment No monitoring =>
involvement of local private companies, or local NGOs
Price competition model Cash flow models Revenue model: grid, CDM,
etc
=> Entrepreneurship
Develop-ment Project
InvestmentBusiness Models
Awareness & Market
Study
UN Mission
INTEGRATION INTO DEVELOPMENT PROJECTS (2)
Innovative Business Models
Sustainable Financial incentives
Price Competition
Project Design
Investment & Private Sector Participation
RRE Strategic
Outcome 1
RRE Strategic
Outcome 2Local Capacity
Building
RRE Strategic
Outcome 3
Energy Entrepreneurs
Business Skills
Independent Power Producer
Rural Energy Enterprises
Business Partnerships
INTEGRATION INTO DEVELOPMENT PROJECTS (3)
Business Plan
Identify Interest
Identify Energy Price
Structure
Identify Employment
Identify Fuel
Identify Energy Needs
Planning Stage
Management Agreement
Setting-up RES
Social Entrepreneurship Capacity Building Technical Capacity Building
Implement-ing
Stage
Organizing Stage
Feasibility Study
Investment/Loan
Agreement
Staffing
MonitoringStage
Business Implementa
tion
Evaluation
Payback Monitoring
Government Inducement
INVESTMENT SCHEME • Challenges:
Involving /engaging FIs and partners,
Knowledge and awareness, Beyond project duration.
• Looking for innovative projects for renewable energy enterprises:
Evidence based Replication of success stories
• 3 topics: IT/business –social entrepreneurship/renewable energy.
• Question: how to engage private sector?? => high investment return
• Support of conventions, advocates, to back UN agencies to Government Egypt example
INVESTMENT SCHEME (2)
• Investment 2011: 257 billion USD
• SE4ALL (in Rio 20+): >50 billion USD
Create Green industry & job
UN Agencies
Government
Social Business
Community
Fund/Donor Organization (GEF)
Financial Institutions/
/Development Bank
Value Generation
MDG REALIZATION POTENTIALConcrete Deliverables through
Projects Portfolio by the end of 2018
Number of people gaining access to energy: >150,000
Renewable energy capacity installed: ~25MW
Renewable energy generated: > 450 GWh/year
Million tons of CO2eq avoided: >7 million tons direct
Number of SMEs benefitting from projects: >600
GSSB – Bangladesh (in 10 years)
Number of people gaining access to energy: 8 million
Renewable energy capacity installed: 55 MW
Renewable energy generated: 87 GWh/year
Million tons of CO2eq avoided: 68,000 tonnes/year
Number of SMEs (Micro-utlity) from projects: 3395
Total employees: 12,521 (16,500 trained technicians, 433,556 users)
64 out of 64 districts, 50,000 villages => Green Sustainable
Country
SHS 1,066,487 (>23500 SHSs/ mo), ICS: 619,734, Biogas: 24,798
CASE STUDY (Uganda Plan)
2 Years existing Electrical Installation Course
Training in agro-processing
RE Technologies Systems/Operation/Maintenance
Agro-processing technologies
Entrepreneurship and Business Skills
Capacity Development
Rural Energy and Agro processing Enterprises
Business Incubation and other Support
Revolving Fund
Technical Support
Finance /Credit
UNIDO
Social Entrepreneurship
Academy
CREEC IFI/bank
EGYPT PLAN
CASE STUDY (2) (Egypt Plan)
BeneficiariesMain Actors
Youth/SEs
ILO Branches
Existing SEs
Community
NGOs
SE Training
IFIs
Gov’t
GenSoc ILO
Preparatory Capacity Building
Main Organizers
Implementation and M&E
Concept Note
Endorsement
SE &Technical Training
Incubators/Unis
Monitoring and Evaluation
Technical Training
““Dignity is more important to the human spirit than wealth. When people gain income, they gain choice, and that is fundamental to dignity.”- Jacqueline Novogratz
QUESTIONS?